Aspiration Cofounder Joseph Sanberg Pleads Guilty to $248M Wire Fraud in Los Angeles Court

Joseph Sanberg, cofounder of the green banking startup Aspiration Partners, pleaded guilty to two counts of wire fraud tied to a scheme that defrauded investors of $248 million by inflating the company's financial statements to appear more successful. Aspiration attracted high-profile investors and promoted environmentally focused financial services but ultimately collapsed into bankruptcy amid the fraud. The company had notable celebrity backers, including Steve Ballmer, Drake, and Leonardo DiCaprio, and was involved in a controversial $28 million sponsorship deal with NBA star Kawhi Leonard, which is now under investigation for potentially circumventing NBA salary cap rules. Sanberg's attorney stated that Sanberg committed the crimes out of a desire to help the company succeed but acknowledged he crossed legal boundaries. Sentencing is scheduled for February 23, 2026, and Sanberg faces up to 40 years in prison. The controversy has also drawn scrutiny towards Clippers owner Steve Ballmer, who invested heavily in Aspiration and may have been involved in the salary cap circumvention investigation.