Home / Crime and Justice / Ex-Aspiration CEO Gets 14 Years for Investor Fraud
Ex-Aspiration CEO Gets 14 Years for Investor Fraud
2 Jun
Summary
- Co-founder sentenced to 14 years for defrauding investors.
- Allegedly created fake revenue, duping investors out of millions.
- Cooperated with NBA probe into LA Clippers cap circumvention.
Joseph Sanberg, co-founder of Aspiration, has been sentenced to 14 years in prison for wire fraud. He admitted to deceiving investors, reportedly creating fake revenue and customers to secure loans totaling $145 million in 2021.
Sanberg's case intersected with an NBA investigation into the LA Clippers concerning salary cap circumvention. Aspiration was central to allegations that the team improperly rewarded star Kawhi Leonard. Sanberg, though not a formal executive, influenced deals, including a marketing contract and equity for Leonard.
Prosecutors stated Sanberg was responsible for at least $248 million in losses. He reportedly provided substantial assistance to the NBA's investigation. However, a lawyer for Clippers owner Steve Ballmer questioned Sanberg's credibility due to his fraud conviction.
Victims shared devastating financial losses during the sentencing hearing, with one losing 50 percent of their net worth. Sanberg apologized for his actions, though a victim reported receiving a text message from him during the trial asking to influence testimony.
