LOS ANGELES (Diya TV) — Joseph Sanberg, co-founder of the now-bankrupt green banking company Aspiration, was sentenced Monday to 14 years in federal prison for a massive fraud scheme that cost investors and lenders hundreds of millions of dollars.
The sentence came after Sandberg pleaded guilty to two counts of wire fraud. Federal prosecutors said he fraudulently obtained loans, falsified financial records, and misled investors in a scheme involving about $248 million. The case has also drawn attention because Aspiration is at the center of an ongoing NBA investigation involving the Los Angeles Clippers and star forward Kawhi Leonard.
U.S. District Judge Stephen V. Wilson delivered the sentence in federal court in downtown Los Angeles. Wilson strongly criticized Sandberg’s actions. He described the fraud as one of the worst cases he had seen during his decades on the federal bench.
“The circumstances of this case are among the worst I’ve ever seen,” Wilson said during the hearing.
The judge rejected arguments from Sanberg’s defense team that the businessman acted without greed or personal benefit. Wilson said Sandberg profited from the fraud and caused significant harm to investors and lenders. According to the judge, Sanberg became “greedy, brazen” and continued the deception for years. Wilson also dismissed efforts to minimize the severity of the crimes. He said the fraud ranked at the highest level of seriousness.
Sanberg’s lead attorney, Marc Mukasey, argued against a lengthy prison sentence. Mukasey told the court that Sanberg was not motivated by greed. He said his client wanted to help Aspiration succeed and support environmental causes. The defense requested a punishment that would avoid prison. Mukasey described Sanberg as “a good person who did a bad thing.”
Federal prosecutors disagreed. They sought a sentence of 212 months, or nearly 18 years in prison. Wilson ultimately imposed a 14-year sentence.
Before sentencing, Sandberg addressed the court and apologized for his conduct. He said he was deeply sorry for the damage he caused and admitted that he had lost his moral direction while trying to keep the company afloat.
“I broke the law,” Sanberg told the court.
He also acknowledged making serious mistakes and expressed regret to those affected by the fraud. As he concluded his remarks, Sandberg became emotional and repeatedly apologized.
Sanberg helped launch Aspiration in 2013. The company promoted itself as an environmentally focused digital banking and financial services platform. The startup attracted high-profile supporters, including actors Robert Downey Jr., Orlando Bloom, and Leonardo DiCaprio. It also partnered with major corporations such as Meta and Microsoft. Aspiration grew rapidly and secured large business deals. However, the company later faced financial troubles and eventually filed for bankruptcy. The fraud case exposed serious financial misconduct within the company and led to significant investor losses.
The case has attracted additional attention because of Aspiration’s relationship with the Los Angeles Clippers. In 2021, Aspiration announced a 23-year endorsement agreement worth $300 million with the Clippers. The company later signed a reported $28 million sponsorship deal with Kawhi Leonard. Reports later suggested the Leonard agreement may have been used to bypass NBA salary cap rules. Those allegations prompted the league to open an investigation.
Clippers owner Steve Ballmer invested $60 million in Aspiration. According to a letter submitted to the court, Ballmer lost his entire investment. The letter stated that Ballmer was misled by Sandberg and urged the court to impose a sentence that would discourage similar fraud schemes. Sanberg also cooperated with NBA investigators. Attorneys leading the league’s investigation said he participated in interviews and provided documents that helped clarify key events.
Sanberg will begin serving his prison sentence later this year. His voluntary surrender date is set for Aug. 17. After completing his prison term, he will remain under supervised release for three years. The court has scheduled a restitution hearing for July 20. That proceeding will determine how much money Sandberg must repay to the victims.
