Aspiration Co-Founder Joseph Sanberg Gets 14 Years for $248 Million Wire Fraud

6 articles · Updated · The New York Times · Jun 2

Joseph Sanberg was sentenced to 14 years in federal prison after pleading guilty to two wire-fraud counts tied to fundraising at Aspiration; prosecutors said the scheme caused at least $248 million in losses.
Prosecutors said Sanberg and another Aspiration board member obtained $145 million in loans in 2021 by fabricating customers and revenue, misleading investors about the company's financial condition.
Victim testimony shaped the sentencing record: one investor said he lost 50% of his net worth, another lost $90,000 in retirement savings, and a third estimated losses of $685,000.
Sanberg also remains central to the NBA's Clippers cap-circumvention probe, in which investigators said he substantially assisted their review, while Steve Ballmer's lawyer argued his statements were unreliable because of the fraud case.
A restitution hearing is set for July 20, leaving the financial penalties unresolved even as the prison sentence closes the criminal case's main chapter.

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