On Monday, Joseph Sanberg, the billionaire co-founder of the financial services firm Aspiration, found himself on the other side of a federal courtroom in downtown Los Angeles. He pleaded guilty to two counts of wire fraud. That admission of guilt marks the beginning of a larger criminal, civil and administrative investigation. Horrifyingly, authorities have begun investigating fraudulent Ponzi schemes that bilked constituents out of an incredible $248 million. Sanberg’s sentencing hearing is set for February 23, 2026 at 11 a.m. PST.
Sanberg’s attorney, Marc Mukasey, told the Journal that his client “committed these crimes as a result of a harmless nerdy crush on Aspiration.” Mukasey emphasized that Sanberg “loved Aspiration and wanted it to do well,” suggesting that his intentions were not purely malicious.
Those legal troubles for Sanberg and Aspiration have only worsened in the last year. Earlier this year, the company filed for bankruptcy. This decision followed a string of financial blunders and scandals tied to its sponsorship agreements. Aspiration was eyeing the newly vacated $300 million (over 23 years) sponsorship deal with the LA Clippers. Like most jersey sponsorships, this deal includes enticing signage elements in the team’s new home arena in Inglewood, California. Four months after the Clippers deal with Aspiration, the firm entered a $28 million sponsorship agreement with NBA star Kawhi Leonard.
In September 2021, Aspiration gained more notoriety with the announcement that former Microsoft CEO Steve Ballmer had invested $50 million into the company. Combined with these high-profile investments and partnerships, the firm found itself unable to get on (or keep on) solid financial footing.
The NBA has launched an inquiry into the circumstances leading to Sandberg’s actions, as well as the financial practices of Aspiration. The investigation, which is in the form of a class action lawsuit, is being conducted by the law firm Wachtell Lipton, Rosen & Katz. As that investigation continues, Mukasey would not comment on whether Sandberg would be cooperating with the NBA’s probe.
Each count of wire fraud comes with a maximum penalty of 20 years behind bars. Sanberg’s change of heart comes with significant legal ramifications. These consequences have the potential to greatly change both his future and his legacy within the financial industry.
“We’re not going to comment on any of that right now. We’re just happy that we got through today’s proceeding and that Joe accepted responsibility for what he’s charged with. Others matters may play out in the future. We’ll see.” – Marc Mukasey
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