Joseph Sanberg Gets 14-Year Prison Sentence in Fraud Case
Joseph Sanberg was sentenced Monday to 14 years in prison after pleading guilty to two counts of wire fraud tied to Aspiration. Federal prosecutors said joseph sanberg used fake customers and false revenue to dupe investors, and that he was responsible for at least $248 million in losses.
The sentence sends the Aspiration co-founder into federal prison as the case moves toward a restitution hearing set for July 20. Sanberg also sat at the center of an NBA inquiry that examined whether Aspiration was used to help reward Kawhi Leonard beyond salary-cap rules.
Aspiration and the NBA inquiry
Prosecutors said Sanberg took out $145 million in loans in 2021 with the cooperation of another member of Aspiration’s board of directors. They also said Kawhi Leonard received a four-year, $28 million marketing deal at Sanberg’s direction and $20 million in equity in the company.
Sanberg did not hold a formal executive role at Aspiration, but prosecutors said he played an influential role in the company. The NBA launched its own investigation in September, and Sanberg later spoke with lawyers from Wachtell Lipton, the firm leading the league’s review.
Victim losses and defense claims
Several victims spoke at a sentencing hearing last month. One said he lost 50 percent of his net worth. Another said she lost $90,000 and that the loss wiped out her retirement account. A third man said he and his wife invested all of their available capital and estimated $685,000 in losses.
Sanberg told victims, “Since the day I was arrested, I started the process of atonement.” David Anders wrote to the judge in April that Sanberg substantially assisted the NBA investigation, while a lawyer for Clippers owner Steve Ballmer said his testimony should be treated with skepticism.
July 20 restitution hearing
Stephen Wilson imposed the 14-year sentence, which equals 168 months, after Sanberg pleaded guilty last year to two counts of wire fraud. Marc Mukasey asked the judge for leniency, and the case now returns to court on July 20 for the restitution hearing.
