Joseph Sanberg, co-founder of sustainability-driven fintech Aspiration, has agreed to plead guilty to wire fraud charges in connection with a scheme that defrauded lenders and investors of more than $248 million, according to the U.S. Attorney’s Office in California.
Sanberg, once celebrated for his anti-poverty activism and backed by investors including Leonardo DiCaprio, Orlando Bloom, and Robert Downey Jr., now faces up to 40 years in prison. Prosecutors say he disguised payments to falsely inflate Aspiration’s revenue, forged a letter overstating the company’s cash holdings, and pledged stock to obtain more than $145 million in loans.
Authorities also allege Sanberg worked with board member Ibrahim AlHusseini to exaggerate assets in order to secure financing. Aspiration later defaulted on those loans twice, leaving victims with hundreds of millions in losses.
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“This so-called activist has admitted to being nothing more than a self-serving fraudster,” Acting U.S. Attorney Bill Essayli said in a statement. Sanberg is expected to formally enter his plea in the coming weeks.
