UPDATE: Joseph Sanberg, co-founder of Aspiration, has officially pled guilty to two counts of wire fraud in a federal court in downtown Los Angeles. This urgent development comes as part of a broader investigation tied to an NBA scandal involving the LA Clippers.
During the hearing on October 23, 2023, Sanberg admitted to his role in defrauding investors out of a staggering $248 million. Each count carries a maximum sentence of 20 years in prison, with sentencing set for February 23, 2026, at 11 a.m. PST.
The court proceedings were largely procedural, as Sanberg had previously agreed to plead guilty. His attorney, Marc Mukasey, stated, “Mr. Sanberg was working to bring about a prosperous and successful company… We agree that he stepped over the line.” This admission raises critical questions about corporate ethics and accountability.
Aspiration, a once-prominent green banking company, declared bankruptcy earlier this year. It had secured a $300 million sponsorship deal with the Clippers in September 2021, which included advertising at the team’s new arena in Inglewood, California, as well as a separate $28 million sponsorship with Clippers star Kawhi Leonard.
Reports indicate that the NBA is investigating allegations that the Clippers, under owner Steve Ballmer, may have violated salary cap regulations in relation to Leonard’s sponsorship deal. Notably, in the same month Aspiration announced its partnership with the Clippers, Ballmer invested $50 million into the company.
Outside the courtroom, Sanberg declined to comment on whether he conspired with Ballmer to bypass NBA salary cap rules. Mukasey refrained from discussing specifics regarding the ongoing NBA investigation, saying, “We’re just happy that we got through today’s proceeding and that Joe accepted responsibility for what he’s charged with. Other matters may play out in the future. We’ll see.”
This case highlights the intertwining of sports, finance, and integrity in business practices. As the investigation unfolds, stakeholders and fans alike will be watching closely to see how the NBA responds to these serious allegations.
The implications of this plea could resonate far beyond just Sanberg and Aspiration, potentially affecting the reputation of the Clippers and the broader NBA ecosystem. Stay tuned for more updates as this story develops.
