A sentencing hearing was delayed Monday until June 1 for the co-founder of a now-bankrupt digital bank who admitted plotting to fleece investors out of $248 million.
Joe Sanberg, 46, of Orange, pleaded guilty in October 2025 in downtown Los Angeles to two federal counts of wire fraud.
Sanberg and his “environmentally conscious” bank Aspiration are accused of having signed Los Angeles Clippers star Kawhi Leonard to a $28 million marketing contract as a way to circumvent the league’s salary cap.
Clippers owner Steve Ballmer posted on X that he was “duped” by Sanberg when he invested in Aspiration five years ago. Ballmer also posted a copy of a five-page letter his attorneys sent to U.S. District Judge Stephen Wilson — who will sentence Sanberg — asking for a penalty that accounts for the damage the Clippers owner incurred to his reputation.
Prosecutors are recommending a 17-year prison term, followed by three years of supervised release, while defense attorneys are asking Wilson to impose a lighter sentence.
Court filings show Sanberg participated in the NBA’s investigation into possible salary cap circumvention by the Clippers, a serious violation of league rules. Ballmer’s attorney questioned the value of whatever information Sanberg provided.
“Sanberg continues to exploit his fraud of Mr. Ballmer for his benefit, providing information to the NBA in return for a sentencing letter that the league submitted on his behalf,” David Kelley, the lawyer for Ballmer, wrote to the judge. “The reliability of Sanberg’s information is suspect given that he has pleaded guilty to federal fraud charges, and the government has made its own determination that he is not credible.”
Aspiration sold itself as a socially conscious online banking company, offering investments and focusing on the climate crisis. The Marina del Rey firm also generated and sold carbon credits meant to help offset greenhouse gas emissions.
According to court filings, Aspiration’s eco-friendly pitch attracted celebrity investors including Robert Downey Jr., Orlando Bloom, Leonardo DiCaprio and Ballmer, the former Microsoft chief executive, philanthropist and owner of the Clippers, before the banking company filed for bankruptcy in March 2025.
Documents lodged in L.A. federal court show Sanberg devised a scheme in 2020 to use his role as a co-founder and board member of Aspiration as well as his shares of company stock to defraud lenders and investors.
Sanberg and fellow Aspiration board member Ibrahim AlHusseini promised shares of Sanberg’s stock to two lenders to obtain $145 million in loans, according to the U.S. Department of Justice. The board members falsified bank and brokerage statements to inflate AlHusseini’s assets by tens of millions of dollars to secure the loans, the DOJ said.
AlHusseini, 52, of Venice, pleaded guilty in March 2025 to wire fraud for falsifying documents that aided in the scheme and is awaiting sentencing.
Ballmer, who invested $60 million in Aspiration, has denied he had knowledge of any wrongdoing by the company. The Clippers have also denied any wrongdoing in connection with the alleged Aspiration endorsement deal with Leonard, a two-time NBA champion and two-time Finals MVP.