Aspiration Co-Founder Joseph Sanberg Pleads Guilty to Fraud

UPDATE: Aspiration co-founder Joseph Sanberg has officially pled guilty to two counts of wire fraud in federal court in Los Angeles, marking a significant development in a scandal linked to the LA Clippers. This urgent case unfolds as Sanberg faces up to 20 years in prison for each count, with sentencing set for February 23, 2026, at 11 a.m. PST.

Sanberg entered his plea on Monday, acknowledging his involvement in a scheme that defrauded investors of $248 million. His attorney, Marc Mukasey, stated that Sanberg acted out of a desire for Aspiration to succeed, admitting, “Mr. Sanberg was working to bring about a prosperous and successful company…We agree that he stepped over the line.”

The case is particularly urgent as it intertwines with an ongoing NBA investigation into the Clippers and their owner, Steve Ballmer, who is accused of potentially circumventing the salary cap through a sponsorship deal involving Clippers star Kawhi Leonard. In September 2021, the Clippers entered a $300 million, 23-year sponsorship agreement with Aspiration, which included jersey patch placements and signage in their new arena in Inglewood, California.

Just four months later, Aspiration secured a separate $28 million sponsorship deal with Leonard. The NBA is scrutinizing whether these transactions violated league rules, raising critical questions about financial governance in the sport. Notably, Ballmer invested $50 million in Aspiration in the same month the sponsorship deal was announced, according to journalist Pablo Torre.

Outside the courtroom following the plea, Sanberg declined to comment on the ongoing NBA investigation, redirecting inquiries to Mukasey, who chose not to address whether Sanberg would cooperate with the investigation led by the law firm Wachtell Lipton, Rosen & Katz. Mukasey stated, “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.”

As the legal proceedings unfold, the implications for both Sanberg and the LA Clippers are far-reaching. With the NBA investigation still active, fans and investors alike are eager for further developments in this high-profile case.

Stay tuned as we continue to monitor this story for updates that could reshape the landscape of professional basketball and corporate accountability.