'Fintech fraud': Wirecutter founder pleads guilty to $248 million scheme
Joseph Sanberg, co-founder of fintech startup Aspiration, is set to plead guilty to wire fraud after faking the company's finances and misleading investors and lenders between 2020 and 2025.
He claimed Aspiration had $250 million in cash and other liquid assets when it actually had less than $1 million available, fabricating revenue with forged documents.
The scheme led to losses topping $248 million.
Sanberg faces 40 years in prison
Alongside board member Ibrahim AlHusseini, Sanberg secured $145 million in loans by falsely inflating assets and pledging company shares.
They even got companies to sign up for tree-planting deals without disclosing payments came from Sanberg's own entities.
Arrested in March 2025, Sanberg now faces up to 40 years behind bars—20 years for each count—and will soon enter his formal guilty plea in Los Angeles federal court.
All this comes as a shock given Aspiration's eco-friendly image and backing from major investors like Orlando Bloom, Leonardo DiCaprio, and Robert Downey Jr.