California Democratic activist and multimillionaire Joseph Sanberg was arrested Monday on charges that he conspired to defraud investors of at least $145 million through his “green” finance company, Aspiration Inc.
Sanberg, 45, co-founded Aspiration Partners, Inc., a financial and sustainability services company that marketed itself as an eco-friendly banking alternative. Backed by Hollywood actors Leonardo DiCaprio and Robert De Niro, the company claimed to offer climate-conscious financial services while allowing users to “do good” with their money.
However, federal prosecutors allege that Sanberg orchestrated a massive fraud scheme, falsified financial statements, and secured loans under false pretenses, ultimately causing millions in investor losses.
The Allegations
Joseph McNally, Acting U.S. Attorney for the Central District of California, announced that Sanberg’s arrest follows an unsealed plea agreement from Aspiration board member Ibrahim AlHusseini.
According to the agreement, Sanberg directed and assisted AlHusseini in fabricating financial documents to deceive investors. One fraudulent statement claimed an account held $199 million, when in reality, it contained just $2,693.63.
Sanberg then used these falsified documents to obtain $145 million in loans. Prosecutors say he knew AlHusseini lacked the assets to cover the debt if he defaulted—which he ultimately did, leading to massive financial losses.
Political and Business Background
Sanberg, an early investor in Blue Apron, has long positioned himself as an anti-poverty advocate and progressive political donor. He championed raising California’s minimum wage to $18, spending $10 million on a failed ballot initiative. He was also credited with expanding the Earned Income Tax Credit (EITC), which extended benefits to undocumented immigrants.
Sanberg considered a presidential run in 2024 and pushed for higher taxes on the wealthy, branding himself as a champion of the Green New Deal and economic justice.
His business, Aspiration Inc., marketed itself as a “climate-friendly” banking platform, urging customers to reject traditional Wall Street firms in favor of a progressive financial alternative. The company’s slogan—“clean rich is the new filthy rich”—targeted environmentally conscious investors.
Co-Conspirator and Democratic Connections
Ibrahim AlHusseini, who pleaded guilty to financial fraud, has deep ties to Democratic donors and activist organizations. He has contributed over $300,000 to Democratic candidates, served on the board of anti-Israel group CodePink, and was praised by the Sierra Club for proving that “reversing the climate crisis can be profitable.”
Legal Consequences
Sanberg now faces serious federal charges. If convicted, he could be sentenced to decades in prison. The case raises further scrutiny of progressive investment firms and the financial ethics of climate-focused banking platforms.
