CALIFORNIA — The U.S. Department of Justice announced on August 21, 2025, that Joseph Neal Sanberg, 46, co-founder of Aspiration Partners, has agreed to plead guilty to a massive fraud scheme that resulted in over $248 million in losses for investors and lenders.
Sanberg, a self-described “anti-poverty” activist from Orange, California, has been charged with two counts of wire fraud, each carrying a maximum sentence of 20 years in federal prison.
“This so-called ‘anti-poverty’ activist has admitted to being nothing more than a self-serving fraudster,” said Acting U.S. Attorney Bill Essayli. “He sought to enrich himself by defrauding lenders and investors out of hundreds of millions of dollars.”
Fraud Scheme: 2020–2025
Sanberg co-founded Aspiration Partners, a financial technology and sustainability services firm offering banking, investment, and carbon offset products. From 2020 to 2025, he allegedly used his position and company stock to orchestrate a series of fraudulent acts aimed at securing loans and investment capital.
Between 2020 and 2021, Sanberg and board member Ibrahim AlHusseini secured $145 million in loans using false bank statements and pledging overvalued stock.
From 2021 onward, Sanberg secretly funneled his own money into Aspiration’s accounts, disguising the payments as customer revenue from tree-planting and sustainability services.
To further the illusion of growth, Sanberg recruited outside entities to sign letters of intent to appear as paying customers, while he was the actual source of the funds.
He also instructed Aspiration staff not to contact these “customers,” fearing exposure of the deception.
Aspiration went on to record these payments as legitimate revenue between March 2021 and November 2022, which significantly inflated the company’s financials and helped attract additional investors.
Sanberg also distributed fraudulent financial documents, including a fake audit committee letter falsely claiming Aspiration had $250 million in cash, when it had less than $1 million in reality.
Consequences
These schemes allowed Sanberg to illegally secure millions in loans and investments, ultimately leading to over $248 million in losses for banks and investors.
He has agreed to plead guilty and is awaiting sentencing. If convicted on both counts, Sanberg faces up to 40 years in federal prison, along with significant financial penalties.
No additional charges have been filed against Ibrahim AlHusseini as of the DOJ’s announcement.
