According to the Justice Department, Joseph Sanberg, co-founder of fintech company Aspiration, has pleaded guilty to two counts of wire fraud in connection with a $248 million scheme that defrauded investors and lenders.
Sanberg now faces up to 20 years in prison per count, meaning he could serve up to 40 years behind bars.
The fraud took place between 2020 and 2025 and included several deceptive tactics.
Sanberg and Associate Ibrahim AlHusseini secured $145 million in loans by pledging stock and falsifying asset documents.
He also misrepresented revenue by hiding that he was the source of much of the company’s income and used fake letters to inflate Aspiration’s financial health.
Ultimately, victims, including lenders and investors, lost over $248 million.
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