Aspiration Co-Founder Joseph Sanberg Arrested in $145 Million Fraud Case

Sanberg and a co-conspirator allegedly falsified financial documents to secure massive loans, resulting in significant investor losses.

Joseph Sanberg, co-founder of Aspiration Partners, was arrested on federal charges of conspiring to defraud two investment funds of at least $145 million.
Sanberg and Ibrahim AlHusseini, a former Aspiration board member, allegedly used falsified financial documents to secure loans backed by Aspiration stock, despite knowing AlHusseini lacked sufficient assets to cover obligations.
AlHusseini pleaded guilty to wire fraud and admitted to receiving $12.3 million from the scheme; he is scheduled for sentencing in September 2025.
The fraudulent activities led to significant financial losses for two investment funds, with Sanberg defaulting on loans in 2022 and 2023.
Aspiration, a sustainability-focused finance company backed by high-profile investors, is under additional scrutiny for potential misrepresentation of its business practices and financial health.