"The feds said Sanberg took steps to make Aspiration Partners look more financially successful than it was, including a letter from Aspiration's audit committee that falsely suggested the company had $250 million in cash and cash equivalents. It actually had less than $1 million in ready cash. Sanberg used these fraudulent financial materials to obtain millions of dollars in loans and investments, prosecutors said."
"Sanberg is also being sued by the Securities and Exchange Commission, which said the fintech founder enlisted friends, business associates, and others to help him artificially boost the company's financial prospects. The SEC's civil suit claims he did this by having people sign "letters of intent" - or contracts saying they would pay Aspiration between $25,000 and $750,000 regularly for tree-planting and other environmental services. Sanberg told these customers that they wouldn't have to pay for these services"
Joseph Sanberg pleaded guilty to two counts of wire fraud related to a scheme prosecutors say defrauded investors of $248 million. Sanberg cofounded Aspiration Partners, a green banking startup that offered environmentally focused financial services and attracted high-profile backers including Steve Ballmer and Leonardo DiCaprio. The company announced a 2021 SPAC plan expected to value it at $2.3 billion, but the deal was called off in 2022. Prosecutors say Sanberg circulated false financial materials, including a bogus audit committee letter claiming $250 million in cash when less than $1 million was available, and used those materials to secure loans and investments. Sanberg faces up to 40 years in prison, with sentencing set for February 23, 2026. The SEC has filed a civil suit alleging additional deceptive practices involving signed "letters of intent" and promises that customers would not have to pay for services.
Read at Business Insider
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