Joseph Sanberg Pleads Guilty in Fraud Case Involving the Clippers
In a news story that shakes the basketball world, Joseph Sanberg, co-founder of Aspiration, formally pleaded guilty to two counts of wire fraud in a federal court in Los Angeles. Each charge carries a maximum penalty of 20 years in prison. Sentencing is scheduled for February 23, 2026. The Monday hearing was a formality, as Sanberg had previously agreed to plead guilty to his involvement in a scheme that defrauded investors of $248 million. During the hearing, Sanberg’s lawyer, Marc Mukasey, stated that Sanberg committed the crimes because “he loved Aspiration and wanted it to do well.” Mukasey added that Sanberg was working to build a thriving and successful company, but “went too far.” The case involves the LA Clippers, as Aspiration, a green banking company that declared bankruptcy this year, announced in September 2021 a 23-year, $300 million sponsorship deal with the team. The agreement included signage in the Clippers’ new stadium in Inglewood, California, and a jersey patch. Four months later, Aspiration signed a separate $28 million sponsorship deal with Clippers star, Kawhi Leonard. The NBA is investigating whether the Clippers and their owner, Steve Ballmer, violated league rules by circumventing the salary cap to compensate Leonard. In September 2021, the same month the Clippers announced their agreement with Aspiration, Ballmer invested $50 million in the California-based company. Outside the court after Monday’s hearing, Sanberg declined to comment to reporters and referred questions to his lawyer, who declined to answer whether Sanberg conspired with Ballmer to circumvent NBA salary cap rules through Leonard’s sponsorship deal.Mukasey did not respond to a follow-up question about whether Sanberg would cooperate with the NBA’s investigation, which is being led by the law firm Wachtell Lipton, Rosen & Katz.We are not going to comment on that at this time. We are pleased that we have gotten through today’s proceedings and that Joe has accepted responsibility for what he is accused of. Other matters may develop in the future. We’ll see.
Marc Mukasey
