The Democrat-backing multimillionaire founder of a “climate-friendly banking” startup — whose celebrity investors included Leonardo DiCaprio, Orlando Bloom and Drake — was arrested by federal authorities this week for allegedly conspiring to defraud investors.
Joseph Neal Sanberg, a 45-year-old Orange County, Calif. resident who billed himself as an “anti-poverty advocate,” was taken into custody on Monday after he was alleged to have cheated two investor funds out of $145 million, in line with federal prosecutors.
Sanberg’s arrest got here after his alleged co-conspirator, Ibrahim Ameen AlHusseini, 51, of Venice, pleaded guilty to wire fraud after copping to receiving around $12.3 million in payments from the fraudulent scheme, prosecutors said.
Sanberg co-founded Aspiration, a financial services company promoting sustainable and ethical banking practices. Among the many backers of Aspiration are Hollywood stars Leonardo DiCaprio, Orlando Bloom, Cindy Crawford, the rapper Drake and Robert Downey Jr.
A spokesperson for DiCaprio declined to comment. The Post has reached out to Bloom, Crawford, Drake and Downey.
Sanberg, whose records list addresses in California, Latest York and Greenwich, Conn., was an early investor in Blue Apron, a meal delivery service.
According to the Open Secrets website, Sanberg has contributed hundreds of dollars to numerous Democrat-aligned causes over time.
Sanberg has given money to candidates akin to former President Barack Obama, former Vice President Kamala Harris, Sen. Kirsten Gillibrand (D-NY), Sen. Jeff Merkley (D-Ore.), former Sen. Sherrod Brown (D-Ohio) and others.
Sanberg also founded CalEITC4Me, a program aimed toward helping low-income families in California claim earned income tax credits.
Prior to those legal issues, Sanberg was lively in political and social advocacy, particularly specializing in anti-poverty initiatives and efforts to boost the minimum wage in California to $18 an hour.
He had also been mentioned as a possible political candidate, considering runs for offices akin to the US Senate and even the presidency, though he didn’t formally enter these races.
AlHusseini has also been a prolific donor to Democrat causes — contributing money to numerous candidates akin to former Secretary of State Hillary Clinton in addition to Moveon.org, End Residents United and the Democratic Party of Wisconsin.
An attorney for AlHusseini declined to comment. The Post was unable to achieve a representative for Sanberg.
The criminal case against Sanberg centers on the identical $145 million transaction that led to the October arrest of AlHusseini.
In line with prosecutors, investors agreed to lend Sanberg money based on collateral in the shape of Aspiration shares.
AlHusseini had committed to buying those shares if Sanberg defaulted. Nevertheless, Sanberg never repaid the loan and AlHusseini declined to purchase the shares as promised, it was alleged.
The investors had relied on financial statements indicating AlHusseini had sufficient funds to cover the acquisition, however the FBI stated in AlHusseini’s criticism that those bank records were fraudulent.
Authorities included a comparison of 24 allegedly fabricated statements alongside real ones within the case documents.
In his plea agreement, AlHusseini admitted the financial statements were falsified and claimed Sanberg had orchestrated the scheme.
“At Sanberg’s direction, defendant made unfaithful statements,” prosecutors stated within the filing.
“Defendant and Sanberg knew that the falsified statements inflated the worth of the assets in defendant’s accounts by tens of hundreds of thousands of dollars.”
Authorities allege AlHusseini received $12 million for backing the loan, with portions of that sum wired to Saudi Arabia, in line with the FBI’s criticism.
Revelations in regards to the questionable transactions emerged during a civil lawsuit during which lenders sued each Sanberg and AlHusseini in Latest York state court.
The court ultimately ruled against them, issuing a $78 million judgment against AlHusseini and a $209 million judgment against Sanberg.
AlHusseini was arrested at an airport on Oct. 7 and held in custody as a flight risk after allegedly transferring $300 million to Saudi Arabia to avoid the judgment.
He was later released on bail in December, secured by outstanding liberal figures akin to CodePink founder Jodie Evans.
CodePink is a far-left antiwar group that has made headlines in recent months for protesting the Israel-Hamas war.
On Jan. 10, a Latest York judge found AlHusseini in contempt for spending money on luxury items and political donations as an alternative of settling his debt.
The Each day Wire reported that charges against AlHusseini were dismissed on January 21.
His attorney, John Lambert, stated that AlHusseini’s “record has been dismissed pursuant to court order and all records related thereto have been destroyed.”
Nevertheless, prosecutor McNally clarified that the dismissal was a part of a broader cooperation agreement, stating, “The criticism against AlHusseini was dismissed to facilitate his cooperation within the prosecution of others, including Sanberg.”
He added that AlHusseini had “pleaded guilty today to an information charging him with wire fraud for falsifying documents and data to help Sanberg.”
Documents unsealed Monday indicate that AlHusseini was under FBI supervision as of Feb. 25.
He was also authorized by the federal government to contact Aspiration executives, including Sanberg and board chair Nate Redmond, in line with federal prosecutors.
“Our prosecutors and law enforcement partners have worked methodically to secure a guilty plea from one in all the primary offenders on this case and have now charged one other member of the conspiracy,” Acting United States Attorney Joseph McNally said.
“We are going to proceed to be sure that markets and businesses receive an honest and level playing field during which to operate.”
While the newest charges against Sanberg revolve across the $145 million loan, his cooperation suggests potential further legal actions.
His financial services company, Aspiration, has drawn scrutiny for its business practices, with some comparing it to the now-collapsed FTX.
Aspiration marketed “carbon credits” to corporations, offering a solution to offset emissions. Nevertheless, skepticism has emerged over the legitimacy of such transactions, as hype and ideological appeal can have influenced customers’ decisions.
Like FTX, Aspiration spent heavily on promoting, including a sponsorship cope with the LA Clippers.
At the peak of progressive enthusiasm in 2021, the corporate aimed to go public at a $2 billion valuation. There are indications it can have manipulated financial figures to support that valuation.
A Bloomberg investigation in July found evidence that Sanberg had attempted to inflate the corporate’s price through questionable financial maneuvers.
Tens of millions in reported income got here from an LLC once registered to Sanberg, in line with the report.
One other deal suggested a nonprofit planned to pay Aspiration ten times its annual revenue, while a separate transaction involved a Colombian model making monthly payments of $50,000 to Aspiration, only to receive the same sum from a Sanberg-affiliated entity.
Bloomberg also reported that Aspiration’s auditor severed ties with the corporate.
Aspiration’s try to go public through a SPAC collapsed in 2023, but not before raising $300 million from investors, including former Microsoft CEO Steve Ballmer.
Reports indicate that federal agencies have been investigating Aspiration’s business dealings.
In January, Bloomberg reported that the Department of Justice and the Commodity Futures Trading Commission were probing whether Aspiration misled customers in regards to the validity of its carbon offsets.
ProPublica previously revealed that the corporate exaggerated its customer base, claiming “5 million passionate members” when only 500,000 accounts were lively.
Aspiration also allegedly charged customers a dollar per tree planted to combat climate change, despite the fee being just a number of cents.
Andrei Cherny, Sanberg’s co-founder who was ousted from Aspiration in 2021, has remained silent.
Cherny, a former advisor to Bill Clinton and Al Gore, later pursued political office. In December, he sued Aspiration for unpaid compensation but withdrew the lawsuit weeks later.
Aspiration has not commented on the allegations, including questions regarding the present status of board chair Nate Redmond.
If convicted, Sanberg faces as much as 20 years in prison, as does AlHusseini.
The case is being investigated by the FBI and the US Postal Inspection Service.
The Democrat-backing multimillionaire founder of a “climate-friendly banking” startup — whose celebrity investors included Leonardo DiCaprio, Orlando Bloom and Drake — was arrested by federal authorities this week for allegedly conspiring to defraud investors.
Joseph Neal Sanberg, a 45-year-old Orange County, Calif. resident who billed himself as an “anti-poverty advocate,” was taken into custody on Monday after he was alleged to have cheated two investor funds out of $145 million, in line with federal prosecutors.
Sanberg’s arrest got here after his alleged co-conspirator, Ibrahim Ameen AlHusseini, 51, of Venice, pleaded guilty to wire fraud after copping to receiving around $12.3 million in payments from the fraudulent scheme, prosecutors said.
Sanberg co-founded Aspiration, a financial services company promoting sustainable and ethical banking practices. Among the many backers of Aspiration are Hollywood stars Leonardo DiCaprio, Orlando Bloom, Cindy Crawford, the rapper Drake and Robert Downey Jr.
A spokesperson for DiCaprio declined to comment. The Post has reached out to Bloom, Crawford, Drake and Downey.
Sanberg, whose records list addresses in California, Latest York and Greenwich, Conn., was an early investor in Blue Apron, a meal delivery service.
According to the Open Secrets website, Sanberg has contributed hundreds of dollars to numerous Democrat-aligned causes over time.
Sanberg has given money to candidates akin to former President Barack Obama, former Vice President Kamala Harris, Sen. Kirsten Gillibrand (D-NY), Sen. Jeff Merkley (D-Ore.), former Sen. Sherrod Brown (D-Ohio) and others.
Sanberg also founded CalEITC4Me, a program aimed toward helping low-income families in California claim earned income tax credits.
Prior to those legal issues, Sanberg was lively in political and social advocacy, particularly specializing in anti-poverty initiatives and efforts to boost the minimum wage in California to $18 an hour.
He had also been mentioned as a possible political candidate, considering runs for offices akin to the US Senate and even the presidency, though he didn’t formally enter these races.
AlHusseini has also been a prolific donor to Democrat causes — contributing money to numerous candidates akin to former Secretary of State Hillary Clinton in addition to Moveon.org, End Residents United and the Democratic Party of Wisconsin.
An attorney for AlHusseini declined to comment. The Post was unable to achieve a representative for Sanberg.
The criminal case against Sanberg centers on the identical $145 million transaction that led to the October arrest of AlHusseini.
In line with prosecutors, investors agreed to lend Sanberg money based on collateral in the shape of Aspiration shares.
AlHusseini had committed to buying those shares if Sanberg defaulted. Nevertheless, Sanberg never repaid the loan and AlHusseini declined to purchase the shares as promised, it was alleged.
The investors had relied on financial statements indicating AlHusseini had sufficient funds to cover the acquisition, however the FBI stated in AlHusseini’s criticism that those bank records were fraudulent.
Authorities included a comparison of 24 allegedly fabricated statements alongside real ones within the case documents.
In his plea agreement, AlHusseini admitted the financial statements were falsified and claimed Sanberg had orchestrated the scheme.
“At Sanberg’s direction, defendant made unfaithful statements,” prosecutors stated within the filing.
“Defendant and Sanberg knew that the falsified statements inflated the worth of the assets in defendant’s accounts by tens of hundreds of thousands of dollars.”
Authorities allege AlHusseini received $12 million for backing the loan, with portions of that sum wired to Saudi Arabia, in line with the FBI’s criticism.
Revelations in regards to the questionable transactions emerged during a civil lawsuit during which lenders sued each Sanberg and AlHusseini in Latest York state court.
The court ultimately ruled against them, issuing a $78 million judgment against AlHusseini and a $209 million judgment against Sanberg.
AlHusseini was arrested at an airport on Oct. 7 and held in custody as a flight risk after allegedly transferring $300 million to Saudi Arabia to avoid the judgment.
He was later released on bail in December, secured by outstanding liberal figures akin to CodePink founder Jodie Evans.
CodePink is a far-left antiwar group that has made headlines in recent months for protesting the Israel-Hamas war.
On Jan. 10, a Latest York judge found AlHusseini in contempt for spending money on luxury items and political donations as an alternative of settling his debt.
The Each day Wire reported that charges against AlHusseini were dismissed on January 21.
His attorney, John Lambert, stated that AlHusseini’s “record has been dismissed pursuant to court order and all records related thereto have been destroyed.”
Nevertheless, prosecutor McNally clarified that the dismissal was a part of a broader cooperation agreement, stating, “The criticism against AlHusseini was dismissed to facilitate his cooperation within the prosecution of others, including Sanberg.”
He added that AlHusseini had “pleaded guilty today to an information charging him with wire fraud for falsifying documents and data to help Sanberg.”
Documents unsealed Monday indicate that AlHusseini was under FBI supervision as of Feb. 25.
He was also authorized by the federal government to contact Aspiration executives, including Sanberg and board chair Nate Redmond, in line with federal prosecutors.
“Our prosecutors and law enforcement partners have worked methodically to secure a guilty plea from one in all the primary offenders on this case and have now charged one other member of the conspiracy,” Acting United States Attorney Joseph McNally said.
“We are going to proceed to be sure that markets and businesses receive an honest and level playing field during which to operate.”
While the newest charges against Sanberg revolve across the $145 million loan, his cooperation suggests potential further legal actions.
His financial services company, Aspiration, has drawn scrutiny for its business practices, with some comparing it to the now-collapsed FTX.
Aspiration marketed “carbon credits” to corporations, offering a solution to offset emissions. Nevertheless, skepticism has emerged over the legitimacy of such transactions, as hype and ideological appeal can have influenced customers’ decisions.
Like FTX, Aspiration spent heavily on promoting, including a sponsorship cope with the LA Clippers.
At the peak of progressive enthusiasm in 2021, the corporate aimed to go public at a $2 billion valuation. There are indications it can have manipulated financial figures to support that valuation.
A Bloomberg investigation in July found evidence that Sanberg had attempted to inflate the corporate’s price through questionable financial maneuvers.
Tens of millions in reported income got here from an LLC once registered to Sanberg, in line with the report.
One other deal suggested a nonprofit planned to pay Aspiration ten times its annual revenue, while a separate transaction involved a Colombian model making monthly payments of $50,000 to Aspiration, only to receive the same sum from a Sanberg-affiliated entity.
Bloomberg also reported that Aspiration’s auditor severed ties with the corporate.
Aspiration’s try to go public through a SPAC collapsed in 2023, but not before raising $300 million from investors, including former Microsoft CEO Steve Ballmer.
Reports indicate that federal agencies have been investigating Aspiration’s business dealings.
In January, Bloomberg reported that the Department of Justice and the Commodity Futures Trading Commission were probing whether Aspiration misled customers in regards to the validity of its carbon offsets.
ProPublica previously revealed that the corporate exaggerated its customer base, claiming “5 million passionate members” when only 500,000 accounts were lively.
Aspiration also allegedly charged customers a dollar per tree planted to combat climate change, despite the fee being just a number of cents.
Andrei Cherny, Sanberg’s co-founder who was ousted from Aspiration in 2021, has remained silent.
Cherny, a former advisor to Bill Clinton and Al Gore, later pursued political office. In December, he sued Aspiration for unpaid compensation but withdrew the lawsuit weeks later.
Aspiration has not commented on the allegations, including questions regarding the present status of board chair Nate Redmond.
If convicted, Sanberg faces as much as 20 years in prison, as does AlHusseini.
The case is being investigated by the FBI and the US Postal Inspection Service.
