Baxter HolmesOct 20, 2025, 09:04 PM ET
- Baxter Holmes (@Baxter) is a senior writer for ESPN Digital and Print, focusing on the NBA. He has covered the Lakers, the Celtics and previously worked for The Boston Globe and Los Angeles Times.
LOS ANGELES — Aspiration co-founder Joseph Sanberg, whose former company is embroiled in an NBA scandal involving the LA Clippers, formally pled guilty to two counts of wire fraud in federal court in downtown Los Angeles on Monday.
Each count carries a maximum of 20 years in prison. Sentencing is scheduled for Feb. 23, 2026 at 11 a.m. PST at the United States District Court for the Central District of California in Los Angeles.
Monday’s hearing was a formality, as Sanberg had previously agreed to plead guilty to his role in a scheme that defrauded investors out of $248 million. During Monday’s hearing on the 10th floor of the courthouse, Sanberg’s attorney Marc Mukasey said that Sanberg committed the crimes he was charged with because “he loved (Aspiration) and wanted it to do well.” Mukasey later added, “Mr. Sanberg was working to bring about a prosperous and successful company…We agree that he stepped over the line.”
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The Clippers and Aspiration, a green banking company that declared bankruptcy this year, announced in September 2021 to a $300-million, 23-year sponsorship deal with the team, which included signage in Clippers’ new Inglewood, California arena and a jersey patch component. Four months later, Aspiration signed a separate $28-million sponsorship deal with Clippers star Kawhi Leonard.
The NBA is investigating whether the Clippers and owner Steve Ballmer violated league rules by circumventing the salary cap to compensate Leonard. In September 2021, the same month that the Clippers announced their deal with Aspiration, Ballmer invested $50 million in the California-based company, according to podcaster and journalist Pablo Torre.
Outside the courtroom following Monday’s hearing, Sanberg declined comment to reporters and referred questions to his attorney, who declined to answer a question regarding whether Sanberg conspired with Ballmer to circumvent the NBA’s salary cap rules through Leonard’s sponsorship deal.
“We’re not going to comment on any of that right now,” Mukasey said. “We’re just happy that we got through today’s proceeding and that Joe accepted responsibility for what he’s charged with. Others matters may play out in the future. We’ll see.”
Mukasey did not answer a follow-up question regarding whether Sanberg would cooperate with the NBA’s investigation, which is being led by the law firm Wachtell Lipton, Rosen & Katz.
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