Aspiration co-founder Sanberg sentenced to 14 years in prison. Ballmer requested no leniency
Source: https://www.espn.com/nba/story/_/id/48942217/aspiration-co-founder-sanberg-sentenced-14-years-prison
LOS ANGELES – A federal judge sentenced Aspiration co-founder Joseph Sanberg, whose now-bankrupt green banking company is at the center of an NBA investigation into the LA Clippers, to 14 years in federal prison Monday.
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Aspiration announced a 23-year, \(300 million endorsement deal with the Clippers in September 2021 and a \)28 million deal with star Kawhi Leonard in April 2022. Podcaster Pablo Torre, citing internal documents and an interview with an unnamed Aspiration employee, reported that Leonard’s sponsorship deal with the company was to circumvent the NBA’s salary cap, prompting the league to launch its investigation.
Clippers owner Steve Ballmer, who invested $60 million of his own in Aspiration, denied he had knowledge of Leonard’s deal or that he directed the company to strike one.
Ballmer’s attorney sent a letter to Wilson, advocating against any leniency and asking for a sentence that would deter others from committing similar fraudulent schemes. The letter stated that Ballmer was “flagrantly defrauded” by Sanberg and lost the entirety of his $60 million investment in the company, and that Sanberg targeted Ballmer for his wealth and passion for environmental sustainability while using his relationship with Ballmer to attract other investors.
Sanberg spoke to the NBA’s investigators as part of its probe, according to an April 17 letter to Wilson by David Anders, the Wachtell Lipton attorney leading the league’s investigation.
In the brief letter, which represented the NBA investigator’s first public comments about the inquiry, Anders said Sanberg sat for two in-person interviews and provided documents and, via his lawyers, “information that was relevant to our investigation.”
Anders continued, “In all our dealings with Mr. Sanberg, both directly and through his counsel, he provided information that was consistent with our review of contemporaneous documents and other evidence. Mr. Sanberg’s cooperation substantially assisted our investigation, including our ability to develop a more complete understanding of key events.”