Joseph Neal Sanberg, co-founder of Aspiration Partners, Inc., was arrested in Santa Ana, California, on charges of conspiring to defraud investor funds of at least $145 million. His alleged accomplice, Ibrahim Ameen AlHusseini, has already pleaded guilty to wire fraud and admitted to falsifying documents to aid Sanberg. AlHusseini reportedly received around $12.3 million from the fraudulent scheme.
Acting United States Attorney Joseph McNally stated, "Our prosecutors and law enforcement partners have worked methodically to secure a guilty plea from one of the main offenders in this case and have now charged another member of the conspiracy."
Sanberg is accused of securing loans totaling $145 million with collateral that his partner AlHusseini could not cover if default occurred. The complaint details how Sanberg concealed this information from investors before defaulting on the loans.
In January 2020, Sanberg negotiated a $55 million loan from Investor Fund A using shares from Aspiration Partners as collateral. He recruited AlHusseini for a put option agreement that required him to buy these shares if Sanberg defaulted. Despite knowing AlHusseini lacked the necessary assets for this obligation, they provided false financial statements to Investor Fund A.
The fraudulent activity continued when Sanberg refinanced the loan with Investor Fund B for $145 million under similar deceptive practices. As a result of defaults by Sanberg in November 2022 and spring 2023, Investor Fund B suffered losses amounting to at least $145 million.
Both investment funds involved are known for lending capital to high-net-worth borrowers. If convicted, both defendants face up to 20 years in prison.
The investigation is being conducted by the FBI and the United States Postal Inspection Service. The prosecution team includes Assistant United States Attorneys Brett A. Sagel, Nisha Chandran, Jenna Williams from the Corporate and Securities Fraud Strike Force, along with Theodore M. Kneller and Adam L.D. Stempel from the Justice Department’s Criminal Division.
A criminal complaint contains allegations; all defendants are presumed innocent until proven guilty beyond a reasonable doubt in court.