Silicon Valley tends to tolerate a certain amount of exaggeration from founders when pitching to investors, often dismissing it as part of selling their vision. But some choices can cross the line and lead to jail time for the founder and scandal for the investors.
A good example is Joseph Sanberg. Joseph Sanberg has Aspiration Partners, a fintech startup backed by tech celebrities including former Microsoft CEO and current Clippers owner Steve Ballmer. In August 2025, Sanberg pleaded guilty to two counts of wire fraud and defrauding several investors and lenders, the U.S. Department of Justice said in a press release. Each count carries a maximum penalty of 20 years in prison.
Ahead of sentencing scheduled for Monday, the victims were asked to describe their experiences with Sandberg to the judge. Ballmer did so publicly. Ballmer’s lawyers said in the letter that he had lost money, was slandered and that the NBA was investigating allegations made by the association.
Sanberg co-founded Aspiration Partners, an eco-friendly fintech startup that offers sustainable banking services such as credit cards and investment products that avoid fossil fuels. The startup promised, “We will automatically plant a tree every time you purchase a card.” It announced plans to go public through a $2.3 billion SPAC merger in 2021, but that deal never went through.
The DOJ alleged that Aspiration recorded and recognized revenue from companies owned by Sanberg, which made the company appear to have a steady stream of customers and revenue that it did not have. The agency also alleged that Aspiration’s audit committee deceived investors by showing a fabricated letter showing the company had less than $1 million in cash and $250 million in equivalent assets. The DOJ alleged that Sanberg, along with board members who pleaded guilty, falsified financial records to obtain $145 million in loans.
Sharing a letter to X in which he asked the judge to consider the harm done to him during sentencing, Ballmer wrote, “I was fooled and felt foolish about it. Everyone who trusted Aspiration was fooled too, including employees, customers and investors. Everyone is still counting the losses.”
The letter said Ballmer invested a total of $60 million in the company but lost it all. Not only was Ballmer an investor, he signed a deal with Aspire to provide a carbon offset program for the Clippers and the stadium. Aspiration also became a major sponsor of the Clippers.
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The billionaire said in the letter that not only had he lost money, but his reputation had also been negatively affected. He used the letter to deny coverage of a multi-part series on popular sports podcast Pablo Torre Finds Out that delved into the Clippers’ relationship with the Aspiration. The podcast claimed Aspiration helped star Clippers players avoid the salary cap. Ballmer’s lawyers called the claims “a misunderstanding or willful disregard of the facts” in the letter.
Ballmer’s letter also said he was named in the lawsuit because of his affiliation with the company, podcasts and other public attention. Meanwhile, the NBA said in its own letter regarding Sanberg’s sentencing that it is investigating salary cap allegations and that Sanberg has provided evidence.
While the basketball world is engaged in all of these downstream developments, the message entrepreneurs can take away from this is clear. If you manipulate financial documents to raise capital, the result is very likely jail time.
Ballmer Group did not respond to our request for comment.
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