By Stefan Acevski/ info@eurohoops.net
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.
According to EPSN, Sanberg, co-founder of Aspiration and charged with defrauding investors out of $248M, failed to escape. Although his lawyer argued that the situation was too severe for a prison sentence, Federal Judge Stephen V. Wilson sentenced Sanberg to 14 years.
Sanberg reportedly used his position as the co-founder of Aspiration to falsify financial records, fabricate fake revenue through sham contracts and mislead investors and lenders out of millions.
His firm 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, that is now in the center of attention, because of the alleged salary-cap circumvention of Kawhi Leonard. The investigation centers on whether Leonard’s four-year, $28 million marketing contract with Aspiration in 2022 was a fake “no-show” job used to funnel off-the-books money.
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.
As part of his sentence, Sanberg will be on supervised release for three years following his prison term. His voluntary surrender date is Aug. 17.
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