Joe Sanberg, a top California Democrat activist who decried the corruption of big Wall Street banks and started a company marketed as the “cleaner” alternative, actually propped that company up through blatant fraud, he admitted Thursday.
Sanberg and other high-profile Democrats started the carbon-credit platform and online banking app Aspiration Partners Inc., promising to plant trees and not invest in polluting industries. Its motto was “clean rich is the new filthy rich.” It was once a star of the “environmental, social, and governance (ESG)” movement that blended corporate finance with leftist politics, and counted actors Leonardo DiCaprio and Robert Downey Jr. as investors.
But it was instead a scheme as corrupt as any on Wall Street, with Sanberg concocting fake customers for his tree-planting services to try to dupe investors into a $2 billion valuation, the Department of Justice said. Sanberg faces up to 40 years in prison after pleading guilty to two counts of wire fraud, according to the Department of Justice.