A man found guilty of defrauding investors out of $248 million didn’t just target ordinary victims; he went after one of the wealthiest sports owners in the world and used his name as bait to pull in others. Aspiration co-founder Joe Sanberg reportedly targeted LA Clippers owner Steve Ballmer for his prominence and fortune, weaponizing his association with the green banking startup to attract additional investors. Now, with Sanberg days away from sentencing, the billionaire has broken his silence, and he isn’t mincing words.

In a five-page letter to federal judge Stephen V. Wilson of the U.S. District Court for the Central District of California, Ballmer’s attorney confirmed the Clippers owner lost his entire $60 million investment in Aspiration, which declared bankruptcy in 2025, and has suffered what they described as “immeasurable” reputational harm. In a personal statement posted to social media, Ballmer put it plainly: “Aspiration’s founder, Joe Sanberg, engaged in fraud that injured many and eventually took the company down. I was duped and feel silly about that.” He added that everyone who believed in the company, including employees, customers, and investors, was deceived, and that the involved parties are still tallying the losses.

The letter submitted by Ballmer’s legal team paints an even starker picture of what unfolded. His attorneys wrote that Sanberg targeted Ballmer for his wealth, describing the conduct as particularly troubling given how limited their personal contact actually was, noting that “other than greeting Sanberg at a Clippers game, they had barely spoken.” Beyond his personal $60 million loss, the Clippers lost virtually all of their $300 million sponsorship deal with Aspiration along with more than $20 million held in escrow. The legal team described the scheme as a “flagrant fraud.”

Sanberg faces sentencing on April 27 in federal court in downtown Los Angeles after pleading guilty to two counts of wire fraud tied to a scheme prosecutors say defrauded investors of $248 million, with each count carrying a maximum sentence of 20 years in prison.

Federal prosecutors are seeking a 20-year sentence consisting of 17 years in prison followed by three years of supervised release, while Sanberg’s attorneys have asked for a lighter penalty. Separately, eleven former Aspiration investors have named Steve Ballmer in a civil lawsuit alleging he participated in the broader fraud, claims his legal team has firmly denied and moved to dismiss.

Ballmer’s Aspiration Investment Now at the Center of an NBA Salary Cap Probe

The fallout doesn’t stop at the courtroom. The NBA launched its own investigation in September 2025, led by law firm Wachtell, Lipton, Rosen & Katz, focusing on allegations that Ballmer and the Clippers orchestrated a $28 million endorsement deal between Kawhi Leonard and Aspiration to circumvent the league’s salary cap.

The situation carries real precedent inside the league. In 1999, the Minnesota Timberwolves lost five first-round draft picks and paid millions in fines after the NBA uncovered an under-the-table agreement with Joe Smith designed to bypass salary cap rules. That case remains one of the harshest penalties in league history, underscoring the potential stakes if the Clippers investigation uncovers violations.

The timeline is striking: Ballmer’s LLC invested $50 million in Aspiration in September 2021; that same month, the Clippers announced a $300 million, 23-year sponsorship deal with the company; and six months later, Leonard signed his $28 million deal with Aspiration. Podcaster and ESPN contributor Pablo Torre, citing internal documents and an unnamed Aspiration employee, was the first to report that the Leonard deal appeared structured to get around league salary rules.

David Anders of Wachtell Lipton confirmed in an April 17 court filing that Sanberg sat for two in-person interviews, provided documents, and shared information consistent with the league’s broader review, with his cooperation “substantially assisting” the investigation and helping develop “a more complete understanding of key events.”

The letter marks the NBA investigator’s first public comments on the probe. Ballmer, for his part, has consistently maintained he was a victim rather than an architect of any scheme, telling ESPN last year: “They conned me. I made an investment in these guys thinking it was on the up-and-up, and they conned me.”

As April 27 approaches, the sports and business worlds will closely watch Joe Sanberg’s sentencing on two fronts. For Ballmer, it represents a chance at accountability for the man his attorneys say exploited his name and goodwill to defraud dozens of investors. His legal team has asked Judge Wilson to consider the reputational damage Ballmer has suffered, harm they say will take years to remediate and has already had a chilling effect on future philanthropic efforts. While Sanberg’s case may bring closure to the fraud itself, the NBA’s findings could determine whether this situation ends in resolution or escalates into a far more serious problem for the Clippers organization.