Aspiration co-founder sentenced to 14 years in federal prison

A federal judge sentenced Aspiration co-founder Joseph Sanberg to 14 years in federal prison Monday. Sanberg previously pleaded guilty to two counts of wire fraud. Prosecutors said he defrauded investors and lenders out of $248 million by fraudulently obtaining loans, falsifying bank and brokerage statements, and concealing that he was the source of some revenue booked by the company.

Court proceedings Federal prosecutors sought a prison sentence of 212 months.

Sanberg's lead attorney argued that a prison sentence would be too severe and advocated for a punishment that would avoid any time behind bars. The attorney said Sanberg displayed no malice, no ill will, no greed in his actions and that he was a good person who did a bad thing.

The judge disagreed and said the circumstances of Sanberg's actions were among the worst seen in a career on the bench. The judge added that the case has touched almost every badge of fraud. The judge said Sanberg portrays himself as a do-gooder who was in business to help the world, but he did personally gain from his fraud.

Statements from the hearing Before he was sentenced, Sanberg addressed the court and said he was deeply sorry for the harm he had caused. He apologized for his terrible judgment, which he said was due to his zeal to help the company succeed. Sanberg said he accepts that he lost his moral compass and wrongly stepped over the line.

He later added that he broke the law. A restitution hearing is set for July 20. As part of his sentence, Sanberg will be on supervised release for three years following his prison term.