The NBA is still conducting an investigation into claims that the Los Angeles Clippers used a fraudulent endorsement deal with a tree-planting company called Aspiration to circumvent the league’s salary cap.
NBA insider Ramona Shelbourne said she does not expect the results of the investigation to be released until at least after the NBA playoffs and likely in July or August. But a big update in the fraud case happened on Monday when Aspiration co-founder Joseph Sanberg was sentenced to 14 years in federal prison.
Sanberg pleaded guilty to two counts of wire fraud, and prosecutors claimed Sanberg defrauded investors and lenders out of $248 million. Sanberg apologized for his actions in court before his sentencing.
“I accept that I lost my moral compass and wrongly stepped over the line, and I’m very sorry,” Sanberg said, per ESPN.
Steve Ballmer Claimed To Be “Duped” By Sanberg
Clippers owner Steve Ballmer claimed he was “duped” by Sanberg in a letter he sent to the judge in April.
“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. Everyone who believed in Aspiration, including employees, customers and investors, was also duped,” Ballmer wrote on social media when he shared the letter.
Aspiration announced a 23-year, $300 million endorsement deal with the Clippers in September 2021 and a $28 million deal with Kawhi Leonard in April 2022. Ballmer reportedly invested $60 million into the company.
Pablo Torre of the “Pablo Torre Finds Out” podcast released legal documents and an interview with a former Aspiration in September that suggested Ballmer and the Clippers used Aspiration’s endorsement deal with Leonard to circumvent the NBA’s salary cap. ‘
Torre won a Pulitzer Prize for his reporting in May.
Despite Torre’s claims, Ballmer and the Clippers have consistently said they are innocent.
Photo Credit: Kirby Lee-Imagn Images
The post Aspiration Co-Founder Sentenced to 14 Years Amid NBA’s Clippers Investigation appeared first on LA Sports Report.