A major Democratic donor and left-wing activist is staring down decades behind bars after admitting to a massive fraud scheme that bilked investors out of hundreds of millions of dollars.
According to a Department of Justice press release issued late last week, Joseph Sanberg, a prominent liberal figure and co-founder of Aspiration Partners, Inc., has agreed to plead guilty to two counts of wire fraud, with each count carrying a maximum penalty of 20 years in prison.
“For years, Joseph Sanberg used his position at Aspiration to deceive investors and lenders for his own benefit, causing his victims over $248 million in losses,” said Acting Assistant Attorney General Matthew R. Galeotti in a statement. “The Criminal Division is committed to pursuing, charging, and convicting fraudsters like Sanberg, who cause significant harm to their victims and undermine our financial institutions.”
Sanberg’s company, Aspiration Partners, Inc., billed itself as a socially conscious financial firm, promoting sustainability and progressive values. However, prosecutors allege that Sanberg used his insider position to orchestrate an elaborate fraud scheme, siphoning off millions while deceiving lenders and investors about the firm’s financial health.
Political Connections and Donations
Sanberg is no stranger to Democratic politics. Federal election records show that he has donated heavily to progressive causes and Democratic candidates, including California Governor Gavin Newsom. His influence extended beyond campaign contributions—Sanberg was often touted as a rising star in California politics, even flirting with a gubernatorial run himself.
Now, that political clout appears to have evaporated overnight as the reality of decades in federal prison looms.
Other Democrats in Legal Hot Water
Sanberg’s guilty plea is just the latest in a string of high-profile scandals involving Democrats across the country.
Los Angeles City Councilman Curren Price is facing fresh corruption charges this week. The LA County District Attorney announced two new charges accusing Price of embezzling public funds and steering contracts to benefit his wife financially. The embattled councilman was already facing 10 felony counts, including embezzlement and perjury, for allegedly helping his wife’s consulting firm secure lucrative city contracts worth millions while hiding the financial conflict of interest.
“Embezzling public funds and awarding contracts for your own financial gain is the antithesis of public service,” said District Attorney Nathan Hochman. “Our communities expect and deserve better.”
According to prosecutors, Price’s wife collected over $800,000 from city agencies and developers while her husband voted on related projects—a blatant violation of ethics laws.
Big Names on the Radar: Schiff and James
Meanwhile, grand juries in Virginia and Maryland are reportedly weighing indictments against New York Attorney General Letitia James and California Senator Adam Schiff on allegations of mortgage and bank fraud. Investigators believe the two Democrats falsified property records to secure preferential loan terms, a scheme that could carry 30-year prison sentences per charge.
Attorney General Pam Bondi, who is overseeing the federal corruption crackdown, has tapped Ed Martin, former acting U.S. Attorney for Washington, D.C., to lead the probe. “Attorney General Bondi and President Trump have given me a very serious mission,” Martin said. “I am committed to going where the facts take me.”
A Pattern of Corruption?
The mounting scandals highlight a deepening crisis for Democrats, who have long portrayed themselves as champions of accountability and transparency. From local officials to party power players, a growing number of Democrats are now entangled in investigations involving fraud, embezzlement, and financial misconduct.
Sanberg’s guilty plea may be just the beginning. As federal prosecutors continue their push against political corruption, the question remains: How deep does the rot go?
