Steve Ballmer blasts founder who pleaded guilty to fraud: ‘I was cheated and I felt like a fool’

Silicon Valley tends to tolerate a certain amount of founder exaggeration when pitching investors, often dismissing it as part of selling an idea. But some decisions cross the line and can lead to jail for founders and embarrassment for their investors.

Case in point is Joseph Sanberg, whose once top-flight fintech firm Aspiration Partners was backed by an array of tech celebrities, including former Microsoft CEO and current Clippers owner Steve Ballmer. In August 2025, Sanberg pleaded guilty to two counts of fraud and defrauding multiple investors and lenders, the US Department of Justice said in a press release. Each charge carries a maximum sentence of 20 years in prison.

Before the sentencing, which is scheduled for Monday, the victims were invited to describe their experiences with Sanberg to the judge. Ballmer did, and publicly. Ballmer’s lawyers said in the letter that he lost money, was defrauded, and that the NBA is investigating the allegations from the association.

Sanberg co-founded green fintech Aspiration Partners, which offers what it calls sustainable banking services such as credit cards and investment products that avoid fossil fuels. The startup promised to “automatically plant trees with every card purchase.” In 2021, it announced plans to go public with a SPAC merger worth $2.3 billion, although that transaction never materialized.

The DOJ alleged that Aspiration booked and recognized revenue from Sanberg’s affiliates, making the company appear to have a large number of customers and revenue that it did not actually have. The agency also said he defrauded investors by showing them a fake letter from Aspiration’s audit committee that said the company had $250 million in cash and cash equivalents when it was less than $1 million. The DOJ alleges that Sanberg, along with a board member who pleaded guilty, falsified financial records to obtain a $145 million loan.

When Ballmer shared his letter about X, asking the judge to consider the damage done to him at his sentencing, he wrote, “I was cheated and felt stupid about it. Everyone who believed in Aspiration, including employees, customers and investors, was also cheated. Everyone is still counting their losses.”

The book says Ballmer invested $60 million in the company, and lost it all. Ballmer was not only a financier, but he had a contract with Aspiration to provide carbon-offsetting programs for the Clippers and its stadium. Aspiration is also a major sponsor of the Clippers.

The millionaire said in the letter that not only did he lose the money, his reputation was damaged. He used the letter to refute the reporting of a multi-part series from popular sports podcast Pablo Torre Finds Out that examined the relationship between the Clippers and Aspiration. The podcast made allegations that Aspiration helped defray the Clippers star’s salary. Ballmer’s lawyers called those allegations “a misunderstanding or willful disregard of the facts,” in the letter.

Ballmer’s letter also said that because of his association with the company, his podcast and other public attention, he was subpoenaed. Meanwhile, the NBA said in its letter about Sanberg’s sentencing that it was investigating allegations of salary capping and that Sanberg was testifying, ESPN reported.

Although the world of basketball is involved in all these river development, the message that the founders can take from it is clear: if someone creates financial documents to raise money, the result will be prison.

The Ballmer Group did not respond to our request for comment.