Just a little over 4 years ago, a fintech startup -friendly climate was on the edge of a public list value $ 2 billion. Now one of the members of the Startup Management Board pleaded guilty for a fraud, and one of the co -founders has been arrested for alleged conspiracy to cheat investors, in accordance with the federal criminal criticism filed by the office of the American prosecutor at the Central District of California.
The fintech startup was below Federal control Over the years, for doubtful financial accounting practices and carbon dioxide emissions. But the latest criticism sheds light on a series of loans obtained using allegedly fraudulent tactics.
Joseph Sanberg, a co -founder of aspiration, was arrested on Monday for alleged conspiracy to cheat two different funds in the amount of $ 145 million. Also on the same day, Ibrahim Alhusseini, a former independent member of the company’s management board, pleaded guilty for fraud for falsifying documents to assist Sanberg secure loans, in keeping with federal prosecutors.
If he is convicted, Sanberg is in the face of 20 years in prison. ALHUSSEINI facilitates the same maximum punishment, although he cooperates with prosecutors, According to to the office of the US prosecutor at Central District of California.
The startup attracted a long list of well -known investors of years, including Orlando Bloom actors, Leonardo DiCaprio and Robert Downey Jr., Drake’s music and basketball coach Doc Riversa. The company hoped for the audience via Spac in 2021, but The contract has fallen in 2023
Sanberg and Alhusseini are accused of deceiving two different investors. In 2020, Sanberg negotiated the terms of the loan of $ 55 million with a nameless investor fund. Promised 10.3 million aspiration actions as security; The Investor Fund required Sanberg to search out a third page to conform to buy secondary sales shares if the fund desires to spend.
According to prosecutors, Alhusseini was an alleged third side. Sanberg allegedly convinced him in January 2020 to conclude an PUT option on shares that might oblige alhussini to purchase if the unnamed fund desired to sell.
But Alhusseini didn’t have $ 55 million to pay the fund, if he used the option, say Federal prosecutors. Sanberg and Alhusseini allegedly collaborated with the graphic designer in Lebanon to ridicule the false brokerage account and banking declarations to overstate the Alhusseini assets by 80 million to $ 200 million.
Sanberg borrowed $ 55 million after the PUT Fund option. Alhusseini received $ 6 million from the loan as payment of the premium for guaranteeing repayment in the event that aspiration occurs.
In November 2021, Sanberg allegedly refinued the loan with the second investor fund. This time the loan was $ 145 million.
Again, Alhusseini allegedly agreed to the PUT option, this time for $ 65 million in case 10.3 million shares became worthless. And like the previous loan, Sanberg and Alhusseini allegedly showed the second fund for falsified documents that the assets of ALHUSSEINI overstated. This time Alhusseini received $ 6.3 million for component payment.
In total, Alhusseini received $ 12.3 million from the program, in accordance with his allegation agreement.
A yr later, Sanberg didn’t pay a loan of $ 145 million. Then in the spring of 2023 he didn’t pay back again. The fund that granted a loan made the option of Put Alhusseini, which didn’t buy shares. According to the American prosecutor’s office, the fund lost at least $ 145 million.