Up to a dozen letters — including one from the NBA — were sent by a lawyer for Aspiration Partners founder Joe Sanberg before his sentencing Monday in an effort to persuade a judge to reduce the 17 years prosecutors had asked for on each of the two fraud counts.
Sanberg pleaded guilty in October to charges of conspiring to defraud investors of $248 million by portraying the defunct Aspiration as a “socially responsible and sustainable company and investment products”.
Another letter was also sent, however, and it was not intended to help Sanberg.
Clippers owner Steve Ballmer’s attorney David N. Kelley of O’Melveny and Myers wrote that Ballmer was defrauded of a $60 million investment in Aspiration and that the damage to his reputation is “immeasurable.”
The five-page Victim Impact Statement concludes: “Mr. Ballmer’s loss is not measured solely, or even primarily, on the balance sheet.
“We ask the court to issue a sentence that causes that harm, promotes respect for the law, and prevents those who want to honor the reputation of others in order to further their fraudulent intentions.”
The book says the Clippers lost a $300 million sponsorship deal with Sanberg so the team could wear Aspiration patches. Also lost were about $20 million the Clippers paid to buy carbon offsets and $60 million Ballmer invested in the company.
Ballmer, a former longtime Microsoft CEO, accused Sanberg of targeting him for his known interest in environmental sustainability and exaggerating their relationship to convince others to invest in a fake company. In the book, Ballmer says he only met Sanberg once.
Ballmer was added in November as a defendant in the ongoing civil suit against Sanberg and several others associated with Aspiration. Ballmer and other defendants are accused by 11 investors in Aspiration of fraud and aiding and abetting the fraud, and the plaintiffs are seeking at least $50 million in damages.
The letter dismisses the allegations in the lawsuit as “nonsense,” says Ballmer was added as a defendant because of his “appearance and resources,” and reiterates that Ballmer himself is a victim of fraud. The action tarnished his reputation, the letter said, “and further associated Mr. Ballmer with Sanberg’s fraud in the public eye.”
The letter to the court, however, does not say anything about the $28 million contract Clippers star Kawhi Leonard signed with Aspiration to endorse marketing work. Players are allowed to have separate endorsements and other business deals, but the question is whether the Clippers were involved in arranging a side deal beyond presenting Aspiration managers to Leonard.
Leonard addressed the allegations only once, denying wrongdoing and saying, “I understand the contract and the services I was supposed to perform. Like I said, I don’t deal with conspiracy or click-bait analysts or progressive journalism.”
The arrangement could be considered a violation of the NBA salary cap, a serious violation of league rules. Ballmer vehemently denies arranging a deal between Aspiration and Leonard, who did not work for Aspiration.
The NBA is investigating the controversial relationship between Ballmer, Leonard and Aspiration. One of the letters sent by Sanberg’s lawyer to the judge is from the law firm that is doing the investigation, and it says that the disgraced official provided documents and information useful to the NBA’s investigation during two personal interviews.
Dave Anders of Wachtell Lipton wrote: “In all our interactions with Mr. “Mr. Sanberg has greatly aided our investigation, including our ability to develop a more comprehensive understanding of key events.”
Finally, the letter will include the results of the NBA’s investigation into the allegations against Ballmer and Leonard. And those findings could affect both of their reputations more than Sanberg’s fraudulent dealings.
