California ‘Anti-Poverty Activist’ And Dem Mega-Donor Pleads Guilty To Massive Carbon-Credit Scam
Luke RosiakAug 22, 2025
Joe Sanberg, a top California Democrat activist who decried the corruption of big Wall Street banks and started a companymarketed as the “cleaner” alternative, actually propped that company up through blatant fraud, he admitted Thursday.
Sanberg and other high-profile Democrats started the carbon-credit platform and onlinebanking app Aspiration Partners Inc., promising to plant treesand not invest in polluting industries. Its motto was “clean rich is the new filthy rich.” It was once a star of the “environmental, social, and governance (ESG)” movement that blended corporate finance with leftist politics, and counted actors Leonardo DiCaprio and Robert Downey Jr. as investors.
But it was instead a scheme as corrupt as any on Wall Street, with Sanberg concocting fake customers for his tree-planting services to try to dupe investors into a $2 billion valuation, the Department of Justice said. Sanberg faces up to 40 years in prison after pleading guilty to two counts of wire fraud, according to the Department of Justice.
Sanberg is a key player in California politics, a Gavin Newsom donor who personally spent $11 million backing a ballot initiative to raise the state’s minimum wage to $18 an hour. Voters blocked the initiative by one percentage point in 2024. A 2019 Atlantic story headlined, “Joe Sanberg Dares Trump to Call Him a Socialist,” said “the multimillionaire investor says the Democrats’ progressive agenda is best for jobs and economic growth.”
But “this so-called ‘anti-poverty’ activist has admitted to being nothing more than a self-serving fraudster, by seeking to enrich himself by defrauding lenders and investors out of hundreds of millions of dollars,” according to Bill Essayli, the Acting U.S. Attorney of the Central District of California.
Aspiration was set up to have companies pay it for “carbon credits,” with Aspiration promising to pay third parties to plant trees in Africa that would offset their emissions. But the United States Postal Inspection Service said Sanberg “built a business on a lie to boost the company’s value and line his own pockets.”
The findings raise questions about the broader world of “carbon credits” and whether they amount to one big company paying another big company money in exchange for fantasy indulgences, based more on partisan marketing than any real-world impact.
Sanberg also faces civil Securities and Exchange Commission charges that say he propped up fake customers to bolster his appearance.
“To make it appear as though Aspiration’s business was rapidly growing, Sanberg recruited friends, associates, small businesses, and religious organizationsand presented them to Aspiration as bona fide customers who were fully committed to paying large sums of money” for the tree-planting services,” the SEC charging documents explain.
In reality, they were not going to pay, and Sanberg himself funded initial payments purporting to be from the customers to make them look real….cont
https://www.dailywire.com/news/california-anti-poverty-activist-and-dem-mega-donor-pleads-guilty-to-massive-carbon-credit-scam