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Aspiration co-founder and board member defrauded investors of $145M, prosecutors say
The fintech startup has been under federal scrutiny for years for questionable financial and carbon accounting practices.
Now, one of the startup’s board members has pleaded guilty to wire fraud and one of the co-founders has been arrested for allegedly conspiring to defraud investors, according to a federal criminal complaint filed by the U.S. Attorney’s Office of the Central District of California. Also on the same day, Ibrahim AlHusseini, a former independent board member for the company, pleaded guilty to wire fraud for falsifying documents to help Sanberg secure the loans, according to federal prosecutors. The startup attracted a long list of famous investors of the years, including actors Orlando Bloom, Leonardo DiCaprio, and Robert Downey Jr., the musician Drake, and basketball coach Doc Rivers.
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