It seemed like the American dream was realised. He rose out of poverty to attend Harvard, achieved success on Wall Street, co-founding an eco-friendly financial and sustainability company, and even flirting with presidential bids.
But Joseph Samberg, who invested his fortune early in a company like Blue Apron this week, was taken into custody on suspicion of his role in bilking investors within at least $145 million.
Samberg, 45, of Orange, was arrested Monday, according to the US Department of Justice. Although official court records are sealed, the statement argued that he conspired to deceive two investor funds.
Sanberg, co-founder of Aspiration Partners Inc., appeared in U.S. District Court in Santa Ana on Monday. He did not issue a petition and was released on $200,000 bail, records show. He is scheduled for arrest on March 28th.
The Times were unable to find a lawyer for Sãoberg. No calls were returned to the numbers listed for him.
Over the years, Samberg elicited headlines for his poverty measures activities – including push to establish a California version of the federal earning income tax credit, which he benefited from a childhood.
Sanberg has set up a nonprofit that was sown with $3.5 million in his own money and six-figure donations from donors such as the Annenberg Foundation, Streisand Foundation and Civil Rights lawyer Molly Munger, and launched an advertising campaign to ensure that the money he received was qualified.
He also led Proposition 32, which failed voting measures in 2024 to raise California’s minimum wage.
In 2019, Sanberg considered running for the Democratic presidential nomination, but ultimately opposed it.
The Justice Department announced this week that a man identified as co-conspirator Ibrahim Ameen Alhusseini, 51, has pleaded guilty to fraud to forgerying documents supported by a suspicious scheme.
Venice residents are scheduled for the ruling on September 29th. Alphseini was able to spend up to 20 years in prison with at least $250,000 or more financial penalties, authorities say.
Alhusseini’s lawyer declined to comment on the case.
According to criminal charges, Alfseini was initially arrested in October on suspicion of securities fraud. The charges were dismissed with bias “to promote his cooperation,” the Justice Department said.
“Our prosecutors and law enforcement partners have worked neatly to secure guilty pleas from one of the leading offenders in this case,” we play Atty. Joseph McNally said in a statement.
Prosecutors allege that Sanberg used various individuals led by Alhusseini and used fraudulent documents to commit wire fraud against two investor funds.
He is accused of negotiating a $55 million loan from one fund and pledging its shares in his company as collateral. To secure the loan, authorities claim that Sanberg adopted Alhusseini, a member of the Aspiration Partners board, to support the transaction, despite knowing that Alhusseini did not have the necessary assets.
Court documents allege that the pair provided forged documents that artificially inflate Alfussini’s assets.
After securing the loan, authorities insisted that Sanberg refinance in 2021. This time, the second investor fund lent $145 million, and authorities once again say Sanberg and Alhusseini provided forged documents to secure it.
According to criminal charges, Samberg skillfully directed Alfseini on how to talk to investors to ease concerns. He is allegedly told an investment advisor that he would cease the transaction if the individual attempts to independently verify the truth behind his and Alfseini’s financial claims, the complaint states.
Sanberg defaulted on the loan in November 2022 and re-financed it the following spring, authorities say.
The loan was to be supported by Alfseini. But he didn’t have that much money — the authorities said that it produced counterfeit securities transactions and bank statements that inflated his financial assets. The duo also allegedly hired graphic designers to help doctors with fake statements.
At one point in 2019, Alhusseini claimed to have $86 million in his loyal account. In fact, the balance was $4,390.10, according to criminal charges.
According to criminal charges, Alfseini has been paid about $6.3 million to be the guarantor of one of the loans and has been granted a payment of $12.3 million from the scheme.
“We will continue to ensure that we receive an honest, level playing field for markets and businesses to run,” McNally said.
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