Steve Ballmer slams founder he supports who pleaded guilty to fraud: ‘I was cheated and I feel silly’

Silicon Valley tends to tolerate a certain amount of founder hyperbole when pitching to investors, often dismissing it as part of selling a vision. But some choices go too far and can lead to prison for the founders and a scandal for investors.

An example of this is Joseph Sanberg, who was once… High-flying fintech startup Aspiration Partners has been backed by a list of technology celebrities, including former Microsoft CEO and current Clippers owner Steve Ballmer. In August 2025, Sanberg pleaded guilty to two counts of wire fraud and defrauding multiple investors and lenders, the US Department of Justice said. He said in a press release. Each charge carries a maximum penalty of 20 years in prison.

Before sentencing, scheduled for Monday, victims were invited to describe their experiences with Sanberg to the judge. Palmer did so publicly. Ballmer’s lawyers said in the letter that he had lost money, been defamed, and that the NBA was investigating allegations arising from the league.

Sanberg co-founded green fintech startup Aspiration Partners, which offered what she called sustainable banking services like credit cards and investment products that avoid fossil fuels. The startup promised to “automatically plant trees with every card purchase.” In 2021, it announced plans to go public via a SPAC A $2.3 billion mergerDespite that Never deal It happened.

The Department of Justice alleged that Aspiration withheld and recognized revenue from Sanberg-owned entities, making it appear as if the company had a steady stream of customers and revenue that it did not actually have. The agency also alleged that he defrauded investors by showing them a fabricated letter from Aspiration’s audit committee stating that the company had $250 million in available cash and cash equivalents when it had less than $1 million. The Justice Department alleged that Sanberg, along with a board member who also pleaded guilty, falsified financial records to obtain $145 million in loans.

When Palmer shared his message On XHe asked the judge to consider his damage while handing down the ruling, writing: “I was deceived and feel silly about it. Everyone who believed in the ambition, including employees, customers and investors, was also deceived. And everyone is still counting the losses.”

The letter said that Ballmer had invested a total of $60 million in the company, all of which he lost. Not only was Ballmer an investor, he also contracted with Aspiration to provide carbon offset programs for the Clippers’ team and stadium. Ambition also became a major sponsor of the Clippers.

The billionaire said in the letter that not only did he lose that money, but his reputation was negatively affected. Use the letter to deny reporting on a multi-part series on popular sports Pablo Torre’s podcast finds out Which examined the relationship between the Clippers and ambition. The podcast made claims that Aspiration helped the Clippers star player avoid the salary cap. Palmer’s lawyers described the allegations in their letter as a “misunderstanding or willful disregard of the facts.”

Palmer’s letter also said that as a result of his association with this company, the podcast, and other public interest in it, he has been named in the lawsuits. Meanwhile, the NBA said in its own letter regarding Sanberg’s sentencing that it is investigating the salary cap allegations and that Sanberg is providing evidence, ESPN reported.

While the basketball world is involved in all of these developments, the message the founders can take away from them is clear: If someone fabricates financial documents to raise capital, the result is likely to be prison.

The Palmer Group did not respond to our request for comment.