by Staff Reporter | Oct 22, 2025 | News
By Staff Reporter |
It pays to know the guys making the laws from the highest offices in the land.
Senator Ruben Gallego used his voting power to protect the business interests of a longtime friend — fellow Harvard University graduate and prominent Democratic donor and activist Joe Sanberg — interests which would turn out to be fraudulent.
In August, Sanberg pleaded guilty to two counts of wire fraud perpetrated through his online financial services company, Aspiration Partners. Sanberg admitted to defrauding over $248 million.
Senator Ruben Gallego fought for the success of Sanberg’s company while in Congress.
When he was still a congressman in 2023, Gallego voted to protect against environmental, social, and governance (ESG) limitations that would have impacted Aspiration Partners. The financial services company was uniquely focused on progressive environmental and social causes, including investing in fossil fuel alternatives and selling carbon credits.
Months before that vote, Sanberg gave Gallego a positive endorsement in The Hill. FEC records show Sanberg donated just over $13,000 to Gallego’s campaign from 2014 to 2017.
“The thing about Ruben is he knows exactly who he is,” said Sanberg. “This campaign isn’t about any individual personality.”
In 2015, the two men also launched a political action committee to help elect progressive Latino candidates — LLEGO-PAC, short for Latino Leaders for Equality, Growth, Opportunity, Progressive Action and Change.
Gallego praised Sanberg as “a thought leader” and “progressive leader from day one,” and credited the financial services CEO for being the one who “recruited” him into the Democratic Party. The senator was even a part of Sanberg’s wedding in 2021, per social media posts reported on by Fox News.
“He convinced me to get more involved in politics, and has been a good guiding post for me since then,” said Gallego.
Just a few years ago, Sanberg was shopping himself around to the media as a potential Democratic candidate for president. The Atlantic published one such feature of Sanberg in 2019.
In 2021, Aspiration disclosed in its annual Securities and Exchange Commission filing that 70 percent of its revenue came from ESG services.
Senator Gallego began banking with Aspiration in 2017 and then acquired a non-public stock in the company in 2019.
However, Gallego failed to report that purchase for three years, per Fox News reporting.
Aspiration came on the progressive venture capital scene in 2013 as an “environmental” bank with a “conscience,” the brainchild of co-founders Sanberg and Andrei Cherny, the latter Arizona’s former Democratic Party chairman, congressional candidate, and a Clinton administration speechwriter.
Cherny left Aspiration in mid-October 2022, two years after Sanberg later admitted to prosecutors the company turned fraudulent.
In 2021, Sanberg went into talks with the Los Angeles Clippers basketball team about a four-year, $48 million endorsement deal to sponsor one of their players, Kawhi Leonard.
Many have come to view the endorsement deal as a workaround to the NBA salary cap — a view bolstered by comments from those within Aspiration — though the Clippers have denied this speculation.
Following Sanberg’s arrest and pleading, Aspiration rebranded as GreenFi.
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by Matthew Holloway | Aug 26, 2025 | News
By Matthew Holloway |
Joseph Sanberg, co-founder of Aspiration Partners and a prominent California Democrat who has donated to Gov. Gavin Newsom, pleaded guilty Thursday to two counts of wire fraud. Sanberg, who launched the company with former Arizona Democratic Chairman and CD1 Congressional candidate Andrei Cherny in 2013, faces a maximum penalty of 20 years in prison per count for “defrauding multiple investors and lenders” in a carbon credit purchasing scheme.
According to the Department of Justice, Sanberg, “devised a scheme to use his role as a co-founder and board member of Aspiration as well as his shares of company stock to defraud various lenders and investors.”
All told, Sanberg pleaded guilty to attempting to bilk investors of as much as $2 billion, the company’s proposed valuation. The FBI and the U.S. Postal Inspection Service conducted the investigation.
From 2020-21, Sanberg and fellow board member Ibrahim Al Husseini “fraudulently obtained $145 million in loans from two lenders by pledging shares of Sanberg’s Aspiration stock.” The two subsequently falsified Al Husseini’s bank and brokerage statements to inflate his assets by tens of millions of dollars for the purpose of securing loans.
Cherny left the company in mid-October 2022, according to Forbes, following “a rift” that developed between him and Sanberg and a failed attempt to take the company public. At the time of his departure as CEO, the fraudulent activity had been ongoing for approximately two years.
The SEC complaint revealed a text message from Sanberg to Cherny in 2020 in which he said, “If you don’t get me the money tomorrow we are all f…ed. Get me the money. Your turn to figure it out like I have for so long. Wire it to the [Sanberg-entity] account. If you don’t then [the lender] will foreclose. This will give you a good taste of what I have to experience every day. I hate you and I hate this company and I don’t want to work anymore with you [ ]. You are so oblivious to what you’ve forced me to have to do.”
“This is a case about greed and abuse of trust,” said Assistant Director Jose A. Perez of the FBI Criminal Investigative Division. “Today’s guilty plea is a direct result of the commitment by the FBI and our law enforcement partners to hold those accountable who set out to defraud victims and undermine our financial system. The FBI will continue to work with our partners to ensure this kind of malicious behavior is investigated and stopped.”
When the investigation was launched by the Justice Department and the Commodity Futures Trading Commission following a 2021 ProPublica investigation, Cherny, deep in his failed campaign to unseat Rep. David Schweikert, defended his work at Aspiration. Cherny told ProPublica that only 12 million of the 35 million “cumulative total of to-be planted trees” had been planted at that time, noting the turnaround on a new planting was about 18 months.
“I have spent more than 25 years working to combat the climate crisis and am proud of the work I did to promote cutting-edge solutions at Aspiration,” Cherny said. “The carbon removal credit industry is an emerging industry and deserves to be regulated and scrutinized to ensure it is as effective as possible.”
He added, “I have no knowledge whatsoever of any wrongdoing at Aspiration and will fully cooperate with this inquiry.”
According to the SEC complaint, “To make it appear as though Aspiration’s business was rapidly growing, Sanberg recruited friends, associates, small businesses, and religious organizations and presented them to Aspiration as bona fide customers who were fully committed to paying large sums of money for the tree-planting services.”
The complaint continued, “Through his fraud, Sanberg raised more than $300 million from investors who falsely believed Aspiration had a thriving environmental sustainability services business.”
“The defendant didn’t just bend the truth, he built a business on a lie to boost the company’s value and line his own pockets,” said Inspector in Charge Eric Shen of the United States Postal Inspection Service (USPIS) Criminal Investigations Group. “The Postal Inspection Service will go after this kind of calculated deception. No matter who you are, you will be brought to justice.”
Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.
by Staff Reporter | Jul 10, 2024 | News
By Staff Reporter |
A poll of voters conducted late last month revealed that the Democratic primary for Arizona’s District One congressional race remains highly competitive.
Leading candidates Andrei Cherny and Amish Shah reflected 16 percent support, with Marlene Galan-Woods trailing slightly at 14 percent, then Connor O’Callaghan at 11 percent.
Those numbers were low because a majority remained undecided on their preferred candidate.
The poll, conducted by Noble Predictive Insights (NPI), found that 35 percent of the over 400 Democratic voters didn’t know if they were going to support Cherny, Shah, Galan-Woods, or O’Callaghan.
NPI Chief of Research David Byler opined in a press release with the poll results that the lack of voter enthusiasm for any one candidate was due to the race being “a mess” and none of the Democratic primary candidates being well known.
“On the Democratic side of the aisle, there’s no single issue that focuses and divides up primaries,” said Byler. “Many Democrats haven’t tuned in, and those who have are split and unsure.”
Certain candidates turned out higher likeability scores among undecided Democratic voters. Cherny had a net favorability rating of 43 points, followed by Galan-Woods at 41 points and then Shah at 34 points.
Cherny was endorsed by former President Bill Clinton; congressmen Adam Smith (Washington), Brad Schneider (Illinois), Mike Levin (California), Seth Moulton (Massachusetts), and Wiley Nickel (North Carolina), Senate Democratic leader Mitzi Epstein; former State Representatives Debbie McCune Davis and Kelli Butler; mayors Ginny Dickey (Fountain Hills), Kate Gallego (Phoenix), Jerry Bien-Wilner (Paradise Valley); former Congressman Harry Mitchell; Central Arizona Project and Arizona’s List board member Heather Macre; Maricopa County Supervisor Steve Gallardo; former Vice Mayor of Tempe Lauren Kuby; former Attorney General Terry Goddard; AFSCME; Brady PAC; Foreign Policy for America; League of Conservation Voters; Moms Demand Action; New Politics; Serve America; Taking the Hill PAC; and VoteVets.
Shah’s endorsements are mainly Democratic lawmakers: House Minority Leader Andrés Cano, House Minority Leader Lupe Contreras; House Assistant Minority Leader Oscar De Los Santos; House Whip Nancy Gutierrez; and Representatives Analise Ortiz, Stacy Travers, Stephanie Stahl-Hamilton, Cesar Aguilar, Christopher Mathis, Keith Seaman, Patty Contreras, Myron Tsosie, Seth Blattman, Mae Peshlakai, Deborah Nardozzi, Charles Lucking, and Senators Eva Burch and Flavio Bravo. His other endorsements include Councilman Kevin Robinson, former Representative Lorenzo Sierra, César Chávez, and Aaron Lieberman; and former senators Robert Miza and Sean Bowie.
Galan-Woods has a diverse array of endorsements among Democratic leaders. Among them are Congressman Raúl Grijalva; attorney general Kris Mayes; State Representative Laura Terech; former Arizona Governor and Homeland Security Secretary Janet Napolitano, former Senator Dennis DeConcini; former Congressman Ron Barber and Congresswoman Ann Kirkpatrick; former State Representative Marcelino Quiñonez; former Mayor of Tempe, Neil Giuliano; former Arizona Democratic Party Chair Felecia Rotellini; and 2014 Democratic nominee for Arizona governor and Deputy Chief of Protocol for former President Bill Clinton, Fred Duval.
Galan-Woods’ list of endorsements from organizations also has diversity: Emily’s List, Bold Democrats, Elect Democratic Women, Moms Fed Up, Latino Victory Fund, Moms Demand Action, American Federation of Labor and Congress of Industrial Organizations (AFL-CIO), International Brotherhood of Teamsters Local 104, Ironworkers Local 75, American Federation of Government Employees, United Food and Commercial Workers, National Education Association, Arizona Education Association, Professional Firefighters of Arizona, International Association of Fire Fighters, Western States Regional Council of Carpenters, and Communications Workers of America.
O’Callaghan’s endorsements generally cover a more national scope, with some more local Arizona endorsements. Those Arizona endorsements include State Representative Mariana Sandoval; elected Central Arizona Water Conservation District board members Ylenia Aguilar and Ben Graff; pro-tem Justice of the Peace in Maricopa County Ayensa Millan; Scottsdale Unified School District board member Julie Cieniawski; Phoenix Elementary Governing Board member Regional Carrillo; Paradise Valley Unified School District Governing Board member Kerry Baker; former Scottsdale Education Association President Eric Kurland; former Nogales Mayor Marco Lopez; former Maricopa County Democratic Party Chair Steven Slugocki; activists Tony Moya, Shea Najafi, and Mark Ashley; former Turning Arizona Blue host Ron Williams; former congressional candidate Bernadette Greene-Placentia.
O’Callaghan’s endorsements outside Arizona list among them several A-list celebrities: Kate Walsh, Lesley-Ann Brandt, Laura Benanti, Beth Dover, and Cissy Jones. Other endorsements were Congressmen Dan Goldman (New York), Brendan Boyle (Pennsylvania), Val Hoyle (Oregon); former New York Congressman Max Rose; political scientist and author Rachel Bitecofer; former senior advisor to former President Bill Clinton, Justin Cooper; Obama 2012 State Director Miguel Medrano; former Bernie Sanders Deputy Director Roy Tatem Jr.; TNT reporter and host Allie LaForce.
O’Callaghan also had a number of organization recognitions: BlueAmerica, Common Defense, Patriotic Millionaires, Stonewall Democrats of Arizona, Penjamo Yaqui Pueblo, Power PAC Plus, Down with Tyranny, Vote Common Good, American Promise, and Moms Demand Action.
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