Steve Ballmer slams co-founder who pleaded guilty to fraud: “I was duped and I feel like a fool”

Silicon Valley tends to tolerate some exaggeration when startups pitch to investors, often dismissing them as part of selling a vision. But some decisions cross the line and can lead to jail time for the founders and discredit to those who sell them.

An example of this is Joseph Sanberg, who once the rise of fintech Aspiration Partners was backed by a group of technology experts, including former Microsoft CEO and Clippers owner Steve Ballmer. In August 2025, Sanberg pleaded guilty to two counts of wire fraud and defrauding several investors and lenders, the US Department of Justice said. he said in a news release. Each charge carries a maximum sentence of 20 years in prison.

Before the sentencing, which is scheduled for Monday, the victims were asked to describe their experiences with Sanberg to the judge. Ballmer said it, and publicly. Ballmer’s lawyers said in the letter that he lost money, was defamed, and that the NBA is investigating allegations from the organization.

Sanberg founded the green fintech group Aspiration Partners, which offered what it called sustainable banking services such as credit cards and consumer products that avoid fossil fuels. The founders promised to “plant trees automatically with every card purchase.” In 2021, it announced plans to go public through a SPAC combined at a cost of $2.3 billionalthough all sales it happened.

The DOJ alleged that Aspiration bankrolled and realized money from entities owned by Sanberg, who made the company appear to have more customers and money that it did not have. The agency also said it defrauded investors by showing them a false letter from Aspiration’s financial committee that said the company had $250 million in cash and similar assets when it had less than $1 million in cash. The DOJ said Sanberg, along with a board member who also pleaded guilty, falsified financial records to obtain $145 million in loans.

When Ballmer shared his letter on Xasking the judge to consider his guilt in sentencing, he wrote: “I was fooled and I felt like a fool.” Everyone who believed in Aspiration, including employees, customers and investors, was also deceived.

The letter states that Ballmer invested $60 million in the company, and lost it all. Ballmer was not only an entrepreneur, but he also partnered with Aspiration to provide air conditioning programs for the Clippers and its stadium. Aspiration also became the main sponsor of the Clippers.

The billionaire said in the letter that he did not spend the money, his reputation was affected. He used the letter to deny reports of multiple team lists from popular sports podcast Pablo Torre Gets which highlighted the relationship between Clippers and Aspiration. The podcast also reported that Aspiration helped waive the Clippers player’s salary. Ballmer’s lawyers called the claims “a misunderstanding or a willful disregard for the facts,” in the letter.

Ballmer’s letter also said that because of the partnership with the company, the podcast and other public interest, he was named in the lawsuit. Meanwhile, the NBA said in its letter regarding Sanberg’s decision that it is investigating the pay allegations and that Sanberg has been testifying, ESPN reported.

Although the world of basketball is affected by all the events of the downstream, the message that the founders can take from them is clear: If someone makes financial statements to get money, the result will be prison.

Ballmer’s team did not respond to a request for comment.