High-Profile Democrats Face Mounting Legal Trouble in Twin Fraud Cases

Two prominent Democratic figures are under intense legal scrutiny following major fraud allegations, casting a shadow over the party’s leadership and raising questions about ethics and accountability in public office and finance.

Joseph Sanberg’s Fall from Influence

Joseph Sanberg, a major Democratic donor and progressive activist, has agreed to plead guilty to two counts of wire fraud. The Department of Justice announced that Sanberg, who co-founded a financial technology company called Aspiration, used his position to carry out a scheme that defrauded investors and lenders of more than $248 million.

According to prosecutors, Sanberg misled financial institutions by submitting falsified documents that inflated the company’s financial health. These documents included doctored bank statements and fabricated audit letters to secure massive loans and entice investors. In some instances, payments were funneled through shell companies posing as legitimate customers, all to create the illusion that Aspiration was generating millions in revenue.

For years, Sanberg was hailed as a socially responsible entrepreneur, promoting his company as a climate-conscious alternative in the financial sector. Behind the scenes, however, he was allegedly orchestrating one of the largest financial deceptions involving a progressive-backed company in recent memory.

Federal authorities revealed that Sanberg and his associates even created fake revenue streams by using straw clients to simulate large-scale tree-planting deals, which never actually took place. These fictitious agreements helped inflate the company’s valuation and secure favorable terms with investors. Sanberg now faces up to 40 years in prison — 20 years for each count of wire fraud.

Corruption Allegations Grow Against Councilman Curren Price

Simultaneously, Los Angeles City Councilmember Curren Price is facing a second round of felony charges, just over a year after his initial indictment. Price, who has represented L.A.’s Ninth District since 2013, was first charged in 2023 with embezzlement, perjury, and conflict of interest. Now, prosecutors have filed two additional felony charges tied to allegations that he used his office to benefit his wife financially.

The Los Angeles District Attorney’s office claims Price voted on multi-million-dollar city contracts that directly benefited firms connected to his wife. Specifically, two agencies — L.A. Metro and the city’s housing authority — reportedly paid her over $800,000 during the same period Price voted to approve significant funding for those organizations.

Investigators say these votes violated city ethics laws that prohibit councilmembers from participating in decisions where they or their family members stand to benefit financially. In earlier charges, Price was accused of failing to disclose financial ties to developers who paid his wife’s consulting firm while he approved their projects — further deepening suspicions of self-dealing and ethical misconduct.

L.A. County District Attorney Nathan Hochman issued a stern statement: “Embezzling public funds and awarding contracts for your own financial gain is the antithesis of public service. Our communities deserve transparency, not betrayal.”

Price has denied any wrongdoing and pleaded not guilty to the initial charges. Legal experts say the new charges significantly increase his legal exposure and may complicate any defense strategy.

Other Democrats Under the Microscope

These cases come as more Democratic officials face mounting legal challenges. Reports indicate that grand juries in multiple states are reviewing evidence against two other prominent Democrats — New York Attorney General Letitia James and California Senator Adam Schiff. Allegations suggest both may have been involved in falsifying property records to secure preferential treatment from financial institutions, potentially amounting to mortgage fraud, wire fraud, and bank fraud. If indicted, each could face decades in federal prison.

The prosecutions are being overseen by a special attorney appointed by the Justice Department, who vowed to pursue the investigations without regard to political affiliation or position. The Justice Department has reportedly worked for months gathering evidence on both cases.

A Party Under Pressure

The unfolding scandals are putting pressure on Democratic leadership to address concerns about corruption and abuse of power. While political opponents have seized on the charges as proof of systemic misconduct, others within the party warn against rushing to judgment until full legal proceedings play out.

Regardless of the outcomes, the back-to-back revelations involving Joseph Sanberg and Curren Price — as well as ongoing inquiries into other high-ranking Democrats — signal a wave of accountability that may continue to reshape the political landscape.