Democratic Figures Face Dual Storms of Fraud and Corruption Charges

Two high-profile Democratic figures are facing serious legal troubles in separate but equally damaging cases. Joseph Sanberg, a wealthy progressive activist and major donor to Democratic campaigns, and Los Angeles City Councilmember Curren Price are now at the center of federal and state investigations involving millions of dollars in alleged fraud, embezzlement, and public corruption.

Joseph Sanberg’s $248 Million Fraud Scheme

Joseph Sanberg, co-founder of the financial technology firm Aspiration Partners, has agreed to plead guilty to two counts of wire fraud in a sprawling federal case. According to prosecutors, Sanberg engaged in an elaborate scheme to mislead investors and financial institutions, ultimately causing more than $248 million in financial losses.

Officials allege that Sanberg used his influential position at the company to exaggerate its financial health and secure funding under false pretenses. Over several years, he and his associates are accused of fabricating revenue numbers, misrepresenting customer agreements, and using fraudulent financial statements to attract loans and investments.

The government says that Sanberg and his co-conspirators also created shell companies to funnel and disguise funds, further misleading lenders about Aspiration’s stability and success. In many cases, the revenues Sanberg claimed were not from actual business activity but from artificially structured payments designed to appear legitimate.

Facing a maximum of 20 years per count, Sanberg could spend up to 40 years in federal prison. His sentencing will depend on the outcome of further cooperation and legal proceedings. Sanberg, who has donated to several high-profile Democratic campaigns including those of California Governor Gavin Newsom, has yet to publicly comment on the charges.

Federal officials described the fraud as “deliberate and deeply deceptive,” adding that the investigation is ongoing and may involve additional individuals tied to the company’s operations.

Curren Price: Conflict of Interest and Embezzlement in Los Angeles

Meanwhile, in Los Angeles, long-serving City Councilman Curren Price is facing expanding legal jeopardy. Already charged with multiple felonies in 2023, Price now faces two new charges related to embezzlement and conflict of interest.

Prosecutors allege that Price voted in favor of city contracts that financially benefited his wife’s consulting firm, which received over $800,000 from the Los Angeles Housing Authority and LA Metro. At the time, Price failed to disclose his financial connection to the firm—a serious violation of city ethics laws.

The original charges against him included five counts of embezzlement of public funds, three counts of perjury, and two counts of conflict of interest. With the two new charges, Price now faces a total of twelve felony counts.

The payments in question occurred between 2019 and 2021 and were tied to large-scale development and housing projects. Price’s wife’s company, which allegedly received the funds, is said to have acted as a consultant during this time.

City regulations prohibit councilmembers from participating in decisions in which they or their immediate family have a financial interest. Prosecutors argue that Price directly violated those rules while actively participating in the approval process for the contracts.

Price has pleaded not guilty and remains in office for now, though the pressure is mounting. If convicted on all charges, he could face over a decade in prison.

Los Angeles County District Attorney Nathan Hochman issued a strong statement condemning the alleged behavior, calling it “the opposite of what public service should be.” He emphasized that the people of Los Angeles deserve transparency and accountability, and vowed to pursue any official who abuses their position for personal gain.

Broader Implications for the Democratic Party

The dual scandals come at a time when the Democratic Party is already under scrutiny over ethics and transparency. Both Sanberg and Price have been tied to influential circles in California politics, a state where Democratic supermajorities dominate both legislative and local governments.

These legal cases threaten to further damage public trust and reinforce narratives of corruption among career politicians and elite donors.

While neither case has drawn formal statements from top Democratic leaders, political analysts suggest these developments could have ripple effects in the upcoming election cycle. Opponents are likely to cite these cases as evidence of a broader problem within the party’s leadership and financial networks.

Looking Ahead

As both investigations continue, more details are expected to emerge. Prosecutors have indicated that additional charges or indictments may be possible depending on what further evidence is uncovered.

In the case of Joseph Sanberg, federal investigators may look deeper into Aspiration’s financial relationships and whether others at the company were complicit in the scheme. For Curren Price, more scrutiny may be placed on past votes and contracts he supported.

In both instances, the message from law enforcement is clear: public office and financial power do not place individuals above the law.