Just over four years ago, the aspiration of the climate -friendly Fintech’s startup was on the verge of a $ 2 billion public list. Now, one of the members of the Start Board has pleaded guilty to fraud in the wire and one of the co -founders has been arrested for allegedly to deceive investors, according to a federal criminal complaint presented by the US prosecutor’s office in Central California.
The beginning of Fintech has been under federal control for years for controversial financial accounting and carbon accounting practices. But the new complaint excels a light on a series of loans that are taken using supposedly fraudulent tactics.
Aspiring co -founder Joseph Sanberg was arrested Monday for allegedly plotting two different funds of $ 145 million. Also on the same day, Ibrahim Alhussein, an independent board member for the company, pleaded guilty to fraud to falsify documents to help Sanberg secure loans, according to federal prosecutors.
If sentenced, Sanberg faces up to 20 years in prison. Alhussein faces the same sentence, although he is cooperating with prosecutors, according to the US Bar Association for Central County of California.
The beginning attracted a long list of famous investors over the years, including actors Orlando Bloom, Leonardo DiCaprio and Robert Downey Jr., Drake musician and Doc Rivers basketball coach. The company hoped to go public through Spac in 2021, but the deal fell in 2023.
Sanberg and Alhussein are both accused of deceiving two different investors. In 2020, Sanberg was negotiating conditions for a $ 55 million loan with an unnamed investor fund. He pledged 10.3 million shares of his aspiration as a collateral; The investor fund demanded that Sanberg find a third party to agree to buy shares in a secondary sale if the fund wanted.
Alhussein was the third party suspected, according to prosecutors. Sanberg allegedly persuaded him in January 2020 to enter an option set in stock, which would force Alhussein to buy if the nameless fund wanted to sell.
But Alhussein did not have $ 55 million to pay the fund if he exercised the option, Federal prosecutors say. Sanberg and Alhussein allegedly worked with a graphic designer in Lebanon to mock a false brokerage account and bank statements to inflate Alhussein’s assets with $ 80 million to $ 200 million.
With the option set in the country, Fund borrowed Sanberg $ 55 million. Alhussein received $ 6 million from credit as a premium payment to guarantee repayment if the aspiration passed under.
In November 2021, Sanberg was allegedly refinancing the loan with a second nameless investor fund. This time, the loan was for $ 145 million.
Again, Alhussein allegedly agreed on a set option, this time for $ 65 million in the event that $ 10.3 million became invalid. And like the previous loan, Sanberg and Alhussein allegedly showed the second fund for counterfeit documents blowing Alhussein’s assets. This time, Alhussein received $ 6.3 million as a premium payment.
In total, Alhussein received $ 12.3 million from the scheme, according to his plea agreement.
A year later, Sanberg predetermined $ 145 million. Then in the spring of 2023, he was predetermined again. The fund that provided the loan exerted its option set with Alhussein, who did not buy the shares. The fund lost at least $ 145 million, according to the US lawyer’s office.
