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California anti-poverty activist accused of defrauding investors out of more than $145 million
California anti-poverty activist accused of defrauding investors out of more than $145 million

Yahoo

time06-03-2025

  • Business
  • Yahoo

California anti-poverty activist accused of defrauding investors out of more than $145 million

It seemed like the realization of the American dream: A man rose from poverty to attend Harvard University, find success on Wall Street, co-found an eco-friendly financial and sustainability company and even flirt with a presidential bid. But this week Joseph Sanberg, who made his fortune investing early in companies like Blue Apron, was taken into custody for his alleged role in bilking investors out of at least $145 million. Sanberg, 45, of Orange, was arrested Monday, according to the U.S. Department of Justice. The official court record is sealed, but in a statement authorities alleged he conspired to defraud two investor funds. Sanberg, co-founder of Aspiration Partners Inc., appeared in U.S. District Court in Santa Ana on Monday. He did not enter a plea and was released on $200,000 bail, records show. He's due back for arraignment March 28. The Times was unable to locate an attorney for Sanberg. A call to a number listed for him was not returned. Read more: He made millions as an L.A. investor. Now, he may run for president to fight poverty Over the years, Sanberg has drawn headlines for his anti-poverty activism — including pushing to establish a California version of the federal Earned Income Tax Credit, which he benefited from as a child. Sanberg also founded a nonprofit, seeded with $3.5 million of his own money and six-figure contributions from donors such as the Annenberg Foundation, the Streisand Foundation and civil rights attorney Molly Munger, to launch an advertising campaign to make sure those eligible for the money received it. He also spearheaded Proposition 32, a failed 2024 ballot measure that would have raised California's minimum wage. In 2019, Sanberg considered running for the Democratic presidential nomination, but ultimately opted against it. Read more: Should California have a $18 minimum wage? Voters may get to decide The Justice Department this week announced that a man it identified as a co-conspirator — Ibrahim Ameen AlHusseini, 51 — had pleaded guilty to wire fraud for falsifying documents that aided in the alleged scheme. The Venice resident is scheduled for sentencing Sept. 29. AlHusseini could spend up to 20 years in prison with financial penalties totaling at least $250,000, authorities say. AlHusseini's attorney declined to comment on the case. AlHusseini was initially arrested in October on suspicion of securities fraud, according to the criminal complaint. That charge was dismissed with prejudice 'to facilitate his cooperation,' the Justice Department said. 'Our prosecutors and law enforcement partners have worked methodically to secure a guilty plea from one of the main offenders in this case,' Acting U.S. Atty. Joseph McNally said in a statement. Read more: San Francisco tech founder and wife arrested for allegedly defrauding investors out of millions Prosecutors allege Sanberg used a variety of individuals, led by AlHusseini, and fraudulent paperwork to commit wire fraud against two investor funds. He is accused of negotiating a $55-million loan from one fund, pledging shares of his company as collateral. To secure the loan, authorities allege Sanberg recruited AlHusseini, a member of Aspiration Partners' board of directors, to back the deal, even though he knew AlHusseini did not have the necessary assets. Court documents allege the pair furnished falsified documents that artificially inflated AlHusseini's assets. After securing that loan, authorities allege Sanberg refinanced it in 2021. This time, a second investor fund lent him $145 million and again, authorities say, Sanberg and AlHusseini provided falsified documents to secure it. According to the criminal complaint, Sanberg deftly coached AlHusseini on how to speak to investors to allay any concerns. He allegedly told an investment advisor that he would call off a deal if that individual were to try to independently verify the veracity of his and AlHusseini's financial claims, the complaint says. Sanberg defaulted on that loan in November 2022 and again the following spring, authorities say. Read more: Well-known stock trader and his L.A. firm are charged with fraud and market manipulation The loans were supposed to be backed by AlHusseini. However, he did not have that much money — having produced falsified brokerage and bank statements that inflated his financial assets, according to authorities. The duo also allegedly employed a graphic designer to help doctor fake statements. At one point in 2019, AlHusseini claimed to have $86 million in a Fidelity account. In reality, the balance was $4,390.10, according to the criminal complaint. AlHusseini received a payment of approximately $6.3 million for being a guarantor for one of the loans and admitted to receiving $12.3 million in payments from the scheme, according to the criminal complaints. 'We will continue to ensure that markets and businesses receive an honest and level playing field in which to operate,' McNally said. Sign up for Essential California for news, features and recommendations from the L.A. Times and beyond in your inbox six days a week. This story originally appeared in Los Angeles Times.

California anti-poverty activist accused of defrauding investors out of more than $145 million
California anti-poverty activist accused of defrauding investors out of more than $145 million

Los Angeles Times

time06-03-2025

  • Business
  • Los Angeles Times

California anti-poverty activist accused of defrauding investors out of more than $145 million

It seemed like the realization of the American dream: A man rose from poverty to attend Harvard University, find success on Wall Street, co-found an eco-friendly financial and sustainability company and even flirt with a presidential bid. But this week Joseph Sanberg, who made his fortune investing early in companies like Blue Apron, was taken into custody for his alleged role in bilking investors out of at least $145 million. Sanberg, 45, of Orange, was arrested Monday, according to the U.S. Department of Justice. The official court record is sealed, but in a statement authorities alleged he conspired to defraud two investor funds. Sanberg, co-founder of Aspiration Partners Inc., appeared in U.S. District Court in Santa Ana on Monday. He did not enter a plea and was released on $200,000 bail, records show. He's due back for arraignment March 28. The Times was unable to locate an attorney for Sanberg. A call to a number listed for him was not returned. Over the years, Sanberg has drawn headlines for his anti-poverty activism — including pushing to establish a California version of the federal Earned Income Tax Credit, which he benefited from as a child. Sanberg also founded a nonprofit, seeded with $3.5 million of his own money and six-figure contributions from donors such as the Annenberg Foundation, the Streisand Foundation and civil rights attorney Molly Munger, to launch an advertising campaign to make sure those eligible for the money received it. He also spearheaded Proposition 32, a failed 2024 ballot measure that would have raised California's minimum wage. In 2019, Sanberg considered running for the Democratic presidential nomination, but ultimately opted against it. The Justice Department this week announced that a man it identified as a co-conspirator — Ibrahim Ameen AlHusseini, 51 — had pleaded guilty to wire fraud for falsifying documents that aided in the alleged scheme. The Venice resident is scheduled for sentencing Sept. 29. AlHusseini could spend up to 20 years in prison with financial penalties totaling at least $250,000, authorities say. AlHusseini's attorney declined to comment on the case. AlHusseini was initially arrested in October on suspicion of securities fraud, according to the criminal complaint. That charge was dismissed with prejudice 'to facilitate his cooperation,' the Justice Department said. 'Our prosecutors and law enforcement partners have worked methodically to secure a guilty plea from one of the main offenders in this case,' Acting U.S. Atty. Joseph McNally said in a statement. Prosecutors allege Sanberg used a variety of individuals, led by AlHusseini, and fraudulent paperwork to commit wire fraud against two investor funds. He is accused of negotiating a $55-million loan from one fund, pledging shares of his company as collateral. To secure the loan, authorities allege Sanberg recruited AlHusseini, a member of Aspiration Partners' board of directors, to back the deal, even though he knew AlHusseini did not have the necessary assets. Court documents allege the pair furnished falsified documents that artificially inflated AlHusseini's assets. After securing that loan, authorities allege Sanberg refinanced it in 2021. This time, a second investor fund lent him $145 million and again, authorities say, Sanberg and AlHusseini provided falsified documents to secure it. According to the criminal complaint, Sanberg deftly coached AlHusseini on how to speak to investors to allay any concerns. He allegedly told an investment advisor that he would call off a deal if that individual were to try to independently verify the veracity of his and AlHusseini's financial claims, the complaint says. Sanberg defaulted on that loan in November 2022 and again the following spring, authorities say. The loans were supposed to be backed by AlHusseini. However, he did not have that much money — having produced falsified brokerage and bank statements that inflated his financial assets, according to authorities. The duo also allegedly employed a graphic designer to help doctor fake statements. At one point in 2019, AlHusseini claimed to have $86 million in a Fidelity account. In reality, the balance was $4,390.10, according to the criminal complaint. AlHusseini received a payment of approximately $6.3 million for being a guarantor for one of the loans and admitted to receiving $12.3 million in payments from the scheme, according to the criminal complaints. 'We will continue to ensure that markets and businesses receive an honest and level playing field in which to operate,' McNally said.

Digital drugs and role of AI in combating them
Digital drugs and role of AI in combating them

Observer

time13-02-2025

  • Health
  • Observer

Digital drugs and role of AI in combating them

Two weeks ago, I met Omani researcher Dr Mohammed al Husseini at the Muscat Global Knowledge Dialogue hosted by the Sultanate of Oman. We discussed digital drugs and their unknown risks. In this context, Dr Al Husseini and a group of researchers published a paper with IEEE last year. Titled 'Detection of Digital Drugs Using Artificial Intelligence Deep Learning', the study examines how advanced deep learning models can detect 'digital drugs', auditory effects produced by delivering slightly different frequencies to each ear, which in turn alter mental status. Given AI's ability to address such digital risks, the study confirmed the effectiveness of Inception MV4 in detecting digital drugs. The researchers employed the Inception MV4 model to analyse and characterise audio data. Their dataset comprised 7,000 audio files: 5,000 containing digital drugs and 2,000 original files (including music, animal sounds and Quran recitations). The methodology converted the audio into visual representations (frequency spectra) using the Short-Time Fourier Transform (STFT), a mathematical technique for analysing audio and time signals. The Inception MV4 model was then trained on these images to classify them. The results revealed an impressive classification accuracy of about 99.97 per cent using three different learning rates, with Inception MV4 outperforming the ResNet-50 model in terms of accuracy and true positive rate. Given AI's ability to address such digital risks, the study confirmed the effectiveness of Inception MV4 in detecting digital drugs. The researchers recommended expanding the dataset and exploring additional optimisation techniques to further enhance performance and practical applications. They also noted that this system could be used to monitor and regulate online audio content to identify harmful auditory effects. The discussion above exposes a dangerous phenomenon of digital addiction that threatens human mental and cognitive well-being, while simultaneously highlighting AI's role in uncovering these hidden digital substances. This summary underscores the importance of employing AI to tackle this growing issue. In exploring digital drugs, we must consider psychological, social and scientific perspectives. I recall an article I published in the scientific supplement of Oman newspaper, where I discussed how certain frequencies shape 'cosmic energy', mostly with positive effects. However, it is essential to distinguish between positive and negative auditory frequencies. In that article, I noted that scientific studies confirm various effects, psychological, spiritual (consciousness) and physical, from specific auditory frequencies, such as 432 Hz. In our current discussion, we assert that we live in a world of diverse energies and frequencies. Certain frequencies, when manipulated (for example, by altering the sounds heard in each ear), can produce what we call 'digital drugs'. Scientifically known as 'binaural beats', some claim these beats can stimulate the brain to induce effects similar to those of narcotic drugs. Proponents argue that listening to two different frequencies in each ear can lead to brainwave entrainment, resulting in relaxation, euphoria or other altered mental states. However, studies indicate that exposure to such digital sounds can foster an addiction akin to that caused by chemical psychoactive substances. Their risks extend to physical and psychological harm by implanting subconscious suggestions that drive individuals to behave contrary to their normal patterns and societal norms. Digital drugs are not a new phenomenon; researchers have examined them for decades. Recently, their covert integration into certain Quran recitations has raised alarms in several countries, prompting significant efforts and expenditures to combat these harmful auditory materials and treat those affected. In addition to public awareness about the rising risks, especially with headphones that can alter frequency levels in each ear or negative auditory frequencies that require no such devices, we also need advanced digital tools to track and detect these substances. The surge in scientific studies proposing AI models, including Dr Al Husseini's work, underscores this need. The solution to curbing the spread of digital drugs lies in deploying counter-digital systems based on AI models that have proven effective in detecting and classifying harmful auditory frequencies from those that are benign.

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