Surprise: Green LA Firm Crashes Over Fraud Claims

Why does it seem that most involved in pushing “green” is just some sort of shady scheme?

Drake, DiCaprio, the Clippers backed this ‘green’ L.A. firm. It crumbled amid fraud claims

Aspiration Partners made a splash when it entered the green investing space in 2013.

The Marina del Rey firm billed itself as a socially conscious online banking company, offering investments and focusing its finances on the climate crisis. It also generated and sold carbon credits meant to help offset greenhouse gas emissions.

Soon, it collected celebrity investors such as Leonardo DiCaprio, Orlando Bloom, Robert Downey Jr., and Steve Ballmer, the former Microsoft chief executive, philanthropist and owner of the Los Angeles Clippers.

But 12 years later, things have turned sour.

Earlier this year, the co-founder and another top company official agreed to plead guilty to wire fraud charges and scheming to bilk investors using falsified documents. Aspiration went bankrupt.

It’s fast, easy money taking advantage of people who want to show the cult flag, even though few of them practice what they preach.

It came at a moment of rising concern about climate change, and Aspiration seemed to capitalize. Sizable deals rolled in, including a $315-million pact with Oaktree Capital Management and Ballmer.

The firm even partnered with rapper Drake in 2021, using its reforestation program to offset the artist’s estimated climate impact. The company at the time claimed its business partners and customers had funded the planting of 15 million trees over the course of a year.

This really isn’t surprising at all. It’s all a scam. And the rest of the LA Times piece describes in detail all the shady dealings, but, fails to note that “green” is shady.