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Los Angeles Clippers owner Steve Ballmer is being sued by 11 investors in the company formerly known as Aspiration, claiming the billionaire used the scandalized environmental fintech firm to circumvent the NBA salary cap in an effort to pay team star Kawhi Leonard.
The lawsuit was initially filed in July without Ballmer's name among the defendants. But now, in an amended complaint first revealed by podcaster Pablo Torre, plaintiffs' attorneys have accused the former Microsoft CEO of making a 'corrupt deal' with Aspiration co-founder, Jared Sanberg, who has since pleaded guilty to federal wire fraud charges as the company was accused of $248 million of fraud.
The lawsuit accuses Ballmer of working with Sanberg to make the company appear successful, thereby enticing the Plaintiffs to invest in Aspiration, while helping to 'hide the rampant fraud occurring.'
Additionally, by infusing $50 million into Aspiration, Ballmer allegedly circumvented the NBA's salary cap by ensuring the funds would ultimately end up with Leonard.
'These funds would be channeled through Catona to Leonard so that Ballmer could induce Leonard to re-sign with the Clippers by covertly paying him more than allowed by the NBA's salary cap rules,' read the lawsuit obtained by Daily Mail.
The plaintiffs, a group of investors, claim to have suffered more than $50 million in damages and are seeking a jury trial.
Steve Ballmer is pictured at a Seattle Storm-Indiana Fever WNBA game back in June
Kawhi Leonard has denied any wrongdoing amid claims he was improperly paid by the team
Daily Mail has reached out to both the Clippers and the NBA for comment.
Ballmer and the Clippers previously denied any wrongdoing in September after Torre first reported the alleged scheme to improperly pay Leonard.
The NBA has since launched its own investigation into an alleged $28 million 'no-show' endorsement contract between Leonard and the California-based sustainability services company now known as Catona.
Sanberg previously pleaded guilty to wire fraud after federal prosecutors accused him of defrauding investors and lendors out of roughly $248 million.
The Clippers did announce a $300 million partnership with Aspiration in 2021 months before Leonard signed a four-year, $176 million extension with the team.
However, the club ended the relationship after two years because the contract was in default.
The NBA previously investigated claims that Leonard’s representatives asked for improper perks in violation of the league salary cap several years earlier but did not find any violations.
As for the recent allegations involving Aspiration, Leonard has denied any wrongdoing and told reporters in September he never received all the money he was owed from the company now known as Catona. Asked about the allegation he did nothing in exchange for his multi-million payout from Aspiration, Leonard told reporters: ‘I don’t think it’s accurate.’
