Green Investor and Climate Change Activist Facing Securities Fraud Charges
Ibrahim AlHusseini, a venture capitalist who focuses on investing in “climate-restoring technologies” and has donated over $300,000 to Democrats, is facing charges of securities fraud from federal prosecutors. The FBI alleges that he deceived investors in a deal involving $150 million in stock in Aspiration, a progressive banking app and carbon-credits company. Aspiration has been scrutinized for “greenwashing,” or misleading environmental claims.
Investors claim they lost $150 million due to the fraud, while AlHusseini reportedly transferred $300 million to Saudi Arabia to evade his debts. AlHusseini, raised in Saudi Arabia by Palestinian parents, claims to have raised over half a billion dollars in capital, primarily for green energy companies. He heads FullCycle, an investment firm, and was a board member of CodePink, a group known for its aggressive activism outside the U.S. Capitol.
Arrested on October 7 and detained until December 21, AlHusseini eventually secured release on $3 million bail, supported by wealthy liberal activists like CodePink’s founder, Jodie Evans. Despite being deemed a flight risk by the government, AlHusseini was set free with strict conditions, including surrendering his passports, firearms, and wearing a GPS monitor.
According to FBI documents, AlHusseini presented falsified bank statements to investors, inflating his assets to between $80 million and $200 million, when in reality, his brokerage account only held between $2,000 and $15,000. This led to substantial losses for investors, with AlHusseini pocketing more than $12 million in illicit gains.
The charges stem from a civil lawsuit involving Aspiration, co-founded by Andrei Cherney, an individual with ties to prominent political figures and environmental advocates like Bill Clinton and Al Gore. Aspiration, backed by actors Robert Downey Jr. and Leonardo DiCaprio, aimed to provide banking services in line with progressive values.
Sanberg, another co-founder of Aspiration, defaulted on a $145 million loan, with AlHusseini supposedly acting as a financial guarantor. When Sanberg couldn’t meet his obligations, AlHusseini failed to fulfill his promise to acquire the stock offered as collateral, leading to further legal complications. Allegations of fraudulent invoices and significant money transfers abroad complicated the situation, resulting in mounting legal battles and financial troubles for those involved.
As the legal proceedings continue, the complex web of financial transactions and deceitful practices employed by AlHusseini unfold, painting a troubling picture of the investment landscape and the risks associated with high-stakes financial dealings.
