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.