A Democrat running for Congress out of Scottsdale may be the subject of a probe by federal financial regulators.
Bloomberg reported that the Justice Department and Commodity Futures Trading Commission are investigating Aspiration, a company that helps businesses looking to cut their carbon footprint purchase carbon credits.
Investigators are looking into potential misconduct related to those carbon credit transactions as part of a larger effort to scrutinize the industry. That includes a deal Aspiration struck with the Los Angeles Clippers in 2021 to help the basketball team’s new arena go green.
According to the report, federal investigators are looking into actions by Democrat Andrei Cherny and Joseph Sandberg, who co-founded the company in 2013. Cherny, who is now running for the Democratic nomination in Arizona’s Congressional District 1, stepped down as CEO of the company in 2022. But he still retains financial interests in the business, according to a federal financial disclosure.
The Justice Department and the CFTC declined to comment to Bloomberg.
In a statement, Cherny said he has no knowledge of any misconduct and will cooperate with the inquiry.
“The carbon removal credit industry is an emerging industry and deserves to be regulated and scrutinized to ensure it is as effective as possible,” Cherny said in the statement.
Cherny is one of five Democrats running for the chance to take on Republican Congressman David Schweikert in CD1.
