SEC v. Anthony J. Cataldo

Anthony J. Cataldo, former Chairman and CEO of a clinical-stage biopharmaceutical company, allegedly misappropriated approximately $3.2 million from the Company and engaged in deceptive acts to conceal his misconduct from others, including the Company’s auditors. Cataldo allegedly made repeated unauthorized transfers totaling approximately $644,500 in corporate funds from the Company’s bank account to his personal bank account. According to the Complaint, in July 2021, Cataldo took nearly $2.6 million from the Company’s bank account to make a downpayment on a $9.15 million home he was purchasing as his personal residence. As part of this scheme, Cataldo allegedly made materially false and misleading statements to the Company’s auditors and to investors in public filings made with the SEC, representing that investor funds would be used for business expenses of the Company. Cataldo also allegedly undertook efforts to ensure the quarter-end bank records did not reflect the missing funds he took for the home purchase.

Summary generated from official Securities and Exchange Commission press release