CEO STOLE MILLIONS FOR BEVERLY HILLS MANSION, LIED TO AUDITORS!

SEC v. Anthony J. Cataldo — U.S. Securities and Exchange Commission Litigation Release No. 26544, dated April 29, 2026.

The SEC charged Anthony J. Cataldo, former CEO of a biopharmaceutical company, for misappropriating approximately $3.2 million in corporate assets. Cataldo allegedly made unauthorized transfers to his personal accounts and used company funds for a down payment on a personal residence, while also deceiving auditors and investors about the use of funds.

In Plain English

Imagine a company's piggy bank. The CEO, Anthony Cataldo, took about $3.2 million from it without permission. He used some of this money for himself, like buying a fancy house. He also told the company's accountants and investors that the money was for the business, which wasn't true. Because of this, he agreed to pay a penalty and can't be a CEO or director for three years.

Disclaimer: all facts are drawn from the SEC's own filings; the claims described are allegations unless and until a court rules or the parties settle, and some cases end in dismissal.

How the Alleged Scheme Worked

1. CEO Takes Company Funds From November 2020 to October 2021, Anthony J. Cataldo, the CEO and Chairman of a biopharmaceutical company, began taking money from the company's bank account. He made repeated unauthorized transfers totaling approximately $644,500 to his personal bank account.
2. Large Home Down Payment In July 2021, Cataldo took a much larger sum, nearly $2.6 million, from the company's bank account. He used this money as a down payment for a $9.15 million home he was purchasing as his personal residence in Beverly Hills.
3. Misleading Auditors As part of his scheme, Cataldo made false and misleading statements to the company's auditors. He was trying to hide the fact that he had taken substantial corporate funds for his personal benefit.
4. Deceiving Investors Cataldo also made false representations to investors in public filings with the SEC. He stated that investor funds would be used for legitimate business expenses of the company, when in reality he was diverting them for personal use.
5. Concealing Records To further conceal his misconduct, Cataldo took steps to ensure that the company's quarter-end bank records did not accurately reflect the missing funds he had taken for his personal home purchase.

The Enforcement Action

On April 29, 2026, the SEC filed a settled action against Anthony J. Cataldo, former Chairman and CEO of a clinical-stage biopharmaceutical company. Cataldo agreed to be permanently enjoined from violating Section 17(a) of the Securities Act of 1933 and Sections 10(b) and 10b-5 of the Securities Exchange Act of 1934 and Rule 13b2-2 thereunder. He also agreed to a three-year officer and director bar and to pay a civil penalty of $30,000. Cataldo neither admitted nor denied the allegations.

Named in this action: Anthony J. Cataldo.

Original SEC litigation release ↗ · Browse all cases