Litigation Releases (Anthony Joseph Cataldo)

On April 29, 2026, the Securities and Exchange Commission filed a settled action against Anthony J. Cataldo, former Chairman and CEO of a clinical-stage biopharmaceutical company (the Company), for allegedly misappropriating approximately $3.2 million from the Company and engaging in deceptive acts to conceal his misconduct from others, including the Company's auditors.

The SEC's complaint, filed in the United States District Court for the Central District of California, alleges that, from approximately November 2020 through October 2021, Cataldo made repeated unauthorized transfers, totaling approximately $644,500 in corporate funds, from the Company's bank account to his personal bank account. In addition, 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 in Beverly Hills that he was purchasing as his personal residence.

The complaint alleges that as part of this scheme, Cataldo made materially false and misleading statements to the Company's auditors and to investors in public filings made with the SEC, representing, among other things, that investor funds would be used for business expenses of the Company. The complaint further alleges that Cataldo undertook efforts to ensure the quarter-end bank records did not reflect the missing funds he took for the home purchase.

Without admitting or denying the allegations in the complaint, Cataldo consented to the entry of a proposed final judgment, subject to court approval, in which he agreed to be permanently enjoined from violating Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and Rule 13b2-2 of the Exchange Act; to a three-year officer and director bar; and to pay a civil penalty of $30,000.

The SEC's investigation was conducted by Adam Eisner, Margaret Haggerty, and Margaret Vizzi and supervised by C. Joshua Felker and Pei Y. Chung with the assistance of Devon Staren and David A. Nasse.