Four million six hundred thousand dollars borrowed by a chief executive officer contrasts sharply with unpaid workers at military humanoid robot maker Foundation Future Industries, according to people with direct knowledge of the matter reported by CNBC.
Workers have yet to receive paychecks after the San Francisco startup missed payroll on Oct. 30. Sankaet Pathak, the company’s CEO and co-founder, borrowed $4.6 million from Foundation last year to buy a luxury home, money that could have been used to cover salaries, the people said.
Public records show that an LLC naming Pathak as sole principal purchased a Sausalito, California, property for that exact amount in October 2025. The home features sweeping, cinematic views of the San Francisco Bay.
A spokesman for Pathak acknowledged receiving a detailed list of the major points from the report on Thursday but did not respond to requests for comment. Pathak’s previous startup, a fintech firm named Synapse, collapsed in 2024 and left thousands of Americans locked out of their savings accounts.
Eric Trump advises Foundation on defense robot development
Foundation cash reserves have dwindled while Pathak seeks to raise hundreds of millions of dollars at a $3 billion valuation. The startup builds a weapons-ready humanoid robot named Phantom-01 designed to help the United States compete against Chinese rivals.
Eric Trump went on FOX to brag about winning ANOTHER multimillion-dollar contract from the Trump administration. I've been sounding the alarm and pushing for answers. Is the Pentagon just a cash machine for Trump’s kids now? This looks like corruption in plain sight. https://t.co/kRYgFqYSmV
Eric Trump serves as an investor and chief strategy advisor for the defense firm. It remains unclear how large his stake is in the company.
“We have to win robotics in the United States of America,” Eric Trump said in an April television interview reported by CNBC. “When you go up and interact with these robots … they fist bump you, they high five you, they follow your commands.”
His involvement drew sharp criticism from Sen. Elizabeth Warren, D-Mass. She questioned whether Foundation secured business through nepotism.
“Eric Trump went on FOX to brag about winning ANOTHER multimillion-dollar contract from the Trump administration,” Warren said in an April 23 social media post cited by CNBC. “This looks like corruption in plain sight.”
Boardwalk Robotics acquisition explains contract funding
Reports suggested Foundation won $24 million in defense contracts, but the startup actually acquired Florida-based Boardwalk Robotics in late 2024. Government research contracts won by Boardwalk account for that funding, according to a person with knowledge of the matter.
Foundation used the Boardwalk robot Alex as the basis for its first model, the Phantom MK-1. That deal included performance milestones that have not yet been reached, a separate source said.
Pathak is the sole board member and owns most of Foundation shares, a corporate governance structure that worries prospective investors. The firm also ran out of cash for payroll in August, though employees received pay about two days later after securing a bridge loan from an existing investor.
Before launching Foundation, Pathak founded Synapse. That fintech middleman collapsed in 2024, leaving more than 100,000 Americans locked out of $265 million in deposits across FDIC-backed accounts. A bankruptcy trustee later reported that as much as $96 million in customer funds went missing.
The Consumer Financial Protection Bureau subsequently sued Synapse, opening a $55 million fund for customer relief. Pathak withdrew $320,000 in loans from Synapse as it spiraled toward bankruptcy amid disputes over unmatched ledgers, according to consultant Jason Mikula. Federal prosecutors convened a grand jury to investigate possible criminal misconduct at Synapse, the Wall Street Journal reported.
Frequently Asked Questions
Why did Foundation miss its payroll?
Foundation missed payroll on Oct. 30 as its cash reserves dwindled, leaving workers waiting for paychecks while CEO Sankaet Pathak had previously borrowed $4.6 million from the company to buy a luxury home.
What is the status of Eric Trump’s involvement with Foundation?
Eric Trump serves as an investor and chief strategy advisor for the military humanoid robot maker, though his spokesperson stated he has no involvement in management, operations, or government contract negotiations.
What happened during the collapse of Pathak’s previous firm?
Pathak’s former fintech startup, Synapse, collapsed in 2024 and left more than 100,000 Americans locked out of $265 million in deposits while federal investigators examined missing funds.
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