Eric Trump‑backed robotics firm Foundation misses payroll after CEO diverted $4.6 M to purchase luxury home

Sankaet Pathak, CEO and founder of Foundation, a company building the humanoid robot Phantom‑01, poses for a photo during an interview with Reuters at the company’s San Francisco factory on February 4, 2026.

Aleksandra Michalska | Reuters

Foundation Future Industries, a maker of military humanoid robots advised and backed by Eric Trump, failed to pay employees last month as cash reserves dwindled, according to people familiar with the situation.

Workers have yet to receive paychecks after the San Francisco‑based company missed payroll on October 30, the sources said. The individuals requested anonymity to discuss a private company.

The payroll shortfall has drawn particular criticism because Pathak borrowed $4.6 million from the company in 2025 to finance a luxury home in Sausalito, a purchase that could have helped cover payroll obligations.

Public records show that an LLC controlled by Pathak bought the Sausalito property in October 2025 for $4.6 million, touting sweeping bay views.

A spokesman for Pathak said the executive had received a detailed summary of the story but declined to comment further. Pathak’s prior venture, the fintech startup Synapse, collapsed in 2024, leaving thousands of customers without access to their savings.

Foundation, which claims to be on the verge of unveiling a weapons‑ready next‑generation humanoid robot, is seeking hundreds of millions of dollars in new funding at a $3 billion valuation. The company has touted claims of winning $24 million in Pentagon contracts, though internal sources say the contracts actually belong to a previously acquired firm, Boardwalk Robotics.

“What we’re about to unveil … is going to be the strongest humanoid robot that exists anywhere in the world, including China,” Pathak said in an April television interview.

‘Plain sight’

The same interview introduced Eric Trump as an investor and chief strategy advisor for Foundation. Eric Trump and his brother have invested in several defense firms, and a Washington Post investigation found that startups linked to the brothers have secured at least $3.2 billion in government business.

“We have to win robotics in the United States of America,” Eric Trump said in April. “When you go up and interact with these robots … they fist bump you, they high five you, they follow your commands.”

Senator Elizabeth Warren (D‑Mass.) criticized the arrangement, asking whether Foundation secured defense contracts because of nepotism. “This looks like corruption in plain sight,” she said on social media.

Eric Trump’s spokesperson told the Financial Times that he has no involvement in Foundation’s management, operations, or contract execution. The company has not actually won the $24 million contracts it claimed, the sources said.

Foundation’s structure—Pathak as sole board member and majority shareholder—has raised governance concerns among potential investors. This arrangement permitted Pathak to take a $4.6 million loan, which he described as a short‑term borrowing. Existing investors are aware of the loan through disclosed financial statements.

“This is what happens in a company with no governance,” one insider said. “Are you just going to let it ride into the ground, and you ride off into the sunset?”

The firm also missed payroll in August but quickly secured a bridge loan from an existing investor, delaying the impact. Pathak sent a memo to staff this week saying he is working to locate funds to reimburse wages.

Foundation was founded in April 2024 by Pathak, Tribe Capital CEO Arjun Sethi and Mike LeBlanc, a veteran of autonomous‑security robotics. The company recruited dozens of engineers from Tesla and Amazon’s Zoox autonomous‑vehicle unit.

Rescue loan?

Before Foundation, Pathak founded Synapse, a fintech intermediary that enabled savings accounts through partner banks. Synapse’s 2024 collapse left more than 100,000 Americans with roughly $265 million in deposits locked, and up to $96 million was reported missing.

Pathak withdrew $320,000 in loans from Synapse as it neared bankruptcy, according to independent journalist Jason Mikula. Federal prosecutors convened a grand jury to examine possible misconduct, though the Wall Street Journal did not name Pathak.

Despite the controversy, Eric Trump continued to back Pathak, calling him a friend during an April broadcast. “I walked into his factory, and I couldn’t believe what I saw,” Eric Trump said. “He’s doing a phenomenal job.”

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