Future Industries, a military robotics company backed by US President Eric Trump's son, failed to pay workers after its CEO borrowed $4.6 million of the company's money to buy a house.
The company is known for sending some of its military robots to Ukraine "for testing".
Pathak (pictured) is the sole member of the fund's board and owns a majority of its shares, which sources told CNBC raised concerns about corporate governance among potential investors.
This arrangement allowed him to take what is known as a short-term loan, and this was disclosed to existing investors as part of the company's financial statements.