On September 27, 2017, a Los Angeles grand jury returned a 15-count indictment for Eric Pulier, the founder, CEO and largest shareholder of software company ServiceMesh, Inc., and Jon Waldron, a former IT manager at the Commonwealth Bank of Australia (“CBA”), relating to charges that ServiceMesh paid bribes to CBA executives to approve contracts that inflated the company’s revenues, which in turn caused Computer Sciences Corporation (“CSC”) to pay a $98 million incentive bonus as part of their purchase of the company.  Pulier allegedly paid $2.5 million in bribes to two senior CBA executives in exchange for the approval of $10.4 million in contracts for the sale of software from ServiceMesh.  Under its sale agreement with CSC, the resulting increased revenue triggered an “Earnout” payment of $98 million to Service Mesh shareholders, $30 million of which went to Pulier.  Waldron was charged with approving the contracts in exchange for bribes, mostly paid through a New Zealand-based shell company.  Pulier and Waldron were charged with conspiracy to commit securities fraud and wire fraud, one count of securities fraud, and four counts of wire fraud; Pulier is charged with an additional six counts of interstate travel and use of interstate facility in aid of commercial bribery, obstruction of justice, and two counts of filing a false tax return.  U.S. v. Pulier, et al., 17-cr-00599 (C.D. Cal.).

DOJ Press Release