SEC v. Eric Pulier, No. LR-23945, Central District of California (Sept. 27, 2017) — Press Release
raw: Eric Pulier
Eric Pulier, No. 2:17-cv-07124 (Sept. 27, 2017)
Eric Pulier, a former IT executive and co-founder of ServiceMesh, Inc
Eric Pulier, a former IT executive and co-founder of ServiceMesh, Inc., is accused of masterminding a scheme to defraud Computer Sciences Corporation (CSC) of $98 million in connection with CSC's 2013 acquisition of ServiceMesh. Pulier allegedly bribed Commonwealth Bank of Australia executives to secure contracts that would trigger an earn-out payment, from which he personally received over $30 million. He is charged with violating multiple sections of the Securities Act and Exchange Act, and faces a permanent injunction, disgorgement of ill-gotten gains, penalties, and an officer and director bar. Pulier also faces related criminal charges in a parallel action.
Eric Pulier, a former IT executive and co-founder of ServiceMesh, Inc., is accused of masterminding a scheme to defraud Computer Sciences Corporation (CSC) of $98 million in connection with CSC's 2013 acquisition of ServiceMesh. Pulier allegedly bribed Commonwealth Bank of Australia executives to secure contracts that would trigger an earn-out payment, from which he personally received over $30 million. He is charged with violating multiple sections of the Securities Act and Exchange Act, and faces a permanent injunction, disgorgement of ill-gotten gains, penalties, and an officer and director bar. Pulier also faces related criminal charges in a parallel action. The U.S. Securities and Exchange Commission charged Eric Pulier, former IT executive and co-founder of ServiceMesh, Inc. (SMI), with orchestrating a $98 million fraud scheme to trigger an earn-out payment from Computer Sciences Corporation (CSC) following its 2013 acquisition of SMI. Pulier allegedly bribed two former executives of the Commonwealth Bank of Australia (CBA) to fabricate contracts that artificially met a $20 million revenue threshold required for the earn-out, enabling SMI to collect the additional payment. Pulier, as SMI’s majority shareholder, received over $30 million of the ill-gotten funds and funneled more than $2.5 million in kickbacks to the CBA executives through a sham nonprofit. The SEC charged Pulier with violations of Sections 17(a) of the Securities Act and 10(b), 13(b)(5) of the Exchange Act, seeking injunctions, disgorgement, penalties, and an officer-director bar, while the U.S. Attorney’s Office filed parallel criminal charges. The investigation involved the FBI, NSW Police Force, and the U.S. Attorney’s Office for the Central District of California. The U.S. Securities and Exchange Commission charged Eric Pulier, former IT executive and co-founder of ServiceMesh, Inc. (SMI), with orchestrating a $98 million fraud scheme to trigger an earn-out payment from Computer Sciences Corporation (CSC) following its 2013 acquisition of SMI. Pulier allegedly bribed two former executives of the Commonwealth Bank of Australia (CBA) to fabricate contracts that artificially met SMI’s $20 million revenue threshold, enabling the earn-out. Pulier received over $30 million of the fraudulent payment and funneled more than $2.5 million in kickbacks to the CBA executives through a sham nonprofit. The SEC charged him with violations of Sections 17(a) of the Securities Act and 10(b), 13(b)(5) of the Exchange Act, seeking injunctions, disgorgement, penalties, and an officer-director bar, while the U.S. Attorney’s Office filed parallel criminal charges. The investigation involved the FBI, NSW Police Force, and the U.S. Attorney’s Office.
Exhibits & Attached Documents (1)
Extracted insights
- $98.00M $98 million $10M–$100M
- $30.00M $30 million $10M–$100M
- $20.00M $20 million $10M–$100M
- $2.50M $2.5 million $1M–$10M
- company computer sciences corporation
- person eric pulier
- agency Securities and Exchange Commission
- organization Securities and Exchange Commission
- company servicemesh, inc.
- Securities and Exchange Commission charged Eric Pulier
- Eric Pulier defrauded Computer Sciences Corporation
- Eric Pulier masterminded scheme $98 million
- Computer Sciences Corporation acquired ServiceMesh, Inc.
- Computer Sciences Corporation acquired November 2013
- Eric Pulier defrauded Computer Sciences Corporation of $98 million in connection with CSC's November 2013 acquisition of ServiceMesh, Inc.
- Eric Pulier charged with defrauding Computer Sciences Corporation of $98 million
- Eric Pulier masterminded scheme to defraud CSC
- Eric Pulier co-founded ServiceMesh, Inc.
- Securities and Exchange Commission charged Eric Pulier
- Computer Sciences Corporation acquired ServiceMesh, Inc.
- Eric Pulier worked as IT executive at Computer Sciences Corporation
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 23945 / September 27, 2017 Securities and Exchange Commission v. Eric Pulier, Civil Action No. 2:17-cv-07124 (C.D. Cal. filed Sept. 27, 2017) Former IT Executive Charged With Defrauding Company in Stockholder Scheme The Securities and Exchange Commission today charged a former IT executive at Computer Sciences Corporation and co-founder of ServiceMesh, Inc., a Santa Monica, California cloud-computing company, with masterminding a scheme to defraud CSC of $98 million in connection with CSC's November 2013 acquisition of SMI. The SEC alleges that Eric Pulier bribed the former Executive Vice President of Information Technology at the Commonwealth Bank of Australia (CBA) and another former CBA executive to have CBA enter into contracts with CSC so that SMI could receive an earn-out payment from CSC as part of the acquisition. Pulier allegedly needed the CBA contracts to meet a $20 million revenue threshold before a certain date that was required for SMI to earn the additional $98 million earn-out payment. The SEC's complaint further alleges that Pulier, a majority shareholder of SMI, received over $30 million of the additional $98 million earn-out payment, and funneled over $2.5 million of that amount in kickbacks to Keith Hunter, the former EVP of CBA and the other former CBA executive through a purported nonprofit organization. The SEC previously charged Hunter with participating in Pulier's alleged scheme to defraud CSC. The SEC's complaint charges Pulier with violating Section 17(a) of the Securities Act of 1933 and Sections 10(b) and 13(b)(5) of the Securities Exchange Act of 1934 and Rules 10b-5, 13b2-1 and 13b2-2 thereunder. The SEC seeks a permanent injunction, disgorgement of ill-gotten gains plus interest, penalties, and an officer and director bar. In a parallel action, the U.S. Attorney's Office for the Central District of California today announced related criminal charges against Pulier. The SEC's investigation has been conducted by Catherine W. Brilliant, and the case has been supervised by Ansu N. Banerjee. John Bulgozdy will serve as trial counsel. The SEC appreciates the assistance of the U.S. Attorney's Office for the Central District of California, the Federal Bureau of Investigation, and the New South Wales Police Force. SEC Complaint
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 23945 / September 27, 2017 Securities and Exchange Commission v. Eric Pulier, Civil Action No. 2:17-cv-07124 (C.D. Cal. filed Sept. 27, 2017) Former IT Executive Charged With Defrauding Company in Stockholder Scheme The Securities and Exchange Commission today charged a former IT executive at Computer Sciences Corporation and co-founder of ServiceMesh, Inc., a Santa Monica, California cloud-computing company, with masterminding a scheme to defraud CSC of $98 million in connection with CSC's November 2013 acquisition of SMI. The SEC alleges that Eric Pulier bribed the former Executive Vice President of Information Technology at the Commonwealth Bank of Australia (CBA) and another former CBA executive to have CBA enter into contracts with CSC so that SMI could receive an earn-out payment from CSC as part of the acquisition. Pulier allegedly needed the CBA contracts to meet a $20 million revenue threshold before a certain date that was required for SMI to earn the additional $98 million earn-out payment. The SEC's complaint further alleges that Pulier, a majority shareholder of SMI, received over $30 million of the additional $98 million earn-out payment, and funneled over $2.5 million of that amount in kickbacks to Keith Hunter, the former EVP of CBA and the other former CBA executive through a purported nonprofit organization. The SEC previously charged Hunter with participating in Pulier's alleged scheme to defraud CSC. The SEC's complaint charges Pulier with violating Section 17(a) of the Securities Act of 1933 and Sections 10(b) and 13(b)(5) of the Securities Exchange Act of 1934 and Rules 10b-5, 13b2-1 and 13b2-2 thereunder. The SEC seeks a permanent injunction, disgorgement of ill-gotten gains plus interest, penalties, and an officer and director bar. In a parallel action, the U.S. Attorney's Office for the Central District of California today announced related criminal charges against Pulier. The SEC's investigation has been conducted by Catherine W. Brilliant, and the case has been supervised by Ansu N. Banerjee. John Bulgozdy will serve as trial counsel. The SEC appreciates the assistance of the U.S. Attorney's Office for the Central District of California, the Federal Bureau of Investigation, and the New South Wales Police Force. SEC Complaint