Mug shot of Eric Gillespie, Govini Founder and Chairman.
Courtesy: Pennsylvania Attorney General
The founder of Virginia-based defense startup Govini was arrested on charges of attempting to solicit a pre-teen girl for sexual contact in Pennsylvania, authorities said Monday.
The founder, Eric Gillespie, 57, was charged with four felonies, including multiple counts of unlawful contact with a minor, according to the Pennsylvania Attorney General’s Office.
Gillespie, who lives in Pittsburgh, was denied bail by the judge, citing flight risk and concerns over public safety.
His company, which placed him on administrative leave on Monday, has a $900-million U.S. government contract, and multiple deals with the Defense Department.
Govini last month announced it had passed $100 million in annual recurring revenue. It is considered a prominent “unicorn” in the defense technology space, is a key partner in the U.S. Army’s Next Generation Command Control program.
Pentagon officials told CNBC they are looking into Gillespie’s arrest and possible security issues.
Gillespie lists himself as executive chairman of the company on his LinkedIn page.
Gillespie was considered an expert in transparency in government and was appointed to the Freedom of Information Act Advisory Committee by the Obama Administration in 2014.
The White House referred all security clearance questions about him to the Pentagon.
A Govini spokesperson, in a statement on Wednesday, said that the company “was notified of felony charges against Eric Gillespie” on Monday.
“As soon as we learned of these charges, we took immediate action to place Mr. Gillespie on administrative leave,” the spokesperson said.
“The Company will fully cooperate with law enforcement in connection with their investigation. We acknowledge the severity of these charges and as a Company will hold all our employees to the highest ethical standards. We stand steadfast in support of all victims of abuse of any kind.”
According to the Attorney General’s office, an agent posed as an adult on an online chat platform, which is often utilized by offenders who try to arrange meetings with children, and engaged in a conversation with Gillespie.
Gillespie then tried to arrange a meeting with someone he believed to be a pre-teenage girl in Lebanon County, near Hershey, the office said.
“During the investigation, Gillespie alluded to methods he accessed children, and other evidence was found regarding contact with children,” the office said.
The AG’s office would not comment on questions about electronic devices seized during the sting. The office is asking the public to come forward with any other information on the case.
Govini, along with Anduril Industries, Palantir, Striveworks, Instant Connect Enterprise, Research Innovations, Inc., Microsoft and Lockheed Martin are also a part of the $99.6 million U.S. Army’s Next Generation Command and Control program.
NGC2 is a program for the U.S. Army to transform command and control operations by ensuring commanders have access to critical real-time data and infrastructure in areas where communications may be disrupted.
According to the company, Govini’s suite of AI-enabled applications is used by every department of the U.S. military and other federal agencies. The access to sensitive information is vast.
The software analyzes supply chains and critical details of companies being considered by the U.S. government for acquisition, enabling the U.S. military to make informed decisions.
In a recent Bain Capital press release announcing a $150m investment of Govini, Scott Kirk, Partner at Bain Capital Tech Opportunities, said, “We’re thrilled to support Govini’s next phase of growth as it continues to revolutionize how the U.S. government acquires and deploys the capabilities that keep us safe.”
Bain has not responded to CNBC’s multiple emails for comment.
