Mugshot of Govini founder and chairman Eric Gillespie.
Provided by: Pennsylvania Attorney General
The founder of Virginia-based defense startup Govini was arrested in Pennsylvania on charges of attempting to solicit sexual contact from a pre-teen girl, authorities announced Monday.
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 a judge citing flight risk and public safety concerns.
His company, which placed him on leave Monday, has $900 million in U.S. government contracts, as well as multiple contracts with the Department of Defense.
Govini announced last month that its annual recurring revenue exceeded $100 million. It is considered a prominent “unicorn” in the field of defense technology and is a key partner in the U.S. Army’s Next Generation Command and Control program.
Pentagon officials told CNBC they are investigating Gillespie’s arrest and possible security concerns.
“While the Department of Defense cannot comment on individual security clearances under privacy laws, we take these allegations very seriously,” a senior Army official said in a statement.
Gillespie identifies himself on his LinkedIn page as Govini’s executive chairman.
Gillespie is considered an expert on government transparency and was appointed by the Obama administration to the Freedom of Information Act Advisory Council in 2014.
The White House referred all questions regarding classified information about him to the Department of Defense.
A Gobini spokesperson said in a statement Wednesday that the company was “notified of the felony charges against Mr. Eric Gillespie” on Monday.
“Upon learning of these charges, we immediately took steps to place Mr. Gillespie on administrative leave,” the spokesperson said.
“We will cooperate fully with law enforcement in connection with the investigation. We recognize the gravity of these charges and as a company we hold all of our employees to the highest ethical standards. We stand steadfastly in support of all victims of abuse of any kind.”
Investigators spoke with Gillespie on an online chat platform commonly used by criminals trying to arrange visitation with children by posing as an adult, according to the attorney general’s office.
Gillespie then tried to arrange a meeting with what he believed to be a pre-teen girl in Lebanon County, near Hershey, the office said.
“During the investigation, Gillespie hinted at ways of contacting children, and other evidence regarding his contact with children was also discovered,” the office said.
The AG’s office did not comment on questions about electronic devices seized during the sting operation. The office is asking the public to provide any additional information regarding this incident.
Govini, together with Anduril Industries, Palantir, Striveworks, Instant Connect Enterprise, Research Innovations, Inc. microsoft and lockheed martin They are also part of the Army’s $99.6 million Next Generation Command and Control Program.
NGC2 is a program for the U.S. Army that transforms command and control operations by giving commanders 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 branch of the U.S. military and other federal agencies. Access to sensitive information is vast.
The software analyzes the supply chain and key details of companies the U.S. government is considering acquiring, allowing the U.S. military to make informed decisions.
In a recent Bain Capital press release announcing the $150 million investment in Govini, Scott Kirk, partner at Bain Capital Tech Opportunities, said, “We are excited to support Govini’s next phase of growth as it continues to revolutionize how the U.S. government acquires and deploys capabilities to keep us safe.”
Bain did not respond to multiple emails from CNBC seeking comment.
