A senior IT executive at the Commonwealth Bank of Australia (CBA), Jon Gordon Waldron, has been sentenced to a maximum of six years and eight months for accepting bribes to secure IT contracts for the bank.
Waldron, who served as the general manager of infrastructure engineering at CBA, received his sentence last Friday following a conviction in May. He will be eligible for parole on July 13, 2028.
In the New South Wales District Court, Judge Phillip Mahony found Waldron guilty of seven counts of corruptly receiving money in exchange for facilitating business opportunities with IT vendor ServiceMesh. He was also convicted of three counts of assisting Keith Hunter, a former CBA executive manager, in corruptly receiving funds.
Hunter had previously pleaded guilty and received a reduced sentence of three and a half years for cooperating with the prosecution against Waldron. Together, they devised a scheme to profit from an earnout clause related to the $427 million (US$282 million) sale of ServiceMesh to Computer Sciences Corporation (CSC) in 2013.
Lack of Remorse
During the sentencing, Judge Mahony noted Waldron’s lack of remorse and his ongoing claims of innocence, highlighting that he had not made progress in rehabilitation. The judge remarked that Waldron’s focus was primarily on the financial and emotional impacts of his actions on himself, rather than the consequences for the broader community.
The corrupt dealings involved ServiceMesh supplying McAfee and Pivotal software—neither of which were ever utilized by CBA. Waldron received nearly $1.9 million for his role in these transactions between May and December 2014. Without these deals, ServiceMesh would not have met its earnout revenue target of $30.3 million (US$20 million).
Judge Mahony emphasized that the software deals allowed ServiceMesh to qualify for an additional payment exceeding $148.4 million (US$98 million) from CSC. Waldron played a key role in negotiating and finalizing the McAfee agreement, even though CBA derived minimal immediate benefit from it.
To avoid scrutiny, Waldron and Hunter agreed to divide the deal into nine separate transactions, ensuring completion within the earnout timeframe. Hunter also discussed compensation for these agreements with ServiceMesh’s founder and CEO, Eric Pulier.
Waldron and Hunter had developed a close working relationship with Pulier and ServiceMesh sales consultant Brad Twynham, facilitating their scheme. Waldron even organized Twynham’s buck’s party, illustrating their personal connections.
Pulier, who authorized payments to Waldron and Hunter through his corporation ACE Inc., has maintained his innocence regarding any wrongdoing. CBA was unaware of the cash exchanges until Waldron’s account came under scrutiny in November 2014.