Justice Department Launches Criminal Probe Into Deel Allegations of Recruiting Spy at Rival Rippling

The U.S. Justice Department has initiated a criminal investigation into claims that Deel, a human-resources company, recruited a spy within rival firm Rippling, according to documents reviewed by The Wall Street Journal. U.S. Attorney Craig Missakian for the Northern District of California issued grand-jury subpoenas seeking details on the alleged spying operation. An Ireland-based Rippling employee, Keith O’Brien, filed an affidavit in April alleging that Deel CEO Alex Bouaziz recruited him and instructed him to gather information from Rippling. O’Brien also implicated other executives, including Bouaziz’s father, who serves as Deel’s executive chairman and chief strategy officer. Unsealed court documents reveal a $6,000 transfer from an entity linked to Deel to the wife of Deel’s COO Dan Westgarth, followed by the same amount being forwarded to O’Brien. Neither Bouaziz, his father, nor Westgarth responded to requests for comment. O’Brien’s lawyer declined to comment. Deel, which assists companies in hiring international employees, saw its valuation rise to $17.3 billion following a funding round in October, despite the allegations. The venture firm Andreessen Horowitz, holding a 20% stake worth nearly $3.5 billion at the latest valuation, did not respond to inquiries. Deel is reportedly planning an IPO this year or next.