Jump to content Jump to menu
Why Register?

Shearman FCPA Website: Cases Logo Shearman & Sterling LLP FCPA.Shearman.com: The One-Stop Resource on the Foreign Corrupt Practices Act

In the Matter of Vicente E. Garcia

 
:
Vicente E. Garcia
:
SEC Civil
:
August 12, 2015
:
In the Matter of Vicente E. Garcia
:
In the Matter of Vicente E. Garcia, Admin. Pro. File. No. 3-16750 (2015)
:
The SEC acknowledges that Garcia actively circumvented SAP internal controls in order to execute the alleged bribery scheme and that SAP asked Garcia to resign upon learning of his activities.
:
Computer & Information Technologies-Software
:
Panama
:
2009; 2010; 2011; 2012; 2013
:
Senior government officials of the Republic of Panama.
:
SAP SE is an internationally recognized technology solutions provider headquartered in Waldorf, Germany with operations in over 180 countries. SAP maintains American Depository Shares that are registered with the SEC and listed on the New York Stock Exchange. Vicente Garcia is a U.S. citizen who was a Vice President of Global and Strategic Accounts SAP and was responsible for SAP’s sales in Latin America.

According to the SEC, between June 2009 and November 2013, Garcia and others planned and executed a scheme to bribe three senior government officials from the Panamanian government in exchange for the sale of SAP solutions valued at $3.7 million to the Panamanian government. The SEC’s cease-and-desist order asserts that Garcia and others paid bribes to one official worth $145,000 and promised other to pay bribes to the two other officials.

The SEC asserts that Garcia was able to accomplish the bribery scheme by working through SAP’s worldwide partners. According to the SEC, SAP executes the majority of its sales with local corporate partners whereby SAP agrees to sell certain products to a partner for resale to a separate end user. In Panama, the SEC claims that Garcia was able to sell software to a partner at a discount of 82 percent for purposes of reselling the solutions to the Panamanian government, generating a slush fund which enabled Garcia and his accomplices to bribe foreign officials and receive kickbacks of their own.

The SEC’s cease-and-desist order commented that Garcia knowingly circumvented SAP’s internal controls and was later asked to resign by SAP as the result of his conduct at the company. Later, on August 12, 2015, the SEC announced that it had reached a settlement with Garcia for violations of the FCPA’s anti-bribery, books-and-records, and internal controls provisions. As a result, Garcia agreed to a total sanction of $92,395.
:
Anti-bribery (Domestic Concern), Anti-bribery (Issuer), Books and records (Individual), Books and records (Issuer), Internal Controls (Individual), Internal controls (Issuer)
:
Cease and Desist
:
92,395
:
0
:
Agent of Issuer, Domestic Concern
:
U.S.
:
United States
:
Contract Procurement/Retention
:
3,700,000
:
Cash, Travel
:
Customs Broker or Agent/Consultant, Sales Agent/Consultant
:
145,000
:
Panama
:
No
:
No