Menu
Former SAP exec pleads guilty to bribery charge

Former SAP exec pleads guilty to bribery charge

The ex-VP admits he bribed Panamanian government officials for a multimillion-dollar contract

Money image

Money image

A former SAP executive has pleaded guilty to conspiring to bribe Panamanian officials in an effort to secure government contracts for the software vendor.

Vicente Eduardo Garcia was SAP's vice president of global and strategic accounts for Latin America from February 2008 until April 2014, when he was fired. With the plea, he admitted to participating in a scheme to violate the Foreign Corrupt Practices Act, which prohibits bribing foreign officials to obtain business.

Sentencing is scheduled for Dec. 16 before Senior District Court Judge Charles Breyer of the Northern District of California.

SAP said it will continue to cooperate with the Department of Justice and the Securities and Exchange Commission on the investigation.

"Mr. Garcia admitted that he engaged in a scheme to bribe public officials in Panama and to take kickbacks for himself," SAP said. The SEC's cease and desist order states that Garcia "circumvented SAP's internal controls, falsified the company's books and records, and made false statements to SAP in order to lower the price of SAP software to fund the bribery and kickback scheme."

The case dates back to 2009, when SAP hoped to obtain a multimillion-dollar contract to provide a Panamanian state agency with a technology upgrade package.

To secure the contract, Garcia admits that he conspired with others, including advisors and consultants to SAP, to pay bribes -- disguised as sham contracts and false invoices -- to Panamanian government officials.

SAPs Panamanian channel partner secured the contract for $14.5 million, which included $2.1 million in SAP licenses. Not long after, the Panamanian government awarded the channel partner additional contracts involving SAP products, the DoJ said.

The investigation is being conducted by the FBI and the Internal Revenue Service with assistance from the Justice Departments Criminal Division and the SEC.

In a separate civil action, the SEC on Wednesday announced that it has settled with Garcia for enabling SAP to sell software to a partner in Panama at discounts of up to 82 percent while also receiving kickbacks himself.

Garcia has agreed to pay $85,965 -- the total amount of kickbacks he received -- plus prejudgment interest, amounting to a total of $92,395.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags enterprise resource planninglegalsoftwareapplicationsSAPDepartment of Justice

Featured

Slideshows

EDGE 2019: Channel forges new partnerships during evening networking

EDGE 2019: Channel forges new partnerships during evening networking

Partners, vendors and distributors reconnected during a number of social gatherings during EDGE 2019. The first evening saw the channel congregate for a welcome party at the Hamilton Island yacht club, while the main poolside proved to be the perfect stop for a barbecue on the final night.

EDGE 2019: Channel forges new partnerships during evening networking
EDGE 2019: Thought leaders share how to build a channel of the future

EDGE 2019: Thought leaders share how to build a channel of the future

Day 2 of EDGE was opened by in-depth research from TRA's Tim Dillon, which outlined the partner view on the channel's future. The following day saw Forrester's Jay McBain and Odgers Berndtson's Tim Sleep conclude the keynote line-up, while HPE and Cisco rounded off the thought leadership.

EDGE 2019: Thought leaders share how to build a channel of the future
Show Comments