United States v. Vicente Eduardo Garcia (N.D. Cal. 2015)

• Case Name
• United States v. Vicente Eduardo Garcia (N.D. Cal. 2015)

• Date Filed
• 08/12/2015

• Enforcement Agency
• DOJ

• Countries
• Russia

• Foreign Official
• Senior government officials of the Republic of Panama.

• Date of Conduct
• 2009 to 2013

• Nature of Business
• Vicente Eduardo Garcia, a U.S. citizen and Florida resident, was a senior executive of SAP International, a wholly-owned subsidiary of the German-based software company, SAP SE.  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.
   

• Influence to be Obtained
• Garcia was responsible, in part, for securing the award of valuable technology contracts in countries across Latin America and the Caribbean, including Panama.  According to a criminal information filed in the Northern District of California, Garcia and others agreed to pay bribes to two Panamanian government officials as well as to an agent of a third government official to secure a $14.5 million dollar technology contract.  According to the government, soon thereafter, an SAP partner operating in Panama (the “Local Partner”) was awarded the multi-million dollar contract, which included $2.1 million in SAP software licenses.
  
  The government claimed that Garcia sought to conceal the scheme by creating a sham consulting contract between a company controlled by a Panamanian official and the Local Partner.  After the government contract was awarded to the Local Partner, an unnamed “consultant” and “advisor” caused the Panamanian officials to collectively receive over $100,000 in bribes.  The funds allegedly used as bribes were generated from the proceeds of the government contract that the Local Partner had been awarded.  Garcia was also accused of personally receiving a kickback from the proceeds of the sale of SAP software licenses to the Panamanian government.

• Enforcement
• On August 12, 2015, the government announced that Garcia pleaded guilty to one count of conspiracy to violate the anti-bribery provisions of the FCPA.  Approximately four months later, on December 16, 2015, Garcia was sentenced to 22 months in prison.  On August 12, the SEC settled its case with Garcia for violations of the FCPA after Garcia agreed to pay $92,395 in sanctions.

• Amount of the Value
• Not Stated

• Amount of Business Related to Payment
• Approximately $2.1 million.

• Intermediary
• Subsidiaries; Local Panamanian Partner.

• Citizenship of Parent Entity
• United States

• Total Sanction
• $ 92,395

• Compliance Monitor
• No

• Reporting Requirements
• No

• Case is Pending?
• No

• Related Enforcement Actions
• In the Matter of Vicente E. Garcia (2015)
  In the Matter of SAP SE (2016)
  

Vicente Eduardo Garcia

• Citation
• United States. v. Garcia, No. 3:15-cr-00366 (N.D. Cal. 2015).

• Date Filed
• 08/12/2015

• Filed Under Seal
• No

• FCPA Statutory Provision
• • Conspiracy: Anti-Bribery

• Other Statutory Provision
• None

• Disposition
• Plea Agreement

• Defendant Jurisdictional Basis
• Domestic Concern

• Defendant's Citizenship
• United States

• Individual Sanction
• 22-Months Imprisonment; $92,395 in Sanctions.