Former SAP Exec Pleads Guilty to FCPA Violations

A former regional director of SAP International Inc. pled guilty today to conspiracy to violate the Foreign Corrupt Practices Act (FCPA) by participating in a scheme to bribe Panamanian officials to secure the award of government technology contracts for SAP.


Vicente Eduardo Garcia, 65, of Miami, pled guilty to a one-count information charging him with conspiracy to violate the anti-bribery provisions of the FCPA.

Sentencing before Senior U.S. District Court Judge Charles R. Breyer of the Northern District of California is scheduled for December 16, 2015.

In late 2009, SAP sought a multi-million dollar contract to provide a Panamanian state agency with a technology upgrade package.

In connection with his guilty plea, Garcia admitted that, to secure the contract, he conspired with others, including advisors and consultants to SAP, to pay bribes to two Panamanian government officials, as well as to the agent of a third government official — with the understanding that at least a portion of the money would be transmitted to the third official.  The conspirators used sham contracts and false invoices to disguise the true nature of the bribes.

Garcia admitted that he believed paying such bribes was necessary to secure both the initial contract and additional Panamanian government contracts.

Ultimately, SAP’s Panamanian channel partner secured the technology upgrade contract for $14.5 million, which included $2.1 million in SAP software licenses.

Soon thereafter, the Panamanian government awarded SAP’s channel partner additional contracts that included the provision of SAP products.




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