Defendant Name:
SAP SE
Defendant Type:
Public Company
SIC Code:
7372
CUSIP:
80305420
Document Reference:
34-77005
Document Details
Legal Case Name
In the Matter of SAP SE
Document Name
Order Instituting Cease-and-Desist Proceedings, Pursuant to Section 21C of the Securities Exchange Act of 1934, Making Findings, and Imposing a Cease-and-Desist Order
Document Date
01-Feb-2016
Document Format
Administrative Proceeding
AAER
3736
Allegation Type
Foreign Corrupt Practices Act
Document Summary
On February 1, 2016, the SEC instituted settled cease-and-desist proceedings against SAP SE. According to the SEC: "This matter concerns violations of the books and records and internal controls provisions of the Foreign Corrupt Practices Act of 1977 ('FCPA') by SAP SE ('SAP'), a European Union corporation headquartered in Waldorf, Germany. The violations occurred due to deficient internal controls, which allowed SAP's former Vice-President of Global and Strategic Accounts, Vicente E. Garcia, to discount the software price to a former SAP local partner at a level sufficient to permit Garcia and the local partner to pay $145,000 in bribes to one senior Panamanian government official, and offer bribes to two others. Through these bribes, Garcia secured government sales contracts of approximately $3.7 million for SAP, and also self-profited through kickbacks. By excessively discounting the SAP software, Garcia created a slush fund that the partner used to pay the bribes and kickbacks. Garcia concealed his scheme from others at SAP, circumvented SAP's internal controls, and justified the excessive discounts by falsifying SAP's internal approval forms." The SEC stated that it was not imposing a civil penalty on SAP SE due to SAP SE's "cooperation in a Commission investigation and related enforcement action."
Disgorgement & Penalty Information
Resolutions
Cease and Desist Order
Cooperation Before the Resolution
Remedial Acts or Efforts Before the Resolution
Monetary Penalties:
Disgorgement
Individual:
$3,700,000.00
Shared:
Pre-Judgment Interest
Individual:
$188,896.00
Shared:
