Business Crimes Hotline

NEW YORK

Former Siemens ' Argentina CFO Pleads Guilty

Following a decade-long, multi-million dollar bribery scheme, and four years after he was first indicted, former chief financial officer of Siemens S.A. ' Argentina, Andres Truppel, pleaded guilty in a New York federal courtroom to one count of conspiracy to commit bribery, falsify corporate books and records, circumvent internal controls, and commit fraud.

In 1998, Siemens was awarded a $1 billion contract with the Argentina government to create new national identity cards. In connection with this project, Truppel admitted that he and other Siemens executives paid tens of millions of dollars in bribes to government officials. These payments were used in part to ensure future government contracts in Argentina.

Ten years later, in 2008, multiple Siemens entities from across the world pleaded guilty to violating the FCPA, including Siemens Argentina, which pleaded guilty to conspiracy to violate the FCPA books and records provisions. As part of the plea agreements, Siemens paid $450 million in criminal fines to the Department of Justice (DOJ) and $350 million to the SEC in the civil investigation in disgorgement of wrongful profits.

On Sept. 30, 2015, Truppel admitted that he played “a significant role” in the Argentina bribery conspiracy by concealing the payments made through over a dozen shell companies while fabricating various transactions. Truppel is one of six Siemens executives that have been charged in connection with this endeavor. He is the first, however, to respond to the criminal charges against him.

Truppel's plea deal requires future cooperation with authorities, and pending fulfillment of this condition, Truppel will be sentenced early next year. He will face up to five years in prison and three years supervised release.

Business Crimes Hotline and In the Courts were written by Mayer Brown associate Colleen Snow.

NEW YORK

Former Siemens ' Argentina CFO Pleads Guilty

Following a decade-long, multi-million dollar bribery scheme, and four years after he was first indicted, former chief financial officer of Siemens S.A. ' Argentina, Andres Truppel, pleaded guilty in a New York federal courtroom to one count of conspiracy to commit bribery, falsify corporate books and records, circumvent internal controls, and commit fraud.

In 1998, Siemens was awarded a $1 billion contract with the Argentina government to create new national identity cards. In connection with this project, Truppel admitted that he and other Siemens executives paid tens of millions of dollars in bribes to government officials. These payments were used in part to ensure future government contracts in Argentina.

Ten years later, in 2008, multiple Siemens entities from across the world pleaded guilty to violating the FCPA, including Siemens Argentina, which pleaded guilty to conspiracy to violate the FCPA books and records provisions. As part of the plea agreements, Siemens paid $450 million in criminal fines to the Department of Justice (DOJ) and $350 million to the SEC in the civil investigation in disgorgement of wrongful profits.

On Sept. 30, 2015, Truppel admitted that he played “a significant role” in the Argentina bribery conspiracy by concealing the payments made through over a dozen shell companies while fabricating various transactions. Truppel is one of six Siemens executives that have been charged in connection with this endeavor. He is the first, however, to respond to the criminal charges against him.

Truppel's plea deal requires future cooperation with authorities, and pending fulfillment of this condition, Truppel will be sentenced early next year. He will face up to five years in prison and three years supervised release.

Business Crimes Hotline and In the Courts were written by Mayer Brown associate Colleen Snow.