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UNITED
STATES OF AMERICA - v. -
URIEL SHAREF, HERBERT STEFFEN, ANDRES TRUPPEL, ULRICH BOCK, EBERHARD REICHERT, STEPHAN SIGNER, CARLOS SERGI, and MIGUEL CZYSCH, Defendants.
11 eRMJ 0 56
INDICTMENT
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COUNT ONE
(Conspiracy to Commit Bribery, Falsify Corporate Books and Records, Circumvent Internal Controls, and Commit Fraud) The Grand Jury charges: Relevant 1. Entities and Persons to this Indictment, Siemens
At all times relevant
Aktiengesellschaft collectively affiliates in Munich, operations
(hereafter referred
to as "Siemens AG," and and
with its operating groups, divisions, subsidiaries, was an engineering
as "Siemens"), Germany
company headquartered employees and the
that had more than 400,000 190 countries
in approximately
worldwide,
including
united States. constructing,
Siemens AG' s business primarily involved developing, selling, and servicing equipment and systems for
national,
state, and municipal
governments. States,
The company derived
employed
more than 60,000 people revenue
in the United
substantial its U.S.
from sales in the United in Manhattan,
States,
and maintained
headquarters 2.
New York.
As of March 12, 2001, Siemens AG was listed on the and was an "issuer," Practices Act. as that term is used
§
New York Stock Exchange in the Foreign 3. Corrupt
See 15 U.S.C.
78dd-l(a).
Siemens AG had a "Supervisory
Board" and a "Managing Board, which board of Board and
Board," in accordance with German law. served a function directors,
The Supervisory
similar to that of a U.S. company's and removed members but was not permitted
appointed
of the Managing
oversaw management, decisions. managing
to make management was responsible for
The Managing Board, or the Vorstand, operations
Siemens's business
and generally was comprised Executive Committee
of 10 members.
Siemens AG also had a Corporate Vorstand,
("CEC"), or the zentral the Managing Board,
which was comprised of member-s of Officer ("CEO")
including
the Chief Executive
and the Chief Financial
Officer
("CFO"), among select others. under the
Members of the CEC were assigned advisory responsibility, title of "Coach," global business executives for particular areas and regions
of Siemens's In turn, senior monthly reports
operations
and special projects. level provided
at the group or regional
to the CEC, briefed
the CEC on major projects
2 -
and other matters of
significance,
and regularly engaged with the Coach assigned to their
area or region. 4. operating regional Siemens's worldwide operations were carried .out by and by an array of
groups of Siemens AG based in Germany, Siemens 5. companies situated
around the globe.
The projects
for which Siemens was hired worldwide by units within the Siemens AG
were typically operating
run out of Germany
groups, with support, as needed, from regional companies. the Siemens AG operating groups sometimes took
These units within
the form of wholly owned subsidiaries were themselves split into various The operating
of Siemens AG, and typically with names like were
subdivisions,
"Major Projects." responsible consisted
group unit subdivisions management,
for day-to-day
project
and generally
of two components:
a "commercial"
side, which oversaw the
proj ect' s administration provided operational
and finances; and a "technical" side, which This dual-management structure by
oversight.
served a checks-and-balances a set of principles conducting principle," Siemens's
function,
which was also promoted adhered in
and guidelines business.
to which managers
One such rule, known as the "4-eye one commercial and
required signatures of two managers, to authorize third-party
one technical, 6. Business
disbursements
on projects. Siemens in Munich,
At all times relevant GmbH
& Co.
to this Indictment,
Services
OGH ("SBS"), headquartered
3-
Germany,
was a wholly
owned subsidiary
of Siemens AG and a unit in operating group. SBS
Siemens AG's information designed, built,
and communications maintained,
operated,
and serviced
both discrete
and large-scale private
information and communication around the globe. including
systems for public and SBS had its own board.
sector customers management,
and executive
a CEO and CFO, who interacted as well
with the Managing
Board and CEC at Siemens AG headquarters, assigned either to SBS specifically a project. to this Indictment,
as with the Coaches region
or to the
in which SBS was operating 7.
At all times relevant and Distribution operating group.
Siemens
Power Transmission Siemens AG's power manufactured, software,
("Siemens PTD") was a unit in Siemens PTD designed, equipment,
sold, and serviced power generation control equipment.
and network 8.
At all times relevant to this Indictment, Siemens S.A. based in Buenos Aires, Argentina, subsidiary was one of of Siemens managementr
("Siemens Argentina"),
Siemens's regional companies and a controlled AG. Siemens Argentina
had its own board and executive who interacted
including a CEO and CFOr
with the Managing Board and to the Americas region.
CEC, as well as with the Coach assigned Siemens Argentina's business contracts services principal
responsibility
was to sell Siemens's and securing
in Argentina,
mainly by identifying
for public
works projects.
- 4-
9. Services
At all times relevant to this Indictment
II )
1
Siemens IT created by
S .A. ("SITS
was a special-purpose
subsidiary
SBS in Argentina Nacional below.
for the purpose of bidding for the "DNIII
l
or Documento
de Identidad project
which is discussed
in further detail
The Defendants 10. "officer [s]
1
The following
individuals
are defendants
1/
who were of an
director [s], employee [s], [and] agent [s]
"issuer,1/ Siemens AG, as those terms are used in the Foreign Corrupt Practices Act
l
see 15 U.S.C. a.
§
78dd-1(a): of Israel and
URIEL SHAREF, a dual citizen
Germany, was employed by Siemens from in or about 1978 to on or about December departure
31
1
2007.
From on or about October
1
1, 2000, until his
from Siemens
SHAREF was a member of Siemens AG' s Managing as Coach for Siemens
Board and CEC, with oversight responsibilities AG's power operations operations
group, including Siemens PTD, and Siemens AG' s region
1
in the Americas
including
Siemens Argentina.
Prior to his appointment regional management covering Ecuador,
to the Managing
Board and CEC, SHAREF held subsidiaries and
positions
at Siemens AG's
affiliates Venezuela,
areas in Latin America, and Peru.
including
Colombia, 2000 to in
From in or about December
or about September
2003, SHAREF was chairperson
of the Supervisory
Board of Siemens Argentina.
5-
b.
HERBERT
STEFFEN,
a citizen
of Germany,
was From
employed by Siemens from in or about 1960 to in or about 2003. in or about 1996 until his departure group president group. from the company, systems
STEFFEN was operating PTD.
of Siemens AG's transportation
Previously,
STEFFEN was a group president
of Siemens
From in or about 1983 to in or about 1989, STEFFEN was CEO of Siemens Argentina, chairperson Previously, and Brazil. c. Argentina, ANDRES TRUPPEL, a dual citizen of Germany and and from in or about 1989 to in or about 2000, he was of the Supervisory STEFFEN had worked Board of Siemens Argentina. for Siemens in Germany, Argentina,
was employed
by Siemens
from in or about 1977 to in or to Siemens until in or
about 2002, and thereafter
was a consultant
about 2004. From in or about 1996 until his shift to consultant status, TRUPPEL was CFO of Siemens Argentina. Previously, he had worked for
Siemens in Germany, the United States (in San Francisco and Seattle) , and Mexico. d. ULRICH BOCK, a citizen of Germany, was employed
by Siemens from in or about 1965 to in or about 2001, and was a paid consultant in or about SBS's Major Siemens to Siemens thereafter until in or about May 2007. From
1997 to in or about 2001, BOCK was commercial Projects subdivision. Austria, Previously, BOCK worked
head of for
in Germany,
and France.
-6-
e.
EBERHARD
REICHERT,
a citizen
of Germany,
was From
employed by Siemens from in or about 1964 to in or about 2001. the late 1990s to in or about 2001, REICHERT SBS's Major Projects
f.
was technical
head of
subdivision. STEPHAN SIGNER, a citizen of Germany, was
employed by Siemens from in or about 1979 to .in or about 2011, with relatively brief hiatuses. From in or about 2000 to in or about 2007,
SIGNER worked for SBS as a commercial director in various capacities. 11. associated The following individuals are defendants who were
with Siemens AG and served as "agents" of Siemens AG as
that term is used in the Foreign Corrupt Practices Act, see 15 U. S. C.
§
78dd-l (a), and intermediaries of Argentina
between Siemens and officials of the the "Intermediary
Government
(collectively,
Defendants") : a. prominent government businessman contacts CARLOS SERGI, a citizen in Latin America of Argentina, was a
with extensive
high-level
in Argentina.
He was, for a period of 15 years
ending in or about 2003, a member of the Supervisory Board of Siemens Argentina, overlapping
b.
with URIEL SHAREF, MIGUEL
the defendant. and a
CZYSCH, a citizen of Germany associate
resident
of Switzerland,
was a business
of CARLOS SERGI,
the defendant.
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7-
Co-Conspirators 12. as a defendant
1
Co-Conspirator
#11
a co-conspirator in Buenos Aires
l
not named herein Argentina and a
was an attorney
former senior official 13. as a defendant
1
in the Argentine
#21
Ministry
of Justice. not named herein Argentina and a
Co-Conspirator
a co-conspirator in Buenos Aires
l
was an attorney
former senior official 14. as a defendant
l
in the Argentine
Ministry
of Justice. not named herein
Co-conspirator
#31 a co-conspirator
was employed by Siemens from in or about 1964 to in Co-conspirator #3 was CEO of Siemens Argentina from the company. not named herein from
or about 2000.
in or about 1996 until his departure 15. as a defendant
l
Co-cpnspirator
#41
a co-conspirator
was employed by Siemens from in or about 1972 to in In or about 1993
1
or about 2002. general counsel
1
Co-conspirator
#4 became a deputy
in the Legal Services
office at Siemens AG ih a consulting
headquarters capacity
and continued
to serve that function the 2000s.
from in or about 2002 through 16. Co-conspirator
1
#5
1
a co-conspirator
not named herein
1
as a defendant 17. as a defendant defendant.
was a business partner of CARLOS SERGI Co-conspirator
1
the defendant.
#61
a co-conspirator of MIGUEL
not named herein CZYSCH
1
was a business
partner
the
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8-
Overview 18.
of the Conspiracy of Argentina
In or about August 1994, the Government
issued a tender for bids to replace an existing created national identity booklets
system of manually national
with state-of-the-art
identity cards (the Documento Nacional de Identidad The total estimated billion. Ministry value of the DNI project
or "DNI" project) . $1
was approximately
After bids for the project were solicited by the Argentine of the Interior, Siemens AG, SBS, and Siemens Argentina consortium to bid on the contract through 27, 1996, and on or issued a decree
organized a multinational SITS.
Bids were submitted on or about December
about February 19, 1998, the President of Argentina awarding the DNI project to SITS. The contract
for the DNI project on or about
was executed by SITS and the Ministry October 6, 1998. 19. August
of the Interior
From in or about 1996 up to and including on or about STEFFEN, ANDRES TRUPPEL,
12, 2009, URIEL SHAREF, HERBERT
ULRICH BOCK, EBERHARD REICHERT, STEPHAN SIGNER, CARLOS SERGI, MIGUEL CZYSCH, the defendants, conspiracy and others known and unknown, engaged in a
on behalf of Siemens to obtain the lucrative proceeds of
the DNI project, and to foster future business, by means of bribery, fraud, and other forms of corruption. Members of the conspiracy won
the DNI proj ect for Siemens by bribing Argentine government officials. They paid more bribes in the hope of reviving
-9-
the project when, in
or about 2001, the DNI project discussed in more detail below,
was stalled.
Ultimately,
and as
the DNI project
was terminated
altogether. continued
Even after that point, members the profits that Siemens
of the conspiracy had expected to gain
to pursue
from the proj ect . They did so through additional conduct, including the pursuit of a fraudulent
bribes and corrupt arbitration in
Washington,
D.C. against the Argentine government,
demanding nearly from the tribunal.
$500 million while actively hiding the corruption 20. executives, others Some of the conspirators and managers
were employed by Siemens as on DNI project matters; to
lawyers,
working
served as agents and conduits government officials
for the payment
C).
of bribes
Argentine
who were in Integral
position
to influence and
the direction
of the DNI project.
to the conspiracy,
to the concealment conspirators'
of the illegal obj ects of the conspiracy,
was the
use of at least 17 conduit entities controlled or otherwise
(collectively, the with the
"Conduit Entities") Intermediary officials
affiliated
Defendants
and with various Argentine
government or
and candidates
for office who were the recipients (the "Argentine
intended recipients
of bribe payments
Officials").
Means and Methods 21. HERBERT STEPHAN Among
of the Conspiracy used by URIEL SHAREF, REICHERT, and
the means and methods TRUPPEL, ULRICH
STEFFEN, SIGNER,
ANDRES
BOCK,' EBERHARD
CARLOS SERGI, MIGUEL
- 10 -
CZYSCH,
the defendants,
co-conspirators conspiracy
known and unknown,
to achieve
the objects
of the
were the following: a. using cash and withdrawals of funds from and,
general-purpose
accounts
at Siemens AG to make bribe payments more difficult maneuvers
thereby, make those illicit transactions b. using deceptive
to detect; to give
accounting
bribe payments the appearance of legitimacy and otherwise make those corrupt transactions c. Conduit insulate potential Entities Siemens, adverse d. more difficult to detect; Defendants and the to from
using the Intermediary as conduits in transacting
bribe payments
the bribe recipients, consequences
and the defendants
of the corrupt transactions; funds between and through accounts
transferring
held by the Conduit Entities, as well those held by other entities, to conceal pay bribes corrupt that the funds were to be used in whole and in part to and to conceal the identities of the parties to these
transactions; e. creating the illusion that the Intermediary with the DNI no such the
Defendants project,
were business
consultants
in connection Defendants
even though the Intermediary services on the DNI project, of legitimacy;
provided
consulting appearance
to give bribe payments
- 11 -
f. and records legitimate
mischaracterizing
bribes in the corporate books fees and other seemingly
of Siemens AG as consulting expenses; g. using off-books
accounts
as a way to conceal
corrupt payments; h. business project
-
using accounts
controlled
by Siemens AG to the DNI
divisions and subsidiaries as a way to conceal i. causing
having no connection
corrupt payments; Siemens to enter into consulting
"contracts" with many of the Conduit Entities - which were situated at off-shore locations, such as the Bahamas, the British Virgin
Islands, Guernsey in the Channel Islands, the Cayman Islands, Panama, Switzerland, legitimate and Uruguay - even though these companies service to Siemens, on the DNI project of legitimacy; to Siemens reimbursement that requested for those provided no to
or otherwise,
give bribe payments j. payment
the appearance issuing
"invoices"
for services,
and authorizing
services, even though no such services had been provided to Siemens, on the DNI project appearance and otherwise, to give bribe payments the
of legitimacy; k. circumventing internal Siemens AG's compliance and external and
ethics program, detecting
including
audits aimed at
criminal
conduct;
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1.
giving bribe payments
the appearance
of
legitimacy by disguising proceeding before m. to witnesses exposure
them as funds used to settle an arbitration legitimate international tribunal;
an otherwise
engaging in witness tampering by making payoffs obstructing justice to prevent the
and otherwise
of bribery n.
to the public engaging
and governmental
authorities; laundering
in an international
money
conspiracy by transferring in the United States, o. means of materially
bribe payments through bank accounts held in Count Two; of money by
as more fully described
defrauding
the Argentine government
false and fraudulent pretenses, representations, as more fully described in Count Three; and
and material omissions, p. won the DNI project,
concealing concealing
the corrupt manner in which Siemens the corrupt relationship between
Siemens and the Intermediary corruption in international
Defendants,
and concealing
evidence of
arbitrations. and Payments
Initial Bribe Commitments 22. In or about February
1998, when the DNI project was #3 and ANDRES TRUPPEL,
initially awarded to Siemens, Co-conspirator the defendant, were respectively
CEO and CFO of Siemens Argentina, the defendants, managers were
and ULRICH BOCK and EBERHARD respectively Projects the commercial
REICHERT,
and technical
of SBS's Major
subdivision
in charge of the DNI project.
- 13 -
23.
To secure the DNI proj ectfor known and unknown, in bribes
Siemens, Co-conspirator committed Siemens to
#3, and co-conspirators paying nearly
$100 million
to sitting
officials party, and
of the
Argentine candidates
government,
members
of the opposition
for office who were likely to come to power during
the
performance of the proj ect. Central to the negotiation
of these bribe
commi tments was CARLOS SERGI, the defendant, who helped Siemens form the consortium conspiracy government that bid for the DNI project, but whose value to the to influential members of the Argentine
was his access
and role as a facilitator,
along with MIGUEL CZYSCH, the #6, for the payment
defendant, Co-conspirator of bribes
#5, and Co-conspirator
to those officials. 24. During the early stages of the DNI project, of the conspiracy up to
approximately to pay bribes Co-conspirator
late 1999, members in partial
caused Siemens caused by
satisfaction
of the commitments SERGI,
#3 and facilitated
by CARLOS
the defendant.
Many of these payments as was Siemens's disbursements
were not made pursuant business practice
to written contracts, for third-party
standard
on proj ects. Rather, these payments were made pursuant of the conspiracy contracts. referred to as "black contracts" #3 paid
to what members
- that is, unwritten
SERGI and Co-conspirator
some of the bribe payments themselves, and later sought reimbursement from Siemens. Other bribe payments
- 14 -
were made through more
complicated mechanisms transactions example: a. known and unknown, general-purpose million.
intended to conceal the illicit nature of the of the funds. For
and the identities of the recipients
ULRICH BOCK, the defendant, and co-conspirators made cash withdrawals in Germany from Siemens AG approximately the border $10 into for
accounts
totaling
BOCK then transported and deposited
the cash across
Switzerland, transfer
the funds into Swiss bank accounts officials.
to Argentine
government
BOCK and others used to detect. the defendant, and of
cash to make
the transaction b.
more difficult
BOCK and EBERHARD REICHERT, caused
co-conspirators
known and unknown,
SBS to pay millions (Pepcon Corporation
dollars to three of the Conduit Entities
S.A.,
a Costa Ri.cari company, and Mirror Development
Inc. and Finli Advisors
Group Inc., both organized under the laws of Panama) under the guise of invoices for "consulting services" purportedly rendered by the
three Conduit Entities in connection
in Chile, Brazil, and Mexico, respectively, In truth, the purported
with the DNI project.
"consul ting services" were neither performed nor relevant to the DNI project. The payments to Pepc~n Corporation S.A. were intended as
bribe payments
to a senior official
in the Office of the President for office and member of the in the 2000s ("Argentine
in the 1980s and 1990s and a candidate Argentine Congress at various points
- 15 -
Official A")
i
the payments
to Mirror Development
Inc. were intended
as bribe payments to a senior official in the Ministry of the Interior in the 1990s and a member of the Argentine and early 2000s Advisors official ("Argentine Official B")
i
Congress in the late 1990s and the payments to Finli
Group Inc. were intended in the Ministry
as bribe payments
to a senior
of Migration
and the Office of Internal Congress in the
Security in the 1990s, and a member of the Argentine 2000s ("Argentine c. and co-conspirators Official C") .
BOCK, REICHERT, ANDRES TRUPPEL, known and unknown,
the defendant, two
caused SBS to transfer
wires in the aggregate amount of approximately account in Manhattan, New York, ostensibly
$7.4 million to a bank to settle a foreign
exchange hedging contract with a foreign currency company organized under the laws of the Bahamas ("Company #1"). and not named in this Indictment
The payments were charged to the DNI proj ect, even business purpose.
though the hedging contract served no legitimate In reality, the hedging transaction Officials.
was a device to conceal bribes
to some of the Argentine 25.
In or about 1998 and 1999, ULRICH
BOCK, EBERHARD known of
REICHERT, ANDRES TRUPPEL, the defendants, and unknown, also caused Siemens
and co-conspirators of dollars
to make millions
payments to CARLOS SERGI and MIGUEL CZYSCH, the defendants, and other intermediaries. These payments, which were transferred through
- 16 -
Conduit Entities, the Argentine commitments previously
were intended
to be bribe payments satisfaction
to several of
Officials,
in partial
of bribe he had and
and to reimburse advanced
SERGI for bribe payments
to several of the Argentine
Officials;
otherwise to facilitate the conspiracy. conspiracy caused SBS to make transfers
For example, members of the of 1,850,000 deutschmarks
and 3,582,000 Swiss francs (the equivalent of more than $3.6 million) to Masters Overseas Corporation, a .conduit Entity organized and two payments under
the laws of the British Virgin aggregate amount of approximately Corporation, Islands.
Islands,
in the
$15 million to Air Traffic Control
a Conduit Entity organized under the laws of the Cayman also paid Co-Conspirator Ministry of Justice, #1, a former a fee of $5
Siemens Argentina
senior official
in the Argentine
million dollars to set up shell companies through which bribes would be paid to the Argentine Officials.
Bribe Commitments to Officials of the New Administration And the Consolidation of Prior Bribe Commitments For Payment Under a "White Contract" 26. underway, In or about May 1999, with work on the DNI project of Argentina suspended the proj ect, as the election.
the Government
country faced a mounting economic crisis and a presidential A new administration, maintained
which came to power in or about December 1999, status of the DNI project.
the suspended
- 17 -
27. increased STEFFEN, matters
In or about early 2000, Siemens AG's CEC exercised over business matters in Argentina. HERBERT for
control
the defendant, in Argentina,
was assigned
oversight
responsibility
with instructions
to continue the DNI project
at "whatever the cost," according
to an internal Siemens document.
At the time, STEFFEN was a senior executive at Siemens AG in Germany, but he had served as CEO of Siemens Argentina in the 1980s and chairman of that company for over a decade, during which time he had developed substantial Argentine government contacts. Then, later in 2000, experience with to the
URIEL SHAREF,
the defendant,
who had substantial
Siemens's business
interests in Latin America,
was appointed
Managing Board and CEC and given oversight responsibilities, for operations project. 28. a campaign in the Americas, including Argentina
as Coach,
and the DNI
URIEL SHAREF and HERBERT STEFFEN, the defendants, part to restart the DNI project.
led
on Siemens's
Renegotiation
of the contract governing STEFFEN
the DNI project was a part government officials, the
of the campaign.
lobbied Argentine REICHERT,
as did ULRICH BOCK, EBERHARD defendants. In mid-December
and ANDRES
TRUPPEL,
2000, SHAREF met in Buenos Aires with President
a senior official
in the office of the Argentine
("Argentine Official D"). The meeting engendered optimism at Siemens
- 18 -
that the President of Argentina would soon issue a decree authorizing the resumption 29. conspirators' of the DNI project. Continuing the payment of bribes was part of the In or about the Fall HERBERT CARLOS known and
effor"-!=:"t:o revive the DNI project.
of 2000, as the negotiations STEFFEN, ANDRES TRUPPEL,
over the contract progressed, REICHERT,
ULRICH BOCK, EBERHARD
SERGI, MIGUEL CZYSCH, the defendants, unknown, discussed
and co-conspirators
the subj ect of bribes in meetings the conspirators
in Germany and
Argentina.
At these meetings,
caused Siemens, and portion of
SBS specifically,
to commit to satisfying
a significant
the balance of prior bribe obligations and C, among other officials, bribes to officials
to Argentine
Officials A, B, additional
and to commit
to paying
of the new Administration,
including Argentine
Official D, a senior official in the Ministry of the Interior in the early 2000s and a member of the Argentine ("Argentine Official Interior Argentine
Elf),
Congress
in the mid-2000s of the
a senior official
in the Ministry for office
in the early 2000s and a candidate Congress in the mid-2000s in the Ministry
GIf).
in the
FIf),
("Argentine Official
and
a senior official ("Argentine
of Interior
in the early 2000s
Official
30.
At these meetings,
the conspirators
also discussed
the manner in which the bribes would be paid. payments on all existing
They agreed to funnel through the
and new bribe obligations
- 19 -
Intermediary
Defendants.
They also agreed
to conceal
the bribe
payments under a "white contract" - that is, a contract that appeared legitimate transaction on its face, but which did not reflect of business. Specifically, an actual agreed to
the conspirators
consolidate a portion of the bribe obligations contract between Conduit Entities Mfast Contract"). contract" so-called device SBS and Mfast Consulting controlled AG
into a sham $27 million ("Mfast"), one of the Defendants ("the
by the Intermediary
Members of the conspiracy to the prior practice
preferred
this "white under
of making payments
"black contracts" 'that did not exist at all.
By hiding
the payment of bribes through a sham contract with one of the Conduit Entities, the conspirators made it more difficult for the conspiracy to be discovered. 31. executed behalf In or about January 2001, the Mfast Contract REICHERT, was on
by ULRICH
BOCK and EBERHARD
the defendants, of Mfast.
of SBS, and by Co-conspirator #5 had participated
#6, on behalf in creating
Co-conspirator
the contract.
The had
contract described
services on the DNI proj ect that purportedly
already been performed
by Mfast, but in reality those services had and were not expected to be performed. decree
not actually been performed 32. authorizing
By in or about March
2001, the anticipated
the resumption
of the DNI project
still had not issued. an assessment of the
The Argentine government was instead conducting
- 20 -
merits ·of continuing Sindicarura the Nation,
the DNI project
through a body called Agency of
General de la Naci6n referred to hereafter
(the General Accounting as ftSIGEN").
33.
In a further effort to prevent termination of the conspiracy determined
of the DNI SIGEN's
project, members assessment
to influence
in Siemens's
favor by bribing
a SIGEN board member
(ftArgentine Official H"). REICHERT, the defendants,
To this end, ANDRES TRUPPEL and EBERHARD caused SBS to pay nearly $1 million to
Co-Conspirator Ministry
#2, an attorney and former official in the Argentine was a close friend as
of Justice who, as TRUPPEL understood, Official H. The bribe payments
of Argentine lobbying
were disguised
expenses. Team and the Response Siemens's efforts to the Termination
The Crisis Management 34. Despite
and bribe payments of Argentina Siemens who was
intended for various foreign officials, officially
the Government
terminated the DNI project in or about May 20.01. at the CEC level: URIEL SHAREF, the defendant, and Coach of the Americas ("CMT"), consisting region, assembled
AG responded a CEC member Management managers
a "Crisis
Team"
of SBS and Siemens Argentina overall to
and Siemens AG lawyers. for coordinating #4, an in-house
SHAREF assigned
responsibility Co-conspirator
the CMT's activities lawyer for Siemens,
and the SBS
manager in charge of the DNI project,
- 21 -
STEPHAN SIGNER, the defendant,
who had effectively semi-retired
replaced ULRICH BOCK, the defendant, ANDRES TRUPPEL, the defendant,
who was in
status.
and
co- conspirators not named as defendants in this Indictment, were also named to the CMT. In addition, SHAREF directed that HERBERT STEFFEN,
the defendant, would provide necessary suppor-t, the CMT's efforts. to 35. In furtherance of the conspiracy, the conspirators
- acting through the CMT and otherwise to (i) ensure that Siemens recognized contract for the DNI project,
- continued the bribe scheme the economic benefits of the and
notwithstanding
its termination
the corrupt manner by which it had been procured, disclosure ensure of the bribery associated ability to secure
(ii) prevent public and (iii) in
with the DNI project, future government
Siemens's
contracts
Argentina achieve
and elsewhere
in the region.
The conspirators down outstanding
sought to bribe
these related goals by paying to Argentine Officials
obligations transactions, arbitration financial
through a complex through
series of a sham
paying down bribe obligations in Switzerland, and seeking
to recoup the anticipated
benefits
of the DNI project D.C.
through a fraudulent
arbitration
in Washington,
Payments of the outstanding Bribe Obligations through Complex Transactions 36. On or about July 5, 2001, ANDRES TRUPPEL and ULRICH met in Miami, Florida, with CARLOS SERGI and to re-negotiate
22 -
BOCK, the defendants, MIGUEL CZYSCH,
the defendants,
the amount
of the
outstanding
bribe commitments
to the Argentine
Officials.
TRUPPEL
and BOCK agreed to seek payment of this amount from SBS through the previously executed Mfast Contract. 37. Payment of additional however, because bribes proved more difficult own internal of the conspiracy Ultimately, they
than anticipated, controls.
of Siemens's
To circumvent
those controls, members
were forced to employ less direct means of payment. succeeded, Argentine causing Siemens Officials
to pay more than $28 million Defendants
to the in or
and the Intermediary
between
about 2002 and in or about 2007. outstanding
Three of the payments
towards the
bribe debt were as follows: $5.2 million, $9.5 million, $4.7 million, in or about July 2002; in or about April and July 2003; and in or about January and February 2004. Payment of $5.2 Million caused SBS
The July 2002 Partial 38.
In or about July 2002, the conspirators
to pay approximately Intermediary Corporation associated accounts
$5.2 million to the Argentine Officials and the The payment was made through Meder Holding in Uruguay that was and through bank used
Defendants. S .A.
("Meder"), a company registered the defendant,
with ANDRES TRUPPEL,
held by the Conduit
Entities.
The conspirators
fictitious
invoices and an illusory consulting
contract to give the
payments the appearance of legitimacy.
23 -
In or about May 2002, TRUPPEL
sent to STEPHAN SIGNER, the defendant, a series of four Meder invoices that requested payment for "market development in Chile and Uruguay, " and provided account wire transfer instructions New York. for payment through a bank
in Manhattan,
Even though SBS had not sought or
contemplated
Meder's services, in or about June 2002 an SBS manager contract with Meder, which was backdated to make it appear that services to
executed a consultancy on or about October previously any time. invoices,
3, 2000,'
had at
been provided, Thereafter, through
even though no services were provided
payment was made to Meder, pursuant to Meder's account. Once the payment
the New York-based portion
reached Meder,
a significant
of the money was forwarded New York, to accounts held
through bank accounts
in Manhattan,
elsewhere by Milmar Ltd. and Pine Top Corporation, Entities.
two of the Conduit
Milmar Ltd. was a company organized under the laws of the Islands. It was associated with addresses in the One of
British Virgin
British Virgin Islands and two addresses
in Miami, Florida.
the Miami addresses - a residential ranch-style address with which Masters Investments Overseas
house - was the same and Tidwell
Corporation
S.A., two other Conduit Entities, of the Balance
were associated.
Plans for Payment Bribe Obligations 39. outstanding
of the Outstanding
The Meder payment was only a partial payment of the and CARLOS SERGI, the defendant,
bribe obligations,
-
24
-
continued
to put pressure debt.
on other members of the conspiracy
to pay
the remaining 40.
In or about August
2002, HERBERT STEFFEN and ANDRES
TRUPPEL, the defendants, met in Madrid, Spain with CARLOS SERGI, the defendant, STEFFEN and Argentine Official C. After the meeting, TRUPPEL and note to URIEL SHAREF, the defendant, themes
faxed a handwritten
explaining
that "the situation with respect to the familiar a critical point again," strategies
[had] reached time using
and that the "plan to gain failing." A month
certain
[was] apparently
later, SERGI sent a letter to SHAREF urging Siemens to make additional payments, suggesting that the payments would help Siemens the dispute secure
"future projects,"
and offering
to mediate
with the
"client" - a reference to the Argentine Officials.
By a second letter,
in December 2002, SERGI asked SHAREF to meet with him in January 2003 and warned of "damage to the image and good reputation" if it did not come up with a "proper solution." 41. defendant, outstanding On or about January to Manhattan, 15, 2003, URIEL SHAREF, the of Siemens
traveled
New York, in part to discuss the
bribe obligations
with CARLOS SERGI, the defendant. STEFFEN and ANDRES TRUPPEL, them for a meeting C. SHAREF
Within a week, SHAREF met with HERBERT the defendants, soon thereafter instructed in Munich, Germany,
to prepare
with SERGI and Argentine and TRUPPEL to appease
- 25 -
Official
STEFFEN
SERGI and Argentine
Official
C by assuring
them that SHAREF himself would authorize
additional bribe payments, and that SHAREF would be amenable to using as a mechanism was threatening for partial payment an arbitration against claim that SERGI SBS for breach of
to bring in Switzerland
the Mfast Contract. Payment 42. be taken.
of $9.5 Million
however, more immediate action needed to 2003, SERGI warned TRUPPEL and
Meanwhile,
In or about mid-February
STEFFEN, by letter, that if Siemens did not satisfy the outstanding bribe ?bligations confidentiality project by making additional requested payments, "we will forgo the
by the Company adding
from the start of the that this "might well be SERGI
for its entire duration,"
detrimental
to the image of the Corporation and its managers."
was more blunt in a note attached to the letter, threatening Siemens AG's arbitration bribery. claim in Washington,
to upend the
D.C. by exposing
For example, SERGI wrote that the "questionable procedures of the competitive bidding . . . [would] doubtlessly
and criticism
generate a problem at public sector level that would make a positive resolution Argentine
'~."' ..' "'0 .' ..
J .•
of the claim by Siemens filed in Washington Government TRUPPEL impossible, and result
against· the
in a loss for the
Company."
forwarded
the letter and note to SHAREF,
suggesting under."
that the missives were indicative of the "pressure we are
- 26 -
43. the defendant, TRUPPEL,
In or about early March 2003, to satisfy CARLOS SERGI, and the Argentine Officials, URIEL SHAREF and ANDRES transaction
the defendants,
orchestrated
a complex
invol ving two Siemens AG operating groups, an enti ty in Dubai, United Arab Emirates bank accounts disguised ("Company #2"), in the Bahamas, and two of the Conduit Entities all of which resulted with
in a set of $9.5
transfers,
in the aggregate
amount of approximately
million, from Siemens to the Argentine Officials and the Intermediary Defendants in April and July 2003. SHAREF initiated the transaction by Siemens PTD, a division
by directing
that a payment be arranged group.
of Siemens AG's power operating for the power operating Company #2, using wiring group,
SHAREF was the CEC's Coach region.
as he was for the Americas provided amount by TRUPPEL,
instructions
transferred
funds in a corresponding
to bank accounts
held
in the Bahamas by Chatarella
Investors Ltd. and Rockney Consultants Siemens PTD reimbursed Company
Ltd., two of the Conduit Entities. #2 for the payments, disguising in China. Siemens
them as payments related to a proj ect at SHAREF'S direction,
Over the next several months, the payment
PTD recouped credits
from SBS, through
a series of performed. told
fictitious
for services
that were not actually SIGNER,
In or about December Co-conspirator
2003, STEPHAN
the defendant,
#4 that approximately
$10 million
had been paid to
-
27
-
the "friends" of the Intermediary Defendants - that is, the Argentine Officials. Payment 44. of $4.7 Million 2004, members of even further amount and the to bank Neelrey
In late January and early February
the conspiracy reduced the outstanding bribe obligation by causing SBS to make four more payments, of approximately Intermediary accounts $4.7 million,
in the aggregate
to the Argentine'Officials were transferred
Defendants.
The payments
held by four of the Conduit Entities - Consultora
S.A of Uruguay, Linfarm Inc. S.A. of Uruguay, Rodmarton British Virgin Islands, and Silverlinks
Ltd. of the in
Company Ltd. of Guernsey
the Channel Islands - all of which were controlled by the Intermediary Defendants and other intermediaries. ANDRES TRUPPEL and STEPHAN
SIGNER, the defendants, backdated invoices
and co-conspirators services
known and unknown, used look
for phantom
to make the payments
like legitimate
business
expenditures.
The Partial Payment of $8.8 Million, Disguised As a Settlement of SERGI's Swiss Arbitration Claim 45. CARLOS SERGI, the defendant, filed a formal claim on
behalf of Mfast against SBS in a Swiss arbitral tribunal on or about March 15,2005. The stated purpose of the arbitration was to enforce
the Mfast Contract.
Although the members of the conspiracy knew that in the Mfast contract were performed and that the Mfast Contract
none of the services described and were not expected
to be performed,
- 28 -
was a sham used to disguise conspirators 46. acknowledged
illegal bribe obligations, as much before
none of the
the Swiss tribunal. BOCK, the
To the contrary, .URIEL SHAREF and URLICH
defendants, provided testimony before the arbitral tribunal in which they omitted any mention of bribery, and STEPHAN SIGNER, the
defendant, and Co-conspirator disclosure of any evidence
#4 otherwise caused Siemens to prevent
in the proceedings. For
of corruption
example, SIGNER arranged to have BOCK, who had retired from Siemens by the time of the Swiss arbitration, paid a "consulting" than $300,000 Washington, in exchange for giving testimony fee of more
in the Swiss and of bribery. As
D.C. arbitrations
that omitted mention in an email requesting my witness
BOCK would later acknowledge "consulting"
payment of his . in
fee, "I have arranged
statements "
such a way that Siemens 47.
is protected
from damage.
In or about October
2006, URIEL SHAREF and STEPHAN
SIGNER, the defendants, and unknown, $8.8 million. settlement caused
Co-conspirator
#4, and co-conspirators
known
SBS to settle Mfast's an arbitration a mechanism
claim for approximately on its face, the a partial payment
Although
settlement
was actually
to disguise Officials.
of bribe obligations 48. transfer
to the Argentine
On or about January amount
16, 2007, SBS caused a wire into a Swiss bank account The next day, substantially the
of the settlement by attorneys
controlled
for Mfast.
- 29 -
same amount was transferred to two of the Conduit Entities associated with CARLOS SERGI, the defendant, bank accounts in Manhattan, and other intermediaries, through
New York. D.C. Arbitration URIEL SHAREF and
The Washington, 49. In furtherance
of the conspiracy,
STEPHAN SIGNER, the defendants, Co-conspirator of the Crisis Management fraudulent arbitration Team, orchestrated
#4, and other members the filing of a D.C., in May 2002 to
claim in Washington,
cause the Argentine government to pay Siemens AG damages in an amount equivalent to incurred expenses and the total profits the company
would have earned from the DNI project
had it not been terminated.
Siemens AG' s claim was brought pursuant to a treaty between Argentina and Germany .that protected and companies associated arbitration procured organized the business investments Exposure of the parties of the bribery the
under their laws.
with the DNI project claim futile because
would have likely rendered the contract
would have been
through 50.
illegal corruption. settlement also preserved D.C. in the the Of
The Swiss arbitration
merits
of Siemens AG's arbitration importance agreement
claim in Washington, was a provision
critical
to the conspirators
settlement CZYSCH,
that expressly barred CARLOS SERGI and MIGUEL and Co-conspirator #5 from "involv[ing] either
the defendants,
themselves in [the Washington, D. C. arbitration] proceedings,
- 30 -
directly
or indirectly,
or in any other manner
influenc[ing]
said
proceedings,
even if only by passing
on information."
Once the
settlement had been reached, Co-conspirator SHAREF, the defendant,
#4 sent an email to URIEL
stating that a maj or obj ecti ve of the defense
of the Swiss arbitration had been achieved: avoiding "contamination" of Siemens AG's arbitration further explained silence" 51. in Washington, D.C. Co-conspirator would require #4
that the settlement in that arbitration
agreement
"absolute
proceeding.
For nearly
three years, URIEL SHAREF and STEPHAN #4, and other members of the
SIGNER, the defendants, Crisis Management the arbitration
Co-conspirator
Team successfully D.C.
kept evidence of bribery out of The conspirators evidence, accomplished witness which
in Washington,
this by filing a claim and supporting statements
including
of ANDRES TRUPPEL and ULRICH BOCK, the defendants,
contained material misrepresentations
and omissions relating to the As a result, in or about that jurisdiction
DNI proj ect' s origins, among other matters. August 2004, the arbitral tribunal
determined
existed to decide Siemens AG' s claim. SHAREF and Co-conspirator
In or about June 2005, however, at
#4 were tipped off by an executive Argentine
Siemens Argentina
that a high-ranking
official had begun A
talking about how the DNI proj ect bidding process was corrupted. few months corruption; later, Argentina it made reference sought to raise a defense based on
in its filing to a pending Argentine
- 31 -
corruption
investigation.
SHAREF,
SIGNER, Co-conspirator
#4, and to
co~conspirators
known and unknown,
caused Siemens AG's attorney
flatly deny the allegation.
In a letter filed in the arbitration, of corruption intended by of these
the attorney wrote that "the insinuations Argentina documents against Siemens
and SITS through the filing false."
are completely 52.
The arbitral
tribunal sided with Siemens AG, and on in loss (On or
or about February 6, 2007, it awarded Siemens AG $217,838,439 of investment, plus interest of 2.66% compounded annually.
about August 12, 2009, Siemens AG personnel who were not members of the conspiracy caused the company to waive its right to the award.) Statutory 53. Allegations
From in or about 1996 up to and including on or about District of New York and elsewhere,
August 12, 2009, in the Southern
URIEL SHAREF, HERBERT STEFFEN, ANDRES TRUPPEL, ULRICH BOCK,. EBERHARD REICHERT, defendants STEPHAN SIGNER,
I
CARLOS SERGI
I
MIGUEL
CZYSCH,
I
the and
and co-conspirators
known and unknown
I
willfully
knowingly cornb i.ned conspired, confederated ,
and agreed together and
with each other to commit offenses against the United s t.at.ea , to wit, violations States Code of the Foreign
I
Corrupt
I
Practices 78dd-3(a)
I I
Act
l
Title
15, United
I
Sections
I
78dd-1(a}
78m(b) (2) (A)
78m(b) (2) (B) Title 18
1
78m(b) (5) and 78ff(a) States Code
I
and the wire fraud statute 1343.
l
United
Section
32 -
54.
It was a part and an object of the conspiracy
that
URIEL SHAREF, HERBERT STEFFEN, ANDRES TRUPPEL, ULRICH BOCK, EBERHARD REICHERT, STEPHAN SIGNER, CARLOS SERGI, MIGUEL CZYSCH, the
defendants,
and co~conspirators
known and unknown,
being officers,
directors, employees and agents of an issuer of securities registered pursuant to the Securities and Exchange Act of 1934, willfully, that would of
is, with the intent to further the objects of the conspiracy, and did make use of the mails and means and instrumentalities interstate commerce corruptly
in -furtherance of an offer, payment, of the payment of any money, offer, of the giving of anything
promise to pay, and authorization gift, promise
to give, and authorization
of value, to a foreign official, and to a person, while knowing that all and a portion of such money and thing of value would be and had been offered, given, and promised, directly and indirectly to a
foreign official, and a candidate for foreign political purposes of: (i) influencing acts and decisions
office, for
of such foreign
official in his or her official capacity; official
(ii) inducing such foreign of the lawful duty and (iv) with a to
to do and omit to do acts in violation (iii) securing official an improper
of such official; inducing
advantage;
such foreign
to use his or her influence and instrumentalities
foreign government affect
and agencies
thereof and
and influence
acts and decisions
of such government
agencies
and instrumentalities,
in order to assist the defendants,
- 33 -
and others known and unknown, for and with,and directing
in obtaining
and retaining
business of
business
to, Siemens,
in violation
Title 15, United States Code, Sections 78dd-1 (a) and 78ff (c) (2) (A). 55. It further was a part and an object of the conspiracy STEFFEN, ANDRES TRUPPEL, ULRICH BOCK,
that URIEL SHAREF, HERBERT EBERHARD REICHERT, defendants,
STEPHAN SIGNER, CARLOS SERGI, MIGUEL CZYSCH, the known and unknown, while in the
and co-conspirators
territory of the United States, willfully, to further the objects of the conspiracy,
that is, with the intent and corruptly would and of
did make use of the mails and means and instrumentalities
interstate commerce and did any other act in furtherance of an offer, payment, promise. to pay, and authorization offer, gift, promise anything of value, of thepayment of any money,
to give, and authorization
of the giving of while
to a foreign official,
and to a person,
knowing that all and a portion of such money and thing of value would be and had been offered, given, and promised, directly and indirectly to a foreign official, and a candidate for foreign political office, for purposes of: (i) influencing acts and decisions of such foreign
official in his or her official capacity; official
(ii) inducing such foreign of the lawful duty and (iv) with a to
to do and omit to do acts in violation (iii) securing an improper
of such official; inducing
advantage;
such foreign official and agencies
-
to use his or her influence and instrumentalities
34 -
foreign government
thereof
affect
and influence
acts and decisions
of such government
and
agencies
and instrumentalities,
in order to assist the defendants, in obtaining and retaining business of
and others known and unknown, for and with, and directing Title 15, United
business
to, Siemens, 78dd-3(a)
in violation and
States Code, Sections
78dd-3 (e) (2) (A). 56 . It further was a part and an obj ect of the conspiracy STEFFEN, ANDRES TRUPPEL, ULRICH BOCK,
that URIEL SHAREF, HERBERT EBERHARD REICHERT, defendants, knowingly
STEPHAN SIGNER, CARLOS SERGI, MIGUEL CZYSCH, the known and unknown, would and did
and co-conspirators
and willfully,
directly and indirectly, and accounts
falsify and cause to, in
to be falsified reasonable
books, records, accurately
required
detail,
and fairly reflect
the transactions
and dispositions registered violation
of the assets of Siemens AG, an issuer of securities to the Securities arid Exchange Act of 1934, in 78m(b) (2) (A),
pursuant
of Title 15, United
States Code, Sections
78m(b) (5) and 78ff(a), Section 240.13b2-1. 57 .
and Title 17, Code of Federal Regulations,
It further was a part and an obj ect of the conspiracy STEFFEN, ANDRES TRUPPEL, ULRICH BOCK,
that URIEL SHAREF, HERBERT EBERHARD REICHERT, defendants, knowingly
STEPHAN SIGNER, CARLOS SERGI, MIGUEL CZYSCH, the known and unknown, would and did
and co-conspirators
and willfully
circumvent
35
a system of internal accounting
-
controls
sufficient
to provide
reasonable
assurances
that of
transactions financial accounting statements,
were recorded
as necessary
to permit preparation accepted
statements principles
in conformity
with generally
and any other criteria
applicable
to such
and to maintain accountability registered
for assets at Siemens AG, to the Securities.and
an issuer of securities
pursuant
Exchange Act of 1934, in violation Sections
of Title 15, united States Code,
78m(b) (2) (B), 78m(b) (5) and 78ff (a). 58 . It further was a part and an obj ect of the conspiracy STEFFEN, ANDRES TRUPPEL, ULRICH BOCK,
that URIEL SHAREF, HERBERT EBERHARD REICHERT, defendants, and intended obtaining pretenses,
STEPHAN SIGNER, CARLOS SERGI, MIGUEL CZYSCH, the known and unknown, having devised and for
and co-conspirators
to devise a scheme and artifice
to defraud,
money and property representations,
by means of false and fraudulent and promises, would and did willfully by means of wire signs,
and knowingly communication signals, artifice,
transmit and cause to be transmitted in interstate
and foreign commerce, writings, of executing
and pictures
for the purpose
such scheme and
to wit, a scheme to defraud
that is more fully described
in Count Three, in violation of Title 18, United States Code, Section 1343.
-
36
-
Overt Acts 59. illegal TRUPPEL, In furtherance thereof, of said conspiracy and to effect the STEFFEN, SIGNER, ANDRES
objectives
URIEL SHAREF, HERBERT REICHERT, STEPHAN
ULRICH BOCK, EBERHARD
CARLOS known and in the
SERGI, MIGUEL CZYSCH, the defendants, unknown, Southern committed District a. approximately deposit the following
and co-~onspirators
overt acts, among others,
of New York and elsewhere: In or about 1998, BOCK transported in cash from Germany to Switzerland for
$10 million
into Swiss bank accounts. b.' On or about September 4, 1998, in Argentina Co-conspirator #3, and co-conspirators approximately and
Germany,
BOCK, REICHERT,
known and unknown,
caused Siemens
to wire transfer $1 million) Overseas
1,850,000 deutschmarks held in Zurich, Conduit Entity
(approximately
to a bank account Corporation, a
Switzerland controlled c.
by Masters
by SERGI and other intermediaries.
On or about December 2, 1998, in Miami, Florida, in the name of Rodmarton of that Conduit Ltd., listing
a bank account Co-conspirator
was opened
#6 as a director d.
Entity. and
On or about December 28, 1998, in Argentina and Co-conspirator #3. caused
Germany, transfer
BOCK, REICHERT, approximately
SBS to wire held in
$10 million
to a bank account
-
37
-
Switzerland controlled
by Air Traffic
Control
Corporation,
a Conduit
Entity
by SERGI and other intermediaries. e. On or about September 15, 1999, in Argentina and BOCK, REICHERT, and Co-conspirator #3 caused SBS
Germany,
TRUPPEL,
to wire transfer approximately
$3,552,500
to a bank account held in
Manhattan, New York by Company #1, a foreign exchange firm with which the same defendants had caused SBS to enter into a fictitious hedging contract, dated on or about January f. Germany, TRUPPEL,
13, 1999.
On or about October 15, 1999, in Argentina BOCK, REICHERT, and Co-conspirator
and
#3 caused SBS
to wire transfer approximately Manhattan,
$3,864,500
to a bank account held in
New York by Company #1. g. On or about October 28, 1999, in Germany, BOCK SBS to pay approximately to Mirror Development
$820,000
and REICHERT authorized Corporation
to Pepcon
S .A., $890,000
Inc., and $915,000 affiliated with
to Finli Advisors Argentine
Group Inc., Conduit Entities A, B, and C, respectively.
Officials h.
On or about February 15, 2000, in Miami, Florida, Company Ltd., #6 as
a bank account was opened in the name of Silverlinks listing CZYSCH as an authorized the president and sole director i. signatory
and Co-conspirator Entity. payment
of that Conduit
On or about November
2, 2000,
demands
were faxed to REICHERT, in Germany, from a telephone service business,
- 38 -
located Entities
in a strip mall in Miami, Pepcon Corporation S.A.
Florida,
on behalf
of Conduit
(at 12:53 p.m.),
Finli Advisors
Group Inc. (at 12: 54 p.m. ), Mirror Development and LaGironde Investments Inc.
Inc. (at 12: 55 p.m. ) ,
(at 12:55 p.m.). and December 2000, in
j.
In or about November
Germany and Argentina, co-conspirators obligations obligations Mfast. k. Switzerland,
TRUPPEL, BOCK, REICHERT,
SERGI, CZYSCH, and bribe
known and unknown, met to discuss outstanding Officials, and consolidating "white contract
ll
to Argentine
certain bribe SBS and
through a $27 million
between
On or about January
3, 2001, in Germany
and
a contract between SBS and Mfast was executed as a result between BOCK, REICHERT, CZYSCH, and co-conspirators
of negotiations unknown
and unknown. 1. On or about March 15, 2001, in Argentina REICHERT, and co-conspirators and
Germany, TRUPPEL,
known and unknown, contract with
caused SITS to enter into a $1 million Co-conspirator to pay bribes #2, intending to Argentine m.
consultancy
that proceeds H.
of the contract be used
Official
On or about July 6, 2001, in Miami,
Florida,
TRUPPEL, BOCK, SERGI, CZYSCH, and co-conspirators met to discuss obligations a settlement of the outstanding Officials.
39 -
known and unknown, bribe payment
to the Argentine
n. and Washington, Co-conspirator
On or about May 21, 2002, in Germany, Argentina, TRUPPEL, SIGNER, caused
D.C., SHAREF, STEFFEN, #4, and co-conspirators
known and unknown,
Siemens AG to file an arbitration the Republic profits of Argentina,
claim in Washington,
D.C. against and lost
seeking to recover
investment
in connection o.
with the DNI project. sent a
On or about May 23, 2002, STEFFEN
facsimile to TRUPPEL which listed bribe obligations
to the Argentine
Officials that STEFFEN had received from SERGI and Argentine Official C. p. a telephone executive connection On or about May 24, 2002, in Germany, SHAREF had with an SBS executive, after which the in
conversation
authorized
up to $10 million
in bribe payments
with the DNI project. q. On or about June 26, 2002, in Germany, TRUPPEL, known and unknown, caused SBS to S.A, which was
SIGNER, BOCK, and co-conspirators
enter into a contract with Meder Holding Corporation backdated to October r. Germany, SHAREF, 3, 2000.
On or about July 22, 2002, in Argentina TRUPPEL, BOCK, SIGNER, and co-conspirators approximately
and known
and unknown,
caused SBS to wire transfer in Manhattan,
$5,213,561 credit to a
to a bank account
New York, for further
bank account held in Uruguay by Meder Holding Corporation S .A., based
-40 -
on the backdated and five invoices 9, 2002. s.
contract
referred
to in the preceding
Overt Act,
that TRUPPEL had faxed to SIGNER on or about May
On or about August 13, 2002
r
in Uruguay, TRUPPEL
r
caused Meder Holding Corporation S .A. to transfer $3,090
000 through
a bank account in Manhattan, New York that was associated with Milmar S.A., a Conduit Entity controlled t. by SERGI. 27, 2002, in Argentina, a meeting with SHAREF on
On or about December
SERGI sent a letter to SHAREF, requesting
or before January 15, 2003, and warning of "damage to the image and good reputation" solution.
It
of Siemens if they did not come up with a "proper
u. from Germany and TRUPPEL Officials. v. met with STEFFEN between
On or about January
15, 2003, SHAREF
traveled
to Manhattan, to discuss
New York, intending
to meet with SERGI to the Argentine
bribe payment
obligations
On or about January 24, 2003, in Germany, SHAREF and TRUPPEL to discuss the results of a meeting
SHAREF and SERGI. w. On or about February 10, 2003, in Argentina,
SERGI sent a letter to TRUPPEL and STEFFEN, which threatened to expose Siemens's "questionable procedures" in procuring the contract for
the DNI project,
and warned
that such exposure
- 41 -
would
"doubtlessly
generate
a problem
at public
sector level" and "make a positive against the
resolution Argentine Company. "
of the claim by Siemens filed in Washington Government impossible, and result
in a loss for the
x. and TRUPPEL,
On or about February 26, 2003, in Germany, BOCK known and unknown, prepared false to be
and co-conspirators witness statements
and fraudulent
and caused the statements D.C.
sent to the arbitral y.
tribunal
in Washington,
In or about March 2003, in Germany,
SHAREF
requested a senior executive of Siemens PTD to find a way to transfer approximately €12 million z. Germany, SHAREFand to South America. and
On or about April 19, 2003, in Argentina TRUPPEL, and co-conspirators
known and unknown,
caused Company #2 to wire transfer $3,500,000 to a bank account held in the Bahamas by Conduit aa. Germany, Entity Chatarella Investors Ltd. and
On or about April 22, 2003, in Argentina
SHAREF and TRUPPEL, and co-conspirators
known and unknown,
caused Company #2 to send wire transfers of $1,100,000 and $1,807,000 to a bank account held in the Bahamas by Chatarella bb. Investors Ltd. and
On or about April 28, 2003, in Argentina
Germany, SHAREF and TRUPPEL, and co-conspirators caused Company #2 to wire transfer in the Bahamas by Chatarella
known and unknown,
$593,000 to a bank account held Ltd.
Investors
- 42 -
cc.
On or about July 6, 2003, in Argentina
and
Germany, SHAREF and TRUPPEL, and co-conspirators caused Company #2 to wire transfer in the Bahamas by Conduit dd. $600,000
known and unknown,
to a bank account held Ltd. and
Entity Rockney
Consultants
On or about July 11, 2003, in Argentina
Germany, SHAREF and TRUPPEL, and co-conspirators caused Company #2 to wire transfer $1,500,000 in the Bahamas by Rockney ee. Consultants Ltd.
known and unknown,
to a bank account held
On or about July 13, 2003, in Argentina
and
Germany, SHAREF and TRUPPEL, and co-conspirators caused Company #2 to wire transfer in the Bahamas by Rockney ff. requested payments
known and unknown,
$400,000 to a bank account held Ltd. 2004, in Germany, SIGNER for
Consultants
In or about January
that an SBS manager provide back-dated totaling
authorization Rodmarton
$4.7 million to Conduit Entities
Ltd.,
Linfarm Inc. S .A., Silverlinks S.A. gg. Argentina, SHAREF,
Company Ltd., and Consultora
Neelrey
On or about January TRUPPEL, STEFFEN,
28, 2004, in Germany SERGI,
and
SIGNER,
CZYSCH, and
co-conspirators of approximately by Rodmarton
known and unknown, caused SBS to send a wire transfer $1,244,120 to a bank account held in Miami, Florida
Ltd.
- 43 -
hh. Argentina, SHAREF,
On or about January TRUPPEL, STEFFEN,
29, 2004, in Germany SERGI, CZYSCH,
and and
SIGNER,
co-conspirators of approximately Linfarm
known and unknown, caused SBS to send a wire transfer $1,116,230 to a bank account held in Uruguay by
Inc. S.A. ii. On or about February TRUPPEL, STEFFEN, 2, 2004, in Germany SERGI, CZYSCH, and and
Argentina,
SHAREF,
SIGNER,
co-conspirators approximately Consultora
known and unknown, $1,098,900 S.A.
caused SBS to wire transfer held in Uruguay by
to a bank account
Neelrey
jj.
On or about February TRUPPEL, STEFFEN,
3, 2004, in Germany SERGI, CZYSCH,
and and
Argentina,SHAREF, co-conspirators approximately by Silverlinks
SIGNER,
known and unknown, $1,240,750 Company kk.
caused SBS to wire transfer
to a bank account held in Miami, Florida,
Ltd. TRUPPEL on
On or about July 8, 2004, in Argentina, to provide
told STEFFEN by email that he had agreed SERGI's behalf in the impending
testimony adding that
Mfast arbitration,
TRUPPEL would testify that he had meetings with SHAREF at which SHAREF asked TRUPPEL and STEFFEN to "find a solution to make the payments"
and that certain payments were made, but not the" full agreed amount. " 11. On or about July 12, 2004, in Germany, STEFFEN
forwarded the email referred to in the preceding Overt Act to SHAREF,
- 44 -
who in turn forwarded it to Co-conspirator could not "understand mm. Co-conspirator
#4, stating that he (SHAREF) to Mr. Steffen."
the email from Mr. Truppel
On or about July 14, 2004, in Germany, Siemens attorney that SHAREF was
#4 told another
"upset" by TRUPPEL' s July 8 email, but wanted to stay out of it, except for instructing are "muzzled." nn. Switzerland, On or about March 15, 2005, in Zurich, #5, and Co-conspirator arbitration Co-conspirator #4 to make sure STEFFEN and TRUPPEL
SERGI, CZYSCH, Co-conspirator
#6 caused Mfast against SBS.
to file notice of an international
00.
On or about September
23, 2005, in Germany, known and
SHAREF,
SIGNER,
Co-conspirator
#4, and co-conspirators
unknown, caused a facsimile to be sent from Argentina tribunal in Washington,
to the arbitral
D.C., which stated that the "insinuations are "completely false."
of corruption"
raised by Argentina pp.
On or about December
21, 2005, in Germany, known and
SHAREF,
SIGNER,
Co-conspirator
#4, and co-conspirators
unknown, caused a facsimile to be sent from Argentina tribunal in Washington, to payments
to the arbitral
D.C., which stated that Argentina's made by SITS to Argentine public officials
"references
are false and inappropriate."
- 45 -
qq. Co-conspirator
In-or about November
2006, SHAREF,
SIGNER,
#4, and co-conspirators
known and unknown, caused SBS $8.8 million, expressly including SERGI, in [the or
to settle Mfast's in the settlement CZYSCH
claim for approximately agreement a provision
barring
and Co-conspirator
#5 from "involv[ing] proceedings,
themselves
Washington, indirectly,
D.C. arbitration]
either directly
or in any other manner
influenc[ing]
said proceedings,
even if only by passing rr. TRUPPEL, STEFFEN,
on information."
On or about January 16, 2007, in Germany, SHAREF, BOCK, REICHERT, SIGNER, SERGI, CZYSCH, caused
Co-conspirator Siemens
#4, and co-conspirators $8.8 million
known and unknown, to a bank account
to wire transfer
in Zurich,
Switzerland
as a settlement ss.
of the arbitration
claim by Mfast. SERGI from
On or about; January 17, 2007, in Uruguay, $4 million that had been transferred
received
approximately
Switzerland,
to and through a bank account in Manhattan, account held by Conduit Entity Milmar
New York, Ltd.
to an investment
tt. received
On or about January 17, 2007, in Uruguay, SERGI $4 million that had been transferred in Manhattan, from
approximately
Switzerland
to and through a bank account
New York,
to an investment account held by Conduit Entity Tidwell Investments S.A.
- 46 -
uu.
On or .about February
2( 2007( in Germany ( BOCK about not him in D.C.
wrote an email to SHAREF and SIGNER in which he complained receiving connection and Zurich( "consulting paymentsll that Siemens had promised arbitrations
with the then-ongoing Switzerland;
in Washington(
in justifying
prompt payment ( BOCK
r
explained ( "I have arranged my witness statements for the [Washington D.C. and Mfast] arbitration is protected from damage vv. . proceedings
II
in such a way that Siemens
On or about May 9( 2007( in Miami ( Florida( associated with TRUPPEL received
a a
bank account held by a company transfer of approximately held by Milmar
$100 (000 from a Uruguay investment account by SERGI.
Ltd. that was controlled
ww.
a bank account a transfer
On or about July 23( 2007( in Miami ( Florida( with TRUPPEL received
held by a company associated $100(000
of approximately
from a Uruguay
investment by
account held by Tidwell SERGI. xx. a bank account a transfer
Investments
S.A. that was controlled
On or about November 2 ( 2007 ( in Miami ( Florida ( with TRUPPEL received
held by a company associated $100(000
of approximately
from a Uruguay
investment by
account held by Tidwell SERGI.
Investments
S.A. that was controlled
(Title 18( United
States Code ( Section
- 47 -
371.)
(Conspiracy
COUNT TWO to Commit Money Laundering)
The Grand Jury further charges: 60. Indictment as though Paragraphs 1 through 20 and 22 through 52 of this by reference
are repeated and realleged and incorporated fully set forth herein. 61.
From in or about 1996 up to and including in or about in the Southern District of New York and elsewherer EBERHARD
November
2007r
r
URIEL SHAREF REICHERTr
HERBERT STEFFEN, ANDRES TRUPPELr ULRICH BOCKr SIGNERr CARLOS SERGIr MIGUEL CZYSCH,
STEPHAN
the and.
defendantsr
and co-conspirators
known and unknoWllr willfully
knowingly combined, conap i.r-edconf ede rat.ed, and agreed together and , with each other to violate 1956 and 1957. 62. URIEL SHAREF REICHERT,
t
Title 18r
United
States Coder Sections
It was a part and an object
of the conspiracy
that
HERBERT STEFFEN, ANDRES TRUPPEL, ULRICH BOCKr SIGNERr CARLOS SERGI, MIGUEL
CZYSCHr
EBERHARD
STEPHAN
the
. defendants , and co-conspirators and did conduct a financial
known and unknownr affecting
knowingly would interstate involved
transaction
commerce and foreign comme roe , which financial transaction the proceeds of specified unlawful activitYr
that is, a felony at Title that the
vi()lation of the Foreign IS, United financial States
Corrupt Practices 78dd-1r
Actr codified knowing
Code, Section
et seq.r
transaction
was designed
in whole and in part to conceal
- 48 -
and disguise
the nature,
location,
source, ownership,
and control
of the proceeds conducting involved
of said specified unlawful transaction, transaction
activity, and that while
such financial
knew that the property represented the proceeds of
in the financial
some form of unlawful States Code, Section 63.
activity,
in violation
of Title 18, United
1956(a) (1) (B) (i).
It further was a part and an obj ect of the conspiracy STEFFEN, ANDRES TRUPPEL, ULRICH BOCK,
that URIEL SHAREF, HERBERT EBERHARD REICHERT, defendants,
STEPHAN SIGNER, CARLOS SERGI, MIGUEL CZYSCH, the known and unknown, instrument knowingly would
and co-conspirators
and did transmit
and transfer a monetary
and funds from
a place in the United States to and through a place outside the United States and to a place in the United States from and through a place outside the United States with the intent to promote the carrying of the
on of specified unlawful activity, to wit, a felony violation Foreign Corrupt Practices Act, codified Code, Section 78dd-1, et seq., Code, Section 64. 1956(a) (2) (A).
at Title 15, United States
in violation of Title 18, United States
It further was a part and an obj ect of the conspiracy HERBERT STEFFEN, ANDRES TRUPPEL, ULRICH BOCK,
that URIEL SHAREF, EBERHARD REICHERT, defendants, knowingly
STEPHAN SIGNER, CARLOS SERGI, MIGUEL CZYSCH, the known and unknown, unlawfully and
and co-conspirators
would and did transmit and transfer a monetary
49 -
instrument
and funds involving the proceeds of specified unlawful activity, that is, a felony violation of the Foreign Corrupt Practices Act, cod Lf Led at Title 15, United States Code, Section 7Sdd-1, et seq., from a place
in the United States to and through a place outside the United States and to a place in the United States f rom- and through a place outside the United States knowing that the monetary involved in the transmission instrument and funds
and transfer represented
the proceeds
of some form of unlawful activity and knowing that such transmission and transfer was designed in whole and in part to conceal and disguise the nature, location, source, ownership, and control of the proceeds of said specified unlawful activity, in violation of Title lS, United States Code, Section 1956 (a) (2) (B) (i). 65 . It further was a part and an obj ect of the conspiracy
that URIEL SHAREF, HERBERT STEFFEN, ANDRES TRUPPEL, ULRICH BOCK, EBERHARD REICHERT, STEPHAN SIGNER, CARLOS SERGI, MIGUEL CZYSCH, the defendants, and co-conspirators known and unknown, knowingly would. by, through, and to a and foreign commerce,
and did engage in a monetary financial institution,
transaction
affecting
interstate
in criminally
derived property of a value greater than $10,000 and
having been derived from a specified unlawful activity, that is, a felony violation of the Foreign Corrupt Practices Act, codified at in violation
Title 15, United States Code, Section 7Sdd-1, et seq., of Title 18, United States Code, Section 1957(a).
- 50 :..
Means 66. HERBERT STEPHAN
and Me.thods of the Conspiracy used by URIEL SHAREF,
Among the means and methods ANDRES TRUPPEL,
STEFFEN, SIGNER,
ULRICH BOCK, EBERHARD CZYSCH,
REICHERT, and
CARLOS SERGI, MIGUEL known and unknown,
the defendants, the Objects
co-conspirators conspiracy
to achieve
of the
were those set forth in Count One, paragraph and realleged and incorporated by reference
21, which as though
are repeated
fully set forth herein. Overt Acts 67. illegal TRUPPEL, In furtherance thereof, of said conspiracy and to effect the STEFFEN, SIGNER, ANDRES
objectives ULRICH
URIEL SHAREF, HERBERT REICHERT, STEPHAN
BOCK, EBERHARD
CARLOS known and in the
SERGI, MIGUEL CZYSCH,the u~known, Southern committed District a. REICHERT,
defendants,
and co-conspirators
the following
overt acts, among others,
of New York and elsewhere: On or about September 15, 1999, TRUPPEL, BOCK,
and Co-conspirator
#3 caused funds intended to be used in in the approximate amount of
whole and in part to pay bribes, $3,552,500, to be transmitted
and transferred
from a bank account
held by Siemens at a place outside the United States to and through a bank account held by Company b. REICHERT, #1 in Manhattan, New York. BOCK,
On or about October
15, 1999, TRUPPEL,
and Co-conspirator
#3 caused funds intended to be used in
- 51 -
whole and in part to pay bribes, $3,864,500, to be transmitted
in the approximate
amount
of
and transferred
from a bank account
held by Siemens at a place outside the United States to and through a bank account held by Company #1 in Manhattan, c. New York.
On or about July 22, 2002, SHAREF, TRUPPEL, BOCK,
and SIGNER caused funds intended to be used in whole and in part to pay bribes, transmitted in the approximate and transferred the United amount of $5,213,561, to be
from a bank account held by Siemens at States to and through a bank account
a place outside
associated with Meder Holding Corporation S .A. in Manhattan, New York, and from that bank account to and through a bank account held by Meder Holding Corporation S.A. in Uruguay, i. intended and thereafter:
on or about August 13, 2002, caused funds in the
to be used in whole and in part to pay bribes, amount of $3,090,000, to be transmitted
approximate
and transferred S.A. in Uruguay
from a bank account held by Meder Holding Corporation
to and through a bank account associated with Milmar Ltd. in Manhattan, New York, and from that bank account to and through a bank account held by Milmar Ltd. in Uruguay. d. STEFFEN, SIGNER, On or about January 28, 2004, SHAREF, TRUPPEL, #5, and
SERGI, CZYSCH, Co-conspirator
Co-conspirator
#6 caused funds intended in the approximate
- 52 -
to be used in whole and in amount of $1,244,120, to be
part to pay bribes,
transmitted
and transferred
from a bank account held by Siemens at
a place outside the United States to and through a bank account held by Rodmarton Ltd. in Miami~ i. intended Florida, and thereafter: funds
on or about May 10, 2004, caused
to be used in whole and in part to pay bribes, amount of $584,000, to be transmitted
in the
approximate
and transferred
from a bank account held by Rodmarton
Ltd. in Miami, Florida to and Investments S.A.
through a bank account held in Uruguay by Tidwell e. On or about January
16, 2007, SHAREF, TRUPPEL, #4, to
STEFFEN, BOCK, REICHERT, Co-conspirator
SIGNER, SERGI, CZYSCH, Co-conspirator #6 caused funds intended
#5, and Co-conspirator
be used in whole and in part to pay bribes, in the approximate
amount
of $8.8 million, to be transmitted and transferred from a bank account held by Siemens at a place outside the United States to and through a bank account Switzerland, held by an attorney for Mfast Consulting AG in
and thereafter: i. on or about January 17, 2007, caused funds in the
intended. to be used in whole and in part to pay bribes, approximate amount of $4 million, to be transmitted
and transferred AG in
from a bank account held by an attorney Switzerland Investments
for Mfast Consulting associated
to and through a bank account S.A. in Manhattan,
with Tidwell
New York, and from that bank account
- 53
-
to and through an investment account held by Tidwell Investments in Uruguay. f. bank account On or about May 9, 2007, in Miami, associated with TRUPPEL
S .A.
Florida, received
a a
held by a company
transfer of approximately held by Milmar
$100,000 from a Uruguay investment account by SERGI. Florida, received
Ltd. that was controlled g.
On or about July 23, 2007, in Miami, associated with TRUPPEL
a bank account a transfer account SERGI.
held by a company
of approximately
$100,000
from a Uruguay
investment by
held by Tidwell
Investments
S.A. that was controlled
h. a bank account a transfer account SERGI.
On or about November 2, 2007, in Miami, Florida, associated with TRUPPEL received
held by a company
of approximately
$100,000
from a Uruguay
investment by
held by Tidwell
Investments
S.A. that was controlled
(Title 18, United
States Code, Section COUNT THREE (Wire Fraud)
1956(h).)
The Grand Jury further charges: 68. Indictment Paragraphs 1 through 20 and 22 through 52 of ~his by reference
are repeated and realleged and incorporated
as though fully set forth herein.
- 54 -
69. about August elsewhere,
From in or about June 2001 up to and including 12, 2009, in the Southern SHAREF, HERBERT District ANDRES
on or
of New York and TRUPPEL, ULRICH
URIEL
STEFFEN,
BOCK, EBERHARD REICHERT, STEPHAN SIGNER, CARLOS SERGI, MIGUEL CZYSCH, the defendants, and co-conspirators known and unknown, having
devised and intended to devise a scheme and artifice to defraud, and for obtaining pretenses, transmitted communication signals, artifice, SERGI, money and property by means of false and fraudulent willfully, and knowingly
representations,
and promises,
and caused to be transmitted in interstate
by means of wire writings, signs,
and foreign commerce, of executing
and pictures
for the purpose
such scheme and SIGNER,
to wit, SHAREF, STEFFEN, TRUPPEL, BOCK, REICHERT, in a scheme to defraud
and CZYSCH engaged
the Argentine
government of money by means of an arbitration claim that was premised on and supported by materially 70. SHAREF, HERBERT false representations and omissions. that URIEL
It was part of the scheme and artifice STEFFEN, SIGNER, ANDRES TRUPPEL,
ULRICH BOCK, EBERHARD and others known and
REICHERT, unknown,
STEPHAN
the defendants,
knowing that an arbitration D.C. against
claim brought by Siemens AG in of Argentina for breach of
Washington,
the Republic
treaty obligations it were revealed
in connection
with the DNI project would fail if that the contract for the DNI
in the arbitration
project was procured
in a corrupt manner, caused Siemens AG to file
- 55 -
such an arbitration that the contract
claim, for
knowing that
the claim falsely was procured
represented
the DNI project in truth
in a non-corrupt for the DNI
manner and omi tted project
that,
and fact, manner.
the contract
was procured 71. It
in a corrupt was a part
further
of the scheme and artifice
that
URIEL SHAREF,HERBERT STEFFEN,ANDRES TRUPPEL,ULRICH BOCK,EBERHARD REICHERT, STEPHAN SIGNER, the unknown, knowing that Washington, treaty it defendants, and others known and
an arbitration the Republic
claim brought of Argentina
by Siemens AG in for breach of if DNI
D.C. against
obligations
in connection in the arbitration
with the DNI project that manner, the contract
would fail for the
were revealed
proj ect additional
was procured filings witness
in a corrupt
caused
Siemens AG to make claim, including said
in support statements
of such an arbitration
testimonial filings
of TRUPPEL and BOCK,knowing that that the contract for the
falsely
represented
DNI project in truth and
was procured fact, manner. 72. the
in a non-corrupt for the
manner and omitted DNI project
that,
contract
was procured
in a corrupt
It
further
was a part
of the scheme and artifice
that
URIEL SHAREF,HERBERT STEFFEN,ANDRES TRUPPEL,ULRICH BOCK,EBERHARD REICHERT, STEPHAN SIGNER, CARLOS SERGI, MIGUELCZYSCH,the defendants, claim brought and others known and unknown, knowing that D. C. against an arbitration the Republic
by Siemens AG in Washington,
56 -
of Argentina
for breach of treaty obligations
in connection
with the that
DNI project would fail if it were revealed the contract agreed for the DNI project
in the arbitration
was procured
in a corrupt manner, #5 would not reveal was
that SERGI, CZYSCH,
and Co-conspirator
in such an arbitration
that the contract
for the DNI project
procured in a corrupt manner, and caused Siemens to pay money to SERGI, CZYSCH, Co-conspirator for that purpose, accounts #5, and ultimately the Argentine Officials, bank
including
by wire transfers
to and through
in Manhattan, 73.
New York.
It further was a part of the scheme and artifice that
URIEL SHAREF, HERBERT STEFFEN, ANDRES TRUPPEL, ULRICH BOCK, EBERHARD REICHERT, STEPHAN SIGNER, CARLOS SERGI, MIGUEL CZYSCH, the
defendants,
and others known and unknown,
caused to be transmitted and foreign commerce, among others: from
by means of wire communication the following writings, a. Argentina
in interstate
signs, signals, and pictures
On or about May 21, 2002, a facsimile tribunal in Washington,
to the arbitral
D.C. on behalf of against the
Siemens AG, containing Government
a "Request
for Arbitration"
of Argentina. b. On or about September 23, 2005, a facsimile from tribunal in Washington, D.C. on behalf of raised by
Argentina
to the arbitral
Siemens AG, stating that the "insinuations the Government of Argentina
-
of corruption" false."
are "completely
57 -
c. the arbitral respective
On or about October in Washington,
4, 2005, a facsimile for the
from
tribunal
D.C. to counsel denying
parties
in Argentina,
effectively
Argentina's claim. and
request to raise corruption d. electronic mail
as a defense to the arbitration
On or about October
7, 2005, a facsimile in Washington, effectively
from the arbitral
tribunal
D.C. to denying
counsel for the respective parties in Argentina, Argentina's request for reconsideration 4, 2005 facsimile, e. Argentina
of the decision communicated to above.
in the October
referred
On or about December 21, 2005, a facsimile from tribunal in Washington, D.C. on behalf of ~references
to the arbitral
Siemens AG, stating that the Government
of Argentina's
to payments made by SITS to Argentine public officials are false and inappropriate." f. Argentina On or about February 17, 2006, a facsimile from D.C. on behalf of ... has clearly
to the arbitral tribunal in Washington,
Siemens AG, stating that resort to "any bad practice not been the Siemens g. Argentina case." On or about March
9, 2006, a facsimile
from
to the arbitral
tribunal in Washington,
D.C. on behalf of of "bad practices"
Siemens AG, stating that "misleading allegations"
have been "fully discredited by [Siemens] in its prior submissions."
- 58 -
h. electronic counsel mail
On or about February
6, 2007, a facsimile in Washington, stating
and
from the arbitral parties
tribunal
D.C. to that the in the
for the respective of Argentina
in Argentina,
Government
shall pay Siemens AG compensation
amount of $208,440,540 project, $9,178,000
on account of Siemens's investment of consequential damages,
in the DNI and by SITS.
on account
$219,899 on account of unpaid bills for services provided (Title 18, United FORFEITURE 74. offense States Code, Sections AS TO COUNTS
1343 and 2.)
ALLEGATIONS
ONE AND THREE conspiracy
As the result of committing
the criminal
in violation
of Title 18, united States Code, Section 371, 78dd-1(a) , 78dd-3(a) ,
Title 15, United
States Code, Sections
78m(b) (2) (A)- (B), 78m(b) (5), and 78ff (a), and Title 18, United States Code, Sections Indictment, 1343 & 2, alleged in Count One of this ANDRES TRUPPEL, ULRICH
URIEL SHAREF, HERBERT REICHERT, STEPHAN
STEFFEN, SIGNER,
BOCK, EBERHARD
CARLOS SERGI, and MIGUEL
CZYSCH, the defendants, to 18 U.S.C. and personal,
shall forfeit to the United States, pursuant
§
s
981(a) (1) (C) and 28 U.S.C.
2461, all property,
real
that constitutes or is derived from proceeds traceable of the offense. the wire fraud offense in 1343 and 2,
to the commission 75. violation alleged
As a result of committing
of Title 18, United
States Code, Sections
in Count Three of this Indictment,
- 59 -
URIEL SHAREF, HERBERT
STEFFEN, SIGNER,
ANDRES
TRUPPEL,
ULRICH
BOCK, EBERHARD CZYSCH,
REICHERT,
STEPHAN shall
CARLOS SERGI, and MIGUEL
the defendants,
§
forfeit to the United States, pursuant and 28 U.S.C. constitutes
§
to 18 U.S.C.
981(a) (1) (C) that
2461, all property,
real and personal,
or is derived from proceeds traceable to the commission
of the offense. Substitute 76. Asset Provision forfeitable property,
If any of the above-described
as a result of any act or omission (1) (2)
of the defendants:
cannot be Loca.t.ed upon the exercise of due diligence; has been transferred a third person; or sold to, or deposited with,
(3) (4) (5)
has been placed beyond the jurisdiction has been substantially diminished
of the Court; or
in value;
has been commingled with other property which cannot be subdivided without difficulty;
§
it is the intent of the United States, pursuant to 21 U.S.C. to seek forfeiture of any other property
853 (p), up to
of said defendants
the value of the above forfeitable
property.
(Title 15, United States Code, Sections 78dd-1(a), 78dd-3(a), 78m(b) (2) (A), 78m(b) (2) (B), 78m(b) (5) & 78ff (a); Title 18, United States Code, Sections 371, 981, 1343 & 2; Title 21, United States Code, Section 853; and Title 28, United States Code, Section 2461.)
- 60 -
FORFEITURE 77. offenses
ALLEGATIONS
AS TO COUNT TWO the money laundering Sections
As the result of committing of Title 18, united
in violation
States Code,
1956 (h), 1956 (a) (1) (B) (i), 1956 (a) (2) (A), 1956 (a) (2) (B) (i), and 1957(a) HERBERT STEPHAN , alleged STEFFEN, SIGNER, in Count Two of this Indictment, ANDRES TRUPPEL, URIEL SHAREF, REICHERT,
ULRICH BOCK, EBERHARD CZYSCH,
CARLOS SERGI,
and MIGUEL
the defendants,
§
shall forfeit to the United States pursuant property, offenses real and personal, and all property involved
to 18 U.S.C.
982, all
in the money
laundering
traceable
to such property.
Substitute 78.
Asset Provision forfeitable property,
If any of the above-described
as a result of any act or omission (1) (2)
of the defendants:
cannot be located upon the exercise of due diligence; has been transferred a third person; or sold to, or deposited with,
(3) (4) (5)
has been placed beyond the jurisdiction has been substantially diminished
of the Court; or
in value;
has been commingled with other property which cannot be subdivided without difficulty;
- 61 -
it is the intent of the Uni ted States, pursuant to seek forfeiture of any other property
to 18 U. S. C.
I
§
982 (b) r up to
of said
defendants
the value (Title
of the above 18, united
forfeitable Code,
property. sections 982, 1956, and ~957.)
States
PREET BHARARA United States
Attorney
tant Attorney Department of Justice Criminal Division
1
- 62
-
UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK
UNITED
STATES ... v.
OF AMERICA -
ORIEL SHAREF, HERBERT STEFFEN, ANDRES TRUPPEL, ULRICH BOCK, EBERHARD REICHERT, STEPHAN SIGNER, CARLOS SERGI, and MIGUEL CZYSCH/ Defendants. INDICTMENT
(18 U.S.C. 371, 1343, 1956, 1957, & 2; 15 U.S.C. §§ 78dd-l(a), 78dd-3(a) , 78m(b) (2) (A), 78m(b) (2)(B), 78m{b) (5) & 78ff (a) . )
ss
PREET BHARARA
united States Attorney
A TRUE BILL
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