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Siemens Indictment

Siemens Indictment

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UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK

x

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

-

-----

--------

---x

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.

-

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

-

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;
- 12 -

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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