On April 17, 2020, Eberhard Reichert, a former Siemens executive, was sentenced to time served with no period of supervised release by the US District Court for the Southern District of New York. Reichert had pleaded guilty in March 2018 to one count of conspiracy to violate the wire fraud statute and the anti-bribery and books and records provisions of the Foreign Corrupt Practices Act (FCPA) in connection with a bribery scheme in which almost $100 million in bribes was paid to Argentine government officials.
The sentencing hearing was conducted telephonically, with the 80-year-old defendant allowed to attend remotely from his home in Germany because of the COVID-19 pandemic. Reichert had entered his guilty plea pursuant to a cooperation agreement with the US Department of Justice (DOJ). At the April 2020 sentencing hearing, upon motion by the DOJ, Judge Denise Cote dismissed Counts 2 and 3 of the indictment against Reichert. Count 2 alleged conspiracy to commit money-laundering and Count 3 alleged wire fraud.
Reichert’s co-defendant and former chief financial officer of Siemens Argentina, Andres Truppel, also received time served at his sentencing in March 2020 after similarly pleading guilty to one count of conspiracy to violate the wire fraud statute and the anti-bribery and books and records provisions of the FCPA.
In December 2008, Siemens, and various subsidiaries (including Siemens Argentina), pleaded guilty in federal court to FCPA-related violations for described conduct in ten countries, and agreed to pay a fine of $450 million to the DOJ. At the same time, Siemens agreed to disgorge $350 million in ill-gotten profits as part of a civil resolution with the U.S. Securities and Exchange Commission, and agreed to pay over $800 million to resolve similar charges with the Munich Public Prosecutor’s Office.