SAN FRANCISCO (CBS SF) — A former San Francisco Bay Area executive for the German multinational computer software company SAP has been indicted on federal charges of conspiracy to commit money laundering and insider trading.
The U.S. Department of Justice announced Thursday night the indictment of San Mateo resident Christopher G. Salis and two of his former college classmates at Purdue University.
Salis held the role of global vice president and general manager for procurement at SAP in Palo Alto. SAP is one of the largest enterprise software companies in the world.
Salis left SAP in 2015, according to his social media profiles.
Along with Salis, two brothers living in Indiana identified as Douglas Miller and Edward Miller, were charged in the 17-count indictment returned Wednesday by a federal grand jury in Indiana.
The indictment includes charges of wire fraud, securities fraud and conspiracy to commit money laundering.
Edward Miller is additionally charged with witness harassment and obstruction of justice.
Prosecutors allege that Salis was employed at SAP when he obtained privileged information about SAP’s acquisition of the Washington state-based company, Concur Technologies.
Salis allegedly disclosed the information about the looming acquisition to Douglas Miller, who then shared that information with his brother Edward Miller and other individuals who then purchased securities in Concur.
Concur’s $8.3 billion acquisition was completed in 2014 and today it is an SAP company that specializes in travel management software.
The indictment alleges that after Concur’s acquisition, Douglas and Edward Miller sold the securities, making $168,000 between the two of them. Other traders who allegedly used the insider information profited a total of about $237,000.
U.S. Securities and Exchange Commission filings in June 2016 state that the Miller brothers’ parents and friends also bought securities based on the tip from Salis. The SEC alleges that the tips yielded illicit trading profits of more than $545,000.
According to the SEC, the Miller brothers ran a car wash company that they were having trouble keeping afloat.
Salis made about $90,000 when the Millers transferred a portion of their trading profits to him, according to the indictment.
Some of that cash was brought on an airplane from Indiana to the San Francisco Bay Area by Salis, according to the SEC.
The SEC alleges that Salis and Douglas Miller had done this type of insider trading before, when Salis worked at Business Objects in San Jose and that company was being acquired by SAP for $6.8 billion in 2007.
SAP spokesman Andy Kendzie said Friday that Salis left the company in October 2015. He stated that SAP was not the target of the investigation and that the company has cooperated fully with investigators.
“SAP is strongly committed to the highest standards of integrity and ethics and has zero tolerance for any business misconduct. Because these are pending matters between the former employee and the SEC and DOJ, SAP will not comment further,” Kendzie said.
Salis did not respond to a CBS San Francisco request for comment on the indictment filed against him.
By Hannah Albarazi – Follow her on Twitter: @hannahalbarazi.