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He is involved in the black market with Major Kiegel. When Sergeant Schultz, the sergeant of the guard at Stalag 13, goes to ask Hermann if one of his waiters could be excused early, he accidentally walks in on a pay-off between Hermann and Kiegel. Schultz didn't know what was going on, but Kiegel conspires to have him transfered to the Russian Front.
This ultimately spells Kiegel's downfall. Schultz is an unknowing player in the operations of Colonel Hogan and his men. Hogan and his men tricks Kiegel into moving all their black market materials so that they can get evidence against him.
"I see nothing! Nothing!"
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