LITHUANIAN POLICE SEIZE NINE MILLION COUNTERFEIT

UNCLAS VILNIUS 001403

SIPDIS

STATE FOR EUR/NB, DS/IP/EUR AND INL

PARIS FOR USSS FIELD OFFICE

E.O.12958: N/A
TAGS: ASEC PREL EFIN LH
SUBJECT: LITHUANIAN POLICE SEIZE NINE MILLION COUNTERFEIT
EUROS

REF: 03 Vilnius 485


1. Summary. The Lithuanian Police achieved a major victory
in the fight against counterfeiting November 6, arresting
thirteen people and seizing over nine million counterfeit
Euros. The Police believe that the group has been printing
Euros for several years. The Police also found printing
plates for U.S. currency, but believes that the group was
only printing Euros. The confiscated money earns Lithuania
the dubious distinction of being one of the world's largest
known exporters of counterfeit European currency. The
Mission is following up with Lithuanian authorities,
including by seeking USSS access to the U.S. counterfeit
plates. End Summary.


2. On November 6, 2004, the Lithuanian Police conducted
more than 40 simultaneous searches in the cities of Kaunas,
Telsiai, Palanga, and other cities that shut down a
counterfeiting operation responsible for printing and
distributing counterfeit Euros throughout Europe in huge
quantities. The majority of the arrests and seizure of
counterfeit currency took place in a printing company in
Kaunas. Thirteen people were arrested and over nine
million counterfeit Euro notes were seized. The Court
released two of those arrested and held the others for
pretrial investigation. All face criminal charges carrying
penalties of three to ten years' imprisonment. All the
money found was in 100 Euro notes. Several of the men
arrested were in the process of printing more counterfeit
Euros when the Police raided.


3. The Police believe that the group has been printing
Euros for several years, working seven days a week. The
Police do not know the total amount produced by these
printing plants, but at the time of the raids, they seized
over nine million Euros. The Police also found printing
plates for U.S. currency, but believe that the group was
only printing Euros because they were more profitable then
dollars. Investigators said the Euro notes were of high
quality and could not be distinguished from legitimate
currency with the naked eye.


4. This is believed to be the largest single seizure of
counterfeit Euros ever. Lithuanian law enforcement
agencies expect to uncover more counterfeiting groups in
continued investigations. The confiscated money makes
Lithuania one of the world's largest known exporters of
counterfeit European currency.


5. This seizure is the result of a two-year investigation.
Lithuanian officials initiated their investigation in part
because of the arrest of several Lithuanian citizens in
other countries for possession and distribution of
counterfeit Euros. The Police believe that the
counterfeiting group is connected with a Kaunas organized
crime group. Last January, the police detained a couple of
people trying to smuggle 50,000 fake euros from Lithuania
to Belarus. The Police confirmed that these were
counterfeit Euros from Kaunas.

Comment
--------------


6. This important seizure comes on the heels of U.S. Secret
Service Counterfeit Detection/Financial Crimes training for
48 Police officers on October 18-22, 2004. This training
was part of a Letter of Agreement between the United States
and Lithuania, signed on September 30, 2003, to assist
Lithuania in fighting counterfeiting. The Letter of
Agreement included the purchase of $50,000 of advanced
surveillance equipment for the Police.


7. Embassy Vilnius has assisted Lithuania in previous
efforts to investigate counterfeit U.S. dollars. Reftel
reports Lithuania's success in a joint operation with the
U.S. Secret Service. A Lithuanian organized crime group
was shipping counterfeit U.S. currency and drugs to the
United States. Lithuanian Police do not know yet if this
2003 arrest is related to the recent arrests.


8. Together with USSS Paris, the RSO is working with
Lithuanian officials to learn more about this investigation
to arrange an inspection of the U.S. counterfeit plates for
the USSS.

Mull