NEPAL: DOCUMENT VENDORS ARRESTED

UNCLAS KATHMANDU 002442

SIPDIS

DEPT FOR CA/FPP; DEPT PLEASE ALSO PASS TO KCC
POSTS FOR FRAUD PREVENTION MANAGERS, DHS, LEGATT

SENSITIVE

E.O. 12958: N/A
TAGS: KFRD CVIS CPAS CMGT ASEC NP
SUBJECT: NEPAL: DOCUMENT VENDORS ARRESTED


1. (SBU) Nepal Police (NP) arrested a group of six
collaborating document vendors in mid-October and a
single fraudulent document vendor on November 5, 2005.
In both cases, NP gave Post's Fraud Prevention Manager
(FPM) and Senior Fraud Prevention FSN (FPFSN) access to
exemplars of the documents the vendors had produced. In
both cases, the majority of documents were made for those
seeking employment overseas (Nepalese academic
certificates, Indian drivers' licenses, character
certificates, etc.). In the former case, the vendors had
produced a text template for three U.S.-visa foils with
complete bio info, as well as draft letters about Maoists
threats clearly intended to support an asylum claim.
Police who had interviewed November arrestee told FPM
that they believed his customers were all Nepalese
seeking work or visa qualifications.


2. (SBU) According to police, in both cases, the vendors
scanned genuine documents and then used a graphics
program, Macromedia Freehand, to alter the documents.
However, the vendor arrested in November, a 36-year old
former printing press operator named Mitra Prasad
Dhungana, had also used chemicals and negative projection
to produce plates to make his own academic certificate
blanks (rather than the fake paper stock or the
manipulated originals we normally see). Dhungana used
high-quality paper stock, and his production quality was
quite good. Most troubling, Dhungana was arrested with
90 government-office stamps, including the stamp used by
Police Headquarters on character verification
certificates, and a stamp used by the Indian Embassy in
Kathmandu.


3. (SBU) Police complained to FPM and FPFSN that, at
best, Dhungana would be convicted for a maximum of two
years and a maximum fine of 9,5000 rupees (approx. USD
126). With such low penalties under Nepalese law, they
noted, anyone would choose to keep producing fake
documents. Dhunagan had been arrested and released once
before about one year ago. However, police were hoping
that a detailed investigation of his behavior might lead
to other charges this time.

COMMENT
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4. (SBU) Unfortunately, the police are correct that,
with such lenient laws in place, the crime of fraudulent
document production pays. (Vendors can make up to 75,000
rupees (USD 1,000) for a set of high-quality fake
academic transcripts -- this in a country where the per
capita GDP is about USD 240 (18,000 rupees). As such,
arrests appear to be simply the price of doing business.)
Paging through the documents produced by both sets of
vendors, it was clear to us that their handiwork had been
seen in the consular section during student visa and
diversity visa interviews.


5. (SBU) Close cooperation between the Embassy's Fraud
Prevention Unit and the Special Branch of the Nepal
Police (a unit within the Criminal Investigation Division
that works with Diplomatic Missions) led to the arrest of
two other document vendors in the last 12 months. As a
result of the relationship built through this
cooperation, police provided the Embassy exemplars from
the first arrest, and promised to provide the same from
the Dhungana arrest.

MORIARTY