Identifier
Created
Classification
Origin
05SOFIA1847
2005-10-26 15:14:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Sofia
Cable title:  

TOP BULGARIAN MONEY LAUNDERER SHOT DEAD IN SOFIA

Tags:  PREL KCRM ASEC BU 
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This record is a partial extract of the original cable. The full text of the original cable is not available.
UNCLAS SOFIA 001847 

SIPDIS

SENSITIVE

E.O. 12958: N/A
TAGS: PREL KCRM ASEC BU
SUBJECT: TOP BULGARIAN MONEY LAUNDERER SHOT DEAD IN SOFIA

UNCLAS SOFIA 001847

SIPDIS

SENSITIVE

E.O. 12958: N/A
TAGS: PREL KCRM ASEC BU
SUBJECT: TOP BULGARIAN MONEY LAUNDERER SHOT DEAD IN SOFIA


1. (SBU) SUMMARY: Controversial banker Emil Kyulev, owner
of Bulgaria's biggest financial group DZI, was shot dead in
in central Sofia October 26. The killing of Kyulev is the
latest in a series of apparent organized crime-related
assassinations in recent months. It comes only a day after
the European Union released its monitoring report sharply
criticizing Bulgaria for its failure to fight organized
crime. Kyulev was a former partner of Russian-born Michael
Chorny, who was banned from Bulgaria as a threat to national
security. Reportedly the third richest person in Bulgaria,
Kyulev was also known for his high-profile political
connections, including his role as a former advisor to
President Georgi Purvanov and a major campaign contributor
to former Prime Minister Simeon Saxe-Coburg. END SUMMARY


2. (U) Kyulev was shot dead at about 9:15 a.m. while in his
car en route to downtown Sofia. Early reports claim the
assailant, who was hidden in the nearby bushes, fired at
least ten bullets. Kyulev's driver, who was also shot
several times, was rushed to the emergency hospital.


3. (SBU) Kyulev, 48, graduated from the Police Academy and
started his career at the Ministry of Interior. In 1988, he
used his security-service connections and access to capital
to set up one of Bulgaria's first private consultancy
companies, which offered administrative and legal services
in the real estate market. A year later he parlayed these
contacts into the establishment of Tourist Bank, later
renamed Touristsport Bank and then Commercial and Savings
Bank. In 1994 Kyulev left the bank, which subsequently went
bankrupt, and set up Roseximbank jointly with the
"controversial Russian businessman" Michael Chorny.
Roseximbank received a sweetheart deal that allowed it to
handle all payments of the Bulgarian Tax Directorate and the
Customs Agency, as well as the operations of the biggest tax-
payers in the country. In 2002, Kyulev bought the state-
owned DZI, Bulgaria's biggest insurance company, and changed
Roseximbank's name to DZI Bank, thus forming the country's
largest financial group. DZI currently controls more than
350 companies in various industries. In the process, Kyulev
managed to change his image in the eyes of most Bulgarians
from that of an inside trader and suspected money-launderer
to that of a legitimate businessman.


4. (SBU) Kyulev was a founder of Vazrajdane Business Club
along with Multigroup boss Iliya Pavlov (shot dead in 2003)
and Vasil "The Skull" Bozhkov. In an effort to distance
himself from the Club's notorious members, Kyulev left the
organization in 2002. He recently hired a U.S. lobbyist to
help him further clean up his image. He also set up a
foundation to combat human trafficking which he was
suspected of using to launder money as well as to gain
credibility and legitimacy.


5. (SBU) Reportedly one of Bulgaria's richest businessmen,
with an estimated wealth of around $500 million, Kyulev is
also known for his political connections. He was among the
major sponsors of Simeon Saxe-Coburg Gotha's party for the
2001 elections, which restored the ex-king to power as Prime
Minister. According to unconfirmed reports, in 2005 Kyulev
directed his financial assistance towards the Socialist
Party, which won the biggest number of seats in parliament
in the June general vote. Kyulev was also economic advisor
to President Georgi Purvanov and is said to have funded his
November 2001 presidential campaign. Purvanov cancelled his
scheduled trip to the northeastern Bulgaria and returned to
Sofia following the news of Kyulev's death.


6. (SBU) COMMENT: The latest high-profile attack follows
closely a number of other assassinations in recent months,
including the October 10 killing of a high-ranking Customs
official Shinka Manova. At least 23 people have been killed
in organized crime related assaults since the beginning of
the year. However, unlike the other businessmen and
organized crime figures who have fallen victim to
gangland-style shootings, Kyulev's reputation associated him
primarily with white-collar crime. Kyulev's assassination
is a significant event on par with Iliya Pavlov's killing in
March 2003. The timing of the killing further underscores
Bulgaria's inaction against organized crime, and is being
viewed by many today as a national embarrassment. END
COMMENT

BEYRLE