Identifier
Created
Classification
Origin
05SOFIA1882
2005-11-02 15:44:00
CONFIDENTIAL
Embassy Sofia
Cable title:  

BULGARIA'S CRACKDOWN ON ORGANIZED CRIME: IS IT

Tags:  PREL PINR EINV ECON KCOR KCRM BU 
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C O N F I D E N T I A L SECTION 01 OF 03 SOFIA 001882 

SIPDIS

E.O. 12958: DECL: 11/02/2015
TAGS: PREL PINR EINV ECON KCOR KCRM BU
SUBJECT: BULGARIA'S CRACKDOWN ON ORGANIZED CRIME: IS IT
REAL OR IS IT MEMOREX?

REF: A. A) SOFIA 1847

B. B) SOFIA 1207

C. C) SOFIA 1860

Classified By: AMBASSADOR JOHN BEYRLE, FOR REASON 1.4 (C).


C O N F I D E N T I A L SECTION 01 OF 03 SOFIA 001882

SIPDIS

E.O. 12958: DECL: 11/02/2015
TAGS: PREL PINR EINV ECON KCOR KCRM BU
SUBJECT: BULGARIA'S CRACKDOWN ON ORGANIZED CRIME: IS IT
REAL OR IS IT MEMOREX?

REF: A. A) SOFIA 1847

B. B) SOFIA 1207

C. C) SOFIA 1860

Classified By: AMBASSADOR JOHN BEYRLE, FOR REASON 1.4 (C).



1. (C) Summary: In the wake of the high-profile killing of
banker Emil Kyulev, Bulgarian authorities have begun a
crackdown on organized crime, including the arrest of two
notorious crime figures. It is not yet clear whether this is
a genuine effort to deal with the problem of organized crime
or simply an effort to "round up the usual suspects" and
create the perception that Bulgaria is doing something at a
time when the pressure and attention on the issue is intense,
especially in connection with pre-accession scrutiny from the
EU. The Interior Minister has requested U.S. assistance in
its investigation of the Kyulev murder and other organized
crime cases. This cooperation should provide us with an
opportunity, over the next few weeks, to better judge the
political will of the new government to crack down on
organized crime. In order to be successful, the government
will have to overcome systemic corruption among police,
prosecutors, judges, and individual members of the governing
coalition. End Summary

Government Initiates "Crackdown" Against Organized Crime
-------------- --------------


2. (C) The GOB appears to be taking some initial steps
towards reining in organized crime following the high-profile
shooting of banker Emil Kyulev (ref A). The Prosecutor's
Office on October 31 announced that it would press charges
against two well-known organized crime figures, Krassimir and
Nikolay Marinov, for planning three future assassinations and
participating in organized crime. The two brothers, who are
nicknamed Big and Little Margin, were arrested on Friday
evening as part of a nation-wide police operation targeting
suspected crime figures following the Kyulev murder. The
brothers are two of the only remaining figures of the former
organized crime group SIC, which later became Intergroup (ref
B). Most of SIC's other members have been killed.



3. (C) According to the police, the Marinov brothers were
planning the killing of three individuals: former
external-intelligence chief and founder of the BSP "Generals'
Movement" Lyubomir Gotsev, suspected crime boss Ivan Todorov
(a.k.a., the Doctor),who once was an ally of the Marinovs
but now is alleged to be working for the rival criminal group
TIM, and businessman Nikola Damyanov, who is reported to have
close ties to American millionaire Marc Rich. The Marinov
brothers do not appear to be involved in the Kyulev killing.
Apart from the Marinov brothers, recent inspections and
searches by police reportedly led to the arrest of 144
individuals. It's not clear, however, whether these efforts
are designed to round up the usual suspects and show that
Bulgaria is taking some action against organized crime or
whether the police are actually doing the legwork to build
cases that can later be prosecuted. Many of the 144 people
arrested are believed to be insignificant figures who will
likely be released shortly due to the lack of evidence
against them. Other speculation in the press and among some
officials is that the Marinov brothers are simply rivals of
criminal groups who currently enjoy the protection of some in
power, and therefore are easy targets for the police.

Kyulev Killing Attracts High-Level Attention for Now
-------------- --------------


4. (C) The government's response to the Kyulev killing has
been uncharacteristically energetic, which is likely a
testament to Kyulev's influence and stature among Bulgaria's
political elite as well as the inopportune timing of his
killing immediately after the release of the EU's critical
report on Bulgaria's accession prospects. Shortly after the
shooting, the Interior and Justice Ministers and chiefs of
the security services were summoned to appear before a
special session of parliament to provide information on the
case. Prime Minister Stanishev will appear before parliament
to answer questions on November 4. President Purvanov also
convened a meeting of the cabinet-level Crime Control
Coordination Council to determine Bulgaria's response to the
Kyulev murder. In addition to the President, the Ministers
of Interior, Justice and Finance and the Prosecutor General
attended the Council meeting. Discussion at both meetings
was reportedly strident at times, with talk about Bulgaria's
statehood and EU aspirations being purposely subverted and
calls for extraordinary measures to combat crime.


5. (U) Deputy Interior Minister Kamen Penkov proposed using
the army to help crackdown on organized crime, but later
retracted the idea following objections from defense
officials. Many officials, including President Purvanov,
Penkov and former Defense Minister Nikolay Svinarov,
initially suggested that political motives were behind
Kyulev's assassination. Namely efforts by some to derail
Bulgaria's EU accession but such emotional speculation has
cooled in the week since the killing. President Purvanov
after the session made a strong push for state institutions
in Bulgaria to demonstrate their will and capacity to fight
organized crime in the "interest of its citizens and
businesses." He also suggested setting up an independent
counter-corruption service and establishing a special
prosecutor unit for fighting corruption, who would report
directly to the Prosecutor General.

Theories Behind Kyulev's Murder
--------------


6. (C) The police and the MOI are reportedly investigating
four possible theories behind Kyulev's death, three of which
relate to his business ties. One theory purports that Kyulev
owed the former head of VAI Holdings (formerly VIS) Georgi
Iliev money and refused to pay this debt after Iliev was
killed last August. Another theory claims that Kyulev's
plans to develop a number of businesses on the Black Sea (in
the tourism and real estate sectors) clashed with members of
TIM, who view that area as their own territory. A third
theory posits that Kyulev's murder was the result of an
outstanding debt to his former business partner Michael
Chorny and other Russian partners in the now defunct
Roseximbank. With the investigation still in its early
phase, though, these theories amount to little more than
speculation at this point.

Requests for US Assistance
--------------


7. (C) Foreign Minister Kalfin immediately after the Kyulev
killing asked for U.S. assistance in the investigation (ref
C),and Interior Minister Petkov sent the letter in para 10
below to the Ambassador on October 28. Our Legatt has met
daily since the killing with MOI Chief Secretary Iliev to
coordinate this effort. Per the MOI request, the FBI has
provided the Bulgarians with all of Kyulev's financial and
travel records available in the US. The FBI also is helping
to enhance a surveillance photograph of a subject who the MOI
believes may be connected to the Kyulev murder.
Additionally, the FBI has extended an offer to send a special
team to Bulgaria to exploit any financial documents the
Bulgarians acquire in the Kyulev investigation. This effort
would be in coordination with the British, who are also
working with the MOI to exploit documents and conduct a
ballistics analysis related to the case.


8. (C) Our Legatt also is offering to assist the MOI in two
other ongoing organized crime cases against the Marinov
brothers and Ivan Todorov. Ivan Todorov (a.k.a., the Doctor)
is a former member of the "Amigos" crime syndicate who is
thought to be one of the largest drug traffickers in the
Balkans and actively involved in cigarette smuggling and tax
evasion. Todorov also is involved in money laundering and
other financial crimes. The MOI has agreed to a request to
not mention our assistance publicly.

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


9. (C) Whether by design or ineptitude, the police appear to
have botched the initial phase of the Kyulev investigation.
Photographs widely circulated on the Internet, for example,
show a large group of police officers trampling the crime
scene without any apparent overall direction. As one of our
Bulgarian contacts said ruefully, "This is not CSI." It is
still too early to tell whether the GOB is truly serious
about finally cracking down on organized crime, although the
combination of Kyulev's prominence and EU scrutiny certainly
create the right conditions for it. One of PM Stanishev's
top advisors made a convincing argument in support of his
boss' commitment to follow the trail wherever it leads,
saying candidly that the government needs outside assistance
because "we don't know who to trust" in the ranks of the
deeply-corrupted police. However, it is almost inevitable
that a thorough investigation of organized crime in Bulgaria
would reveal financial links to politicians from all of the
major parties. We will be watching closely to see whether
the government, an uneasy coalition of three disparate
parties glued together by the imperative of EU accession, has
the nerve to follow through in a major showdown with
Bulgarian organized crime. If it continues down the path of
seeking USG assistance, the GOB will have to face the choice
either to act on whatever evidence we provide or to drag its
feet. In either case, their true intentions will soon become
apparent. END COMMENT.


10. (U) Text of the letter from Interior Minister Petkov to
the Ambassador follows:

Your Excellency:

It is a pleasure for me to address you and to once again
express the great satisfaction of the constructive and
beneficial cooperation which the Ministry of Interior
maintains with the U.S. law enforcement bodies.

Bulgaria highly appreciates the material and moral assistance
of the U.S. in the entire process of Bulgaria's accession to
the Euro-Atlantic structures, notably the introduction of
best practices and standards in the work of the Bulgarian
police.

Undoubtedly a proactive, trustworthy partnership between our
police and special services has no alternative at a time when
serious challenges posed by trans-border organized crime face
us. I would like to assure you that the Ministry of Interior
is firmly resolved to continue its consistent and purposeful
work for the successful counteraction of organized crime by
employing the necessary will and all available resources.

In that regard and in the context of our excellent
partnership, I would be most grateful if the U.S., through
the Federal Bureau of Investigation, in the course of the
measures undertaken to more effectively fight organized crime
and its trans-border forms considers the possibility to
provide technical assistance for computer analysis to MOI
bodies as well as special equipment for joint investigative
operations.

Respectfully,
Rumen Petkov
October 27, 2005

BEYRLE