BENYATOV ARREST UPDATE

UNCLAS BUCHAREST 000042

SIPDIS

SENSITIVE
SIPDIS

STATE FOR EUR/NCE: AJENSEN

E.O. 12958: N/A
TAGS: CASC PGOV PREL RO
SUBJECT: BENYATOV ARREST UPDATE

REF: A. A) BUCHAREST 0013

B. B) 06 BUCHAREST 1870

SENSITIVE BUT UNCLASSIFIED. PLEASE HANDLE ACCORDINGLY


1. (SBU) Summary: U.S. citizen Vadim Don BENYATOV, a Managing
Director of Credit Suisse First Boston (CSFB) based in
London, remains in preventive detention in Bucharest. The
Romanian Office of the Prosecutor General is continuing its
investigation of his alleged involvement in acts of "economic
espionage" connected to the privatization of several Romanian
state-owned enterprises. The current detention order for
Benyatov expires on January 15 but may be renewed. Consul
General, American Citizens Services (ACS) Chief and ACS
locally employed staff (LES) have attended all hearings to
date, at Benyatov,s request. Local media are reporting
extensively on the case. Meanwhile, Credit Suisse officials
have been relatively quiet in the past several weeks;
although they contacted the local Swiss embassy, they have
not sought meetings with us here. End Summary.


2. (SBU - Privacy Act Protected): As reported in Ref A, on
January 3, two Vice Consuls from post's consular section
visited Benyatov. Asked specifically if he had any concerns
or complaints to raise, he stated only that he was asking
prison authorities to give him the same thyroid replacement
medication he was taking before his detention, not the
version administered by the detention center doctor. He
asked that the Embassy continue to do all it could on his
behalf, suggesting lower ranking staff appear at routine
hearings and the CG appear at hearings only at key junctures.
He said his legal team might soon contact the Embassy with a
list of Romanian laws and procedures they believe the
Romanian Government has violated in this case. On January 9
and 10, ACS Officer attended court hearings regarding
Benyatov's defense team's request to overturn the existing
detention order and to ask the presiding judge to recuse
herself. The judge in the case denied the defense team's
request for her recusal and set a new date of January 12 for
a ruling on the motion to release Benyatov. (Note: Benyatov
has signed a Privacy Act Waiver allowing discussion of his
circumstances only with family, friends, his employer and
Members of Congress. End Note.)


3. (SBU) Meanwhile, the local Romanian media continue to
follow the case. Newspaper reports contain revelations
about, and purported transcripts of, conversations that
Benyatov and other co-defendants in the case reportedly had
with Romanian government officials, including the former
Minister of Economy. Benyatov, however, plays a less
prominent role in many of the media reports, with
co-defendant Bulgarian citizen Stamen Stanchev being the main
focus.


4. (SBU) On December 6, the DCM and Consul General had a
45-minute phone call with CSFB Chief Executive Officer for
Europe, Africa and the Middle East, based in London. They
told him that the Romanian lead prosecutor on the case had
offered, through the Legal Attache, to meet with CSFB
representatives to discuss the case. To post,s knowledge,
this offer remains active but CSFB has not yet chosen to act
on it.


5. (SBU) Embassy officers have had no direct communication
with Credit Suisse since December 21, when the Romanian
Supreme Court ruled to keep Benyatov in detention. On
January 3, the Swiss Deputy Chief of Mission in Bucharest
inquired about the status of the case, observing at the same
time a drop-off in communication from Credit Suisse in recent
weeks. An aide of European Commission Vice President
Frattini called the DCM on January 9 to request Embassy's
review of the case. While avoiding discussing information
about Benyatov associated with the Privacy Act, Charge gave
her a readout on the current public information about the
case and stressed that Embassy is following the case closely.



6. (SBU) On December 6, the DCM and Consul General had a
45-minute phone call with CSFB Chief Executive Officer for
Europe, Africa and the Middle East, based in London. They
told him that the Romanian lead prosecutor on the case had
offered, through the Legal Attache, to meet with CSFB
representatives to discuss the case. To post,s knowledge,
this offer remains active but CSFB has not yet chosen to act
on it.


7. (SBU) Comment: While this case proceeds through a lengthy
investigation phase, post continues to provide active support
to Benyatov, as a U.S. citizen, closely monitoring his
treatment while in Romanian custody to make sure that it is
fully in accordance with Romanian law and practice. We also
continue to follow the handling of the case in the broader
political and economic context. While we welcome as a matter
of policy Romanian government efforts to combat corruption,
we also want to ensure that this case is handled in a fair,
transparent and impartial basis.
TAPLIN