RESULTS OF BLUE LANTERN LEVEL 3 PRE-LICENSE CHECK

UNCLAS TEL AVIV 001328 SIPDIS PM/DTCC - BLUE LANTERN COORDNINATOR (BALLARD) STATE NEA/IPA (PECCIA) E.O. 12958: N/A TAGS: ETTC KOMC GT IS SUBJECT: RESULTS OF BLUE LANTERN LEVEL 3 PRE-LICENSE CHECK ON APPLICATION 050107086 REF: STATE 63028 ¶1. (SBU) Per reftel instructions, emboffs visited International Security & Defense Systems (ISDS) at its offices in Moshav Nir Tzvi in the Tel Aviv area and met with office manager Maurice Cusnir. Cusnir provided emboffs the following information in response to their questions: ¶2. (SBU) Bona Fides: ISDS is a security consulting company that was established in 1982. It is solely owned by the company's President, Leo Gleser, and has 10-15 direct employees. ISDS functions as a general contractor and provides its clients with security training, systems integration, risk assessment, and equipment, through a range of sub-contractors in the security field. ISDS does not produce anything but promotes products of other companies. ISDS owns offices in the U.S., Peru, Argentina, Greece, India, and China; it has sub-contracted offices in Brazil, Ecuador, and Spain; and it has provided services in Angola, Nigeria, and South Africa. ¶3. (SBU) Role of ISDS: Cusnir explained that ISDS initially intended to broker the proposed transaction between ALS Technologies, Inc (ALS) and the International Commission Against Impunity in Guatemala (CICIG) but no longer has any role in the transaction because ISDS did not obtain a U.S. brokering license in time. Cusnir said that CICIG's security chief, Joseph Leal Millet, approached ISDS for firearms because he was familiar with the company from time Millet spent working as a UN official in Israel. ISDS then approached ASL because the requested weapons were not available on the Israeli market. ISDS encouraged ALS and CICIG to contract directly to complete the deal because ISDS does not have a U.S. brokering license. Cusnir explained that although ISDS would receive no payment for the transaction as a result, the company hopes the deal will build good will with CICIG as a potential future customer. Cusnir expects that ASL will transfer the firearms in question directly to CICIG via air. ¶4. (SBU) Company's On-Site Security and Understanding of USML Restrictions: Cusnir said he was aware of U.S. licensing requirements and restrictions on USML items, including the requirement for brokers to register with the State Department, and ISDS is applying for a U.S. brokering license. ISDS does not handle or store any sensitive equipment because it does not take possession of any equipment that it obtains for its clients as an intermediary. ¶5. (SBU) Documentation: Cusnir showed emboffs the following documents: a purchase order numbered 0108 and signed by Joseph Leal Millet on 10 March 2008, an end-use statement signed by Joseph Leal Millet on 11 April 2008, and an end-user certificate signed by Joseph A. Leal on 10 March ¶2008. Cusnir also showed emboffs a sample of list of other ISDS clients. All documents collected by emboffs have been sent by FAX to PM/DDTC at 202-261-8198. ¶6. (SBU) Based on the above information, emboffs believe that ISDS is a legitimate company that functions as an intermediary to provide clients with a range of security services and equipment. ********************************************* ******************** Visit Embassy Tel Aviv's Classified Website: http://www.state.sgov.gov/p/nea/telaviv You can also access this site through the State Department's Classified SIPRNET website. ********************************************* ******************** JONES