Identifier
Created
Classification
Origin
09ASUNCION706
2009-10-28 13:56:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Asuncion
Cable title:  

FRAUD SUMMARY - ASUNCION

Tags:  CVIS KFRD CPAS CMGT ASEC PA 
pdf how-to read a cable
VZCZCXYZ0000
RR RUEHWEB

DE RUEHAC #0706/01 3011356
ZNR UUUUU ZZH
R 281356Z OCT 09
FM AMEMBASSY ASUNCION
TO RUEHC/SECSTATE WASHDC 0129
RUEHPNH/NVC PORTSMOUTH 0001
UNCLAS ASUNCION 000706 

SENSITIVE
SIPDIS
DEPT FOR CA/FPP
DEPT PASS KCC
DHS FOR CIS/FDNS

E.O. 12958: N/A
TAGS: CVIS KFRD CPAS CMGT ASEC PA
SUBJECT: FRAUD SUMMARY - ASUNCION

REF: STATE 057623

UNCLAS ASUNCION 000706

SENSITIVE
SIPDIS
DEPT FOR CA/FPP
DEPT PASS KCC
DHS FOR CIS/FDNS

E.O. 12958: N/A
TAGS: CVIS KFRD CPAS CMGT ASEC PA
SUBJECT: FRAUD SUMMARY - ASUNCION

REF: STATE 057623


1. This cable is in response to an action request in reftel.



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COUNTRY CONDITIONS

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2. (SBU) After the 35-year dictatorship of General Alfredo
Stroessner and six decades of Colorado Party rule, Paraguayans
elected former Roman Catholic bishop Fernando Lugo as president in
April 2008. Lugo was inaugurated on August 15, 2008. One year on,
the Lugo government continues to grapple with the challenges of
day-to-day governing. An inexperienced team, exceedingly high
expectations for change, endemic corruption, weak institutions, and
a divided Congress make the job more difficult. The current
administration needs to generate jobs and promote economic
development while downsizing a bloated state and tackling social
and security issues of key concern.




3. (U) This landlocked country of 6.6 million people remains
hopeful for change, but endemic corruption, weak government
institutions, difficult economic conditions and an inconsistent
regulatory climate provide incentive and opportunity for consular
fraud in Paraguay. Unemployment and underemployment are problems
and the primary motivators for immigration to Argentina, Brazil and
Spain.




4. (U) The global financial crisis has impacted Paraguay. As an
agriculture commodity exporter, the impact of lower demand is felt
across all productive sectors. Agriculture, which represents about

25 percent of GDP, is expected to decline about 30 percent in 2009.
More than 250,000 families depend on subsistence farming activities
and maintain marginal ties to the larger productive sector of the
economy. Poverty reduction remains a challenge for the current
administration. Poverty and lack of opportunity in rural areas
fuel migration.




5. (U) Paraguay has had great difficulty regulating commerce in its
second largest city, Ciudad del Este, located in the
Paraguay-Argentina-Brazil tri-border region. This region is noted
for trafficking in arms, drugs, contraband, and persons. This
region is also home to large foreign communities, especially
Brazilian, Lebanese, Korean, and Taiwanese, many of whom retain

their foreign nationality.




6. (U) Visa Waiver Program travel is a concern. Many Paraguayans
receive foreign citizenship from Italy, Germany and Spain through
their parents or grandparents, yet their economic and social
situation in Paraguay cannot be compared to the situation of
applicants who are presently living in the European Union.




7. (U) Civil documentation is lightly controlled in Paraguay. For
example, birth and marriage certificates continue to be hand
written in the interior of the country. Most documentation cannot
be verified. Paraguayans tend to travel to Florida ("sweet 15"
birthday travel),New York (tourism and visits to relatives),
Colorado (home of Au Pair International) and Kansas (Kansas City
and Asuncion are sister cities).




8. (SBU) Post categorizes Paraguay as "low-fraud." The adjusted
refusal rate of non-immigrant visa applicants from March 1, 2009 to
September 30, 2009 was 12 percent; compared to 14.07 percent during
the same period last year. During the reporting period, post
experienced a 15.72 percent decline in non-immigrant visa
applications from 5,141 applicants (Mar-Sep 2008) to 4,333 (Mar-Sep

2009). These numbers document fewer non-immigrant visa applicants
because of current economic conditions. The ease of travel to
neighboring countries, the lack of direct flights to the U.S.,
increased MRV fees and rigorous visa application procedures
dissuade unqualified visa applicants. Although the number of
non-immigrant visa applicants has declined, the economic crisis has
caused others to seek illegal employment in the U.S. Information
from DHS on I-275 forms shows previously issued middle class
applicants engaging in unauthorized employment in the U.S. to earn
extra income.



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NON-IMMIGRANT VISA FRAUD

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9. (U) Non-immigrant visa (NIV) fraud is generally found in a
manageable percentage of applications. It usually consists of fake
or inflated employment letters and bank statements. These fake
documents are easily detected at intake in cases that are obvious
candidates for refusal under section 214(b) of the Immigration and

Nationality Act. When the Consular Officer suspects that the
applicant is using forged legal documents or bank statements, the
Consular Officer (who also acts as Fraud Prevention Manager)
coordinates with the NIV pre-screener (who also acts as a Fraud
Investigator) and the Regional Security Office (RSO) to question
the applicant about the provenance of the documents and to involve
the local police.




10. (SBU) The level of official corruption in Paraguay is very
high. It is not difficult to obtain bona-fide, but fraudulently
issued official government documents by paying a small fee. Some
immigration officials are also unscrupulous. A back-dated entry
stamp indicating re-entry into Paraguay months or even years prior
to the actual re-entry date can be easily obtained at the airport
for amounts ranging from USD 20 to USD 100 depending on the
negotiating expertise and contacts of the individual. In some
cases, Paraguayans have obtained this service by sending their
passports via courier from the U.S. to Paraguay to have them
stamped without ever leaving the U.S. The risk of visa fraud is
particularly high in some areas of the country, notably the towns
of Caraguaty (approximately 60 miles from Asuncion) and Isla Pucu
(approximately 52 miles from Asuncion),which are known for the
number of inhabitants who have immigrated to the U.S., primarily to
the New York and New Jersey areas.




11. (U) Post conducts statistically sound validation studies.
Typically, Asuncion validation studies yield confirmed overstay
rates of one to three percent. The non-immigrant visa category
with the most fraud is B1/B2.




12. (U) Post interviews a large number of teenagers (14 to 16 years
of age) between February and June. These "Disney season
applicants" travel to Miami and Orlando to celebrate their "sweet
15" birthdays. The majority of Disney season applicants travel in
large tour groups with well known travel agencies. Few Disney
season applicants travel with their parents or close relatives. No
Disney season applicants were refused this year or last year, as
this is a low fraud category. However, after Disney season, the
refusal rate increased significantly as officers noted more
unqualified applicants.



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IMMIGRANT VISA FRAUD

--------------




14. (U) Post's cases of immigrant visa (IV) fraud have historically
centered on employment visas. These cases, which generally involve


non-existent companies or positions for which the applicant did not
have the required skills, have been most common among Korean
applicants. Post has also detected and investigated fraudulent
marriages entered into solely for the purpose of obtaining
immigration benefits, and there have been several cases of
falsified New Jersey birth and marriage certificates in
marriage-based petitions.




15. (U) During the reporting period (March 1, 2009 to September 30,
2009),one IV applicant was refused 5A for having entered into a
marriage to obtain immigration benefits, two IV applicants were
refused 9B1 for accruing unlawful presence, and one IV applicant
was refused 6C1 and 9B2. All other IV applicants during the
reporting period that were refused were refused 221g for missing
documentation. Last year during the same time (March 1, 2008 to
September 30, 2008),one IV applicant was refused 9B2, one IV
applicant was refused 6C1, 6E and 9B2, and another IV applicant was
refused 6C1. Other IV applicants were refused 221g for missing
documentation.



--------------

DIVERSITY VISA FRAUD

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16. (U) Post historically has not experienced this type of fraud,
most likely due to the loQber of Paraguayan diversity visa (DV)
applicants. However, Post's only DV applicant during the reporting
period stood out. The subject had been previously deported from
the U.S., but subsequently obtained a B1/B2 visa via
misrepresentation. He attempted a change of status from B1/B2 to
L1A, but was refused 6C1 and his petition was returned to the
Department of Homeland Security for revocation. He subsequently
entered the U.S. without a visa through Ciudad Juarez, residing in
Florida for two years. At his DV interview on September 11, 2009,
the subject again made false statements and misrepresented himself
to a Consular Officer. He was refused 9B2 and 6C1, and his
petition was returned to the National Visa Center.



--------------

ACS AND U.S. PASSPORT FRAUD

--------------




17. (U) The little ACS fraud that is known or suspected by Post
occurs when U.S. citizens register orphans as their own and
subsequently apply for Consular Reports of Birth Abroad (CRBA) and
passports, stating that the children are their biological
offspring. This did not occur during the reporting period.



--------------

ADOPTION FRAUD

--------------




18. (U) Adoption related fraud is not apparent at Post. Paraguay
does not permit adoption by foreigners who are not resident in the
country. Currently, inter-country adoption is technically open,
but rarely granted. The Paraguayan Central Authority gives
priority to Paraguayans or foreigners resident in Paraguay before
opening the adoption process up to foreigners living outside of
Paraguay. Given a waiting list of qualified resident adoptive
parents, foreign adoptions are rare.



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USE OF DNA TESTING

--------------




19. (U) Post occasionally uses DNA testing in IV and ACS cases.
Use of DNA testing in NIV cases is rarely (if ever) done.



-------------- --------------

ASYLYM AND OTHER DHS BENEFIT FRAUD

-------------- --------------




20. (U) Post generally does not encounter asylum or other DHS
benefit fraud. We did not encounter this during the reporting
period.





-------------- --------------
--------------

ALIEN SMUGGLING, TRAFFICKING, ORGANIZED CRIME, TERRORIST TRAVEL

-------------- --------------
--------------




21. (U) Paraguay is a source country for trafficked and smuggled
aliens, but they are not always destined for the United States.
Trafficking and smuggling visible to the Consular Section would
most likely involve minor children of illegally present or
undocumented aliens currently living in the United States or Spain.
The Vice-Consul and FPU LES noticed that grandparents or aunts and
uncles would claim they were taking children to Disney World in
Orlando, Florida or New York for their birthdays, for the holidays
or to reward them for being good students. In most cases, the
adult family members would deny that they had any relatives living
in the United States. In all cases during the reporting period the
adult family members did not have legal guardianship of the
children. After careful questioning and a search in the CCD and
ADIS, it was usually discovered that the minor's parent(s) had
traveled to the U.S. on a tourist visa and over-stayed. The cases
did not appear to be connected, but the fraud pattern was the same.



-------------- --------------

DS CRIMINAL FRAUD INVESTIGATIONS

-------------- --------------




22. (U) The majority of suspect cases can be investigated during
the course of the visa interview. The FPU LES regularly checks the
CCD and ADIS and calls his local bank, travel agency and
immigration contacts when documents look altered or the applicant's
body language and answers are out of place. Since the interviewing
Consular Officer is also the Fraud Prevention Manager, the majority
of suspect cases are handled immediately. Only when the Consular
Officer believes it necessary to contact the RSO and other agencies
at Post are cases refused 221g under the Immigration and
Nationality Act. When necessary, the RSO (or other agencies) will
interview a suspect applicant. There have been times when the RSO
has contacted the National Police, resulting in the arrest of an
applicant for altering or falsifying legal documents. The Consular
Section and RSO work closely on complex fraud cases since Asuncion
is a small post with two Consular Officers and two DS agents. An
A/RSO-I position has been approved for Post. This new position
will allow Post to pursue and develop more complex investigations
that current personnel limitations permit.

-------------- --------------
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HOST COUNTRY PASSPORT, IDENTITY DOCUMENTS AND CIVIL REGISTRY

-------------- --------------
--------------




23. (U) The Government of Paraguay recently announced the
modernization and redesign of the Paraguayan National Passport.
Packed with security features and produced in a new, modern,
up-to-date and secure production facility, it sets a new standard
among Mercosur countries for anti-counterfeiting measures.
Development of the new passport was funded by the Millennium
Challenge Corporation's Threshold Country Program. Visible and
invisible features are built into the passport as well as the
passport security laminate. Once the passport is produced, it
cannot be altered without severe damage to the passport, which
prevents fraud.




24. (U) Some of the publicly-disclosed features of the new
Paraguayan National Passport include: prismatic printing, invisible
page numbers, raised printing with texture, very small text, hidden
images when the passport is tilted, holographic images, invisible
designs and watermarks. Many Paraguayans continue to have the
former low-tech, but ICAO-compliant passport. The former passport
is particularly vulnerable to photo-substitution.




25. (SBU) The passport application process is challenged by endemic
corruption and the lack of integrity. No automated record checks
are utilized to vet passport applications. Furthermore, passports
can be renewed long after their expiration without the bearer
having to provide a new photograph, which also makes the Paraguayan
passport vulnerable to use by impostors. The Paraguayan passport
is coveted by other South American nationalities that require visas
for travel to the European Union. Recent cases during the
reporting period documented passport fraud involving Colombian
nationals using valid, but illegally obtained Paraguayan passports.




26. (U) The Government of Paraguay has also redesigned and
modernized the Paraguayan National ID (Cedula de Identidad Civil
Paraguaya). The new Paraguayan National ID is produced in the same
secure production facility as the new Paraguayan National Passport.
Visible and invisible security features are incorporated into the
new Paraguayan National ID such as prismatic printing,
micro-printing, machine readable technology, holographic images and
fine lines.




27. (SBU) Other civil documentation is very lightly controlled.
Post requires most civil documents used to support consular
applications (birth certificates, marriage certificates and death
certificates) to be legalized at a civil registry office or at the
Ministry of External Relations, depending on the document. Post,
as a rule, does not consider civil documentation by itself to be
absolute proof of the facts claimed by the document.



-------------- --------------
--------------

COOPERATION WITH HOST GOVERNMENT AUTHORITIES

-------------- --------------
--------------




28. (SBU) Cooperation with Government of Paraguay authorities on
consular fraud issues is generally good. However, prosecutors are
sometimes hamstrung when the apparent victim of a fraud scheme -
usually someone who has paid money to a visa "fixer" who has no
connection to the Embassy and no intention of ever getting a visa
for the victim - declines to go forward with a police report. That
said, police cooperation has been very good, helping the Embassy

create an atmosphere that deters attempts at visa fraud.



--------------

AREAS OF PARTICULAR CONCERN

--------------




29. (SBU) Easy access to fraudulent documents is the primary area
of concern, particularly when they are used to paper over possible
illegal activity in Ciudad del Este and the Tri-border region.
Internal controls in both the manufacture and issuance processes of
birth certificates are virtually non-existent. Records are kept
manually, and it is common practice in Paraguay to register a birth
up to twenty years after the actual date of birth. Compounding
this lack of internal controls is the unfortunate fact that a large
percentage of the Civil Registry workforce is unpaid and therefore
vulnerable to bribes.



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STAFFING AND TRAINING

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30. (U) Post is at full staffing with two Consular Officers and
four LES. CA and DS have approved a new A/RSO-Investigator
position. Ernest J. Abisellan is the Consul and Accountable
Consular Officer. He completed PC441 Passport Data Security
Awareness and is currently enrolled in PC400 Consular Management
Controls. Olga Elena Bashbush is the Vice-Consul, Fraud Prevention
Manager and back-up Accountable Consular Officer. She completed
PC440 Processing Security Advisory Opinions, PC441 Passport Data
Security Awareness, PC400 Consular Management Controls and attended
the Consular Fraud Prevention Conference in Miami, Florida. Post's
Fraud Investigator and an NIV Assistant attended a Department of
Justice, Federal Bureau of Investigation and Internal Revenue
Service course on money laundering and financing terrorism from
September 22-25 in AsuncionQ


AYALDE
AYALDE