KYRGYZSTAN FRAUD SUMMARY SEPTEMBER - MARCH 2009

UNCLAS SECTION 01 OF 04 BISHKEK 000470

SIPDIS

DEPT FOR CA/FPP AND CA/VO;
DEPT PASS TO KCC
POSTS FOR FRAUD PREVENTION MANAGERS;
FRANKFURT FOR KBROUGHAM

E.O. 12958: N/A
TAGS: KFRD CVIS CPAS CMGT ASEC KG

SUBJECT: KYRGYZSTAN FRAUD SUMMARY SEPTEMBER - MARCH 2009

REF: A) Bishkek 1023
B) State 74840


1. Country Conditions: Kyrgyzstan, a former Soviet republic of
five million people, is a country in transition. Corruption
pervades almost all aspects of life and business in the Kyrgyz
Republic. Kyrgyzstan was ranked as one of the most corrupt
countries in the world in a recent Forbes magazine article. Poverty
and high unemployment leads many to pursue work abroad,
overwhelmingly in the Russian Federation and Kazakhstan. Recent
press reports estimate approximately 500,000 Kyrgyz citizens are
living abroad and remitting salaries home. Inflation this past year
is estimated to be 25 - 30%.

Conditions in Kyrgyzstan vary between the north, where the majority
population are Kyrgyz and the terrain is mountainous, and the south
which contains part of the Ferghana valley and a large ethnic Uzbek
population. Kyrgyzstan's ethnic minorities also include Russians
who remained after the collapse of the Soviet Union, ethnic Germans,
Koreans, Uighers and other peoples of Central Asia. It has not been
unusual in the past for members of these groups to claim asylum in
the U.S. based on either religious beliefs or for political reasons.
While there is occasionally some tension amongst various groups,
there have been no serious recent conflicts or organized repression
of ethnic groups in Kyrgyzstan.

Agriculture plays an important role in the Kyrgyz economy.
Unemployment, according to different measures, is estimated to be 12
- 18%. As mentioned above, a significant portion of population work
abroad and remit approximately $710 million USD back to Kyrgyzstan -
a figure that is approximately 60% of the national budget. Banks
are generally not trusted or utilized by the average citizen, which
results in the majority of people maintaining their savings in hard
currency. As a result of the recent global economic crisis and
increases in food and fuel prices, conditions have become more
difficult for the average Kyrgyz citizen over the last year. Travel
to and from the Kyrgyz Republic is difficult and expensive. The
majority of Kyrgyz will vacation within Kyrgyzstan rather than
abroad. It is very rare to encounter an NIV applicant who has
traveled to destinations other than Kazakhstan or Russia.


2. NIV Fraud:

NIV fraud is usually detected during the interview process and is
refused under 214 (b) of the INA. NIV fraud primarily consists of
fraudulent supporting documents, such as bad letters of invitation,
false bank statements, or false job letters. Post does not give
credence to such documents during routine interviews. However, this
is a problem when processing student visas. The reporting period
saw a steady stream of applicants wishing to study at community
colleges or English as a Second Language (ESL) programs that are
low-cost and located where friends or relatives live in the US. New
York remains the destination of choice for both tourists and
students who apply for NIVs. The majority of applicants will only
open a bank account locally within days of the visa interview and
deposit the minimum amount of funds required by the I-20 form. The
education system in Kyrgyzstan is notoriously corrupt and grades
cannot be relied upon as an accurate indicator. Most students will
take the semester or year off of their studies to go to the US. In
order to receive credit for their studies abroad, they are supposed
to study in a related field to their major. Post has seen that this
is not the case with most student visa applicants.

During this past reporting period, Post encountered several cases of
individuals posing as journalists in order to receive I
non-immigrant visas. Post's first fraudulent "journalist" applied
with credentials supplied by Kyrgyz National Radio and Television
Company. Her purpose of travel was to cover the matches of a Kyrgyz
boxer based in Las Vegas. Subsequent to issuance, post read of her
immediate marriage to said boxer in a local newspaper article which
described her as the long-term girlfriend of the athlete. Further
investigation revealed that she had never worked as a journalist and
had been dismissed from her position as a clerk. Her credentials
had been provided by a member of the Kyrgyz government.

The second group of journalists post encountered consisted of three
applicants, applying with a diplomatic note from the Kyrgyz Ministry
of Foreign Affairs (MFA),stating that they intended to spend one
year in the U.S. producing documentary films. Local staff
immediately noted that the "editor," a former wrestler, had been
involved in a scandal a few years ago involving the misappropriation
of merino sheep donated by the Australian government to improve the
quality of Kyrgyz livestock. None of the applicants had any

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journalism experience, nor could they produce examples of their
work. The salaries they were allegedly going to be paid while in
the U.S. were barely above the poverty guidelines and represented a
major investment for a Kyrgyz company - yet no one had ever heard of
this company. Initial checks failed to discover any real existing
office space or place of employment - only an empty warehouse.
During the interview, the applicants claimed to have offices in
Japan and South Korea. Furthermore, none of the applicants could
coherently articulate the exact nature of their activities and how
they would accomplish their projects once in the U.S. FPU Tokyo and
FPU Seoul confirmed that this television company never existed in
any of those locations. This instance of document fraud confirmed
recent rumors of increased corruption in the Ministry of Foreign
Affairs. The British Embassy in Astana reported that they received
identical applications from the same company. Other foreign
embassies have reported that diplomatic passports are being issued
in new identities and that places in official delegations are being
offered for sale. While post has not encountered any fraud in
diplomatic or official visa applications, it is carefully reviewing
all such applications it now receives.

Post is in the process of preparing for 2009 Summer Work and Travel
(SWT) applications. In FY 2008, post processed 1,035 SWT
applications. Post was pleasantly surprised to find very few cases
of fraudulent students. However a validation study revealed that
25% of issued students failed to return (Note: in FY 2007, 35% of
student failed to return. End Note.) Of that 25%, approximately 50%
of students changed status to F-1 visas - thus evading thorough
review of their future intentions. The majority of these students
were attending Kyrgyzstan's most expensive and prestigious
universities. In most cases, students changed status and enrolled
in less expensive community colleges.


3. IV Fraud: Post has seen no significant trends in IV fraud. The
majority of marriage cases involve Kyrgyz citizens marrying US
citizen who are local contractors or servicemen on active duty.
Post has seen an increase in U.S. petitioners incorrectly completing
the I-130 Petition for an Alien Relative. It is not unusual for the
petitioner to "forget" to list previous marriages so as to avoid
having to secure copies of divorce records for petitions. IV's for
Kyrgyz citizens are processed in Almaty, Kazakhstan.


4. DV Fraud: Post does not process diversity visas.


5. ACS and Passport Fraud: Passport and CRBA issuance is relatively
low in Bishkek. The large number of contractors working at the
nearby coalition airbase has increased the number of marriage-based
petitions filed as well as CRBA applications.

During the reporting period, post encountered one case of a CRBA
that may have been issued erroneously. In November 2008, post
received a poison pen from a local citizen claiming to be the father
of a child documented as a U.S. citizen in 2005. Review of the
application indicated that the child had not been born in wedlock
and the local citizen's claim could potentially be plausible. The
transmitting U.S. parent later married the mother and allegedly
fathered another child who has not been documented. However, he has
since divorced the child's mother, reportedly over the fact that the
oldest child is not his. The mother re-married another U.S. citizen
and is attempting to apply for a new passport for the oldest child.
Post has suspended the case pending the results of DNA testing with
the reported U.S. citizen father.

Post has seen an increase in potential wire fraud against U.S.
citizens. As with other former Soviet countries, U.S. citizens are
meeting alleged single women via the internet. As the on-line
relationship develops, these women begin requesting money. In the
cases seen this past reporting period, U.S. citizens are instructed
to wire money either directly to the "women, "to "the visa center"
or their new "e-gold wire money system" which promises visa issuance
and plane ticket purchase in one transaction. Post received
increasing numbers of e-mails from U.S. citizens requesting
confirmation of the "visa center" and the visa application
requirements. In some of the e-mails, a complete address and
telephone number was provided. Post's investigation showed that the
addresses are non-existent and the telephone numbers are false. The
scammer usually asks for $2,000 - $4,000 US from the potential
victim. Post worked with RSO on these investigations and informed
inquirers of the dangers of money transfer to unknown parties.


6. Adoption Fraud: Changes to the Kyrgyz Family Code in 2006 led
directly to a dramatic increase in the number of Kyrgyz children
adopted by US citizens. Kyrgyzstan ranked #18 on CI's list of top

BISHKEK 00000470 003.3 OF 004


20 adoption source countries for FY 2007. For the past three years,
Post has reported its concerns regarding the lack of internal
controls in the Kyrgyz adoption process. In FY 2007 and FY 2009,
post encountered several adoptions that contradicted Kyrgyz law and
procedures. Post saw several cases in which children as young as
two weeks old were approved for international adoption - depriving
local citizens of their right under law for first choice. In
October 2008, the Kyrgyz government ceased processing adoptions with
no warning or explanation. The Minister of Education and the Deputy
Minister of Education were dismissed in January 2009. Meetings with
the Kyrgyz Vice-Prime Minister on Social Issues revealed that there
are twenty-four children that the Kyrgyz government cannot trace.
The government believes that they have been adopted abroad but
cannot be sure. In March 2008, the Prosecutor General's Office
announced that at least 100 Kyrgyz children have been adopted abroad
illegally. (Note: Embassy Bishkek processed 72 I-604 Investigations
in FY 2008. There are no reports of any significant numbers of
adoptions by other nationalities. End Note) According to the
reports, documents from the Ministry of Education, such as the
official permission or official approval, had been forged as cases
were turned over to the local courts. In one case, a Bishkek judge
denied an adoption request. The child was then transferred to
another city where the adoption was immediately approved by another
judge. To date, there are approximately 65 U.S. families waiting to
complete their adoptions.




7. Use of DNA testing: During the reporting period, post had one
case that required DNA testing. Please see the section on ACS and
Passport Fraud for further details. In general, post rarely
performs or has need to perform DNA testing.


8. Asylum and other DHS benefit fraud: Post does not normally
process any asylum cases but is occasionally called upon to verify
locally issued documents supporting asylum and immigration
applications at other posts.


9. Alien Smuggling, Trafficking, Organized Crime, and Terrorist
Travel: Kyrgyzstan is a country of origin and transit for human
trafficking. As per Bishkek's 2009 Trafficking in Person's (TIP)
report, trafficking occurs for both forced labor and sexual
exploitation. The majority of trafficking victims travel to
Kazakhstan, Russia, Turkey or the UAE. Recent press reports
indicate that there is a small, growing number of Central Asians who
make their way to New York and other destinations in the U.S.
However the extent of this problem is not currently known.

Due to the widespread sale of the pre-2005 Kyrgyz passport, the US
government ceased to recognize it as a valid travel document. This
old version of the Kyrgyz passport was discovered to be a key tool
for traffickers in transporting people out of Kyrgyzstan to other
destinations.

The Embassy places restrictions on USG personnel for travel to
certain parts of Kyrgyzstan, such as Batken Oblast, to security and
terrorism concerns. In 2006, suspected militants attacked a border
post in the Batken region. The Islamic Movement of Uzbekistan and
other terrorist organizations remain active in Central Asia. Press
reports during the reporting period report "invasions" by Tajiks
into Kyrgyz valleys. Land borders, especially in the South, are
easily crossed by nationals of neighboring countries. Citizen of
CIS countries do not need a passport to enter Kyrgyzstan - only an
ID card.


10. DS Criminal Investigations: Post does not have an RSO-I but
works well the RSO on related cases. Post has not referred any
cases to RSO for investigation during this reporting period.


11. Host Country Passport, Identity Documents, and Civil Registry:
Practically any document issued in the country can be fraudulently
obtained, for a price. The procedures for issuance of civil
documents are similar to those in the Russian Federation and other
former Soviet Republics. A birth or death is recorded on a
certificate called a spravka issues by a hospital. This certificate
is usually a flimsy piece of newsprint that is completed by hand.
It has no security features other than a stamp. The bearer then
files this certificate with their regional Vital Records Office
known locally as ZAGS (Zapisi Aktov Grazhdonskovo Sostoyanoye).
Birth certificates are only issued for Kyrgyz citizens. The only
record of birth for foreigners would be the certificate issued by
the hospital where the birth occurred - a document that is
vulnerable to fraud.

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Previous negligence in the Kyrgyz passport agency led to their
availability on the black market in several countries. This led to
the de-recognition of the 1994 Kyrgyz passport, which has recently
been replaced by the 2004 version. While a significantly more
secure document than the previous passport, it is still vulnerable
to fraud based on the documents presented to obtain a passport.
During the reporting period, post received reports of passports and
birth certificates being sold by various government officials
including the Kyrgyz MFA. The previous head of the Kyrgyz Consular
Department was dismissed in December 2008 for reportedly selling
official passports. Recent reports indicate that others are
continuing this practice.


12. Cooperation with Kyrgyz authorities: Cooperation with the
host-government on visa and immigration matters is good. Post
continues to build its relationship with the airport Border Guards
as mentioned in Ref A.


13. Areas of particular concern: Post's major areas of concern are
adoption fraud and the continuation of the Summer Work and Travel
Program. As noted above, adoptions have completely halted leaving
65 families with no recourse. Many of these families have been
waiting over one year to complete their adoptions. As stated above,
the Prosecutor General has opened several investigations into child
trafficking and illegal adoptions.


14. Staffing and training: Currently, the Fraud Prevention Unit is
staffed by the Consular Section Chief, who is the sole consular
officer at post, and a Fraud Investigator. The consular officer
received CA's Anti-fraud Training course at FSI. The new Fraud
Investigator has completed CA's on-line fraud training, is in the
process of completing the consular correspondence courses, and has
attended Anti-Fraud Training at FSI.

GFOELLER