ADVISORY OPINION REQUEST

C O N F I D E N T I A L MANAGUA 001013 SIPDIS DEPARTMENT FOR CA/VO/L/A AND WHA/CEN E.O. 12958: DECL: 10/13/2019 TAGS: CVIS EFIN KCRM NU SUBJECT: ADVISORY OPINION REQUEST REF: MANAGUA 625 Classified By: Ambassador Robert J. Callahan for reasons 1.4 (b) and (d ). ¶1. (SBU) Post requests Department concurrence in a finding of INA Sec. 212(a)(2)(I) inadmissibility for Armando Jose Garcia Campos (26-OCT-1950, NIC),and requests approval to revoke subject's valid B1/B2 visa, on the basis that he is inadmissible to the United States for engaging in money laundering. ¶2. (C) As reported in Reftel, Garcia was terminated as President of one of Nicaragua's largest microfinance institutions (ACODEP--financed by numerous U.S. NGOs along with OPIC funds) in 2008 by its board of directors after an internal audit revealed that Garcia had embezzled thousands of dollars during the previous few years. The ACODEP board initially attempted to negotiate a graceful exit for Garcia, but when they discovered additional evidence of more serious embezzlement, negotiations broke down and Garcia was relieved of his position. ¶3. (C) In response, in February 2009, Garcia exploited his Nicaraguan political contacts to have himself "reinstated" as president of ACODEP on dubious legal grounds for a period of two months, during which he orchestrated the embezzlement of between $3 and $5 million dollars, essentially liquidating ACODEP's bank accounts and leading to large losses for its U.S. investors. One scheme Garcia favored was to "employ" outside contractors for ACODEP, subsequently pressuring them to cash checks at one of Nicaragua's largest banks, BANCENTRO, for exorbitant amounts of money, such as $250,000 for three weeks of work in "wages," which Garcia then partially pocketed. Post has obtained credible documentary evidence from ACODEP's current board--corroborated by U.S. investors--which directly indicts Garcia. ¶4. (C) Beyond the well-documented embezzlement schemes, Garcia has twice attempted to retake Managua's ACODEP headquarters using armed security personnel, on February 27 and most recently on September 4. During the September 4 incident, Garcia held over 50 ACODEP employees and customers hostage for over two hours. Garcia's son accompanied him with a handgun and physically threatened ACODEP employees. The September 4 incident was broadcast live on one of Nicaragua's major television news channels. The Nicaraguan National Police are currently investigating Garcia for robbery, property theft and possible kidnapping. ACODEP's U.S. investors regard Garcia as a dangerous, violent and unpredictable individual out for revenge. ¶5. (SBU) Based on the available evidence of Garcia's direct involvement in the embezzlement of $3-5 million, resulting in substantial losses to U.S. investors, including the USG-affiliated Overseas Private Investment Corporation (OPIC),post requests that the Department find Armando Jose Garcia Campos inadmissible to the United States under INA Sec. 212(a)(2)(I) and authorize the revocation of his valid B1/B2 visa under this statute. CALLAHAN