Identifier
Created
Classification
Origin
09MANAGUA42
2009-01-14 15:54:00
CONFIDENTIAL
Embassy Managua
Cable title:  

NICARAGUA: BLUE LANTERN CASE NUMBER: 050137870: PRE-LICENSE CHECK

Tags:  ETTC KOMC NU 
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VZCZCXYZ0017
RR RUEHWEB

DE RUEHMU #0042/01 0141554
ZNY CCCCC ZZH
R 141554Z JAN 09
FM AMEMBASSY MANAGUA
TO RUEHC/SECSTATE WASHDC 3625
INFO RUETIAA/DIRNSA FT GEORGE G MEADE MD
RUEAIIA/CIA WASHINGTON DC
RHMCSUU/FBI WASHINGTON DC
RUEKJCS/SECDEF WASHINGTON DC
RUCPDOC/USDOC WASHDC 0858
C O N F I D E N T I A L MANAGUA 000042 

SIPDIS

PM/DTCC - BLUE LANTERN COORDINATOR
PLEASE PASS TO WHA/CEN -AKRAAIMOORE

E.O. 12958: DECL: 01/14/2019
TAGS: ETTC KOMC NU
SUBJECT: NICARAGUA: BLUE LANTERN CASE NUMBER: 050137870: PRE-LICENSE CHECK

REF: 08 SECSTATE 133426

Classified By: Ambassador Robert J. Callahan for reasons 1.4 (b) and (d).

C O N F I D E N T I A L MANAGUA 000042

SIPDIS

PM/DTCC - BLUE LANTERN COORDINATOR
PLEASE PASS TO WHA/CEN -AKRAAIMOORE

E.O. 12958: DECL: 01/14/2019
TAGS: ETTC KOMC NU
SUBJECT: NICARAGUA: BLUE LANTERN CASE NUMBER: 050137870: PRE-LICENSE CHECK

REF: 08 SECSTATE 133426

Classified By: Ambassador Robert J. Callahan for reasons 1.4 (b) and (d).


1. (SBU) Per reftel, Econoff conducted a pre-license check on
December 30, 2008, at the El Cazador gun store located on
Avenida Iglesia El Calvario, Managua, Nicaragua. Econoff met
with Carlos Melendez, general manager and one of the
co-owners in the business. Melendez has been a co-owner
since December 2007 with a 15% share in the company.


2. (SBU) El Cazador has been in business since 1994 and
offers a selection of handguns, longarms, ammunition, and
shooting/hunting accessories. According to Melendez, 87% of
the sales are to private citizens and the company also sells
to security firms. The store sells weapons and accessories
purchased from U.S. companies such as Remington Arms, Luo
Police, Valor Corporation, Phoenix, and Smith and Wesson.
The company also sells weapons and accessories purchased from
Trust Halcon (Spain),Armscore (Philippines),Zeta (Czech
Republic),Akkar (Turkey),and used arms from El Salvador.


3. (SBU) In 2008, El Cazador sold a limited number of weapons
and ammunition to the Government of Nicaragua (GON),
specifically to its security guard staff, for the following
institutions: the National Police; ENACAL, the national water
utility responsible for distribution, supply, and sanitation;
Petronic, the parastatal company responsible for the
development, distribution, and sale of Nicaragua's
hydrocarbon resources; and CARUNA, a "private company" that
provides microcredit to rural communities at low interest
rates. CARUNA is closely affiliated with the Sandinista
party and is the primary conduit of funding from the
Government of Venezuela through the Bolivarian Alternative of
the Americas Initiative (ALBA). El Cazador would like to do
business with the Nicaraguan Army.


4. (SBU) Melendez showed Econoff copies of all invoices
related to purchases from U.S. and foreign companies
beginning in 2006 until 2008. He provided Econoff a copy of
a purchase order to receive 80 revolvers from Smith and
Wesson which were shipped from the U.S. on December 15, 2008.
Melendez also provided a copy of the purchase order for
Smith and Wesson products related to this pre-license check.
El Cazador maintains electronic files of all purchases and
submits a list every month to the police with the names of
the customers and a description of their purchases. Melendez
was familiar with the Arms Export Control Act and
International Traffic in Arms Regulations.


5. (SBU) The store has a controlled access entry with
rotating security guards stationed in the front entrance 24
hours a day, 7 days per week. The security guard inspects
all customers before they enter the store. Once the security
finishes the inspection, he gives a signal to the customer
service representative to electronically open the door. El
Cazador has two gun storage areas with alarms and video
surveillance. The doors to the storage facilities have dead
bolt locks as reinforcement.


6. (SBU) A request for bio data on all of the owners of El
Cazador resulted in the following information: Ricardo Jose
Melendez Quintanilla (DOB 10-JUN-52); Mauricio Valenzuela
Sotomayor (DOB 20-AUG-1955); Ernesto Gallo Schaffer (DOB
03-JUN-1987); Carlos Augusto Melendez Rodriguez
(04-DEC-1978); Glenda Auxiliadora Ramirez Noguera
(09-SEP-1957); and Carlos Zamora Herrera (25-JUL-1955). All
of the owners are Nicaraguan nationals. Econoff asked about
Zamora's role in El Cazador. Melendez said that Zamora, a
founding member of El Cazador along with Gallo, was
previously general manager but now is only a co-owner with an
18% share in the company.


7. (C) Local name checks conducted by Post's Regional
Security Office, Defense Attache Office, Regional Affairs
Office, and the Drug Enforcement Agency revealed only that
Ramirez was a Minister of Family Affairs from January 2007
until February 2007. She is considered a Sandinista
hardliner but she was fired in February 2007 because she did
not receive permission from First Lady Rosario Murillo to
give an interview to a local newspaper. Local name checks
did not provide derogatory information on Zamora. Post could
not verify ties between Zamora and Roberto Calderon Meza, the
former Sandinista General.



8. (SBU) Based on the information available, Post has no
evidence of illicit arms deals involving El Cazador.


9. (SBU) Comment: We note that this company, one of its owners, and some of its clients are closely associated with the Sandinista regime. The U.S. and other donors have recently cut or suspended aid in response to electoral fraud committed in the November 9 municipal elections and increasing anti-democratic measures taken by the governments. End Comment.

CALLAHAN