BLUE LANTERN BROKER INQUIRY CASE NO. K-2022

UNCLAS PRAGUE 000713 SENSITIVE SIPDIS STATE FOR PM/DTCC - BLUE LANTERN COORDINATOR E.O. 12958: N/A TAGS: ETTC EZ KOMC SUBJECT: BLUE LANTERN BROKER INQUIRY CASE NO. K-2022 REF: STATE 092963 ¶1. (SBU) In response to reftel, Emboff visited the offices of BANZAI spol. s.r.o. and met with its owners, Lukas Tracha (general sales manager) and Vaclav Siroky (president),to establish the bona fides of the company. As indicated on its commercial registration certificate, BANZAI is licensed by the Czech Ministry of Industry and Trade to broker defense articles and services, both within the Czech Republic and internationally. Trachta says the company was established in 1991 and has eight employees. Trachta indicated that BANZAI owns one and leases two weapons/munitions storage facilities, all of which he explained are monitored 24/7 and, according to documentation he presented, certified by the Czech Ministry of Interior for secure storage. (Emboffs will visit the facilities in the near future and provide any necessary follow-up reporting if there are apparent deficiencies.) Post is not aware of any derogatory information indicating that the company has been involved in criminal activities or dealings with proscribed entities. ¶2. (SBU) Trachta stated that BANZAI's primary commercial activities are the import and export of weapons and accessories for the civilian market; the export of refurbished excess defense articles (EDA) from the stocks of the Czech and Hungarian armed forces; and the import of new weapons systems for the Czech ministries of defense and interior. Company documents indicate that brands represented by BANZAI include Bushmaster Firearms International, U.S. Ordnance, Smith and Wesson, Mossber/Maverick, Trijicon, Leupold, Insight Technologies, Nightforce, Pachmayr, Hogue, SIG/Sauer, Sellier and Bellot, and Ceska zbrojovka. Trachta related that the company's EDA transactions have occurred mainly within the Baltic region for end use by national military forces, and that BANZAI has been contracted by General Dynamics Ordnance and Tactical Systems to export materiel to Afghanistan. ¶3. (SBU) The company's management appears to be fully aware of and committed to compliance with U.S. and international laws governing the acquisition, transfer, and import/export of military materiel. Thompson-Jones