FRAUD SUMMARY - STOCKHOLM

UNCLAS SECTION 01 OF 04 STOCKHOLM 000247

STATE FOR CA/FPP
STATE FOR KCC WILLIAMSBURG
SIPDIS

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

REF: STOCKHOLM 0224



1. Summary: As Sweden prepares to take the June through December
2009 rotational European Union presidency, refugees remain a top
priority for the country. Embassy Stockholm continues to deal with
Sweden's large population of third country nationals, many with
insufficient identification documents and weak ties to Sweden. The
ESTA program has also brought more problematic Swedish travelers
into the consular section. FPU has taken steps to deal with the
daily in-processing demands and is working on developing fraud
intelligence products useful for the region. End Summary.

Country Conditions
--------------


2. Sweden has long been considered a low-fraud post, albeit with
some disturbing fraud patterns that may warrant a reclassification.
Sweden is a Visa Waiver Program country, so most business and
tourist travelers utilize their Swedish passport to travel to the
United States. When Swedish passport holders do apply for B1/B2
visas, they are usually looking for extended visits or have been
required to do so by the new Electronic System for Travel Advisory
(ESTA). Sweden is also home to a diverse population of Third
Country Nationals, including one of the largest concentrations of
Iraqis and Iranians in Europe. Because of Sweden's relatively
liberal refugee and asylum policies, many these refugees receive
Swedish citizenship relatively quickly.


3. FPU notes that the emerging economic crisis has hit Sweden's
manufacturing industries hard. Factory orders have dropped by 95
percent. Thousands of Swedes have been laid off. While the Swedish
state's generous unemployment benefits guard against abuse of the
Visa Waiver Program, some Swedes will likely be tempted to earn
extra money on the U.S. labor black market. More importantly, newer
immigrants to Sweden will have an increasingly difficult time
entering the Swedish labor market and may seek opportunities in the
U.S.


4. In the last year, the Swedish Migration Board has become less
willing to grant permanent residence to many asylum seekers,
particularly Iraqis. In January, the Swedish Migration Board
determined that conflict-conditions exist in only five of Iraq's 18
provinces sufficient to merit an asylum claim. Sweden has also
hastened the review and appeal process for all asylum seekers,
promising higher numbers of deportations in 2009. At the same time,
post has seen sustained efforts at all levels of government to
integrate new immigrants into the Swedish society and economy. Few
other countries can compete with the social support offered by
Sweden to new immigrants, which is why Sweden will dedicate a
significant portion of its EU Presidency to establishing EU-wide
asylum/refugee policies.

NIV Fraud
--------------


5. Most of the FPU's time is focused on NIV applicants. In FY08,
Stockholm adjudicated over 20,509 NIV cases with a refusal rate of
18.50 percent (including 221g refusals). The FPU provides three
basic services: pre-checking foreign passports and select applicant
categories; consular interview assistance; and referral
investigations. During the reporting period, the FPU pre-checked
approximately 900 third country NIV applicants. 100 cases were
referred to the FPU during or after the interview process, resulting
in 17 confirmed cases of NIV fraud and ten outstanding requests for
additional documentation from suspect applicants.


6. Impact of ESTA. With the implementation of the ESTA for Visa
Waiver Country travelers, Post has seen an increase in Swedish
citizens with legal issues applying for B1/B2 visas. Many of the
ESTA-related cases were triggered because of the applicant's
criminal issues, which often leads to FPU assistance. A significant
number of ESTA referrals are related to Swedish passports reported
lost to police, but subsequently recovered by the owners.


7. The Internet is a required tool: One H-1B applicant intended to
work for a company with no functioning webpage. Nothing has been
heard from the applicant since he was requested to provide
additional documentation of the company. Several au pairs that
enjoyed their experience attempted to return to the same families
while continuing their status as F-1 students. However, their
social networking sites and blogs documented their intentions. When
Post's Information Management Office needed to block access to
Facebook to counter a virus, FPU received one of the only
exceptions. Indeed, the Internet is helping to spread the word for
Post. In the chat forum of community site 'Resdagboken' (travel
diary),an unsuccessful applicant writes a "WARNING TO ILLEGAL AU
PAIRS IN THE U.S." in which she describes being subjected to a visa

STOCKHOLM 00000247 002 OF 004


ineligibility for her previous illegal work. She also writes
compellingly of the dangers of an illegal life in the United
States., noting one German au pair who was almost sent to jail for
being involved in a car accident. The statement (found on
http://www.resdagboken.se; see
/Default.aspx?DocumentID=229&TopicID=19286) received many comments
from visitors to the website forum.


8. Iranians and Some Iranian Passports: During the reporting
period, Stockholm FPU conducted a validation study of visas issued
to Iranian citizens in Stockholm (Reftel). As a summary, Iranian
B1/B2 applicants in Stockholm travel in patterns similar to those
applicants at Embassy Ankara, especially when considering the
relatively economically advantaged applicant pool in Sweden. Post's
attention to Iranians revealed an anomaly in certain Iranian
passports. Post reviewed an Iranian passport in which the check
digits in the Machine Readable Zone (MRZ) did not match up. Post
consulted with contacts at the Swedish National Laboratory of
Forensic Science and concluded that the passport was genuine.
Iranian passport authorities switched the format for date definition
in the MRZ from YYMMDD to DDMMYY, but still defined the check digit
as calculated on the proper format (YYMMDD),leading to an aberrant
check digit result.


9. Continued cooperation with DHS: FPU hosted a delegation of DHS
officials reviewing Sweden for continued participation in the Visa
Waiver Program. As the visit encompassed a wide range of policy and
operational offices, FPU found it very productive to be part of the
planning process. On a regular basis, FPU liaises with DHS
Copenhagen. For example, in February, an applicant came in and
applied for a business/tourist visa to "buy cars" in the U.S. An
internet search revealed that the applicant was running an extensive
business named "Crazy Swedes" out of Virginia for the purchase and
refurbishing of cars. In collaborating with DHS Copenhagen, the
applicant's partner, already in the U.S. on a B1/B2 visa, is now
being pursued by ICE.

IV Fraud
--------------


10. FPU's role with IV applications has steadily increased as
Stockholm processes more and more TCN IV and DV applicants.
Stockholm approved 250 IVs in FY08. The IV unit has seen a rise in
fraudulent IV and K visa cases among a growing number of
applications from petitioners and beneficiaries coming from refugee
populations from Iran, Iraq, Somalia, Eritrea, and Ethiopia. The
main areas of concern for the IV are relationship concerns and/or a
history of asylum fraud in Sweden and other identity concerns. Nine
IV cases were formally referred to the FPU during the reporting
period, two of which remain unresolved. The FPU also inspects
various identification documents, mostly from Iraqi or North African
applicants, on average 1-3 cases per week.

11. In both NIV and IV cases, Post continues to find a heightened
number of questionably Iraqi passports and other supporting
documents. With the IV cases, FPU engages in the time-intensive
process of examining third country identification documents. Post
works closely with Embassies Amman and Baghdad in addressing these
issues.

12. FPU has worked on several IV cases where relationship fraud
concerns are present, but difficult to prove. Taking additional
investigatory steps is very helpful. In one CR1 IV case, FPU needed
a lengthy telephone interview to clear up contradictory information.
The applicant aroused suspicion by getting married in a Swedish
city hall on the first meeting, despite claiming to deeply religious
connection. Lexis Nexis showed that the petitioner had recently
declared a bankruptcy, but also purchased a relatively expensive
automobile with specialty licenses plates right after getting
married. An in-depth telephone interview filled important missing
details, including the key fact that she had completed an expensive
divorce process that lead to the bankruptcy and that the purchase of
the "new" automobile was part of the divorce settlement.

13. FPU closely investigated two suspicious employment-based IVs.
The first, for an optician, proved to be bona fide after FPU used an
occupational questionnaire developed by FPU. However, the second
application was for a car mechanic in Silicon Valley and the
applicant had spent the last 10 years working as a computer
specialist. FPU quickly discovered that the full time position
claimed as work experience was, in fact, a few volunteer hours a
week in a repair shop. The petition was returned to USCIS for
revocation.

DV Fraud
--------------

14. Stockholm approved 59 DV applications in FY08; only a handful
were Swedes. FPU has assisted in identify verification for many of
these TCN applicants. Because of the late interviewing scheduling

STOCKHOLM 00000247 003 OF 004


date, many DV applicants lack some of the basic identification
documents or the time to make the necessary replacements from their
homeland.

ACS and U.S. Passport Fraud
--------------


15. In the fall of 2008, Stockholm began using a four part fraud
indicator checklist in processing ACS cases. The indicators include
a record of lost or stolen passports, damaged or altered identity
documents, unusual interpersonal behavior, and/or questionable
signatures. FPU reviews approximately 4-7 ACS cases per week based
on these indicators and conducts an average of one ACS fraud
interview per week.

16. No Delays with the Federal Aviation Administration. One ACS
case involved an applicant showing his time of residence in the
United States through his student records as a flight student. The
FAA gladly assisted FPU in confirming the applicant's test scores.


17. Using the right calendar: In one CRBA application, a
naturalized Iranian born Amcit father sported an incorrect date of
birth. When he submitted his original birth certificate, his
translator only translated the year, forgetting about the
differences between the traditional Persian and Standard Western
calendars.


Adoption Fraud
--------------


18. Post has had no adoption cases in this reporting period.


Use of DNA Testing
--------------


19. Post has utilized DNA testing for DV and some ACS cases, with
no cases in the reporting period. Overall, our experience has been
positive. When we have processed sufficient numbers in FY09, FPU
will conduct a review of our process.

Asylum and other DHS benefit Fraud
--------------


20. Although post has no fraud to report, Post's increasing number
of Iraqi translator visa applications has demanded an increasing
amount of attention from FPU. FPU works closely with Embassy
Baghdad to confirm identification documents and often returns
security badges retained by former State Department and Department
of Defense workers. Even with Embassy Baghdad's support, Post often
has a difficult time verifying prior employment in Iraq or other
claims.

Alien Smuggling, Trafficking, Organized Crime, and Terrorist Travel
--------------


21. Sweden is often regarded as a transit center for Eastern
European trafficking rings to other European countries, but not to
North America. However, Swedish authorities are highly focused on
combating sex trafficking. Sweden is a destination country for
refugees. To date, FPU has detected no systematic effort to use
Sweden as a transit to the United States. Although limited in
travel funds, FPU has made an effort to visit immigrant-intensive
communities to better understand those populations. In November,
FPM visited the Migration Board office in Helsingborg, which hosts a
large number of Sweden's newest Muslim immigrants and quietly toured
the immigrant-centered suburb of Rosengard, near Malmo.


22. There are false document production rings in Sweden that are
targeting Swedish authorities and many Iraqis also utilize false
documents in order to get to Sweden. Some of these falsified
documents pass through the Embassy, but more importantly, the
Swedish identification documents are more often used in applying for
United States visas. A typical Iraqi refugee will pay money to be
smuggled to Copenhagen, often via Turkey using the authentic
passport of an Iraqi-Swedish or Iraqi-UK citizen. The subject
returns the false documents to the smuggler travelling with him or
her and then enters Sweden without identification papers on a
train.


23. Czech Passport Ring in Malmo: Post has encountered two reports
of fraudulent Czech passports that may have been procured in Malmo,
Sweden. In December 2008, FPU detected a page-substituted Czech
passport used by an Uzbek nonimmigrant visa applicant. The applicant
admitted having bought the passport from a Russian friend in
Stockholm and intimated a connection to Russian organized crime.

STOCKHOLM 00000247 004 OF 004


With the assistance of the RSO, the applicant was arrested by
Swedish police. When Consulate General Amsterdam reported on the
arrest of a U.S. citizen having attempted to travel on a forged
Czech passport in January, Stockholm made contact to attempt to help
Swedish and Dutch police to work together to compare the two
fraudulent passports. The American is well known to Post, as he
escaped from a Swedish jail several months ago.

DS Criminal Fraud Investigations
--------------


24. Post has no pending DS criminal investigations. Cooperation
with the RSO has been excellent.

Swedish Passport, Identity Documents, and Civil Registry
--------------


25. Sweden issues EU-compliant passports. FPU has previously
documented the Swedish government's relaxed attitude about identity
requirements for refugees. In the case of refugees who have
obtained Swedish citizenship, FPU never relies on the Swedish
passport as sufficient proof of identity. In the case of refugees
with permanent residency in Sweden, FPU notes that an "identity not
confirmed" is used by the Swedish authorities when original birth
documents are not presented, which are rarely subjected to serious
scrutiny otherwise. FPU also notes that Swedish migration
authorities have become more rigorous in their identification
requirement for asylum-seekers.

Cooperation with Host Government Authorities
--------------


26. Sweden's privacy rules restrict the sharing of most personal
information about Swedish citizens and residents by Swedish law
enforcement. Nevertheless, the Swedish authorities work very hard
within the constraints of the Swedish legal system to be of
assistance to FPU inquiries. FPU has good relationships with all of
the major migration and law enforcement authorities and continues to
develop contacts. In the reporting period, FPU has made especially
helpful contacts with Swedish document analysts.

Staffing and Training and Outreach
--------------


27. The FPU consists of one part-time Fraud Prevention Manager and
one full-time LES Fraud Investigator with significant non-FPU duties
in the NIV section. The current FPM, Dan Mangis, arrived at Post in
August 2008. He serves as the Deputy Consul and manages the IV
Unit. The FI, Marten Sandmark, also has significant
responsibilities in the NIV Unit. These responsibilities limit the
FPU's ability to do field work, which is a concern for Post. Post
has trained a backup Fraud Investigator, Maria Sederholm in order to
free additional time for fraud analysis projects, particularly
relating to regional issues and trends. Both the present FPM and Mr.
Sandmark have taken all of FSI's available fraud training courses.
When practical, FPU will nominate backup Fraud Investigator Ms.
Sederholm for fraud training.

28. Reaching out to other Posts: FPU hopes to attend a regional
fraud conference in the next few months and/or coordinate an onsite
consultation with a larger consular post. In the meanwhile, Mr.
Sandmark participated in an innovative "chat conference" with other
EUR LES fraud investigators in order to develop cost-efficient ways
to collaborate with other posts. Post is looking for opportunities
to work on regional validation studies, especially for populations
in the Nordic/Baltic region.


SILVERMAN