FRANCE BLUE LANTERN BROKER INQUIRY OF REGISTERED BROKER

UNCLAS PARIS 000176 SIPDIS SENSITIVE STATE FOR PM/DTCC - BLUE LANTERN COORDINATOR RACHEAL-THERESE S. JOUBERT-LIN E.O. 12958: N/A TAGS: ETTC FR SUBJECT: FRANCE BLUE LANTERN BROKER INQUIRY OF REGISTERED BROKER AVRAM ALBERTO BUENO - CASE NO. K-2277 REF: STATE 099505 SENSITIVE BUT UNCLASSIFIED - NOT FOR INTERNET DISTRIBUTION ¶1. (SBU) Econoff contacted Avram Alberto Bueno, CEO and General Manager of of the French company Business Developmental Security Industries (BDSI) regarding BDSI's bona fides and registered broker activities under Case NO. K-2277 (ref). Bueno said the company consisted of himself and his wife Sophie Verbauwhede, Operations Manager. Bueno and his wife established BDSI in 2005 and have been operating in Brezolles, France since 2006 after moving their operations from Paris to Brezolles due to cost concerns. BDSI is a small two person outfit located in a 15th century farmhouse in rural France. Bueno and his wife decided to incorporate BDSI, after having been involved in the aerospace and air defense industry for decades in the United States. Bueno owned and operated three small companies in California during the 1980s and 90s and eventually sold them to L3. Bueno said they want to keep their business small for overhead and tax purposes and do not want to grow beyond their current structure. ¶2. (SBU) Bueno described BDSI as a representative and facilitator for small and large U.S. and France-based companies involved in the aerospace and air defense industry. Bueno said that BDSI is a conduit for introducing French and U.S. companies to each other. BDSI fosters business relationships between French and U.S. companies where eventual business transactions with USML items are conducted, and takes commissions from the resulting sales. ¶3. (SBU) BDSI primarily brokers controlled product sales consisting of accelerometers, receivers, antennas, and transmitters. BDSI's U.S. suppliers of USML items usually include Herley Industries, Haigh-Farr, Honeywell and L3 and French customers include Airbus, EADS, MBDA, Eurocopter, Thales, Dassault, and the Delegation Generale pour L'Armement (DGA) of the French Ministry of Defense (MOD). According to Bueno, BDSI will sometimes broker transactions with other companies in the European Union or NATO, like Spain and Germany, but the majority of their transactions are for French companies in France. ¶4. (SBU) Bueno said he understands the restrictions on USML items and the prohibition against unauthorized re-transfer and re-export of USML items from his business days in California. Bueno indicated that he was aware that the physical infrastructure of his location is not authorized to handle or store USML items and that he can't physically store items on the premises. Bueno said BDSI is simply a broker, does not store products on premises, and the company has no tangible influence or interest on the development of the potential end product, the installation of the USML item purchased, modification of products, or the physical transfer of the USML items. All transactions, according to Bueno, originate with a French/U.S. company and get shipped directly to the buyer and end-user. ¶5. (SBU) Post Blue Lantern Action Officer concludes that BDSI is an active business operating at the location indicated under its authorization address (per ref information). CEO Avram Albert Bueno says he understands the laws and regulations regarding handling and selling USML items. Embassy uncovered no evidence or derogatory information that would suggest that BDSI has dealt or currently deals with disreputable businesses regarding USML import/export items. Bueno stated he avoids those companies or business transactions that might engage in such activity. RIVKIN