This record is a partial extract of the original cable. The full text of the original cable is not available.

072138Z May 03

S E C R E T SECTION 01 OF 06 TEGUCIGALPA 001069 
 
SIPDIS 
 
STATE FOR CA/VO/L/A AND WHA/CEN 
 
E.O. 12958: DECL: 05/07/2013 
TAGS: CVIS KFRD EFIN HO
SUBJECT: ADVISORY OPINION REQUEST 212(A)(2)(I) -- 
INDIVIDUALS INVOLVED IN BANHCRESER SCHEME IN HONDURAS 
 
 
Classified By: Acting Consul General Victoria Coffineau for reasons 1.5 
 (b) and (d) 
 
¶1. (U) This is an action request.  See paragraphs 6 and 17. 
 
-------------------------- 
SUMMARY AND ACTION REQUEST 
-------------------------- 
 
¶2. (SBU) In July 2001, the Attorney General of Honduras 
initiated an investigation of certain activities of the 
principal officers of Banco Hondureno de Creditos y Servicios 
S.A. (Banhcreser).  Previously, the National Banking and 
Insurance Commission intervened due to the insolvency of the 
bank, and determined that three (3) related businesses 
(Creditos y Servicios S.A., a.k.a. Creser Visa, Arrendadora 
Hondurena de Creditos, S.A., a.k.a. Ahcreser, and Ancres 
Ltd.) were created to convert public funds to personal use 
without authorization from the Honduran Central Bank. 
Pursuant to Honduran law (Article 72 of the Financial 
Institutions Law), this is a criminal act.  There are at 
least twenty-four (24) individuals that post has identified 
as possibly being involved in these schemes, and who possibly 
engaged in money laundering and other financial crimes by 
converting more than USD 5.9 million of Banhcreser funds to 
personal use.  Post requests permission to permanently revoke 
the visas of these individuals pursuant to 212(a)(2)(I).  END 
SUMMARY. 
 
--------------------- 
BANHCRESER BACKGROUND 
--------------------- 
 
¶3. (SBU) In July 2001, the Attorney General of Honduras 
initiated an investigation of certain activities of the 
principal officers of Banco Hondureno de Creditos y Servicios 
S.A. (Banhcreser).  Previously, the National Banking and 
Insurance Commission intervened due to the insolvency of the 
bank, and determined that three (3) related businesses 
(Creditos y Servicios S.A., a.k.a. Creser Visa, Arrendadora 
Hondurena de Creditos, S.A., a.k.a. Ahcreser, and Ancres 
Ltd.) were created to convert public funds to personal use 
without authorization from the Honduran Central Bank. 
Pursuant to Honduran law (Article 72 of the Financial 
Institutions Law), this is a criminal act. 
 
¶4. (SBU) Information at post obtained from several 
well-placed sources, in and outside the government of 
Honduras, indicates that the Banhcreser officials have 
engaged in money laundering as well as other fraudulent 
financial transactions and have entered the U.S. to engage in 
the same. 
 
¶5. (S) Reftel discussed a detailed report dated February 6, 
2002 provided to post by the Financial Crimes Unit of the 
Honduran Attorney General,s Office (Ministerio Publico). 
Additionally, the Chief of the Anticorruption Unit of the 
Attorney General,s Office (comparable to an Assistant 
Attorney General in the United States Attorney,s Office), 
Soraya Morales, has provided ConOffs with further information 
regarding the criminal charges pending against all of the 
individuals named in this cable.  One of the attorneys 
(comparable to a Deputy Attorney General in the United States 
Attorney,s Office) working on the cases for the Attorney 
General, Susy G. Coello, has also provided information.  Post 
emphasizes that the identity of these two (2) individuals 
should be kept strictly confidential, due to grave concerns 
for their safety. 
 
¶6. (C) The individuals named in this cable have been charged 
with crimes by the Honduran Attorney General.  While there 
are other people that post believes to be involved in these 
money laundering schemes, at this time we are only requesting 
that the individuals against whom the Honduran authorities 
have taken legal action be added to the list of money 
launderers and be entered into the Department,s Lookout 
system as 2-I. 
 
¶7. (C) The fact that the individuals involved have not yet 
been convicted of criminal offenses under Honduran law is not 
dispositive of these cases.  These are wealthy Honduran 
citizens with strong political connections.  Embassy sources 
(including those within the Honduran Attorney General,s 
Office) indicate a strong possibility of bribery or other 
improper behavior on the part of various defendants in 
connection with pending legal proceedings.  Institutional 
corruption is endemic in Honduras, and judicial corruption is 
common. 
 
-------------------- 
THE CRESER VISA SCAM 
-------------------- 
 
¶8. (SBU) Through an entity known as Creditos y Servicios S.A 
(Creser Visa) the eleven (11) board members absconded with 
approximately USD 1,217,647.  Members of the Board of 
Directors Afif Dieck, Antonio (Jack) Afif Kattan, Carlos 
Chahin Chahin, Rene Francisco Kattan Fernandez, Omar Abufele 
Salomon, Roberto Constantino Larach Chahin, Constantino 
Papadakys, Omar Isaac Monterroso Andonie, Luis Felipe 
Aguilar, Luis Felipe Mendieta y Leonel Sosa converted 
207,000,000 Lempiras (approximately USD 1,217,647). 
 
¶9. (C) On February 19, 2002, the Attorney General initiated 
criminal proceedings and sought "orders of capture" for 
Creser Visa directors Emin Abufele Salomon (President), Omar 
Abufele Salomon, Georgette Chahin Chahin, Santos Reynaldo 
Casco Gomez, Zacarias Papadakys, Constantino Papadakys, Afif 
Dieck, Daniel Shucry Kaffati Canahuati, Omar Isaac Monterroso 
Andonie, Miguel Felipe Canahuati Yacaman (Directors), Antonio 
Teodoro Sansur Dacarett (Secretary), and Luis Felipe Mendieta 
(General Manager), and Christianne Elizabeth Arias Fernandez, 
General Manager of Banhcreser.  Afif Dieck and Christianne 
Elizabeth Arias Fernandez appeared before the court 
voluntarily, but the court declined to issue orders of 
capture on the other board members.  The Attorney General 
opined that Judge Bolivar Castellanos abused his judicial 
authority in so denying the request for orders of capture. 
However, the judge did see fit to issue orders forbidding 
Afif Dieck, Antonio (Jack) Afif Kattan, Carlos Chahin Chahin, 
Rene Francisco Kattan Fernandez, Omar Abufele Salomon, 
Roberto Constantino Larach Chahin, Constantino Papadakys, 
Omar Isaac Monterroso Andonie, Luis Felipe Aguilar, Luis 
Felipe Mendieta, Leonel Sosa, Lorena Sanchez, Chritianne 
Elizabeth Arias Fernandez and Luis Menieta from leaving 
Honduras, and ordered that the Honduran Office of Migration 
be alerted not to allow these individuals to travel to the 
United States. 
 
----------------- 
THE AHCRESER SCAM 
----------------- 
 
¶10. (C) The Honduran Banking Commission determined that 
Ahcreser was an entity used to divert Banhcreser funds in the 
sum of 169,000,000 Lempiras (approximately USD 994,117). 
Both the Banking Commission and the Attorney General accused 
Nicolas Chahin Chahin, Antonio Teodoro Sansur Dacarett, 
Antonio (Jack) Afif Kattan Kattan, Daniel Shucry Kafati 
Canahuati, Omar Abufele Salomon and Constantino Papadakys of 
criminal activity related to the transfer of the Banhcreser 
funds to Ahcreser.  According to the Attorney General, Judge 
Mildra Castillo abused her authority and violated principles 
of due process when she summarily ruled in favor of the 
defendants and against the Attorney General.  The Attorney 
General appealed the decision, and on March 19, 2003 the 
Supreme Court of Honduras overruled the lower court,s 
decision and reinstated the criminal charges. 
 
--------------------------------------------- 
BANHCRESER AND THE PHANTOM COMPANY ANCRES LTD 
--------------------------------------------- 
¶11. (SBU) On February 19, 2002, the Attorney General 
initiated criminal proceedings against Carlos Chahin Chahin 
(President), Santos Reynaldo Casco Gomez (Vice President), 
Nicolas Chahin Chahin (Treasurer), Antonio Teodoro Sansur 
Dacarett (Secretary), Antonio (Jack) Afif Kattan Kattan 
(Director), Emin Jorge Abufele Salomon (Director), Leonel 
Osbaldo Medrano Irias (Director) -- all on the Board of 
Directors of Banhcreser -- and Caupolican Zuniga Maradiaga 
(General Manager) and German Licona Vega (Assistant Manager). 
 
 
¶12. (SBU) The above-referenced criminal charges focused on 
the misappropriation of USD 3,700,000 deposited in HSBC 
Republic National Bank in Miami, Florida on June 5, 1998 
(account number 2027549F).  When the defendants deposited the 
funds in a foreign banking institution, they improperly 
rendered the funds unavailable for their intended purpose -- 
to directly and indirectly guaranty credit, pay "creditos" to 
other institutions and caused Banhcreser to be 
undercapitalized and ultimately insolvent.  All of this took 
place without the knowledge and consent of investors, many of 
whom lost their life savings. 
 
¶13. (C) According to the Anticorruption Unit of the Honduran 
Attorney General,s Office, the Banhcreser officials set up a 
Bahamas-based phantom financial institution called Ancres 
Ltd., and covertly deposited the USD 3.7 million in HSBC to 
establish a line of credit.  The money was used as 
collateral, and they eventually borrowed more than USD 3 
million through the shell company.  This entire scheme was 
set into motion by the Directors of Banhcreser from 1998 to 
¶2001.  Under Honduran law, these transactions were illegal 
and violated banking regulations and laws, including laws 
that prohibit the use of such funds as collateral for 
Ancres, line of credit. 
 
¶14. (SBU) Additionally, The Attorney General believes that 
the evidence proves that the covert activities were 
intentional -- done by the Banhcreser directors and 
principals for the express purpose of hiding the true 
financial condition of the institution.  Once the Banking 
Commission intervened, it asked HSBC to return the reserves, 
but HSBC declined since Ancres had defaulted on the loans. 
 
 
--------------- 
THE BOTTOM LINE 
--------------- 
 
¶15. (SBU) The information delineated in this cable more than 
meets the "reason to believe" standard set forth in INA 
Section 212(a)(2)(I). 
 
¶16. (S) It is important to reiterate that the fact that the 
individuals involved have not yet been convicted of criminal 
offenses under Honduran law is not dispositive of these 
cases.  These are wealthy Honduran citizens with strong 
political connections.  Embassy sources (including those 
within the Honduran Attorney General,s Office) indicate a 
strong possibility of bribery or other improper behavior on 
the part of various defendants in connection with pending 
legal proceedings.  Institutional corruption is endemic in 
Honduras, and judicial corruption is common.  Nevertheless, 
on March 19, 2003, the Supreme Court of Honduras overruled a 
lower court,s decision and reinstated the criminal 
proceedings against the Banhcreser officials.  Investors 
(including American investors) in Banhcreser, Creser Visa and 
Ahcreser have suffered significant financial losses as a 
result of the criminal behavior of these individuals. 
 
¶17. (C) A number of the persons involved in these three (3) 
schemes are reputed to have engaged in a pattern and practice 
of fraudulent financial practices in Honduras for several 
years -- including Emin Jorge Abufele Salomon, Omar Abufele 
Salomon, Carlos Chahin Chahin, Nicolas Chahin Chahin, Daniel 
Shucry Kafati Canahuati, Antonio Afif Kattan Kattan, Rene 
Franciso Kattan Fernandez, Roberto Constantino Larach Chahin 
and Miguel Felipe Canahuati Yacaman.  Post requests that the 
names of these twenty-four Honduran nationals be added to the 
list of money launderers and that their names be entered into 
the Department,s Lookout system as 2-I visa ineligibilities. 
 
------------------------------- 
INDIVIDUALS INVOLVED IN SCHEMES 
------------------------------- 
 
¶18. (SBU) Below is the information for the individuals 
involved in these schemes: 
 
a. Name: Abufele Salomon, Emin Jorge 
   Nat: Honduran 
   DOB: 25 AUG 1943 
   Sex: M 
   VLO: P2I 
   COB: Honduras 
   Ppt: Regular 
   Visa: B1/B2 
   PPN: 004437 
   NOE: Multiple Entries 
 
b. Name: Abufele Salomon, Omar 
   Nat: Honduran 
   DOB: 04 OCT 1941 
   Sex: M 
   VLO: P2I 
   COB: Honduras 
   Ppt: Regular 
   Visa: B1/B2 
   PPN: 097998 
   NOE: Multiple Entries 
 
c. Name: Chahin Chahin, Carlos 
   Nat: Honduran 
   DOB: 19 OCT 1941 
   Sex: M 
   VLO: P2I 
   COB: Honduras 
   Ppt: Unknown 
   Visa: Believe B1B2 
   PPN: Unknown 
   NOE: Unknown 
 
d. Name: Chahin Chahin, Georgette 
   Nat: Honduran 
   DOB: Unknown 
   Sex: F 
   VLO: None 
   COB: Honduras 
   Ppt: Unknown 
   Visa: Unknown 
   PPN: Unknown 
   NOE: Unknown 
e. Name: Chahin Chahin, Nicolas 
   Nat: Honduran 
   DOB: 07 NOV 1954 
   Sex: M 
   VLO: P2I 
   COB: Honduras 
   Ppt: Regular 
   Visa: B1/B2 
   PPN: 354773 
   NOE: Multiple Entries 
 
f. Name: Dieck, Afif 
   Nat: Honduran 
   DOB: Unknown 
   Sex: M 
   VLO: Unknown 
   COB: Honduras 
   Ppt: Unknown 
   Visa: Unknown 
   PPN: Unknown 
   NOE: Unknown 
 
g. Name: Kafati Canahuati, Daniel Shucry 
   Nat: Honduran 
   DOB: 23 JUL 1955 
   Sex: M 
   VLO: P2I 
   COB: Honduras 
   Ppt: Regular 
   Visa: B1/B2 
   PPN: 033013 
   NOE: Multiple Entries 
 
h. Name: Kattan Kattan, Antonio Afif (a/k/a Kattan, Jack 
 
   Afif) 
   Nat: Honduran 
   DOB: 02 SEP 1948 
   Sex: M 
   VLO: P2I 
   COB: Honduras 
   Ppt: Regular 
   Visa: B1/B2 
   PPN: 414818 
   NOE: Multiple Entries 
 
i. Name: Kattan Fernandez, Rene Francisco 
   Nat: Honduran 
   DOB: 04 JUL 1945 
   Sex: M 
   VLO: P2I 
   COB: Honduras 
   Ppt: Unknown 
   Visa: Believe B1/B2 
   PPN: Unknown 
   NOE: Unknown 
 
j. Name: Larach Chahin, Roberto Constantino 
   Nat: Honduran 
   DOB: 03 SEP 1958 
   Sex: M 
   VLO: P2I 
   COB: Honduras 
   Ppt: Regular 
   Visa: B1/B2 
   PPN: 739500 
   NOE: Multiple Entries 
 
k. Name: Papadakys Marinakis, Constantino 
   Nat: Honduran 
   DOB: 12 JAN 1948 
   Sex: M 
   VLO: P2I 
   COB: Honduras 
   Ppt: Regular 
   Visa: B1/B2 
   PPN: Unknown 
   NOE: Multiple Entries 
 
l. Name: Papadakys, Zacarias 
   Nat: Honduran 
   DOB: Unknown 
   Sex: M 
   VLO: P2I 
   COB: Honduras 
   Ppt: Unknown 
   Visa: Unknown 
   PPN: Unknown 
   NOE: Unknown 
 
m. Name: Monterroso Andonie, Omar Isaac 
   Nat: Honduran 
   DOB: 08 DEC 1960 
   Sex: M 
   VLO: P2I 
   COB: Honduras 
   Ppt: Regular 
   Visa: B1/B2 
   PPN: A149170 
   NOE: Multiple Entries 
 
n. Name: Aguilar, Luis Felipe 
   Nat: Honduran 
   DOB: Unknown 
   Sex: M 
   VLO: P2I 
   COB: Honduras 
   Ppt: Unknown 
   Visa: Unknown 
   PPN: Unknown 
   NOE: Unknown 
 
o. Name: Mendieta, Luis Felipe 
   Nat: Honduran 
   DOB: Unknown 
   Sex: M 
   VLO: P2I 
   COB: Honduras 
   Ppt: Unknown 
   Visa: Unknown 
   PPN: Unknown 
   NOE: Unknown 
 
p. Name: Sosa, Leonel 
   Nat: Honduran 
   DOB: Unknown 
   Sex: M 
   VLO: Unknown 
   COB: Honduras 
   Ppt: Unknown 
   Visa: Unknown 
   PPN: Unknown 
   NOE: Unknown 
 
q. Name: Casco Gomez, Santos Reynaldo 
   Nat: Honduran 
   DOB: Unknown 
   Sex: M 
   VLO: Unknown 
   COB: Honduras 
   Ppt: Unknown 
   Visa: Unknown 
   PPN: Unknown 
   NOE: Unknown 
 
r. Name: Canahuati Yacaman, Miguel Felipe 
   Nat: Honduran 
   DOB: 06 OCT 1954 
   Sex: M 
   VLO: P2I 
   COB: Honduras 
   Ppt: Regular 
   Visa: B1/B2 
   PPN: 793452 
   NOE: Multiple Entries 
 
s. Name: Sansur Dacarett, Antonio Teodoro 
   Nat: Honduran 
   DOB: 15 JUL 1945 
   Sex: M 
   VLO: P2I 
   COB: Honduras 
   Ppt: Regular 
   Visa: B1/B2 
   PPN: Unknown 
   NOE: Multiple Entries 
 
t. Name: Arias Fernandez, Christianne Elizabeth 
   Nat: Honduran 
   DOB: 29 MAR 1964 
   Sex: F 
   VLO: P2I 
   COB: Honduras 
   Ppt: Unknown 
   Visa: Unknown 
   PPN: Unknown 
   NOE: Unknown 
u. Name: Sanchez, Lorena 
   Nat: Honduran 
   DOB: Unknown 
   Sex: F 
   VLO: Unknown 
   COB: Honduras 
   Ppt: Unknown 
   Visa: Unknown 
   PPN: Unknown 
   NOE: Unknown 
 
v. Name: Medrano Irias, Leonel Osbaldo 
   Nat: Honduran 
   DOB: 02 OCT 1946 
   Sex: M 
   VLO: Unknown 
   COB: Honduras 
   Ppt: Unknown 
   Visa: Unknown 
   PPN: Unknown 
   NOE: Unknown 
 
w. Name: Zuniga Maradiago, Caupolican 
   Nat: Honduran 
   DOB: 19 DEC 1948 
   Sex: M 
   VLO: P2I 
   COB: Honduras 
   Ppt: Unknown 
   Visa: Unknown 
   PPN: Unknown 
   NOE: Unknown 
 
x. Name: Licona Vega, German 
   Nat: Honduran 
   DOB: 05 SEP 1954 
   Sex: M 
   VLO: P2I 
   COB: Honduras 
   Ppt: Unknown 
   Visa: Unknown 
   PPN: Unknown 
   NOE: Unknown 
Palmer