US embassy cable - 03TEGUCIGALPA2965

UNCLAS SECTION 01 OF 02 TEGUCIGALPA 002965 
 
SIPDIS 
 
SENSITIVE 
 
DEPARTMENT FOR WHA/CEN, CA/FPP, EB, AND DS 
 
E.O. 12958:N/A 
TAGS: KFRD, CVIS, ASEC, KCRM, KJUS, EFIN, PREL, HO 
SUBJECT: CHINESE SMUGGLING RING IN HONDURAS - CHINAZO 
RESURFACES 
 
1. (U) SUMMARY - As part of an ongoing investigation, the 
Honduran Criminal Investigative Police (DGIC), Prosecutor's 
from the Organized Crime Division of the Public Ministry, 
and DHS personnel from Tegucigalpa participated in a series 
of raids in the cities of San Pedro Sula and Tegucigalpa, 
uncovering a major alien smuggling ring.  The ring 
specialized in smuggling aliens from the PRC and Hong Kong 
to the U.S., via Honduras, using falsified Honduran 
passports and civil documents.  Among the documents 
discovered were false Honduran drivers licenses, false 
identity cards, stolen Honduran passports, altered Honduran 
passports, false bankbooks, false civil documents and 
official seals from the Preventive Police.  END SUMMARY 
 
2. (U) On Monday, December 8, Honduran police and 
prosecutors accompanied by members from the DHS office in 
Tegucigalpa, arrested two naturalized Honduran citizens at 
the airport in San Pedro Sula.  The arrestees were part of 
an alien smuggling ring that, according to police, has been 
in operation for at least four years. 
 
3. (U) On Tuesday, December 9, another naturalized Honduran, 
Hu Weng Rong, was arrested at the San Pedro Sula airport 
along with two Chinese aliens.  Rong had accompanied the two 
aliens to the airport and attempted to purchase tickets for 
them on the Sol Air flight to Miami.  Both aliens were 
traveling with falsified Japanese passports.  Subsequently, 
search warrants were issued for two houses owned by Rong in 
San Pedro Sula.  Evidence uncovered in the search of the two 
houses included stolen Honduran passports, fraudulent 
Honduran identity cards and drivers licenses, copies of 
Honduran naturalization certificates, original seals used by 
the Honduran Transit Police, a laminating machine and large 
amounts of laminate.  Also found were copies of airway bills 
for packages that had previously been intercepted by U.S. 
Customs Miami. 
 
4. (U) On Wednesday, December 10, police arrested another 
naturalized Honduran, Jia Bin He, outside one of his 
residence in San Pedro Sula.  A search of the premises 
revealed two negatives of immigration seals used by the 
governments of Panama and Honduras.  Also, a large quantity 
of Western Union receipts for large amounts of money, 
several bank books, false civil documents, and USD 4,000 
were found. 
 
5. (U) Hu Weng Rong was taken into custody and charged with 
alien smuggling, falsifying documents and money laundering. 
Jia Bin He has been charged with forgery of public 
documents, possession of instruments for producing 
fraudulent documents, alien smuggling and money laundering. 
Police contend that the two were using their status as 
Honduran citizens to acquire and falsify documents to be 
used smuggling aliens into Honduras and eventually into the 
U.S. 
 
6. (SBU) Immigration Director Ramon Romero and public 
prosecutors indicated that many of the former Chinese 
citizens who had acquired Honduran nationality during the 
infamous "Chinazo" scandal are the organizers and leaders of 
this ring.  During "Chinazo", Honduran nationality was sold 
to persons who were supposed to become business investors. 
The scheme began in 1995 and ended in October 1996.  It 
allegedly netted hundreds of millions of dollars for the 
Hondurans who organized and ran the operation.  Allegations 
have flourished here about who was involved in Chinazo.  The 
allegations have included former president Callejas and 
members of his administration who supposedly kept the money, 
instead of depositing it in the Central Bank, as was 
required by law.  Prosecutors estimate that up to 25,000 
people paid from USD 20,000 to USD 25,000 in order to 
acquire Honduran nationality.  Romero pointed out that 
actual immigration records exist for only two of the 
estimated 25,000 Chinese investors.  In addition, during the 
operation of Chinazo, there was no control over the issuance 
of passports, naturalization certificates, or identification 
cards to the alleged investors. 
 
7. (SBU) Director Romero expressed to FSN Supervisor and 
Consul General, that he believes this ring is a continuation 
of the Chinazo scheme.  The persons who applied for investor 
visas in 1995-96 were issued Honduran passports, 
naturalization certificates, identity cards and received 
other documents such as land titles and business records. 
These same documents, he believes, are now being re-used to 
smuggle aliens into Honduras.  Since there was no control 
over the initial issuance process, there are only estimates 
as to the total number of fraudulent naturalization 
certificates and identification cards in circulation. 
Coupled with the theft of as many as 1,500 Honduran 
passports in 2001, Romero believes that an influx of Chinese 
aliens could easily become uncontrollable for his limited 
staff and facilities. 
 
8. (U) COMMENT: The large number of Chinese immigrants 
appearing in Honduras has alarmed local immigration 
officials.  It is believed that passage money is being paid 
to the smuggling ring, or that the aliens work for local 
businessmen here in Honduras in order to pay their fare. 
After paying for their passage, the persons purchase false 
documentation in order to apply for U.S. visas, or they 
attempt to enter the U.S. using stolen Japanese passports. 
To complicate matters, the Immigration Director indicated 
that he is likely being replaced because he has strictly 
enforced the law against this smuggling ring.  He believes 
that influence is being brought by the Ministry of 
Government and Justice, where the Immigration directorate is 
located, in order to allow this operation to continue.  As 
an aside, he mentioned that many current government 
officials were also in government service at the time of the 
Chinazo scandal and some made personal fortunes from the 
scheme.  Post will continue to monitor the situation and 
keep Department informed of actions taken by the GOH. 
 
PALMER