US embassy cable - 05SOFIA1847

UNCLAS SOFIA 001847 
 
SIPDIS 
 
SENSITIVE 
 
E.O. 12958: N/A 
TAGS: PREL, KCRM, ASEC, BU 
SUBJECT: TOP BULGARIAN MONEY LAUNDERER SHOT DEAD IN SOFIA 
 
1.  (SBU) SUMMARY: Controversial banker Emil Kyulev, owner 
of Bulgaria's biggest financial group DZI, was shot dead in 
in central Sofia October 26.  The killing of Kyulev is the 
latest in a series of apparent organized crime-related 
assassinations in recent months.  It comes only a day after 
the European Union released its monitoring report sharply 
criticizing Bulgaria for its failure to fight organized 
crime. Kyulev was a former partner of Russian-born Michael 
Chorny, who was banned from Bulgaria as a threat to national 
security.  Reportedly the third richest person in Bulgaria, 
Kyulev was also known for his high-profile political 
connections, including his role as a former advisor to 
President Georgi Purvanov and a major campaign contributor 
to former Prime Minister Simeon Saxe-Coburg. END SUMMARY 
 
2. (U) Kyulev was shot dead at about 9:15 a.m. while in his 
car en route to downtown Sofia.   Early reports claim the 
assailant, who was hidden in the nearby bushes, fired at 
least ten bullets.  Kyulev's driver, who was also shot 
several times, was rushed to the emergency hospital. 
 
3. (SBU) Kyulev, 48, graduated from the Police Academy and 
started his career at the Ministry of Interior.  In 1988, he 
used his security-service connections and access to capital 
to set up one of Bulgaria's first private consultancy 
companies, which offered administrative and legal services 
in the real estate market.  A year later he parlayed these 
contacts into the establishment of Tourist Bank, later 
renamed Touristsport Bank and then Commercial and Savings 
Bank.  In 1994 Kyulev left the bank, which subsequently went 
bankrupt, and set up Roseximbank jointly with the 
"controversial Russian businessman" Michael Chorny. 
Roseximbank received a sweetheart deal that allowed it to 
handle all payments of the Bulgarian Tax Directorate and the 
Customs Agency, as well as the operations of the biggest tax- 
payers in the country.  In 2002, Kyulev bought the state- 
owned DZI, Bulgaria's biggest insurance company, and changed 
Roseximbank's name to DZI Bank, thus forming the country's 
largest financial group.  DZI currently controls more than 
350 companies in various industries.  In the process, Kyulev 
managed to change his image in the eyes of most Bulgarians 
from that of an inside trader and suspected money-launderer 
to that of a legitimate businessman. 
 
4. (SBU) Kyulev was a founder of Vazrajdane Business Club 
along with Multigroup boss Iliya Pavlov (shot dead in 2003) 
and Vasil "The Skull" Bozhkov.  In an effort to distance 
himself from the Club's notorious members, Kyulev left the 
organization in 2002. He recently hired a U.S. lobbyist to 
help him further clean up his image.  He also set up a 
foundation to combat human trafficking which he was 
suspected of using to launder money as well as to gain 
credibility and legitimacy. 
 
5. (SBU) Reportedly one of Bulgaria's richest businessmen, 
with an estimated wealth of around $500 million, Kyulev is 
also known for his political connections.  He was among the 
major sponsors of Simeon Saxe-Coburg Gotha's party for the 
2001 elections, which restored the ex-king to power as Prime 
Minister. According to unconfirmed reports, in 2005 Kyulev 
directed his financial assistance towards the Socialist 
Party, which won the biggest number of seats in parliament 
in the June general vote.  Kyulev was also economic advisor 
to President Georgi Purvanov and is said to have funded his 
November 2001 presidential campaign.  Purvanov cancelled his 
scheduled trip to the northeastern Bulgaria and returned to 
Sofia following the news of Kyulev's death. 
 
6. (SBU) COMMENT: The latest high-profile attack follows 
closely a number of other assassinations in recent months, 
including the October 10 killing of a high-ranking Customs 
official Shinka Manova.  At least 23 people have been killed 
in organized crime related assaults since the beginning of 
the year.  However, unlike the other businessmen and 
organized crime figures who have fallen victim to 
gangland-style shootings, Kyulev's reputation associated him 
primarily with white-collar crime.  Kyulev's assassination 
is a significant event on par with Iliya Pavlov's killing in 
March 2003.  The timing of the killing further underscores 
Bulgaria's inaction against organized crime, and is being 
viewed by many today as a national embarrassment.  END 
COMMENT 
 
BEYRLE