US embassy cable - 05KATHMANDU2442

UNCLAS KATHMANDU 002442 
 
SIPDIS 
 
DEPT FOR CA/FPP; DEPT PLEASE ALSO PASS TO KCC 
POSTS FOR FRAUD PREVENTION MANAGERS, DHS, LEGATT 
 
SENSITIVE 
 
E.O. 12958: N/A 
TAGS: KFRD, CVIS, CPAS, CMGT, ASEC, NP 
SUBJECT: NEPAL: DOCUMENT VENDORS ARRESTED 
 
1. (SBU) Nepal Police (NP) arrested a group of six 
collaborating document vendors in mid-October and a 
single fraudulent document vendor on November 5, 2005. 
In both cases, NP gave Post's Fraud Prevention Manager 
(FPM) and Senior Fraud Prevention FSN (FPFSN) access to 
exemplars of the documents the vendors had produced.  In 
both cases, the majority of documents were made for those 
seeking employment overseas (Nepalese academic 
certificates, Indian drivers' licenses, character 
certificates, etc.).  In the former case, the vendors had 
produced a text template for three U.S.-visa foils with 
complete bio info, as well as draft letters about Maoists 
threats clearly intended to support an asylum claim. 
Police who had interviewed November arrestee told FPM 
that they believed his customers were all Nepalese 
seeking work or visa qualifications. 
 
2. (SBU) According to police, in both cases, the vendors 
scanned genuine documents and then used a graphics 
program, Macromedia Freehand, to alter the documents. 
However, the vendor arrested in November, a 36-year old 
former printing press operator named Mitra Prasad 
Dhungana, had also used chemicals and negative projection 
to produce plates to make his own academic certificate 
blanks (rather than the fake paper stock or the 
manipulated originals we normally see).  Dhungana used 
high-quality paper stock, and his production quality was 
quite good.  Most troubling, Dhungana was arrested with 
90 government-office stamps, including the stamp used by 
Police Headquarters on character verification 
certificates, and a stamp used by the Indian Embassy in 
Kathmandu. 
 
3. (SBU) Police complained to FPM and FPFSN that, at 
best, Dhungana would be convicted for a maximum of two 
years and a maximum fine of 9,5000 rupees (approx. USD 
126).  With such low penalties under Nepalese law, they 
noted, anyone would choose to keep producing fake 
documents.  Dhunagan had been arrested and released once 
before about one year ago.  However, police were hoping 
that a detailed investigation of his behavior might lead 
to other charges this time. 
 
COMMENT 
--------------- 
 
4. (SBU)  Unfortunately, the police are correct that, 
with such lenient laws in place, the crime of fraudulent 
document production pays.  (Vendors can make up to 75,000 
rupees (USD 1,000) for a set of high-quality fake 
academic transcripts -- this in a country where the per 
capita GDP is about USD 240 (18,000 rupees).  As such, 
arrests appear to be simply the price of doing business.) 
Paging through the documents produced by both sets of 
vendors, it was clear to us that their handiwork had been 
seen in the consular section during student visa and 
diversity visa interviews. 
 
5. (SBU) Close cooperation between the Embassy's Fraud 
Prevention Unit and the Special Branch of the Nepal 
Police (a unit within the Criminal Investigation Division 
that works with Diplomatic Missions) led to the arrest of 
two other document vendors in the last 12 months.  As a 
result of the relationship built through this 
cooperation, police provided the Embassy exemplars from 
the first arrest, and promised to provide the same from 
the Dhungana arrest. 
 
MORIARTY