Cablegate: Blue Lantern: Bona Fides Verification of Bucello Y

VZCZCXYZ0012
RR RUEHWEB

DE RUEHBU #1220/01 3162030
ZNR UUUUU ZZH
R 122030Z NOV 09
FM AMEMBASSY BUENOS AIRES
TO RUEHC/SECSTATE WASHDC 4619
INFO RUEAIIA/CIA WASHINGTON DC
RHMFIUU/DEPT OF JUSTICE WASHINGTON DC
RHMFIUU/HQ USSOUTHCOM MIAMI FL
RHEHNSC/NSC WASHINGTON DC
RUCPDOC/USDOC WASHINGTON DC

UNCLAS BUENOS AIRES 001220

SENSITIVE
SIPDIS

PM/DTCC - BLUE LANTERN COORDINATOR
US SOUTHCOM FOR POLAD

E.O. 12958: N/A
TAGS: ETTC KOMC AR
SUBJECT: BLUE LANTERN: BONA FIDES VERIFICATION OF BUCELLO Y
ASOCIADOS IN ARGENTINA, CASE K-2596

REF: STATE 92825

1. (SBU) Per Reftel request, post carried out a site visit on
U.S. registered broker Bucello y Asociados SRL ("Bucello"),
based in Buenos Aires, Argentina, on November 2 2009. It is
post's opinion that the company will be a responsible broker
of United States Munitions List items.

2. (SBU) Answers to Reftel questions:

-- Confirm that this entity is in the business of brokering
defense articles and defense services at the location(s)
indicated under its legal name(s);

Yes. Econoff visited the location and met with company
owners Horacio and Renato Bucello. The company has numerous
weapons on site, but it appears that the majority of them are
old weapons which are for display only. The store has a
museum-like ambiance.

-- Determine whether this entity is authorized to conduct
such activities in its home country, whether the entity has
any criminal or other derogatory background, and whether Post
has any information on its brokering or arms export
activities that may involve proscribed entities such as
countries under U.S. or international sanctions, or
designated state sponsors of terrorism;

Bucello is authorized to conduct brokerage activities in
Argentina. Bucello is also authorized by the RENAR (Registro
Nacional de Armas, or National Weapons Registry, roughly
ATF-equivalent) as an importer/exporter and
wholesaler/retailer of goods which fall under RENAR's
authority. Post has no information to suggest criminal
activity or about activities involving proscribed entities.

-- Will the brokering firm be handling or storing USML items
on behalf of its clients? If so, does it have secure
facilities and proper accounting and security procedures for
handling sensitive USML items?

Sometimes. When dealing with government clients, Bucello
seeks to arrange imports so that the client is the importer
of record, and therefore the client will receive the
shipment. In those cases, Bucello never has possession of
the USML items. However, Bucello sometimes takes possession
of smaller shipments, or shipments for private clients.
Bucello's security seemed adequate, with multiple secure
doors, alarms, and security cameras.

-- When was the company established and who are its
principals? How many employees?

Bucello was established in 1982 by Horacio Bucello. Upon
retirement from his earlier career, Horacio's father Renato
joined the business as a minority partner. Besides the two
Bucellos, the company currently has four employees.
According to Horacio Bucello, three are family members and
the fourth has been with the company for 20 years.

-- What is the nature of its business and what other types of
items does it handle?

The company sells security goods of many kinds. In addition
to handguns and ammunition, they are the licensed Taser
representative in Argentina. (Horacio Bucello said they were
negotiating a contact for Tasers, as well as one for 1000
shotguns, with the new Buenos Aires Metropolitan police
force.) They also manufacture ballistic vests - Horacio
Bucello expressed disappointment that DuPont dropped them as
a client, and they have since been sourcing their material
from Europe. The company also sells non-lethal security
items, such as camera systems and pepper spray.

-- What types of organizations are among its typical clients
and in what countries are they located?

Bucello's clients are primarily police agencies, especially
from the various provinces. It has some clients among
federal agencies, such as the Servicio Penitenciario Federal
(Federal Penitentiary Service), but relatively few. He also
has some private clients, though their purchases are more
likely to be items in the security line of his products.
Horacio Bucello said that all of his clients are resident in

Argentina.

-- Does the company understand the restrictions on USML
items, especially the prohibition against unauthorized
re-transfers and re-exports?

Horacio Bucello stated that he understood these restrictions,
but added that he had never exported any such products. He
said that doing so would require him to obtain appropriate
licenses in the other countries, and as difficult as it was
to obtain permission in Argentina, he didn't want to go
through the process elsewhere.
MARTINEZ

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