REPUBLIKA SLOVENUA MIN'STRSTVO ZA NOTRANJE ZADEVE oO? 61001 LIUELIANA, Setanova 2 é “elelor: 061 125 1800, 1325125, pot pedal. 640,642 CRIMINAL INVESTIGATION DIRECTORATE Sire: O221-21~ Sewn 14.12.1995 - Attention of: CONFIDENTIAL! Mr. Steven CLARC Senior. invest igat ion officer INVESTIGATION DIVISION Thternational liaison officer Custom House Lower Thames street ’ LONDON EC3R 6EE fax 0044 171 696 7841; Subject: Companies HILLBROOK and INDUSTRIAL PROJECTS ENGINEERING Suspicion on money laundering probably in connection with illegal arms trafficking - Request for cooperation Criminal Investigation directorate of the Republic of Slovenia has been for a longer time engaged in-a large investigation concerning an illegal trafficking of arms by some higher ranked officials from the Ministry of Defence that took place in the Period from 1.7.1991 till the end of 1992, by abuse of their authority. During the said period of time the officials illegally sold those weapons, mostly to Croatian citizens but also to citizens of Bosnia, which were left in. Slovenia by former Yugoslav army, of an approximate value of 30.000.000 GBP. It is impossible to give the correct value as the sale was largely done in cash (mostly in German marks), but all the documentation on prices and exact quantities of weapons was destroyed by competent subjects in the Republic of Slovenia. The only existing documents are warehouse consignment documents, from’ which the reconstruction of the quantity and type of weapons sold could be established as well as by who the weapons were taken over. The investigation showed that competent subjects from the” c..\Ministry of Defence never officially recorded the cash, received from that illegal sale. Those illegally gained means were mostly transferred to some unknown bank accounts abroad (according to; os0 our information mostly to Austria), but surely a part of the means was transferred to the United Kingdom. Jt was found out that the money from that illegal sale of arms was transferred (up till now in still unknown manner) to a British company HILLBROOK LIMITED, 949 Grimesthorpe RD, Sheffield, South Yorkshire S4 8ES, U.K., company’s registration no. 2541270. On 11.58.1992, the said company sent a letter no. MOD/SL/AL to the Ministry of Defence, Kardeljeva plo&Stad 26, 61000 Ljubljana, informing about the delivery of goods as per 31 invoices in the period between 25.8.1991 and 7.4.1992. The letter showed that the company HILLBROOK would not request any payment for the goods delivered. According to our data, the goods, for which invoices were issued, were actually delivered to Slovenia (luxury goods, i. cars, TV sets, video recorders, tape recorders, etc.). Their deliver: was supposedly organised by LOVSIN Andrej, born on — residing i) (i! QUENNNNMMB who was assistant to the minister until 31.12.1993, and responsible as well for weapons left by the former Yugoslav army. A well-grounded suspicion arises that LovSin was one of the main organisers of illegal arms trafficking and besides that he has very close family ties with the director of the company Hillbrook Mrs. Nada MORTIN (Cia). We, therefore, suspect that the said company in the UK was used for perpetrating criminal offences, concretely of laundering the money, received from arms trafficking. We also found. out that.LovSin, together with Franci CIMERMAN, the second suspect for arms trafficking, founded another company - INDUSTRIAL PROJECTS ENGINEERING (IPE) at the same address, which was previously used by-the company Hillbrook. i.e. Grimsby, 46 Humberston ‘Ave. . We found out that the company IPE ordered different electronic equipment in the USA in the value of 484.606 US $, which was at first meant for the United Arabic Emirates for the company Industrial Projects Engineering, p.o.box 6267 Sharjah, UAE, the owner of which was supposedly the QM Henry MORTIN (GRR Neca MORTIN). Later, the said equipment was offered to the Ministry of Defence, which allegedly paid the goods. As to the statement of Henry Mortin the sum was paid by a bank order, given by some Austrian bank. The payment was allegedly made on to the account of Hillbrook which did not send any invoice - either to the Ministry of Defence or any other subject. Though the company Hillbrook actually received the payment, the American supplier was paid for the goods paid by the company IPE on the basis of an invoice no. WQ 4291 dated 21.09.1992. But, due to the embargo (the goods may be used also for military purposes), theGelivery was stopped by the USA customs authorities, so the goods are still in Maryland, the USA. The Ministry of Defence does not possess any documents Proving cranes the order or the payment of the goods three years ago. Te cyarify the commercial side of the business, two representatives gt ithe Ministry of Defence met Henry Mortin in. Londen on 7-12-1995, who still did not know anything about. the on going investigation concerning the money laundering operation through his company Hillbrook. During the talks. the representatives of ipeMinistry tried to get the missing documentation. saying that they could not terminate the business without that document at ion about the order and payment, even if the embargo be cancelled. Mortin confirmed that the payment by the Ministry of Defence was Pffected without any documentation, upon the order oF Andrej rov8in, by an Austrian bank. He did not have any proof of that no more. It is most probable that al1 businesses done by Hi11brook and IPE with the Ministry of Defence concerned deliveries, of various soote ouhe, goods Were paid with the money, the origin of which was from illegal arms trafficking, and with which the involved eybjects actually and intentionally laundered money. Doing that Uhey most probably violated also fiscal and custome lane of the United Kingdom and that iw why we ask you. to cooperate in the investigation of the mentioned criminal offences iy the present phase of the investigating procedure we are most deeply interested whether you can provide us the following data: the Gumber of business “aftairs:that were actually exscured between San check try lbrook and IPE and the Ministry of Defence, if you ng check the export documentation of both companies te establish the exact quantities and types of the goods delivered and its can 7 enges Tt shall be of great use to the investigation If you gan,tind out how deliveries were paid and the final amount of Such Payments. Especially we are interested in which bank and prich bank account were used to order the money to the account of Hillbrook and who was the person giving orders for payment; ip order to facilitate the situation for your decision to start the investigation, we are sending you enclosed cur Present col lecrendence with INTERPOL London and NCIS, as well the So far collected documentation. Enclosures: Be eggs oeresPondence with INTERPOL london and NCIS. dated 39.12.1993, 11.1,1995 and 1.12.1995 (5 pages). 2. a letter to IPE by the Ministry for transport and Conmunications dated 4.5.1993, probably showing to the oseLO customs authorities that the goods were meant for civil use (1 page), Sogthe invoice no. Wa 4291 dated 21.9.1992 issued by the company WORTHINGTON A.C.INC. to IPE (1 page), ai pe onmyoice mo. hill/slo/001/95 dated 25.11.1995 issued by Hillbrook to the Ministry of Defence’ (2 pages), S. the information on seizure of electronic equipment with a hidden address (1 page), S. the letter of the company Hillbrook no. MOD/SL/AL dated 11.5.1992 (1 page). The data are provided for the police and judicial use only. B shark you for your cooperation. Yours sincerely, ANTON DVORSEK DIRECTOR OF CNB °