Category: Asia and Pacific

  • China Courts Turkey

    China Courts Turkey

    China, whose relations with Turkey went through a period of tension last year following the Turkish condemnation of the  atrocities allegedly  perpetrated by the Chinese on the Uighurs in Chinese-controlled Xinjiang in July , has undertaken measures to repair the relations and seek Turkey’s support for the pacification of Xinjiang. The Munich-based World Uighur Congress (WUC), headed by its President Mrs. Rebiya Kadeer, enjoys some support in the political class and the public in Turkey. It calls for independence for Xinjiang under the name Eastern Turkestan. It is not a fundamentalist organisation and does not suppoprt the Islamic Movement of Eastern Turkestan , which is an associate of Al Qaeda and the Pakistani and  Afghan Talibans.

    Even before tension and misunderstanding arose in the relations between China and Turkey following the alleged suppression of pro-WUC demonstrators by the People’s Liberation Army (PLA) in Urumqi in July last year, the two countries had been negotiating for a joint air exercise by their air forces  in the Turkish air space. They did not allow the misunderstanding and tension over the alleged suppression of the Uighurs to disrupt these negotiations.

    The return of normalcy in the bilateral relations was marked by two significant events in September and October, 2010. The first was the holding of the joint air exercise by the Air Forces of the two countries. According to Turkish press reports, the joint air exercise  took place  between September 20  and October 4 from the Konya air base in Turkey’s central Anatolia region.T he Turkish Air Force flew F-4 Phantom fighters, used  by the US during the Vietnam war, while China flew Russian-built SU-27s. The Chinese planes refueled in Pakistan and Iran while on their way to Turkey and in  Iran on their way back to China. The Turkish media reports also spoke of the joint development of a surface-to-surface missile by  China and Turkey.

    The second significant event  was the official visit of Prime Minister Wen Jiabao to Turkey while on his way back to China after  official bilateral visits to Greece, Belgium and Italy and after attending the Asia-Europe summit at Brussels. Wen arrived in Ankara on October 7 — three days after the joint air exercise was over — and stayed for three days. His visit was marked by anti-China demonstrations by Uighurs and their local supporters.  While the demonstrations were allowed  by the Turkish authorities, they reportedly rejected a request from Mrs.Kadeer to visit Turkey on October 8 to participate in the demonstrations against China. She has been quoted by media reports as saying that the WUC would have no objection to Turkey improving its relations with China, provided the objective was to make Beijing recognise and respect the human rights of the Uighurs. She cautioned against any action which could facilitate the Chinese suppression of the Uighurs.

    In an interview with the Anatolia news agency, she said:”I have been disappointed over the fact that Turkey would receive Chinese Premier Jiabao on October 8.Following the incidents of July 5, 2009, thousands of Uighurs have been arrested (by Chinese officials) and we have not heard from them since then. After July 5, the Chinese Government has been exercising  great pressure on the Uighurs and land belonging to the Uighurs has been taken away from them by the Chinese authorities. Premier Jiabao’s visit to Turkey would provide an opportunity to Turkey to ask about the Chinese pressure put on the Uighurs and encourage the Chinese to end the pressure. The Uighurs are in a battle of death and survival. We are concerned with the efforts of the Chinese Government to change the views of the Turkish people.
    I am seeking for ways to be able to visit Turkey on October 8, the day when Chinese Premier Jiabao will be in Turkey. I will try to convey, with the Turkish people, our demands from the Chinese Premier Jiabao. I expect the Turkish Government to provide me the same privilege that they have granted to the Chinese Premier Jiabao. I wish to be in Turkey in order to tell the realities to the Turkish people.”

    6. This was the first visit by a Chinese Prime Minister to Turkey in eight years. In a despatch dated October 9 from Ankara, the Chinese Government controlled Xinhua news agency reported that  Wen  and the  Turkish Prime Minister Recep Tayyip Erdogan had agreed to upgrade their bilateral ties to the level of a strategic relationship of cooperation.Wen said he and Erdogan reached broad consensus during the talks and added that the decision to set up the strategic cooperative relationship would have an important effect on world peace and development. Wen pointed out at a joint press conference with his Turkish counterpart that China and Turkey both faced the threat of the three evil forces of terrorism, separatism and extremism and shared common interests in safeguarding the integrity of territory and sovereignty. He said China would continue to deepen mutual political trust and take active measures to promote trade with Turkey. China attached great importance  to Turkey’s  influence in regional and international affairs. China would encourage investment by Chinese enterprises in Turkey and facilitate cooperation in various economic fields, such as power projects, bridge construction and the financial sector, Wen said.

    The Chinese have been providing many lollipops to Turkey in order to dissuade it from supporting the Uighurs. Among these lollipops are:
    A proposal  for the  joint construction of 4,500kms of railway in Turkey and for the construction of an oil pipeline to Turkey from Iran. Chinese companies are already involved in the construction of railroads for two high-speed train links.

    The value of the bilateral trade during 2009 amounted US $14.2bn  – $12.6bn of which consisted of Chinese exports. Thus, China has been the major beneficiary of the trade. The two Prime Ministers agreed to raise the value to US  $50 billion by 2015 and US  $100 billion by 2020. They also agreed to use the national currencies to carry out the trade. Turkey has now similar arrangements with Russia and Iran.

    Though promotion of economic relations and a strategic partnership were projected as the main objective of the visit of  Wen to Turkey, the Uighurs believed that an important purpose was to seek the support of Turkey for the pacification of Chinese-controlled Xinjiang and for  the political neutralisation of the WUC. According to Uighur sources, Pakistan had played an active role in bringing Turkey and China together despite the protests in Turkey last year over the suppression of the Uighurs. While the Uighurs are even prepared to understand the measures for the promotion of  economic relations, they are surprised by Turkey’s agreeing to a joint air exercise with the PLA (Air Force) despite the role of the PLA (Army) in the suppression of the Uighurs.

  • Elephant and Dragon

    Elephant and Dragon

    indian elephant chinese dragon

    BALAJI CHANDRAMOHAN

    It is understandable and predictable that Asia’s two giants – India and China – should be gearing up for a showdown somewhat similar to the East-West showdown of the Cold War. Given both countries’ growing economies, and given the waning influence of the West in global affairs, India and China are increasing their foothold in distant corners of the world through trade, investment, bilateral treaties and security relationships.

    In this classic ‘great power’ rivalry, China wishes to win by keeping India in low-level equilibrium – for instance, by denying permission to an Indian lieutenant-general posted in the state of Jammu and Kashmir to visit China. The officer in question had intended to travel to China in August of this year for a high-level defence exchange between the two countries.

    What is more, if media reports are to be believed, then policy-makers in New Delhi are losing sleep over the fact that 7,000 to 11,000 Chinese troops are present in Gilgit in Pakistan-occupied Kashmir – something that the Indian government is trying to verify, although Pakistan’s envoy to Beijing has denied the reports. The reports say that People’s Liberation Army soldiers entering Gilgit-Baltistan are expected to work on the railroad and on extending the highly strategic Karakoram Highway – a clear sign that China wishes to extend its influence in the oil-rich gulf region. There are also reports about a six-month visa to visit China having been issued Paresh Barua, Commander-in-Chief of the United Liberation Front of Asom (ULFA), a militant organization based in Northeast India.

    Reacting to China’s aggressive posture, the Government of India recently held a meeting of the Cabinet Committee of Security, chaired by Prime Minister Manmohan Singh. New Delhi’s envoy to Beijing, S. Jaishankar, briefed the Committee on the current state of Sino-Indian relations.

    Following the Bush presidency, given the general reluctance of the Obama administration to ‘contain’ China (let alone to engage on a sustained basis in Asia at large), China has decided to have a ‘free go’ throughout the world. This ‘free go’ has necessitated the establishment of a firm Chinese foothold in the Asia-Pacific region, from which it can broaden its sphere of strategic influence even to Africa, Latin America and Europe. India acts as a distinct challenger in this respect. With a population of more than one billion people, a growing economy and supple latent power, India is a clear leader in the affairs of South Asia. It has also increased its influence in Southeast Asia through its ‘Look East’ policy. In fact, East Asian countries like South Korea and Japan are more inclined to cooperate, and look for active strategic partnership, with India rather than with China. India has also started to spread its wings through active diplomatic ventures in Africa through the Indo-African forum, and in the South Pacific Islands through the Pacific Islands Forum. Furthermore, India has initiated more active dialogue with its diasporic populations through the annual Pravasi Bharatiya Divas festival that fosters better relations between expatriate Indians and Indians living in India. Indeed, the Indo-American civil nuclear deal that was sealed during the Bush administration would not have happened without the active lobbying of Indo-Americans. This has pushed India to initiate a ‘Forward Policy’ in its diplomacy.

    All of this has irritated Beijing in that it has understood that, to clip the wings of the spreading India, China must first ‘box-in’ India in South Asia. That is precisely the strategy of Beijing in aiding Pakistan to follow an aggressive posture in its diplomatic relations with India. With India being distracted in Pakistan, and with the US distracted in Afghanistan and Iraq, China can expand quickly in Asia; that is, it can clearly establish many more ‘strategic condominiums’ in the world. In this sense, China profits from its authoritarian and more monolithic decision-making processes and culture in respect of international relations – as compared with the more reactive processes of major democratic states like India and the US. India, for its part, also suffers from the general dearth of strategic culture and acumen within its political class – a weakness compounded by the absence of emphasis on foreign policy in day-to-day media discourse in India. Though Manmohan Singh is not a classical professional politician, and while he could be considered of a statesman of the highest order (a later article with GB will deal with his declining popularity in India, and the reasons thereof), the general Indian policy inclination to look inward as a matter of dominant priority has manifestly prevented him from engaging with the international more actively.

    Take the case of Iran. The US is trying to engage with Iran through China, as India, the traditional ally of Iran, is left in the cold and dark. The abandonment of the foreign policy front by the political class in India has, as a rule, meant that major chunks of strategic decision-making on foreign policy have fallen to India’s army men. In this respect, India has decided to play to its strengths – understood as it is that India and China are both continental and naval powers. To counter China’s much-touted ‘Strings of Pearl’ strategy, India has decided to pursue active ‘naval diplomacy.’ China’s ‘Strings of Pearl’ strategy includes building deep-sea naval positions on the southern coast of Sri Lanka in the once sleepy fishing town of Hambantota. Moreover, China has helped Pakistan to build a deep-sea port in the town of Gadara in Baluchistan. It has also started to court the littoral states in the Indian Ocean – the Maldives, Mauritius and Seychelles – and invested funds in these micro-states to boost economic prospects. In return, China has sought to allow its bases to continue to be stationed in these littoral states. As a part of its counter-strategy, India is sending its naval officers on a routine trip to these countries. There are regular exchanges between India and these states at the naval officer level. India is also establishing for the Maldives a network of radars that will help the island nation offset for the plain fact that it lacks a navy. (Traditionally, all great powers that aspired to control the Indian Ocean – Portugal, the Netherlands, Great Britain, the US and the Soviet Union – have required a base in the Maldives. The southernmost island of the Maldives, the Gan Island in the Seenu Atoll, served as a base for the British Royal Navy during WW2.)

    The Indo-China great power rivalry is the story of the first part of the 21st century – much like the rivalry between Great Britain and Germany was the dominant strategic dyad in the late 19th and early 20th centuries. This rivalry was classically described by John J. Mearsheimer in his book, The Tragedy of Great Power Politics. Wrote Mearsheimer: “Great powers behave aggressively not because they want to or because they possess some inner drive to dominate, but because they have to seek more power if they want to maximize their odds of survival.” Raw realism has been the forté of China’s conduct in world affairs since 1949 when the People’s Republic of China was established. For its part, India’s foreign policy has always flirted with moralism-cum-idealism. However, at the start of this new century, India had understood the importance of Realpolitik. Indian politicians are deft in conducting domestic politics – particularly in the area of alliance-building. They will need to show similar genius in world affairs if they are to counter China’s Dragon.

    Balaji Chandramohan is the Asia-Pacific correspondent of World News Forecast and Editor, Asia, with World Security Network. He is based in New Delhi and Wellington, New Zealand.

    , October 1, 2010

  • Spy fears as Chinese firm eyes NBN deal

    Spy fears as Chinese firm eyes NBN deal

    Maris Beck

    SECURITY experts are alarmed that a company with links to the Chinese military is bidding to supply equipment to the national broadband network, warning that the equipment could be used to spy or launch cyber attacks on Australian governments and businesses.

    The United States’ National Security Agency intervened to block Huawei Technologies’ bids to supply equipment to AT&T last year, threatening to withdraw government business if Huawei was chosen, The Washington Post reported.
    The company also has faced opposition from Indian and British intelligence agencies and Australian security experts are voicing similar concerns as Huawei seeks a slice of the $43 billion broadband roll-out.
    As the rate of cyber attacks on Australian interests intensifies, an intelligence expert at the Australian National University’s Strategic and Defence Studies Centre, Desmond Ball, said he didn’t want to sound alarmist ”but this is the highest order risk that I would see with regard to network vulnerability”.
    Bids by Huawei ”would have to be subject to the closest scrutiny but in the end it would be the government’s responsibility to reject such an involvement”.
    He said the cyber security debate focused on malicious software but more attention should be paid to hardware, which could carry digital trapdoors. Professor Ball said even the most secure cable systems were vulnerable.
    Over the next decade, he said, the US-China relationship would become the most likely source of major international conflict and Australia was a key ally of the US.
    Retired air commodore Gary Waters, a former senior official in the Defence Department who now works for consultancy firm Jacobs Australia, said the government appeared not to be taking cyber security seriously enough. ”The threat is increasing and I think this is one of those threats,” he said, adding that an independent private-sector audit would be required of any foreign company ”where alarm bells could sound on cyber security”.
    Alan Dupont, director of the Centre for International Security Studies at the University of Sydney, called for a robust discussion of the NBN’s security risks, saying: ”This is the critical piece of infrastructure that is going to go down over the next 30 or 40 years … there needs to be a broader discussion of the national security implications.”
    The executive director of national security policy at Verizon in Washington, DC, Marcus Sachs, said malicious software was easy to hide in hardware and any risk assessment should focus on how much a company could be trusted.
    Huawei lost a bid to supply the NBN’s ethernet aggregation equipment and the gigabit passive optical network in June. The contract went to Alcatel-Lucent, a French company.
    Huawei, the world’s second-largest telecommunications network provider, is believed to be preparing bids to supply almost all the equipment the NBN needs. Former Victorian minister Theo Theophanous is lobbying Canberra on Huawei’s behalf.
    Huawei emphasises that it is privately owned and has released details that show its employees own its shares. But links with the military are persistently reported. According to The New York Times, Huawei’s founder and chief executive, Ren Zhengfei, was an officer in the People’s Liberation Army. China analysts say loan credits from China Construction Bank, which were granted to small companies that wanted to buy Huawei equipment, were not necessarily repaid.
    Jeremy Mitchell, public affairs director for Huawei Australia, denied the company was linked to the Chinese government.
    He said Huawei guaranteed that its equipment was safe. Despite intelligence resistance, Huawei has supplied equipment to British Telecom. He said Optus and Telstra already used Huawei’s equipment and about 50 per cent of Australians relied on it. A spokeswoman for Communications Minister Senator Stephen Conroy said the government would ensure that ”national security and resilience issues are addressed in the design and operation of the NBN”.

    http://www.theage.com.au/technology/technology-news/spy-fears-as-chinese-firm-eyes-nbn-deal-20101016-16odq.html, October 17, 2010

  • Erdogan: Iran, Pakistan, Turkey, Afghanistan have common future

    Erdogan: Iran, Pakistan, Turkey, Afghanistan have common future

    Recep Tayyip Erdogan
    Recep Tayyip Erdogan

    ISLAMABAD/TEHRAN – Turkish Prime Minister Recep Tayyip Erdogan has said that Pakistan, Turkey, Afghanistan, and Iran have a common future, and the security of each country is dependent on the security of the others, but the enemies are creating problems for the four countries.

    The Turkish prime minister made the remarks in Islamabad in interview with Hamid Mir, The News reported on Friday.

    Erdogan said the United States was supporting some common enemies of Pakistan and Turkey and the time has come to unmask them and act together.

    The Turkish prime minister insisted that Pakistan and Turkey must play a decisive role in the efforts to stabilize Afghanistan.

    He said that both Pakistan and Turkey had suffered under military dictators who were always supported by the USA, politicians were hanged by military regimes in both countries, and both countries are fighting against terrorism nowadays.

    “We have common problems and common solutions, military dictatorships have always created problems, and democracy is a common solution,” Erdogan noted.

    Asked why no military dictator has ever been tried in the courts of Turkey and Pakistan, he replied, “I don’t support hanging any military dictator, but law must take its action against all those who abrogated the constitution.”

    He also said that some foreign hands are supporting terrorists in Pakistan and Turkey directly and also through some NGOs.

    Erdogan was very hard on the “double standards” of the USA and said that the Israeli attack on a Turkish ship of the Freedom Flotilla unmasked the so-called civilized face of Washington, which openly and shamelessly supported the state terrorism of Israel.

    “Nine Turkish martyrs on the ship received 21 bullets from Israeli soldiers in their bodies. We provided post mortem reports and even the pictures to the EU and USA, but Washington is not ready to condemn the state terrorism of Israel against Turkey, which means that the USA is supporting international terrorists who killed our citizens in international waters.”

    He said that the people of Pakistan should not fight with each other and they must concentrate on helping the 20 million flood victims. “Instability and infighting will only help your enemies, who are looking for an opportunity to use Pakistanis against Pakistanis.”

    Turkey has sent “at least 125 million dollars of aid, both by the government and non-governmental organizations,” said UN Special Envoy to Pakistan Rauf Engin Soysal.

    “We installed 2,000 prefabricated houses near Multan, and a total of 3,000 will be built,” the head of the Turkish Red Crescent, Omer Taslit, said.

    “If you will not understand the evil designs of your enemies, then what will be the future of 20 million flood victims of Pakistan, who will help them if you start fighting with each other,” Erdogan warned.

    “Pakistan is my second home, and I am concerned about the internal situation of my second home,” he added.

    Asked what his advice would be to Pakistan about diplomatic relations with Israel, since Turkey has diplomatic relations with Israel, Erdogan responded very carefully, saying that “despite diplomatic relations, Israel never behaved like a civilized country with Turkey, and I cannot give any advice to my Pakistani brothers; it is their right to decide about making relations with Israel.”

    He went on to say that Pakistan and India must resolve the Kashmir dispute by peaceful talks. “You need strong political will for resolving the Kashmir dispute,” he added.

    Erdogan said Israel will “remain isolated” if Tel Aviv refuses to apologize for killing Turkish human rights activists, Press TV reported on Friday.

    “Israel must apologize to Turkey and pay compensation. If it does not, it will be doomed to remain isolated in the Middle East,” Erdogan added.

  • Turkey Seeks Closer Economic and Strategic Ties with China

    Turkey Seeks Closer Economic and Strategic Ties with China

    Turkey Seeks Closer Economic and Strategic Ties with China

    Publication: Eurasia Daily Monitor Volume: 7 Issue: 186

    October 15, 2010

    By: Saban Kardas

    Chinese Prime Minister Wen Jiabo’s official visit to Turkey on October 7-8, marked a new phase in Turkish-Chinese relations. During the joint press briefing with Wen’s Turkish counterpart Recep Tayyip Erdogan, both leaders emphasized the importance they place on each other in their external relations and called their flourishing ties a “strategic partnership.” The parties signed eight agreements to develop further cooperation in various areas, including trade, transportation and combating terrorism (Anadolu Ajansi, October 9).

    Erdogan preferred to highlight the agreement to switch from dollars to their own currencies in bilateral trade. Turkey also signed a similar agreement with Russia and Iran, its other major trading partners. Through such bilateral agreements, Turkey appears determined to underscore its willingness to pursue independent policies in the global economic and financial order, which has been structured around US primacy. As such, Ankara seeks to readjust to a post-American-led world order, as the existing global order is currently in flux. On many occasions, Turkish leaders have emphasized that the gravity of the global economy has been shifting towards Asia, and that Turkey, which had been traditionally integrated into the Western world, now needs to readjust its economic and political priorities.

    It was therefore no surprise that Erdogan described the decision to use mutual currencies as a step to cement the strategic partnership between China, the economic giant which is likely to dominate the world economy in the years to come, and Turkey, an emerging economy which currently ranks 17th. China and Turkey have been the two major economies recovering rapidly from the global financial crisis, which may precipitate greater coordination between both powers in the context of the G-20 summit and other international platforms.

    However, there remains a major trade imbalance in China’s favor, which Turkey must quickly address. While Turkey’s imports from China were around $12.7 billion, Turkey’s exports amounted to only $1.6 billion in 2009. Ankara’s strategy is to redress this imbalance through the promotion of Chinese investments in Turkey, increasing tourism from China, and gaining greater exposure for Turkish products in China. Through more intensive cultural exchanges within the next three years, Turkey hopes to accomplish the latter objectives (Today’s Zaman, October 9). However, given China’s track record in achieving a positive trade balance with its partners and its low production costs, it remains to be seen how far Turkey can penetrate Chinese markets.

    Erdogan also referred to the prospects of joint projects in energy and nuclear power as yet another aspect of bilateral economic cooperation. Since Ankara signed an agreement with Moscow to construct the country’s first nuclear power plant, preparations have been underway for the construction of additional plants. While Turkey has been in talks with a South Korean company regarding the second plant (EDM, March 24), others, including Japanese companies, have recently approached Ankara on the same issue, raising expectations of growing competition in this sector. Given China’s recent drive to build numerous nuclear reactors, including some of the world’s most advanced, its experience in this field might make it a new entrant into the Turkish energy sector, though there is currently no concrete offer on the table. China has already won various large contracts to build major infrastructure projects, including modern railways in Turkey.

    History also plays a role in these flourishing ties, as references to the idea of reviving the historic Silk Road abound. Earlier, Iran also expressed interest in a similar idea, in the context of the Economic Cooperation Organization (www.irna.com, September 24). The Turkish side has worked on various projects to improve the transportation infrastructure in order that goods could flow easily between China and Turkey as well as through Central Asia (www.trt.net.tr, October 9). Such projects, in Ankara’s view, will also serve as the best remedy to bring stability to volatile Central Asia.

    However, historical factors also emerge as a source of friction in Sino-Turkish relations, as was demonstrated clearly during Wen’s visit. Following Turkish President Abdullah Gul’s historic visit to China in late June 2009, violent clashes in the Xinjiang Uighur Autonomous Region left many Turkic Muslim Uighurs dead in July 2009. Turkish leaders, which had come under pressure for ignoring the plight of Uighurs, moved to criticize Chinese policy in Xinjiang. Erdogan went as far as claiming that the killings amounted to “nearly genocide” (EDM, July 15, 2009). However, in the subsequent period, Sino-Turkish relations rapidly normalized, despite the efforts of the Uighur diaspora in Turkey to pressurize the government (EDM, August 19, 2009). Later, Turkey and China also started discussing cooperation in combating terrorism (Terrorism Monitor, October 1, 2009).

    Since China has represented the Uighur resistance as subversive terrorist activities, possibly with ties to the global al-Qaeda network, such cooperation with Turkey has been deemed valuable. In this context, Wen emphasized during the joint press briefing that they discussed boosting bilateral cooperation in fighting terrorism and extremism. Such talks, ironically, took place while Uighur activists organized demonstrations outside to protest against Wen’s visit and Ankara’s policy towards China (Hurriyet, October 9).

    Ankara’s position on Uighur demands, which might appear as backpedaling, mirrors Turkey’s earlier experience with the North Caucasus diaspora. In order to preserve the flourishing Turkish-Russian bilateral relationship, Ankara adopted a cooperative approach and restrained the activities of the Caucasian diaspora during the second Chechen war, a policy which continues to date (EDM, April 14). In the otherwise strong relationship with China, Uighur pleas for greater recognition are likely to remain a sore point. Yet, the Turkish government seems determined not to let the Xinjiang issue spoil growing economic and political ties with China.

    An apparent indication of this determination came earlier this month, when a Turkish daily reported that in late September and early October, the Turkish and Chinese air forces held joint drills in Turkey’s Central Anatolian province of Konya (Taraf, October 2). Although Turkey refrained from using its more advanced F-16’s and flew only F-4’s upon US expression of concern over protecting sensitive technology, its decision to deepen military ties with China to such a level, the first such exercise China has conducted with a NATO member, reveals much about Turkey’s new strategic priorities.

    https://jamestown.org/program/turkey-seeks-closer-economic-and-strategic-ties-with-china/

  • U.S. Authorities Charge Armenian-Americans In $100 Million Fraud Case

    U.S. Authorities Charge Armenian-Americans In $100 Million Fraud Case

    Preet Bharara
    The U.S. attorney for the Southern District of New York, Preet Bharara, explains the charges against the Mirzoyan-Terdjanian organization.
    Last updated (GMT/UTC): 14.10.2010 07:58
    By Nikola Krastev
    NEW YORK — U.S. law enforcement authorities have announced charges against 44 members of an Armenian-American criminal syndicate in connection with the operation of more than 100 medical clinics that filed some $100 million in fake claims to a government health insurance program

    The lead prosecutor in the case, U.S. attorney for the Southern District of New York, Preet Bharara, said the Mirzoyan-Terdjanian organization — which is named after its two alleged leaders, 35-year-old Davit Mirzoyan and 36-year-old Robert Terdjanian — employed threats, intimidation, and violence and operated in a classical mafia style:

    “The reach of this organization stretches clear across the country and well beyond our shores. And so in terms of profitability, geographic scope, and sheer ambition this emerging international organized crime syndicate would be the envy of any traditional mafia family,” Bharara said.

    Bharara said that the Armenian-American criminal group operated principally out of Los Angeles and New York but had offshoots in 25 states involved in extortion, credit card fraud, identity theft, immigration fraud, and even distribution of contraband cigarettes and stolen Viagra.

    The indictment says most members of the organization were Armenian nationals or immigrants who maintained substantial ties to Armenia. In addition to regularly traveling there, they had criminal connections, transferred criminal proceeds to the country, and bought real estate and businesses with money from their illegal profits.

    Armenian national Armen Kazarian, 46, is identified as the principal leader — the so-called “godfather” of the Mirzoyan-Terdjanian organization. The indictment identifies him as “vor v zakone,” or a thief in the law/code — a powerful figure in the criminal underworld of the former Soviet Union.

    Kazarian immigrated to the United States in 1996 and has received asylum status despite frequently traveling to Armenia and Azerbaijan.

    Prosecutor Bharara said the case is the second time a “vor v zakone” has been charged with federal crimes in the United States but the first time one has been charged with federal racketeering.

    “In important respects, though, this organization was a far cry from the classic Cosa Nostra. For one thing, when it comes to making money illegally, this Armenian-American group puts the traditional mafia to shame,” Bharara said.

    Lavish Lifestyles

    Vaycheslav Ivankov — also known as “Yaponchik,” which means “Little Japanese” — a notorious Russian organized crime figure, was the first “vor v zakone.” He was arrested by the FBI in 1995 on extortion charges.

    Ivankov was convicted and served nine years in a U.S. prison before being deported to Russia. He was gunned down in Moscow in October 2009.

    Janice Fedarcyk, the assistant director in charge of the FBI office in New York, said that U.S. law enforcement authorities are always on the lookout for the next emerging criminal scheme, no matter where it’s coming from.

    “This particular scheme did originate from areas in the former Soviet [Union]. Certainly the vor, the thief in law, has grown of interest to us with the dissolution of the USSR particularly because more information is now available and we are starting to see with the availability of international travel the expansion of some of those criminal schemes over to Europe and the United States,” Fedarcyk said.

    In early October, U.S. law enforcement authorities announced the indictment of 73 individuals from Russia, Ukraine, Kazakhstan, Moldova, and Belarus who they accuse of participating in a complex Internet fraud scheme that targeted the bank accounts of U.S. citizens, businesses, and cities.

    Prosecutors in the Armenian case are investigating whether any of the arrested individuals were in the United States illegally.

    Bharara said almost all of the indicted individuals are from Armenia but wouldn’t say whether Armenian authorities are helping with the case, but said foreign authorities are usually willing to cooperate with the United States.

    The indictment almost reads like a thriller, with lurid details of the criminal defrauding enterprise, the members’ posh lifestyles, and their expensive cars:

    “The indictments in this case talk about phantom doctors, fancy cars, money laundering through [Las] Vegas casino chips, threats to disembowel rivals and more,” Bharara said.

    “That’s the kind of material that makes a great movie. But this is no movie. It is very real and we are using every resource at our disposal and every tool we can find to prosecute those alleged international gangsters.”

    New York City Police Commissioner Raymond Kelly said the criminals conducted their business with remarkable efficiency.

    “And even though it was a very lavish fraudulent scheme, it’s amazing how they were able to maintain a low overhead. They actually did an awful lot of their operations out of a very small office over an auto-body shop on Coney Island Avenue in Brooklyn. And one woman, Galina Vovk was there from early morning to late at night [filling] out all of these [fraudulent claims],” Kelly said.

    Galina Vovk is the wife of Robert Terdjanian, one of the principle leaders.

    If convicted, the defendants face various sentences up to life imprisonment and up to $500,000 fine.

    The office of the Armenian ambassador in Washington D.C., Tatoul Markarian, did not return repeated calls from RFE/RL seeking comment.

    https://www.rferl.org/a/US_Charges_44_ArmenianAmericans_In_100_Million_Fraud_Case/2189811.html