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Viewing cable 06ZAGREB105, NO MORE GOOD VIBRATIONS EMBASSY ZAGREB AFU

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Reference ID Created Released Classification Origin
06ZAGREB105 2006-01-26 10:28 2011-08-25 00:00 UNCLASSIFIED Embassy Zagreb
This record is a partial extract of the original cable. The full text of the original cable is not available.
UNCLAS ZAGREB 000105 
 
SIPDIS 
 
DEPARTMENT FOR CA/FPP  J. JONES AND J. CARSON 
POSTS FOR FRAUD PREVENTION MANAGER 
 
E.O. 12958: N/A 
TAGS: CVIS KFRD HR
SUBJECT: NO MORE GOOD VIBRATIONS  EMBASSY ZAGREB AFU 
UNCOVERS VIBROFLOORS L-VISA FRAUD RING 
 
1.  SUMMARY.  American Embassy Zagreb's consular Anti-Fraud 
Unit has discovered that a U.S. company, Vibrofloors World 
Group LLC of Fayetteville, GA, has facilitated fraudulent 
L-1 and B-1 visa issuances for a large number of tile 
layers and floor installers from Croatia and a smaller 
number from Poland.  The alleged sister company in Croatia, 
Vibrofloors Croatia, exists of little more than a doorbell 
in a south Zagreb apartment building.  Once in the United 
States, workers are paid cash for physical labor, laying 
floors in and around Atlanta, GA.  The company's president, 
, 
a Croatian national, has been found ineligible for visa 
issuance as an alien smuggler.  END SUMMARY. 
 
2.  A U.S. company, Vibrofloors World Group LLC, from 2000 
to 2005 recruited approximately 37 individuals from Croatia 
and Poland to enter the United States on L-1 and B-1 visas 
to install floors and floor tiling in and around Atlanta, 
GA.  The company's president, Mario Cvitkovic, established 
a shell company, Vibrofloors Croatia, and coached workers 
to claim they were traveling to train U.S. workers on a 
laser-guided floor installation procedure to facilitate L-1 
and B-1 visa issuance.  Numerous current and former 
employees have told post's consular Anti-Fraud Unit that 
they worked exclusively in the United States and that they 
performed only physical labor  floor tile installation. 
 
3.  The fraud ring began in the mid-1990s with an 
apparently legitimate Germany company, ACSS Vibrofloors 
GmbH, which patented a procedure for installing floor 
surfaces that would withstand heavy vibrations common in 
industrial processes.  A German national, Markus 
Steinbrecher (02-DEC-1967 GER), and a Croatian national, 
Mario Cvitkovic (26-MAR-1960 HRV), established a U.S.-based 
derivative, Vibrofloors World Group LLC, in 2000. 
Cvitkovic took out a Croatian newspaper ad in 2000 seeking 
Croatian men interested in work in the United States. 
Between 2000 and 2005, he brought approximately 37 workers 
and their families to the United States on L-1 and B-1 
visas.  A former employee describes Cvitkovic as a "good 
guy who helps Croatians work in the United States." 
 
4.  Four egregiously unqualified beneficiaries associated 
with Vibrofloors World Group LLC applied for L-1 visas in 
Zagreb in January 2006.  Each admitted that he had 
previously entered the U.S. on a B-1 visa to accept 
employment from Cvitkovic as a floor installer.  Each 
admitted he was only a physical laborer.  Three spoke no 
English and two acknowledged they had never worked for 
Vibrofloors World Group outside of the United States.  Post 
opened a fraud investigation on Vibrofloors' activities in 
Croatia. 
 
5.  Vibrofloors Croatia does not provide goods or services 
or engage in commerce of any kind.  No current or former 
employee could name a project or contract on which 
Vibrofloors Croatia had worked.  Most employees admitted in 
interviews that Vibrofloors does not operate in Croatia but 
only in the United States.  According to commercial court 
records, Vibrofloors Croatia was set up in 2000; however, 
when post's Anti-Fraud Uunit visited Vibrofloors Croatia's 
headquarters, it found only a private apartment in south 
Zagreb. 
 
6.  Current and former employees of Vibrofloors World Group 
paint a clear picture of the company's activities in the 
United States.  Approximately 20-25 current workers are 
divided into installation teams of 5-7 workers who install 
floors and floor tiles in Georgia, mostly for car 
manufactures including BMW and Lexis.  Most have no 
specialized training and have no knowledge of the company's 
organization.  Cvitkovic personally pays workers between 
$3,000 and $5,000 a month in cash, though several employees 
have told us Cvitkovic stopped paying salaries in mid-2005. 
Workers are lodged in various hotels, frequently moving 
among Super 8 and Red Roof Inn motels.  No employee could 
correctly state his U.S. address.  Company documents list 
two addresses: 135 Walter Way; Fayetteville, GA 30214 and 
1415 Highway 85 North; Fayetteville, GA 30214. 
 
7.  Post found Mario Cvitkovic (AKA Zeljko Cvitkovic, 26- 
MAR-1960 HRV/ASTL) ineligible for L-1 visa issuance under 
212(a)6(E) for offering aliens employment where they would 
not enter the United States legally to accept the 
employment,.  Four pending L-1 applications have been 
forwarded to DHS with recommendations for petition 
revocation.  Post's Anti-Fraud Unit is reviewing all cases 
of applicants previously issued L or B visas and believed 
to be already in the United States and will cable 
recommendations for visa revocation septel.