14-00000 \ -3- later that year the building it had previously been in was razed by the - owner, KDABBEY-l, From 1964 on it must be assumed that the Soviet _. Embassy in Mexico City believes it is under regular photographic sur- . veillance, \ . Further project changes took place in 1966 when the LILYRIC basehouse was relocated to another apartment with approximately the same view, In May 1968 the LIMITED basehouse was terminated and LIEMPTY-6, the basehouse keeper, retired, This affected the LIENTRAP > “‘eoverage of Soviet véhicular movement monitored and directed from the - LIMITED basehouse. With the.closing of LIMITED and the Station decision to replace Raymond H,. GERENDE, Mexican national contract agent who handled the LIEMPTY Project since its inception, the LIENTRAP mobile surveillance team was underemployed, and the decision was made to move it to the LIEMBRACE Project. This was done in early 1970, soon after GERENDE had been relieved of operational responsibilities in December 1969. The photo processing of the KDFACTOR (formerly LIEMPTY) film take is now being done by the Station, In the past, it was done by the Station, by GERENDE, and by KDFACTOR-I, who was terminated amicably in early 1971, The building housing the KDLITERAL (formerly LICALLA) photo basehouse was purchased in 1957 by KDABBEY-! for the Station. KDLITERAL is in a row of four houses all owned ostensibly by KDABBEY-1! but actually by the Agency. This row also houses a base- house for FID's KDVAULT Project. The apartment building housing the KDABSINTHE (formerly LILYRIC) photo basehouse is owned outright by KDABBEY-1, who has been most cooperative in assisting the Station in ‘maintaining and occasionally moving (1965 and 1966) photo basehouses, The LIMITED photo basehouse was glso located on KDABBEY-I's property when it was active. , The individual basehouse operations are and have always been compartmented one from the other, The only points of breakdown in the compartmentation have been: (a) the LIMITED basehouse was linked to the LIENTRAP mobile surveillance; (0) KDFACTOR-1 was processing films from all the basehouses and could, therefore, be aware of their exact locations; (c) GERENDE was aware of all aspects of the KDFACTOR operation, and ‘has since beén terminated; (d) Oliver G. SCANTLING, Station contract agent retired in 1971, was aware of the KDF ACTOR Project SECRET
14-00000 oO SECRET. i iw =-4- through his past work with LIEMPTY-6 and with GERENDE on KDFACTOR Project activities; and (e) the fact that the two present basehouse properties are owned by KDABBEY-1, who is witting of the locations and general activity of both KDFACTOR basehouses, . 3. Agents -and Case- Officers presently active in the KDFACTOR “ Project: © <As of. March 1972; Oliver J, MANKUNAS is the case officer responsible for handling the operations of KDFACTOR; Bruce H. FERNALD ' is the alternate case officer. The following is a list of active agents in the KDFACTOR Project: A. KDFACTOR-2 (201-136454) DATE OF OA: 27 December 1956 DATE SGSWIRLED: 27 April 1966 PRESENT POSITION: KDLITERAL Basehouse Operator COVER: Accountant for a local bus line - works cover job in the evenings, B. KDFACTOR-5 (201-119961) DATE OF OA: 9 May 1956 DATE SGSWIRLED: 2 March 1966 PRESENT POSITION: KDABSINTHE Basehouse Operator COVER: Industrial engineer - works cover job during the day. C. KDFACTOR-6 (201-167567) DATE OF OA: 16 October 1967 DATE SGSWIRLED: March 1966 PRESENT POSITION: Wife of KDFACTOR-S. . Co-KDABSINTHE Basehouse Operator COVER: Housewife D. KDFACTOR-8 (201-762111) DATE OF OA: 29 November 1965 DATE SGSWIRLED: 3 March 1966 PRESENT POSITION: Son of KDFACTORs-5 and 6. Part-time KDABSINTHE Basehouse Keeper/Operator, COVER: Part-time shopping (shopper) investigator for Sears Roebuck de Mexico. SECRET
14-00000 wa SECRET os -§-. E. KDFACTOR-9 (201-762112) — DATE OF OA: 27 July 1966 DATE SGSWIRLED: 3 March 1966 PRESENT POSITION: Son of KDFACTORs-5 and 6, Part-time KDABSINTHE Basehouse Keeper/Operator, COVER: Medical student F. KDFACTOR-10 (201-254181) DATE OF OA: 14 September 1959 DATE SGSWIRLED: Not tested PRESENT POSITION: Non-salaried. Wife of KDFACTOR-2, 7 (KDLITE RAL), COVER: Housewife ‘ G. KDABBEY DATE OF OA: 28 April 1954 DATE -SGSWIRLED: Not tested PRESENT POSITION: Non-salaried, President of Construcciones Aztlan. Owner and landlord of KDVAULT and KDF ACTOR basehouses, Regarding the security of the above active KDFACTOR agents, - the- KDLITE RAL basehouse is handled by KDFACTOR-2 with the assistance of his wife, KDFACTOR-10. They have a long-time maid and a 13-year- old son who lives with them in the basehouse, Nelther the son nor the maid is believed to be witting. The photographic equipment is kept in a locked room, and the product is kept in a locked safe, KDFACTOR-~2 was recruited by KDCALVERT-1, who is an active, long-term Station agent in the KDCALVERT Project and who is not considered a threat to KDFACTOR-2's | security. KDFACTOR-2's activities are also known to his brother, the former LIPSTICK-47, who was one of the two LIPSTICK surveillance team members arrested in 1958 and who gave the police considerable information regarding LIPSTICK surveillance activities, LIPSTICK-47 was terminated in late 1958 and is believed. to have withheld from the police the information regarding KDFACTOR-2 and the KDLITERAL basehouse, KDFACTOR-2 and his family have occupied the KDLITERAL basehouse since 1957 and have been discreet and security conscious in their dealings with neighbors and relatives, cD RET
14-00000 SECRET So 1 Pd ~§~ ; The KDABSINTHE basehouse is manned by KDFACTOR-5, his wife KDFACTOR-6, and his two sons KDFACTOR-8 and KDFACTOR-9. The, SGSWIRL of 2 March 1966 went into detail on who is witting of KDFACTOR-5's work for the Station, The result was that his immediate family, including a married daughter who no longer lives at the basehouse, are aware of the photographic operation, KDFACTOR-5 was recruited by. LIEMPTY-l2, a U., S. citizen with a private company in Mexico City who. is no longer working with the Station but who ig considered patriotic and no threat to KDFACTOR security. 4, Terminated Agents Possibly Affecting Present Project Security: A. Raymond H. GERENDE GERENDE is a Mexican citizen and was a contract agent until his termination on 26 June 1970, He had been employed by the Station intermittently since 1955 and was used almost exclusively in support activities, Since the start of the LIEMPTY Project in 1958 GERENDE had been directly involved with this project serving as cutout to the basehouses, carrying and processing films, .and giving general direction to the project as principal agent. In 1969, after years of-excellent service with the Station, GERENDE had serious marital problems which ended in separation from his wile, KDFACTOR-7. From December 1969 to June 1970 GERENDE was not used _ operationally but was maintained on half pay with the hope the divorce pro- ceedings would be completed quickly. When it became apparent the divorce would drag on interminably, the Station reluctantly terminated GERENDE and his wife. Bruce H, FERNALD, career agent, met with GERENDE monthly from July 1970 through May 1971 while paying him his termination bonus in ten installments. GERENDE is still living in Mexico City, where . he owns some property and has an income as an English teacher to employees of two local firms, He visited his wife and children in Holland in December 1970. It appears he may now be financially pressed as his English class '. echedule has been cut back. The Station as of 10 April 1972 had no informa- tion that would indicate GERENDE has violated his secrecy agreement, There is an indication that GERENDE came to the attention of the Soviets in 1968; A Mexican walk-in to the FBI office in Mexico City, who was later interrogated by the Federal Security Police in 1970, said that in 1968 he had been employed by the Soviet Embassy Second Secretary, Oleg Masksimovich Nechiporenko (20!-305870), to investigate persons working with the Mexican Olympic Committee. The persons investigated SECRET