MEMO FOR: F1 PROJECT KDFACTOR, SECURITY REVIEW
Originator: CIA
From: CHIEF WESTERN HEMISPHERE DIVISION
To: ASSISTANT DEPUTY DIRECTOR FOR PLANS
Document date: 04/17/1971
Document type: PAPER - TEXTUAL DOCUMENT

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2022 RELEASE UNDER THE PRESIDENT JOHN F. KENNEDY ASSASSINATION RECORDS ACT OF 1992

st KET

09

1. 7 APF: 15223

MEMORANDUM FOR: Assistant Deputy Director for Plans

02

SUBJECT

: FI Project KDFACTOR, Security Review

REFERENCE

ADDP Memo (DD/P 1-5899) to C/WHD dated

14 December 1971) 09

1. In response to reference the following is a summary of the

KDFACTOR security review:

02

The Station summary of the KDE ACTOR Project security is

as follows:

""There were no known problems of security relating to

the Project. In response to the Headquarters request, we have

reviewed all phases of the operation and believe that Project

security is sound. The Project assets have all been with us for

many years and have established themselves as respectable long-

time residents of the area. All five assets, four in one family

and one in another, are extremely security conscious and have

all been SGSWIRLED. The assets derive a substantial portion

of their livelihood from their Agency employment and would thus

lose a great deal if security factors ever necessitated a termina-

tion of their work for us. As an additional safeguard, the

02(KDLITERAL and (DABSINTHE operations are compartmented

from each other, and there has never been any indication that

either segment of(KDFACTOR knows of the other's existence".

o2 The Headquarters desk has also reviewed the security of the

KOFACTOR Project and agrees with the Station that the security

1s sound. In fact, as presently constituted, the KDFACTOR

Project is well compartmented, and each of the two KDF ACTOR

photo basehouse's (KDLITERAL and KDABSINTHE) is run by long-

term assets who draw a minimum of suspicion in their operational

activities. Terminated assets could possibly expose the existence

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of this project, but that seems unlikely from the Headquarters

review of terminated agents witting of present (KOFACTOR

operational activities. A Soviet investigation of property owner-

ship around the Soviet Embassy and their awareness that the

Soviet Embassy was under photographic surveillance in the past

could result in a Soviet investigation of the activities and contacts

Of (KDABBEY-l, the owner of an apartment building and four

houses close to the Soviet Embassy. It is doubtful that(KDABBEY-l's

activities, which do not inter-relate with the activities of the

ORDFACTOR agents, would in any way expose the (RD)FACTOR

Project operational activities.

2. A brief history of the KDFACTOR Project:

z

The KDF ACTOR Project had its origins in the LERSEY

and LIPSTICK Projects, both active in the mid-1950)g. In 1958, after

the arrest of two LIPsTick surveillance team members, it was decided

to break off the more sensitive, uncompromised LIPSTICK assets manning

and supporting two basehouses for photo surveillance of the Soviet Embassy.

These assets were consolidated with one photo basehouse against the Soviet

Embassy and one surveillance team from the LWERSEY Project into a new

which was approved on 16 January 1969,0f The LEMPTY

Project, renamed the RDFACTOR Project in 197), consisted of three photo

basehouses, two viewing the front of the Soviet Embassy (LIMITED and

LILYRIC) and one viewing the rear garden of the Soviet Embassy (LICALLA):

plus a mobile surveillance team (LIENTRAP) tied closely with the LIMITED

basehouse, which was the radio control point for dispatch of the LIENTRAP.

In 1959 the LIENTRAP surveillance vehicle and two team

members were arrested at the scene of a Cuban demonstration in Mexico

City. A Station review of the security implications of this incident stated

that it did not materially affect the security of the project nor expose any

of the LIEMPTY basehouse operations. (Note: As the basehouse operations

were compartmented, the only exposure possible from this incident would

have been of the LIMITED baschouse, which is no longer in existonee.)

The LIEMPTY Project operated substantially as above until

the Warren Commission report was published in late 1964. In this publica-

tion was a picture of a person entering the Soviet Embassy taken from the

LIMITED basehouse. The LIMITED photo basehouse was closed in Sept-

ember 1964, and all photographic surveillance was suspended as a security

precaution.

In January 1965 the LIMITED basehouse was relocated, and

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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

coverage of Soviet vehicular 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 LEMBRACE Project.

This was done in early 1970,0 soon afte

GERENDE had been relieved of operational responsibilities in December

1969.

The photo processing of the &DFACTOR (formerly LIEMPTY)

film take is now being done by the station. In the past, it was done by

the Station, by GERENDE, and by (KD)F ACTOR-1, who was terminated

amicably in early 19(1) @ The building housing the KDLITERAL (formerly

LICALLA) photo basehouse was purchased in 1967) by (DABBEY-1 for

the Station.

•KD)ITERAL is in a row of four hotises all Owned ostensibly

b}KDABBEY-L,but actually by the Agency.. This row also houses a base-

house for FID's KDVAULT Project. The apartment building housing the

02 (KDABSINTHE (formerly LILYRIC) photo basehouse is owned outright by

o2 KDABBEY-I, who has been most cooperative in assisting the Station in

maintaining and occasionally moving (1965 and 1966) photo basehouses.

The LIMITED photo basehouse was also located onKDABBEY-l'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; (b) BDF ACTOR-1 was processing

SCANTLING,

sparo contract agent retread in Ta roas aware or the Cy ACTOR Project

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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 KDF ACTOR basehouses.

3. Agents ánd Case Officers presently active in the KDFACTOR

Project:

As of March 1912, Olver J. MANKUNAS iS the case ofticer

responsible for handling the operations of RDFACTOR; Bruce H. FERNALD

is the alternate case officer. The following is a list of active agents in the

(KD)FACTOR Project:

02

08

A. (KDFACTOR-2 (201-(36454))

DATE OF OA: 27 December 1856)09

DATE SGSWIRLED: 27 April 1966

PRESENT POSITION: KDLITERAL Basehouse Operator

COVER: Accountant for a local bus line - works cover

job in the evenings.

02

B. (KDFACTOR-5 (201-Q19961))

DATE OF OA: 9 May 1956) 09

DATE SGSWIRLED: 2 March 1966

PRESENT POSITION: KDABSINTHE Basehouse Operator

COVER: Industrial engineer - works cover job during

the day.

C. @DFACTOR-6 (201-(67567))

DATE OF OA: 16 October 1967

DATE SGSWIRLED: March 1966 02

PRESENT POSITION: Wife of(KDFACTOR-5.

CORDABSINTHE Basehouse Operator

COVER: Housewife

D. (KDFACTOR-8 (201(762111))

DATE OF OA: 29 November 1965

DATE SGSWIRLED: 3 March 1966. 2

PRESENT POSITION: Son of EDF ACTORs-5 and 6.

Part-time BDABSINTHE Basehouse

Keeper/Operator.

COVER: Part-time shopping (shopper) investigator for

Sears Roebuck de Mexico.

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E:

DFACTOR-9 (201(62112))

DATE OF OA: 27 July 1966

DATE SGSWIRLED: 3 March 1966

PRESENT POSITION:

Son of (KD)F'ACTORs-5 and 6.

Part-time KDABSINTHE Basehouse

Keeper/Operator.

COVER: Medical student

F. KDRACTOR-10 (201-254181)

DATE OF OA: 14 September 1960J°8

DATE SGSWIRLED: Not tested

02

PRESENT POSITION: Non-salaried. Wife of KDFACTOR-2,

COVER: Housewife

(BOLITE RAI).

G. (KDABBEY

09

DATE OF OA: 28 April 1954)

DATE SGSWIRLED: Not tested

PRESENT POSITION: Non-salaried. President of

60 Construcciones Aztlan. Owner

and landlord of(KDVAULT and

•2(KDFACTOR basehouses.

Regarding the security of the above active KDF ACTOR agents,

the (KDLITERAL 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. Neither the son nor the maid

is believed to be witting. The photographic equipment is kept in a locked

room, zand the product is kept in a locked safe. KDFACTOR-2 was recruited

by KD,CALVERT-1, who is an active, long-term Station agent in the

o KOCALVERT Project and who is not considered a threat to DFACTOR-2's

security. KDF ACTOR-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

rearmy lo stock surveillance activities.

LIPSTICK-47 was terminated

in lie 1958 and is believed to hage withhold from the police the information

reguding KDEACTOR-2 and the KDLITERAL baschouse KDFAC'!'OK-2

and his family have occupied the KDLITERAL basehouse since 1957) yid

have been disercet and security conscious in their dealings with neighbor's

and relalives.

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The KDABSINTHE basehouse is manned by KDF ACTOR-5, his

wife KDF ACTOR-6, and his two sons (KDF ACTOR-8 and KDF ACTOR-9.

The SGSWIRL of 2 March 1966 went into detail on who is witting of

02(KDF ACTOR-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."

.4KDFACTOR-5 was recruited by

LIEMPTY-12, a U. S. citizen with a private company in Mexico City who

is no longer working with the Station but who is considered patriotic and

no threat to EDF ACTOR 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 wife,

02(KDF ACTOR-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.

t, met with GERENDI

nonth om to hour May can saying tie his terminatior

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

hout appears hemay no be satcoally pres as his is classma

lion that would indical GERENDE has violated his secreey agreemen.

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 (201-305870), to investigate persons

working with the Mexican Olympic Committee. The persons investigated

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included GERENDE, who apparently became a specific target of Soviet

investigation.

It is unclear from the report of the Federal Security Police

how far the Soviet investigation of GERENDE had proceeded. Nechiporenko

was PNG'd from Mexico in March 1971. GERENDE's possible exposure to

the Soviets could have been through his work on the Olympic Committee as

a translator or through his work for the Station, which used him for a wide

range of support tasks against the Soviet and Cuban targets.

02

B.

KDF ACTOR-7 (wife of GERENDE)

KDF ACTOR-7 is a Dutch citizen and the former wife of

GERENDE. She returned to the Netherlands in July 1970 with her children.

She had served as a support agent assisting GERENDE. She is believed

witting, in general terms, of GERENDE's activities regarding the DEACTOR

Project.

She was terminated on 26 June 1970)and signed both a secrecy

agreement and quit claim. After termination it became apparent that she

had considerable hard feelings toward both the Agency and GERENDE over

financial problems between her family and GERENDE. While the Station

was not directly involved in all the financial problems, the Station was

involved in regard to her divorce claims against GERENDE's salary, a

large part of which came covertly from the Station. In July 1970 BOFACTOR-'

came to the Agency Headquarters and complained about her financial settle- :

ment. In September and November 1970 she wrote two letters directly to

the Agency on the same subject. In late 1970 she also asked a Hague Embassy

political officer to put her in contact with the Agency; however, she did not

tell him the nature of her business. In January 1971 the Agency contacted

02(KD)F ACTOR-7's brother, a U. S. Army civilian with a "Top Secret" clearance

living in Alexandria, Virginia, and was able to resolve the financial mis-

understandings with (KDFACTOR-7. In January 1971 the Hague Station) 15-6

reported KDF ACTOR had, without,Station influence, obtained a job as social

secretary with the Department of State at the Embassy. It is believed that

this job has probably solved many of her financial problems and should also

inhibit her from exposing her past work with the Mexico City Station, as

such exposure could jeopardize her job. The Embassy in the Hague was

briefed in general terms on (DrACTOR-T's lackground.

C. GEDFACTOR-I

KDF ACTOR-1 is a Mexican citizen and the brother-in-law

of GERENDE.

He was hired by the Station in 1956)to assist GERENDE in

processing the photographic take of the KDFACTOR Project (at that time

the LIPSTICK Project and later the LEMPTY Project). @O)FACTOR-1

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was later assisted in processing the photographic take by his wife,

LIEMPTY-5,

who is GERENDE's sister. (KDF ACTOR-1 was terminated

in March IS7D "and the photographic processing previously done by

•2(KDTACTOR-1 is now done in the Station. The termination was amicable

and largely due to delays in film processing as (KDF ACTOR-l's medical

practice expanded. There does not appear to be any security problem

in the termination of (KDFACTOR-1 as he is discreet and also a close

relative of GERENDE:? The security of processing the film in KDFACTOR-1'

medical office was good as KDFACTOR-l's wife, LIEMPTY-5, was assist-

ing him with the processing and with the security of the darkroom.

D. LIEMPTY-5

09

02

LIEMPTY-5 was hired by the Station in 1957)to assist

(KDF ACTOR-1 with the processing of KDF ACTOR films. She is the sister

of GERENDE and wife of &DFACTOR-1.°She was terminated along with

02 KDFACTOR-1 in March 197D Due to her close relationship with GERENDE

and KDFACTOR-1, she is not considered a threat to the Project Security.

"E. Oliver G. SCANTLING

09 SCANTLING is a Mexican citizen who worked as a Station

agent from 1964 until his termination without prejudice in February 1917D) 08

SCANTLING is in an excellent financial position and has assisted the

Station in recent years largely because his strong motivation to work

principal agent for GERENDE. SCANTLING's termination was amicable,

and he is not considered a security problem to the Station or the DE ACTOR

Project.

F. LIEMPTY-6

LIEMPTY-6, a Mexican citizen and long-term Station

asset, was retired in May 1968. He had manned the LIMITED photo base-

house with his wife and son assisting him. He had been working with the

Station since 1964p9but age and ill health had reduced his efficiency.

LIEMPTY-6 knows GERENDE and SCANTLING, but is not aware of the

names or locations of any of the present KDF ACTOR agents and basehouses.

While he could give information on his participation in RDFACTOR activities

up to 1968, he has no motive to do this and is apparently happily retired on

his Agency termination bonus plus some financial assistance from his son-

in-law. He is not considered a threat to the security of this Project.

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There was one indication that the Soviets were seeking

out the LIMITED photo basehouse and may have had suspicions concerning

LIEMPTY-6. This was a report by(kDADAGE-10 that in mid-1966 Stanislav

Sergeyevich

Silnikov (201-271103), a Soviet Embassy guard, asked RDADAGE

10 to report on his neighbors near the Soviet Embassy. Silnikov expressed

interest in all the occupants of the new apartment building which houses the

o2 KDABSINTHE photo basehouse, but did not mention the KDABSINTHE base-

house keepers by name. Silnikov did name specific persons he was inter-

ested in and these included LIEMPTY-6.

•(KDADAGE-10, of unknown

reliability, said he did not give Silnikov any information, but added that,

between himself and the Station, he suspected LIEMPTY-6 and had heard

it rumored he worked for the Americans. In 1966 Headquarters already

assumed the Soviets were aware of the LIMITED basehouse because it was

used for radio direction of the LIENTRAP mobile surveillance. In any case,

the Soviets apparently took no action prior to the closing of the LIMITED

basehouse and the relocation of LIEMPTY-6 in May 1968.

It is believed

this incident has no implications that would threaten the security of current

KDFACTOR assets.

5. Current (DE ACTOR Security Practices:

02

02

The two photo basehouses, (KDLITE RAL and KDABSINTHE

remain compartmented, as they have been throughout the history of the

u2 (KDFACTOR-5, responsible for the (DABSINTHE basehouse. In these

meetings he picks up the product, provides new supplies, pays salaries

and handles miscellaneous administrative matters.

These are car meetings

usually held in early morning or at night and the pickup points are changed

regularly. Meeting time is kept to a minimum and meetings are pre-

scheduled whenever possible. The photographic product is processed in

the Station, thus increasing the security and timeliness of its handling

over the past practice of having KDF ACTOR-1 process it in his office

dorever, in the rase discer on witten mit me ers 2 he bas house

can be contacted and met. In case the present sites or personnel are com-

promised, the Station has rented another apartment in the building housing

the KDABSINTHE basehouse and has installed members of the KDCALVERT

Project as residents. This new apartment oilers as good a vantage point

SECRET

ADDP MEMO of 14 December 1972-

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luz' photographic coverage as the (KABSINTHE and could quickly be

activated if for any reason the KDABSINTHE basehouse becomes

untenable.

Then thackley

Theodore G. Shackley

Chief

Western Hemisphere Division

NOTED:

Weller le.

12 Wa, 72

SECRET

ADDP MEMO OF 14 December 197k W

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