Owner of Aviation Supply Firm Focus of L.A. Probe

An official of a North Hollywood business that federal agents suspect of illegally supplying helicopters and spare parts to North Korea is under investigation by Los Angeles authorities for allegedly threatening a former employee to try to prevent him from disclosing illegal business practices.

The investigation of Ronald H. Semler, 41, identified by authorities as an owner of Associated Industries of North Hollywood, an aviation and electronics supplier, is described in an affidavit filed earlier this month in Los Angeles Municipal Court. The affidavit was sworn by Jack Horvath, an investigator for the Los Angeles County district attorney’s office, in support of a warrant to search Semler’s Malibu ranch and two Associated Industries offices. No charges have been filed against Semler.

The investigator’s affidavit alleges that Semler, through an employee, threatened to kill a former financial officer of Associated Industries who knew that company officials had falsified business records relating to corporate taxes and the sale of helicopters to Nigeria.

Martin L. Schneider, a former company controller who reported threats on his life to authorities in early January, was beaten outside a North Hollywood restaurant last Jan. 17 following a meeting with Garret T. Muranaka, identified in the affidavit as an employee of Associated Industries.

Muranaka, 41, of Van Nuys was arrested during the assault by Horvath, who had monitored the meeting. Muranaka has been charged with attempted extortion and assault by means of force likely to produce great bodily injury. A preliminary hearing is scheduled for March 11 in Los Angeles Municipal Court.

Assault Explained

The assault on Schneider was ostensibly part of an effort by Semler to collect a 4-year-old debt of $800, the affidavit said.

However, Horvath wrote, “ . . . The collection of the monies owed by the victim was not the only motive for the assault. It is felt that the true reason for the assault was to intimidate and terrorize the victim into not telling governmental authorities about Ronald Semler’s illegal business practices.” Those practices apparently are not directly related to a continuing investigation by the U.S. Department of Commerce.

Neither Schneider nor Horvath would discuss the case with The Times.

Muranaka could not be reached for comment. Neither his attorney, Harry E. Weiss, nor Semler returned any of repeated telephone calls.

Associated Industries is one of three companies under investigation by the Department of Commerce for illegally diverting to North Korea as many as 87 helicopters manufactured by Hughes Helicopters Inc., based in Culver City, as well as spare parts and accessories, according to a previously disclosed affidavit filed last month in U.S. District Court.

Associated Industries is the business name of a California corporation that is legally registered as Arnold A. Semler Inc. The company has been the agent for the sale of Hughes helicopters in Nigeria and sells aircraft, radar and other specialized electronic devices to customers in the United States and abroad, according to documents filed in connection with several civil lawsuits. Arnold Semler is Ronald Semler’s father, according to the court documents.

Clientele Varied

Associated’s clients, according to the court records, have included the Turkish army, the government of Taiwan and the International Telephone and Telegraph Co.

The federal search warrant affidavit, sworn by a Commerce Department agent, states that Associated is suspected of shipping at least five Hughes helicopters and a large number of parts and accessories to a West German company that, the agent believes, illegally diverted those and other aircraft to North Korea. The West German company, Delta-Avia Fluggerate GmbH, is an agent for the sales of Hughes helicopters in Europe.

“Documents from Hughes and United States Customs,” the federal affidavit states, “indicate that Associated Industries has purchased helicopters from Hughes under false pretenses, and has exported them along with a large quantity of related equipment to Delta in Europe. Some or all of this equipment was likely transshipped in Europe to its final destination in North Korea.”

Under federal law, it is illegal to export nearly any U.S.-made goods to North Korea, Cuba and several other countries without a special export license. Knowingly doing so is a felony punishable by a fine of up to $250,000 and 10 years in federal prison.

Investigation Continues

Asst. U.S. Atty. Jeffrey Modisett said last week that the federal investigation of Delta, Associated and another Los Angeles-area company is continuing and that it has “a high priority in this office.” No charges have yet been filed in the case.

According to the search warrant affidavit and other documents filed in Los Angeles Municipal Court, Associated Industries’ former controller, Schneider, told authorities this story:

After Schneider began working at Associated in January, 1981, Ronald Semler twice asked him to alter the company’s financial records improperly. Once, Schneider said, he was asked to change a purchase order for the sale of helicopters to the government of Nigeria to inflate the price that the company had paid for the aircraft. That would allow Associated to pay its Nigerian agent a smaller commission.

On another occasion, Schneider told investigators, Semler asked him to change figures in an audit of company business transacted outside the United States. Schneider determined that Associated conducted about 70% of its business outside the country. But, according to Schneider’s account, Semler asked him to change the figure to 95% in order to qualify the company for a special tax benefit.

Records Changed

Schneider told authorities that he refused to make the changes but that the records eventually were altered by others.

When Schneider left Associated in June, 1981, he told investigators, Semler initially refused to give him $2,000 in back pay. In order to get the money, Schneider said, Semler forced him to sign a promissory note for $800.

Schneider declared personal bankruptcy in 1982 and never paid off the note.

He told authorities he heard nothing more about the note until February of last year, when a man who said his name was Gary walked into Schneider’s office, identified himself as a friend of the Semlers, and said: “You owe them some money and you have some information regarding their operation. They want you to know that you better leave California and pay back the money you owe them or we will kill you. We know where you live.”

Schneider subsequently called Ronald Semler, the investigator’s affidavit states, and told him that he did not intend to pay the debt. Semler is quoted in the court documents as replying, “Whatever will happen, will happen.”

Threatening Calls

Over the next 10 months, Schneider said, he received between five and 10 telephone calls threatening him with harm if he did not pay off the note.

Early last month, Schneider told authorities that he again tried to contact Semler at his office to discuss the continuing telephone threats. Schneider said he was referred by an office secretary to Muranaka. The men arranged a meeting to discuss the debt on Jan. 17. During the meeting at Rusty’s Hacienda in North Hollywood, Schneider said, he recognized Muranaka as “Gary,” the man who had first threatened him the previous February.

Schneider said that he and Muranaka were unable to come to terms, that Muranaka followed him out of the restaurant and attacked him. Investigator Horvath arrested Muranaka, but, according to the affidavit, not before he had beaten Schneider into unconsciousness.