Engineer Indicted in Export Case Described as Brilliant

A brilliant but moody engineer and an avid sailor was how friends and former employees described Richard K. Smyth, a Huntington Beach businessman indicted Wednesday by a federal grand jury for allegedly shipping restricted timing devices used in atomic weapons to Israel.

Smyth, who is in Europe on business, is scheduled to surrender to federal authorities May 28 in Los Angeles.

“I’m just astonished” at the indictment, said Orange County Municipal Judge Brian Carter, who has known Smyth for about 20 years and serves on the board of directors of Smyth’s company, Milco International Inc. of Huntington Beach.

Carter said company officials were well aware that the government had been investigating Milco’s exports for years after Smyth himself called authorities. “This thing (the exports to Israel) originally came to light after a burglary” in 1978 or ’79 when computer discs were stolen from Milco’s headquarters.

Carter said Smyth, who works as a computer and engineering consultant, not only called local police but alerted Air Force officials that security might have been breached.

Carter said Smyth is in Belgium attending a North American Treaty Organization meeting in his capacity as consultant to the Air Force. Business associates said it was well known that Smyth had a high-level government security clearance.

Carter said he met Smyth while they were both working at Rockwell International Corp. The two sailed to Honolulu on Carter’s yacht several years ago, and Carter said Smyth was an expert sailor and former commodore of a Huntington Beach yacht club. “Smyth intends to appear in court and fight this,” said James Riddet, Smyth’s Santa Ana attorney. He said U.S. Justice Department officials allowed Smyth and his family to leave the country on a long-planned trip because Smyth promised to return.

Riddet said Smyth had no financial incentive to export the devices illegally. “I think this entire thing netted him less than $20,000,” said Riddet.

Although Smyth’s wife Emilie and daughter Dawn are listed as corporate officers, Riddet said “he is the company.”

Riddet said there is “no question” Smyth failed to correctly ship the electronic timing devices called krytrons. But, “Smyth looked into it and was convinced that a validated license was not required,” Riddet said.

Randy Smyth, one of Smyth’s five children, made headlines last summer by winning a silver medal in the Olympic sailing competition for Tornado class sailboats.

Judge Carter said Smyth’s wife Emilie is a schoolteacher in Huntington Beach. Daughter Gretel Siler is listed as chief financial officer of Milco and daughter Dawn Smyth is listed on state corporation records as “export business manager.”

A former Milco employee said Smyth was high-strung and moody but regarded as a talented engineer whose services have been sought by the government and private industry.

Smyth worked at Rockwell International Corp. on two occasions for a total of 17 years. A Rockwell spokesman said Smyth at one time worked for Rockwell’s Autonetics division in Anaheim. He said Smyth was in management but declined to specify his job title or duties.

Documents filed with the Secretary of State show that Milco International was incorporated on Jan. 19, 1973. Smyth owned another company called Micro Secom Systems Corp., which was incorporated in December, 1975. According to state Department of Corporations records, Milco International conducted “technical state-of-the-art surveys and studies” and did some product design. Micro Secom, a wholly owned subsidiary, exported “chemicals, electronics and other industrial products.”

In a June, 1983, filing with the state, Milco stock was held by Dr. Bruce H. Billings of Long Beach; Robert Mainhardt, president of Trebor Corp., a Dublin, Calif.-based electronics company, and two others. None of the other stockholders could be reached for comment.

According to the most recent financial figures on file with the state corporations department, Milco had total sales of $1.2 million and net income of $62,000 for the seven months ended April 30, 1983. For the year ended Sept. 30, 1982, the company reported sales of $2.3 million and net income of $45,710.