High-Tech Equipment Sought by Czechs : Two Accused of Illegal Export Scheme

The Commerce Department moved Thursday to deny export privileges to two California businessmen accused of attempting to export high-quality semiconductor manufacturing equipment to Czechoslovakia illegally.

But one of those charged in the scheme--William Dart, president of Santa Clara-based Display Systems Inc.--vehemently denied the charges, saying that he and Josef Kubicek, owner of Exclusitrade in Redondo Beach, are the victims of “an incredibly inept entrapment scheme” by the government.

Dart said that he and Kubicek plan to appeal the government decision to federal court. The ruling would deny them export privileges for up to 30 years and levy fines totaling $450,000.

Kubicek and Dart were charged with upgrading two pieces of equipment used in manufacturing semiconductor chips to a level that violated rules designed to prevent Eastern bloc countries from obtaining high-tech equipment useful for military purposes.

Judge Absolved Pair

Originally, a governmental administrative law judge who heard the case ruled that the exporters had not violated the law. But the decision was overruled by Paul Freedenberg, Commerce Department assistant secretary for trade administration.

Freedenberg referred questions to Theodore W. Wu, his deputy for export enforcement, who defended the decision. “After reviewing the record, the assistant secretary decided to reject the law judge’s decision,” Wu said. “This is not the first time that has happened.”

Kubicek could not be reached for comment.

But Dart said that neither he nor Kubicek attempted to evade the government rules preventing exports of certain equipment to Communist countries that might endanger the national security.

Dart said Kubicek bought two used silicon wafer polishers that can legally be sold to Czechoslovakia without an export license. The equipment, which was stored temporarily in a warehouse owned by Dart, was sent to a now-defunct firm for refurbishing and that company was asked to ensure that it did not violate the government’s standards, he said.

Entrapment Charged

But, Dart said, government officials enlisted the head of the refurbishing company in an effort to entrap Kubicek, a Czech expatriate, in an illegal export scheme. Relying on wiretaps, Commerce Department officials concluded that the two businessmen were attempting to falsely portray the quality of the equipment they were attempting to export.

But Dart said the law judge who heard the case decided that they were innocent because the phone conversations showed that they never knew that the polishing equipment was being improved to a capability that violates national security export rules.

“I’m stunned,” Dart said in describing his reaction to the Commerce Department decision overruling the law judge. “They gave no reason for reversing the decision.”