U.S. Arrests Adviser to Aquino in Bomb Case

A friend and adviser of Philippine President Corazon Aquino was arrested here on federal explosives charges stemming from his 1981 activities opposing the regime of ousted leader Ferdinand Marcos, it was disclosed Monday.

Steven E. Psinakis, 55, a Greek-born U.S. citizen who now lives in Manila, was taken into custody when he arrived at San Francisco International Airport Sunday night on a business trip.

A secret federal grand jury indictment, returned last Dec. 2 and unsealed Monday, accused Psinakis of conspiracy and of transporting a bomb across state lines.

Charles Avila, another longtime Marcos foe who now serves as an Aquino-appointee to the United Coconut Planters Bank board of directors, also was indicted on the conspiracy and explosives charges but is in Manila, where he, like Psinakis, moved after Marcos’ ouster by Aquino.

The offenses allegedly took place in 1981 when Psinakis was a U.S.-based leader of the anti-Marcos movement. However, the indictment does not tie the bomb charges to efforts to destabilize the Marcos government.

In late 1981, federal agents searched Psinakis’ San Francisco home and seized detonation cord and other items used in bombs. Avila was at Psinakis’ home when the the raid occurred. At the time, it was reported that the investigation was prompted in part by information supplied by then-President Marcos.

In a brief hearing in federal court Monday, Assistant U.S. Atty. Ben Birch asked that Psinakis be held without bail. The request was granted. U.S. Magistrate Joan Brennan, who scheduled another bail hearing for Thursday.

Psinakis, who pleaded not guilty to the charges Monday, remains in San Francisco County Jail. He returned to San Francisco on at least one other occasion since the indictment but was not arrested at the time in March. Birch attributed it to an oversight by U.S. Customs officials.

“I haven’t the slightest clue,” Psinakis told the San Francisco Examiner, “why they would move against me on a case this old involving my legitimate efforts at that time to help the people of the Philippines free themselves from the Marcos dictatorship.”

During Marcos’ presidency, Imelda Marcos called Psinakis an “assassin,” and he was charged in absentia with a variety of crimes, including attempts to murder Ferdinand Marcos and his family.

In 1981, Marcos complained to the Reagan Administration about Psinakis’ activities and those of other foes, and the federal investigation began. While the investigation remained open after Marcos’ fall, it appeared unlikely that charges would be filed. But with the statute of limitations about to expire, the federal government moved to indict.

Conspiracy Alleged

The indictment charged that beginning on Dec. 18, 1981, Psinakis and Avila conspired with others, including a doctor in St. Louis, to transport explosives from Missouri to San Francisco. The doctor, identified as Arturo Taca, was not charged in the indictment.

However, the indictment says, Taca and others in Missouri bought 10,700 feet of detonation cord, plus blasting caps, and helped ship at least some of the explosives by Greyhound bus to San Francisco.

In Manila, government officials were shocked at the news of the indictment of Psinakis and Avila.

“I guess that’s American justice for you,” one deputy government secretary said. “The wheels of American justice move pretty slow.”

Psinakis, was a successful San Francisco-based businessman whose opposition to Marcos began in the mid-1970s, when the assets of the family of his Philippine-born wife were seized under Marcos-imposed martial law. The assets included the Manila electric company, plus television stations and newspapers valued at as much as $200 million.

Psinakis is also said to have participated in a late-night helicopter rescue of his brother-in-law, Eugenio Lopez, who had been imprisoned by Marcos.

From his base in San Francisco, Psinakis became among the most vocal opponents of the Marcos regime. He assisted a congressional committee and news reporters who looked into assets held in the United States by Marcos, his family and his underlings.

Psinakis also became a close friend and political backer of Corazon Aquino’s late husband, Benigno, during the Aquino family’s self-imposed exile in the United States from 1980 to 1983.

Psinakis was linked by the Marcos regime to a group called Light a Fire, which allegedly was responsible for several bombings during the Marcos years. Psinakis has refused to discuss such activities.

Facing Trial

Benigno Aquino’s murder in 1983 was a key turning point in Filipino sentiment against Marcos. He was shot at Manila International Airport as he returned from self-imposed exile. Military leaders are facing trial in the killing.

Later, Benigno Aquino’s widow, Corazon, emerged as a presidential opponent to Marcos, and Psinakis raised money in the United States for her campaign last year. Marcos declared himself the winner of the election but was forced to flee the country by a popular uprising that resulted in Corazon Aquino’s rise to power. Psinakis was among the first to return to the Philippines after Marcos’ fall.

Still close to Aquino, Psinakis is president of a large Philippine electric company and has helped the commission that is tracing Marcos’ wealth in the United States. Avila was also part of the commission.

Alex Esclamado, publisher of the Philippine News and one of several Psinakis supporters who showed up at Monday’s arraignment, called Psinakis a “freedom fighter” and said he was “the American among all Americans who dedicated himself to bring the case against Marcos.”

“Mr. Psinakis fought hard to bring forth the truth,” Esclamado said.

Dan Morain reported from San Francisco and Mark Fineman from Manila.