Jury Convicts Couple in Illegal Exports to Libya

A federal court jury Friday convicted a Louisiana couple of exporting oil field equipment to Libya in violation of a U.S. embargo on trade with the North African country, which has been charged by President Reagan with sponsoring terrorism.

After about a day and a half of deliberations, jurors convicted Cheryl Smith, 37, and her husband, George Smith, 50, on all 11 counts contained in a federal indictment handed down in January. The charges included conspiracy to defraud the U.S. government through the illegal export of goods and making false statements to conceal those exports.

Despite the protests of defense attorneys, U.S. District Judge Rudi M. Brewster ordered the Gretna, La., couple held in custody until their sentencing Jan. 19, an action that drew sobs from a stunned Cheryl Smith. Each defendant faces a maximum penalty of 80 years in prison and a $2.7-million fine.

The verdicts against the Smiths, along with an earlier guilty plea by a Scottish businessman involved in the shipment scheme, mark the first convictions under the trade embargo imposed by Reagan in February, 1986. The embargo came in the wake of terrorist attacks against the Rome and Vienna airports that the U.S. blamed on Libya.

Complex Case

Assistant U.S. Atty. Phillip L. Halpern, who prosecuted the complex case, said he was “very, very gratified” by the verdicts and had high praise for the jury.

“I think they carefully sifted through the facts of the case and were not swayed by (defense attorneys’) emotional pleas concerning the government,” Halpern said.

Judy Clarke, who represented Cheryl Smith, said she was disappointed, and she expects her clients to appeal.

“It was a hard case and a complicated case, and I’m sure the jury feels like they did their job,” said Clarke, executive director of Federal Defenders Inc. “I was somewhat surprised at the quickness of the verdict because there were 30-odd witnesses and hundreds of documents and several hours of tapes. But I can only assume the jury was thorough.”

The charges stemmed from a six-month undercover investigation in which a U.S. Customs agent posing as a salesman for San Diego-based Solar Turbines Inc. sold the Smiths turbines and other oil machinery.

Sold Equipment

The couple, operators of Oil Patch Production Services Inc., then sold the equipment to Scottish businessman Francis George Christie, knowing it was destined for use in Libya’s American-built oil fields, prosecutors charged. About $289,000 in equipment from Solar and 18 other companies was shipped to Libya, according to the government.

During the monthlong trial, Halpern argued that “old-fashioned greed” motivated the Smiths to arrange the shipments in direct violation of the embargo. Halpern used tape recordings of conversations between the Smiths and an undercover agent to argue that the couple was well aware that the equipment was going to Libya and proceeded with the shipments nonetheless.

Defense attorneys Clarke and Warren R. Williamson, meanwhile, argued that their clients were entrapped by Agent Daniel Supnick, who improperly enticed them into committing the crimes.