Fallbrook

Two executives of Zarcon Corp., a San Diego company that sand-blasts paint from ships, pleaded not guilty Wednesday to federal charges of dumping pollutants into San Diego Bay.

Zarcon Chief Executive Officer James D. Kuvelas, 43, of El Cajon, and his brother, Secretary-Treasurer Jack D. Kuvelas, 38, of Spring Valley, along with the corporation itself, were indicted Tuesday on charges of violating the federal Clean Water Act on three occasions by illegally dumping sandblast wastes into the bay.

According to the indictment, the wastes contain arsenic, lead, copper, mercury and zinc. They were dumped on Nov. 19, 1987, from the foot of A Street, and again on March 3 and March 9 from a floating drydock at the 32nd Street Naval Station, the indictment alleges.

An attorney hired by the Kuvelases also entered a plea of not guilty on behalf of the company before U.S. Magistrate Irma E. Gonzalez. The men were released on $5,000 personal surety bonds.

A spokesman for the company said Wednesday that Zarcon, 1505 Rigel St., is owned by the Kuvelases and has 10 permanent employees. Last year, the firm, which deals exclusively in Navy overhauls, grossed $4 million, with a net profit of less than $100,000.