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2 Companies Accused Of Violating Embargo With Defense-Related Sales

April 14, 1988

SAN DIEGO (AP) _ U.S. authorities unsealed three indictments Wednesday involving two companies accused of selling radar navigational equipment to Iran in violation of a U.S. embargo.

The companies named in the indictments are Marsh Aviation Co., of Mesa, Ariz., and Beechcraft Vertrieb Und Service company of Munich, West Germany, said U.S. Attorney Peter Nunez at a news conference.

Marsh’s owner, Floyd Stilwell, 61, of Phoenix, Ariz., was arrested Wednesday in Phoenix and arraigned on charges of exportation of defense articles, conspiracy to export items to Iran, and making false statements to authorities, Nunez said.

Hans Schneider, 57, who owns Beechcraft Vertrieb Und Service, is charged with conspiracy to export equipment to Iran, exportation of defense articles, and making false statements to authorities, he said.

The indictments were the result of an investigation prompted by a tip from Teledyne Ryan Electronics of San Diego and aided by two West Germans who have pleaded guilty to related charges, he said.

The charges against both companies and their owners stem from the alleged diversion of U.S.-made equipment from West Germany to Iran, which shops around the world for military equipment for its war with Iraq.

An export embargo on U.S.-made equipment was first placed on Iran by President Carter during the height of the American hostage crisis.

Stilwell allegedly submitted false export information to Teledyne Ryan, the U.S. State Department, and the U.S. Customs Service, in an attempt to conceal that the equipment’s final destination was Iran.

Stilwell, who was arraigned in Phoenix on Wednesday, is scheduled to be extradited to San Diego to appear in court Monday.

The Sept. 25, 1987, indictment against Schneider accuses him of directing his managing director, Bernd Pleuger, to continue negotiating and servicing Iranian contracts with the illegal diversion of equipment through their company.

Schneider’s company sells service and distributes parts for Beechcraft Aircraft Corp. of Wichita, Kan., and other aircraft part manufacturers.

Nunez said he doubted that Schneider will be extradited to stand trial in San Diego because the offenses he faces do not warrant extradition under the West German extradition treaty.

Pleuger, 51, of Stuttgarde, West Germany, and A. Juergen Zimmermann, 37, of Augsberg, West Germany, have pleaded guilty to conspiracy charges in the case and have been cooperating in the investigation, Nunez said.

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