Newport Man to Appear on U.S. Charge

A Newport Beach executive charged by the U.S. government with conspiracy to illegally ship computer equipment to the Soviet Union will appear in New York Wednesday to answer the complaint, his attorney said Wednesday.

Richard Finn, 44, owner of Digital Processing Corp. at 2698 White Road in Irvine, surrendered to federal authorities in Los Angeles Tuesday and was released after posting $100,000 bail.

A complaint filed by the U.S. attorney’s office in New York alleges that Finn conspired with a West German woman to send the computer equipment to the Soviet Union in late 1982 in violation of federal export restrictions on high technology equipment.

His attorney, Michael Kenney, said Wednesday that Finn did not violate export laws when he filled a $2,700 order from a West German firm.

“He did not knowingly violate any act,” Kenney said. “He acted in what he thought was a totally lawful manner.”

The complaint alleges that Finn, who has operated the company since 1976, and Renee Inbar of West Germany conspired to ship four Data General computer-interface boards worth approximately $2,700 to West Germany, knowing that their final destination was the Soviet Union. The boards allow a computer to communicate with another computer or with other specialized equipment, such as a printer.

Arrested in New York

Inbar, an officer of International Processing Systems in Cologne, West Germany, was arrested 10 days ago in New York while in the country to testify on another matter, Kenney said.

Assistant U.S. Atty. Charles Stevens said Inbar sent Finn a telex message that Gewico Munich would be the importer of the boards in West Germany but that the final destination would be a dacha, a Soviet country home, belonging to Babeck Seroush.

Seroush was Inbar’s partner in the West German firm, International Processing, which was raided and closed by German authorities six months ago.

Kenney said Finn, who was unavailable for comment, had shipped “millions of dollars” worth of computer equipment to West Germany from 1979 and 1983, and he said Finn did not know the boards requested by Inbar in 1982 were to be re-shipped later to the Soviet Union.

“This happens all the time. You comply with the regulations here . . . where they end up is no fault (of Finn’s),” Kenney said.

The attorney also said that Finn no longer exports computer equipment.

If convicted of the charges, Finn could face a maximum of five years in prison and a fine of $10,000, Stevens said.