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U.S. ATTORNEY'S OFFICE ANNOUNCES THE INDICTMENT OF TWO NEW ENGLAND COMPANIES AND THEIR TWO PRINCIPAL OFFICERS

 BOSTON, July 8 /PRNewswire/ -- United States Attorney A. John Pappalardo announced today the indictment of two New England companies and their two principal officers on charges that they violated U.S. export control laws when they exported equipment to the Indian government, the nature of which contributed to India's nuclear weapons potential.
 Fiber Materials, Inc., a Maine corporation, its wholly-owned subsidiary Materials International of Acton, Mass., and the companies' top two officers, Walter L. Lachman, 62, of Concord, Mass., and Maurice H. Subilia, Jr., 48, of Kennebunkport, Maine, were named in the indictment. Lachman is the chief executive officer of Fiber Materials, Inc. and president of Materials International. Subilia is the President of Fiber Materials, Inc. and the clerk of Materials International.
 In the two-count indictment, a federal grand jury charged that Lachman, Subilia and their corporations conspired together to, and did, export a piece of manufacturing equipment to the Defense Research Development Laboratory, an arm of the Indian Government's Ministry of Defense. That equipment was intended to operate an "integral component in the production of carbon/carbon" -- a heat and pressure sensitive material which can be used to construct missile nosetips and rocket nozzles.
 The recipient of the equipment, the Defense Research Development Laboratory, constructed a production facility in Hyderabad, India designed to manufacture, among other things, components of long-range ballistic missiles capable of carrying a nuclear warhead. The Indian Government operated this aspect of the facility under the auspices of its Agni Missile Program.
 The Agni is a new generation of surface-to air missile. It carries a 1-ton payload and is capable of reaching China's southern cities; carrying a half-ton atomic bomb, the missile can travel 2,220 miles.
 The indictment charges that Lachman, Subilia and the two corporations conspired to, and did, export a control panel in April 1988 from the United States to the Defense Research Development Laboratory in India, intending for it to operate a production-size hot isostatic press to be provided by the defendants later on. It is the hot isostatic press which is used in the processing of carbon/carbon material. Each of those pieces of equipment would require a special export license from the U.S. Department of Commerce if exported from the United States to India. No such licenses were ever obtained by the defendants.
 According to the indictment, a production-size hot isostatic press was, in fact, later manufactured in Europe at the defendants' direction, and shipped from there to India. In 1991 and 1992, defendants Subilia and Fiber Materials, Inc. directed employees to travel to India to install and make fully operational the carbon/carbon processing equipment in India, which included connecting the control panel to the production-size hot isostatic press.
 If convicted on the charges, Lachman and Subilia each face a maximum penalty of five years imprisonment and a fine of $250,000 on each count, and the corporations each face a maximum fine of up to $1 million.
 The case was investigated by special agents of the United States Customs Service and Department of Commerce. It will be prosecuted by Assistant U.S. Attorney Despena F. Billings, Deputy Chief of the Major Crimes Unit.
 -0- 7/8/93
 /CONTACT: Press Officer of the U.S. Attorney's Office, 617-223-9445/


CO: U.S. Attorney's Office ST: Massachusetts IN: SU:

CM -- NE012 -- 9652 07/08/93 16:16 EDT
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Date:Jul 8, 1993
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