INDICTED EX-C. I. A. EMPLOYEE LABELED BY PROSECUTORS AS A MAJOR WORLD ARMS DEALER REMAINS AN ENIGMA

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Document Number (FOIA) /ESDN (CREST): 
CIA-RDP04-00312R001001810087-8
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RIFPUB
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K
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1
Document Creation Date: 
December 21, 2016
Document Release Date: 
August 21, 2008
Sequence Number: 
87
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Approved For Release 2008/08/21: CIA-RDP04-00312RO01001810087-8 ' ed Ex-C~ A Employee, Labe! by Prosecutors Indict ? rti k n ~-__ ~_~ Af. .1,a A,.mc flprrler_ Remains an Enigma By ROBERT PEAR SpinaleonwN"Yo tHenna WASHINGTON, Jan. 10 - From the outside, the four-story town house at 2020 Connecticut Ave. N.W. looks like other Icelan- buildings next neighborhood. the Maltese dic Embassy Chancery across the street, for example. But the town house was the American American intelligence officer recently in- dicted on weapons-possession and described by prosecutors as a major . base for Frank Edward Terpil, a former international arms merchant. The build- ing is still owned by a' company that ap- pears to have close ties to Mr. Terpil. Mr. Terpil's business and real estate activities provide a glimpse of his inter- ests lin the last three years, but they hardly clear up the mystery surrounding The president of Oceanic International, Michael L. Infante, said that the allega- tions about Mr. Terpil's gun-running ex- ploits were "far-fetched and totally unbe- lievable." He, said that "Terpil has an egotistical way of telling wild stories, and his boasting got him into trouble." - Those who worked with Mr. Terpil, who is 40 years old, remember him as a stocky man with a mustache who was always tinkering with radios and was given to seemingly exaggerated accounts of his adventures in Africa. "He would be away for four or five weeks, then all of a sudden would show up at the office and disappear again," a coworker recalled Goods for Uganda Mr. Randol said be' left the business last August because be was mystifiedby Mr. Terpil's overseas activities and did not share in the profits that Mr. Terpil seemed to be reaping. Laurel Ripley, who used to be vice president of oceanic, said she "saw a lot of money floating around" the office but left "disillusioned" in October 1978when of- the cash flow suddenly stopped. The fice's. financial problems were appar- ently related to the fact that Congress, In October 1978, imposed an embargo on ex- ports to Uganda after finding "gross violations of human rights" under the Amin regime. Tile to C.I.A. Reported Miss Ripley said that she was "under the impression" that Mr. Terpil was re- to the Central Intelligence Agency porting when in Uganda. Prosecutors in New York have said that Mr. Terpil was dismissed, or "terminated unfavorably," by the agency in 1971, after about six years as an employee. Mr. Infante described Mr. Terpil as a consultant and representative" who would send back business when, 1.q his travels overseas, he learned that some foreign company, government or army needed boats, generators, fire engines or other products made In the United States. Mr. Infante said that Oceanic had pro- vided uniforms and musical instruments, but not weapons, to Uganda. ? W. Don Randol, who used to be the treasurer of Oceanic, said that Mr. Ter- pil's role in the business was "pretty dog- gone vague," although he apparently put up some of the money. "Oceanic was al- ways a legitimate business," Mr. Randol said. "If Terpil did anything Improper, he did it without the company's knowledge." the man., At his arraignment last month in New York, prosecutors said that Mr. Terpil a had supplied arms to Libya' and the Palestine Liberation Organization, trained terrorists in Libya, advised Idi Ainin, the deposed Ugandan dictator, and sold at least $3.2 million worth of weapons to the Amin government. ' Arrested In New York St d nt. ME% N! C ` tionaries. Investigators in New York, Washington and Britain portrayed the Court Ruling Is Expected ?, men as operatives in an international A gun-running organization that solo at To Cause Abortion Rise least $10 million worth of arms a year. - The two men were arraigned in State 1 cK Supreme Court today in New York City on ST. LOUIS, Jan. 10 (UPI) - A Federal ' ?; a superseding indictment charging them appeals court's decision providing wel- with conspiracy, criminal possession of fare funds for women seeking "medically weapons and other charges carrying a necessary" abortions will lead to an in- n maximum penalty of 25 years in prison. crease in abortions, supporters and oppo- Mr.Korkala is free on $100,000 bail. Mr. nents of abortion agreed today. Terpil is expected to post his own $100,000 The ruling by. the United States Court of ot tomorrow. The next court appearance for Appeals for the Eighth Circuit said that cn both men was scheduled for Jan. 31. Federal funds for abortions could be pro- W -There is also a Federal grand jury in vided to poor women when a physician *cm Washington investigating possible viola- determined that the pregnancy might be tions of the Foreign Agents Registration detrimental to her physical or mental I Act and the Munitions Control Act. health. ? --- Sales Termed Legal Federal funds for abortions have been Attorneys for Mr. Terpil and Mr. 1Cor- restricted to victims of rape and incest use saving the mother's life or and for kale have raid that the arms-selling ac- tivities were perfectly legal. The lawyers preventing severe physical damage to the mother. contend that some of the arms sales were . , presumption that physical health The SC carried out in Britain, where laws are detriments are deserving of attention but less restrictive that mental health detriments uniformly The manufacture, sale and export are not is, in one court's opinion, 'nothing F rms. are closely regulated by less than absurd,. " the appeals court Federal Government. It is Illegal for a said yesterday. + " * person to be in the business of selling = 1 a_. guns without having a Government li? Frank Susman, appeals court, argued the case before the I" cease. The Munitions Control Act ro-old t the ruling would make abortions i? quires a permit for the export of arms. available to 2,000 Missouri women a year and customs laws require that the co". under the Medicaid program. Ann O'Don- ' tents of any weapons cargo be accurately Well. a SL Louis antiabortion leader, described agreed that there would be an increase in ww People who engage in gun ,turnilicenses ng nor- many do not obtain the abortionss. ' and permits because they do not Want I ,714 their transactioostobetraced. South Pole Worker Killed f - -The Washington town house that WASHINGTON. Jan. 10 (UPI) - A Pel" served as Mr. Terpil's base was the head-, worker at America's South Pole Station W quarters for oceanic International Cor-' in Antarctica was killed Tuesday by an Ten poratlon. an export-import marketing' apparent snow cave-in, the National Sd- and sales concern, and for the Tech- ..end Foundation said today. The founda- s nology Transfer Group Inc., another i tion identified him as Casey A. Jones, son IiC small company. The charges against Mr. of George A. Jones of Old Saybrook, s.. Terpil surprised his former colleagues' Conn. He was digging near an air vent "40 U.. here to varying degrees. whp the accldpnt c-a'uurred. kala were arrested Dec. 22 in New York City after they allegedly tried to sell 10,000 machine guns to undercover detect tives posing as Latin-American revolu- i Mr. Terpil's wife, Marillyn, was a hair- dresser who told friends that she had been a make-up artist for the intelligence agency. r..erpil did advance the cause of law enforcement in one way. Through Tech- nology Transfer, be helped provide local governments, schools and hospitals with "French boots" or "Denver boots," the devices used to immobilize illegally parked cars. Technology Transfer, like Oceanic, was incorporated in 1977. Though there is no legal connection between the compa- nies, there are a few persons who have re- - sponsibilities with both.. At least one employee of Oceanic testi- fied here last summer before the Federal grand jury investigating the activities of Mr. Terpil and Mr. Korkala, who has been identified as the owner of Amstech Corporation, a security equipment com- pany. Investigators who raided the of- fices of Amstech in Nutley. N.J., last month recovered bombs, booby traps and firearms, but Mr. Korkala's lawyers in- sisted that he had done legitimate wort for Federal agencies. Purchases by SecretServlce A spokesman for the Secret Servi tects the President, had purchased stech. He added that the Secret Servi had not bought guns from the company. Land records here show that Mr. T bought the house at 2020 Connecticut A the property had been "erroneously Ltd., a Liberian corporation not identified. log in a new,_ Japanese-style W-0! fo t $280 b ... ,wv paw a ou $20,000 for a swimming pool in the b - prop-- - The relationship, if any, between two similarly named companies could corporation or parternship record W they might be expected to appear. Approved For Release 2008/08/21 : CIA-RDP04-00312RO01001810087-8