Arizona Republic from Phoenix, Arizona on June 30, 1973 · Page 31
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June 30, 1973

A Publisher Extra Newspaper

Arizona Republic from Phoenix, Arizona · Page 31

Publication:
Location:
Phoenix, Arizona
Issue Date:
Saturday, June 30, 1973
Page:
Page 31
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Page 31 article text (OCR)

rntr searched in plot on IBM • • ' , ir ••/••• ', <"> . • . ' ' : SAN JOSH/ tflli?,-A tnutti. milltotvdollar industrial espionage; plot , against IfcM Corp. in which computer- .parts allegedly were, stolen and Jriafiuf actttfed by ' competing firms was disclosed Friday with ' the' arrest of seven p^r- SOflS. ' '*•;;,-.•' v; ;: . :' : . : .Warrants were- issued for four • othei*. .persons and for searches in the plants .of five other -companies In the" computer business, including one in Phoenix, , , ...... ... Santa Clara 6bunty*tfialrlel Attorney Louis Befgna and San Jose Police Chief Robejrt Murphy discljjjfsj^pe aftdfcty: The two, i 0jffici ) fl1s said^the^ conspiracy to steal IBM computer" sedf els dates back to the late 1970s. It Was WCQ^V, ered in a four-mbJttH'InVeStl^ gation which ,6^1.6 ride d throughout The volved puter sto factured Jose. the data ' many IBM ; ;wffi)^tl|fer, : 'systems>v IBM officW^n San '$£$ declined to cqlfttnent on the — — --•*•»« nw v !*•«•••)• via V V*A VIIW case, saying itifipeing handled by police, "•'^^yhr,-, the" search Warrants i&Ueti in Friday's «frests covered • plants of K and K Manufacturing Inc., of Campbell, Calif, 1 , near Sain Jose; Computer Disc Mastsrtape, fdrrance, Calif.; Forro Precision Inc., Woodland HillSi Calif.; International 'Management Systems, Irvine; Calif., ; and Sig* ma technologies," Inc. ,of 1S25 N. 25th Drive, Phoenix. Lt. Glen Sparks anef Detective Andy Watzek of the Phoenix Police Inspectlonal Services Division, accomp* 1 nletf san Josl 1 DeUetlve Tom Johnson; and; an IBM attorney in a search of the Sigma firm ***' , t 21 ••• » 7 ,. - .'»'.• ^- V .. - i frida; evice ,' . . ,. . (Sparks said certain items, specifically documents relating to computer program- iirJift|, .were seized from the firftfS;:;fjles. Copies of the do- cumenll,;iiyer,e carried back to San Jose^^Johnson, Sparks r ;'said v ' %fy.' ; ';,; : <(^^;l*restl^|ere made in iPhoehlk,|Sparkpaid. The in- formatio|<>gai}i^ed in the search wnl^be father investigated by|San Jose police, he ^I^W'-Hi" • ;; !'(jiigrrla's;;president, Donald E/ Reed/;pf r 720 W. Orchid Lajne'lf^r.slfe' reported out of town uiltil tuesday, Sparks said. (Any prosecution in the lease will take place in California, Sparks said. (Other Sigma officials could not be reached' for comment late Friday afternoon.) ...,.., One of the persons arrested at the IBM plant in San Jose was Ramon Serrata, 4^ an IBM engineer. He is charged with four counts of conspiracy, threi6onrad«!'secret;theft, an;;iriduce- ment aiid one stolen property, of .receiving gari, 2?, of Satt jos^s, formerly employed by Memore* Co. Others picked. up on similar charges are Adolf Jarmann, 52, of Los Gatps, Calif., employed by K arid K Manufacturing; ' Phillip j, Steckel, S3, of Santa Clara, a former IBM buyer^ now retired, and Phillip Kronzer, 30, of lios Gatos, vice president of K arid K. Also 'a .f r e s t'e d'were two draftsmen, David H. Bunch, 42, of San Jose, andBrunhil- ,da MacNevin;' 39, of Carrip- ! bell, and Thomas A. Finne- A warrant was issued for Wesley G. Powers, 50, now believed in Europe, who was president of the now defunct Memory Magnetics International Co. of Torrance. 1 He is described by police as an associate of Steckel and Jarmann, the conspiracy e n a B1 e d IBM's competitors to produce disc memory systems "identical" to those of IBM, according to officials. 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