1996-10-17 -- David W. Biehl pleads guilty to conspiracy.

David W. Biehl pleads guilty to conspiracy in connection with the
 diversion of proprietary parts belonging to Applied Materials.

                                          FOR IMMEDIATE RELEASE
                                     Thursday, October 17, 1996

     MICHAEL J. YAMAGUCHI,  United States Attorney for the
Northern District of California, today announced another
conviction in a series of industrial espionage indictments
arising out of the theft, transfer, and use of proprietary
spare parts drawings belonging to various Silicon Valley
semiconductor equipment companies.  This morning David W.
Biehl, 38, of Redwood City, California pled guilty to
conspiracy in connection with the diversion of confidential and
proprietary parts drawings belonging to Applied Materials Inc.
     Specifically, Biehl, the President and principal owner of
the now defunct Semiconductor Spares, Inc. ("SSI"), pled guilty
to charges that he had conspired with Martin Calara, a senior
planner at Applied Materials, and John Green, an SSI marketing
representative, to obtain spare parts drawings belonging to
Applied Materials and to use those drawings to manufacture and
sell parts in competition with Applied.  As part of a plea
agreement entered into between Biehl and the United States,
Biehl further admitted that he had engaged in similar conduct
involving proprietary and confidential spare parts drawings
diverted from Varian Associates Inc. and Lam Research
Corporation.
     U.S. District Court Judge Ronald M. Whyte, who presided
over the guilty plea proceedings in San Jose Federal Court, set
for January 13, 1997 at 9:00 a.m. a sentencing status hearing
for Biehl who faces a maximum sentence of 5 years imprisonment,
a $250,000 fine, and restitution.  The superseding indictment
charges that through the use of the spare parts drawings
diverted from Applied Materials, Varian Associates and Lam
Research, SSI obtained revenue in excess of $5,000,000.
Biehl's co-defendants, John Green and Martin Calara have
entered not guilty pleas and are awaiting trial.
     Earlier in the course of this industrial espionage
investigation,  several defendants plead guilty to related
charges.  In particular, Mark Sabado, formerly a commodity
manager with Lam Research, the late James Duncan, a part's
manufacturer's representative, and Russell Black, a former
Varian Associates Engineering Manager, have each plead guilty
to mail or wire fraud charges arising out of the diversion of
spare parts drawings to SSI.
         This investigation has been conducted by the High Tech
Squad of the Federal Bureau of Investigation in San Jose.
Questions regarding this matter may be directed to Assistant
United States Attorney Richard Seeborg in San Jose at (408)
535-5084.

U.S. Attorney for the Northern District of California
Michael J. Yamaguchi, United States Attorney
450 Golden Gate Avenue, 11th Floor
San Francisco, CA 94102
Main Office Number: 415-436-7200

Public Affairs Office: 415-436-7247; fax: 415-436-7234
Stephen A. Shefler: FAUSA and Public Information Officer
sshefler@justice.usdoj.gov
Archived News Releases/Documents: http://www.usdoj.gov/press.html
gopher://gopher.usdoj.gov