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April 4, 2002.
Firm Found Guilty in Cuba Trade Case
By Bill Bergstrom, Associated Press Writer. Wed Apr 3, 9:16
PM ET
PHILADELPHIA - A suburban Philadelphia company and three executives were
convicted Wednesday of conspiring to violate the U.S. trade embargo by selling
water purification chemicals to Cuba.
Found guilty by a federal jury were Brotech Corp. owners Stefan Brodie, 58,
and his brother, Donald Brodie, 54, along with marketing director James E.
Sabzali, 41.
They were charged in a 77-count federal indictment with selling $2.1 million
worth of Brotech's water purification and softening chemicals to Cuba through
foreign middlemen from 1992 to 2000.
The company and the executives were convicted of one count each of
conspiring to violate the embargo, and multiple counts of trading with the
enemy. Sentencing was set June 28.
The defendants believe the evidence against them was insufficient and plan
to appeal, defense attorney Robert E. Welsh Jr. said.
Prosecutors said Brotech shipped chemicals to Canadian and Mexican companies
which forwarded them to Cuba, violating the embargo begun in 1960, the year
after Fidel Castro (news - web sites) assumed power.
The conspiracy counts carry a maximum five years in prison and a $250,000
fine; the trade-embargo counts carry up to 10 years and a $250,000 fine.
US Food Cos. Hope for Sales to Cuba
By ANITA SNOW, Associated Press Writer Wed Apr 3, 6:13 PM
ET
HAVANA - After contracting to sell more than $73 million worth of American
food to Cuba, U.S. agricultural firms are hopeful they can increase their sales
there despite last week's rejection of U.S. visas for Cuban officials interested
in negotiating new deals.
The United States last week rejected visas for at least three officials
representing Cuba's food import agency. It said the Bush administration didn't
see any reason for them to visit.
Otto Reich, the Cuban-born assistant secretary of state for Western
Hemisphere affairs, promised in mid-March that the Bush administration would
resist congressional pressure for closer ties with the island.
"We are not going to help Fidel Castro (news - web sites) stay in power
by opening up our markets to Cuba," Reich said at the time.
American farm groups said the officials included technicians who wanted to
inspect U.S. poultry plants and discuss sanitary issues.
A new round of sales, for an additional $25 million, could be postponed and
some deals could be canceled because of the refusal, said John Kavulich,
president of the U.S.-Cuba Trade and Economic Council.
"Any time there is a disruption that isn't planned, it's harmful. The
question now is: how harmful?" he said.
Still, American companies are moving discreetly to resolve the problem with
the U.S. government, Kavulich said.
"The idea is to solve the problem and not create an issue," he
said.
The new round of sales — if successfully negotiated — is expected
to include turkey and pork products and a variety of grains.
Already, the $73 million in food that American firms have contracted to sell
Fidel Castro's government is double what was anticipated.
Nearly six months since Hurricane Michelle howled across the island, ripping
apart chicken farms, shaking fruit off citrus trees and yanking up root
vegetables, Cuba has purchased, contracted or confirmed its intention to buy
about 450,000 metric tons of U.S. agricultural products, the New York-based
council said in its regular newsletter this week.
The food, coming from 25 states, includes corn, rice, wheat, soy, poultry,
vegetable oil, apples, peas, eggs and pork lard. Deliveries are scheduled
through the end of June.
The council's latest estimate of $73 million for total American food sales
to Cuba after the hurricane is up by $5 million from earlier estimates.
"The latest estimate reflects changes either in existing contracts or
final confirmations of earlier sales," said Kavulich.
The most recent contract to sell food to Cuba is Radlo Foods of Watertown,
Mass., for 10 million eggs worth about $500,000.
Cuba traditionally has produced most of its own eggs — about 1.5
billion annually — but production fell by 12 percent last year, reportedly
because chicken feed was scarce.
A U.S. law that went into effect in 2000 made it possible for American
producers to sell food directly to the island, but banned U.S. public or private
financing for the sales. Cuba resents the financing restrictions and refused for
nearly a year to buy American food — until the hurricane struck.
Shortly after Michelle hit in early November, Cuba said it would buy
American food just once to replenish its reserves. About $40 million in sales
were originally envisioned under a one-time round of contracts.
But American food companies have kept pushing to sell, and members of
Congress have kept pushing — so far unsuccessfully — for legislation
to allow U.S. financing for those sales. Currently, American food sales to Cuba
must be conducted on a cash basis. | 
