United States v. Spawr Optical Research, Inc., a Corporation, Walter J. Spawr and Frances A. Spawr, Individuals

Walter and Frances Spawr and their family-owned corporation, Spawr Optical Research, Inc. (the Spawrs), appeal their convictions resulting from their unlicensed export of laser mirrors destined for the Soviet Union. Their principal challenge is to the Government’s reliance on allegedly defunct export regulations that they were convicted of violating. They also allege that government misconduct prejudiced their defense, that the trial court erred by admitting co-conspirators’ statements that lacked a proper evidentiary base, and that, in any event, the evidence was insufficient to support the convictions. We find all of these contentions unpersuasive.

1. Background

In 1969, Frances and Walter Spawr formed Spawr Optical Research, Inc., as a means of exploiting Walter’s skills as an optics expert. Walter served as president, Frances as secretary-treasurer, and together with a third individual they constituted the corporation’s board of directors. While operating out of the Spawr home, Walter invented a superior process for polishing laser optics and mirrors. By 1975, the Spawrs were in commercial operation and had developed a client list that included universities, industrial users…