The FBI file reveals that after the illicit kryton exports were discovered, a U.S. attorney tried to flip MILCO President Richard Kelly Smyth to implicate Milchan during intense plea bargaining. The gambit failed, and in May 1984 Smyth was indicted on 30 counts of smuggling and making false statements. Smyth and his wife promptly fled... remained at large until captured in Malaga, Spain, in July 2001 after Richard Smyth applied for Social Security benefits.
The FBI records reveal ongoing interest in Milchan into the mid-1990s. In 1992, a confidential informant relayed details of Milchan’s ties to Smyth. The declassified but heavily redacted “secret” communications reveal the Bureau’s fascination with Milchan, from his 1996 entry in Who’s Who to A-list associates such as Robert De Niro and an unsavory Iran-Contra operative.