REWALD IGNORED ADVICE BY CONSULTANTS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP90-00494R001100690039-9
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 2
• Document Creation Date: December 22, 2016
• Document Release Date: August 10, 2010
• Sequence Number: 39
• Content Type: OPEN SOURCE

Approved For Release 2010/08/10: CIA-RDP90-00494RO01100690039-9
Consultants
Despite Many Qualified People,
By Charles Memminger Ron and Sunny (company presi-
W
)
"
i
ong
.
dent Sunl
n
WHAT do a part-time district THE CORPORATION was form-
i+V court judge,' a Milwaukee ed in 1978, but when it was forc-
nightclub owner, a former city edoino bankruptcy : hree trustee
week
councilman and a retired Air ago, the that court-.appointed
the $t mi
Force pilot have in common?
They were among the many lion to $12 million investors put
paid consultants to Ronald R. Re- - into the company was gone. Re-
ent
wald s
t R
d th
h
Wald and his bankrupt company,
Bishop, Baldwin, Rewald, Dilling-
ham & Wong.
Many of those Rewald attracted
to his company are respected and
well known in their fields. That is
why it was surprising to many
observers to find out that the
company actually had made few
substantial investments or launch-
ed any major projects.
:. With all of the talent Rewald
had at his disposal, it is hard to
believe that- his, company accom-
pushed;.; so little .,P"oopie ;wh'o
p
e
owe
a
ceipts s
huge amounts of money to sup-
port his extravagant lifestyle.
Rewald was a collector. He sur-
rounded himself with works of
art, gun and knife collections and
exotic cars. Last week, Rewald
agreed to turn over all of his
personal assets to trustee Thomas
Hayes to assure that they would
be protected and kept up.
Hayes spent the weekend tak-
ing an inventory of the items in-
worked' v1th, the coil pany . ,ho w;
ever, have said that{ the consult
ants di( V` `and, make=
recommendations; but that. ;Moth
ing ever.: came of thenit
"Why,didn'trdeals cIo a?" asked
one." forme ? consultant ho'.Fdid3
not }vent"to be;named "Obviously
" some `" were , unsuitable Bus;; the
ones tl at *seemed: viable,' 13on
iwould 5quelcli' at the e id . A cou
pre of times he'"said" he had inside
i ~for`mation (that the; investments
Were bad) Or,; the mythical" group i
call'ed` the board of directors de
"
against it Our impressio4
cided ?
as that the board consisted of
the
Company Accomplished Little
side Rewald's Kuliouou house and
the Mauna Luan appartment
Rewald used as a private school
for his children. Despite the
somewhat bizarre and exotic na-
ture of many of the items he
found, Hayes said the net worth
of the personal assets is "insignifi-
cant in terms of the bankruptcy."
Inside the house Hayes found
three sets of knight's armor, a
large blue rug on a ceiling with
Rewald's coat of arms insignia, a
set of gold-plated flatware and a
gun collection that apparently be-
longed to, retired Gen. Hunter
Harris, former Air Force com-
mander of the Pacific.
HAYES ESTIMATED items in
tie house are worth about $100,-
000 and that all of the school
equipment is worth less than
that. Eventually, Rewald's person-
al items will be auctioned to help
pay back investors.
Hayes still is trying to find all
of Rewald's exotic cars, especially
a 1977 Excalibur worth about
$50,000. He said he has found
most of the cars, four of them on
the lot at MotorCars Hawaii, an
exotic car dealership of which
Rewald was half-owner. Also on
the lot is a mobile home Rewald
bought from actor Jack Lord for
Just as Rewald collected inter-
esting pieces of art, he also seem-
ed to "collect" consultants to his
company. Rewald apparently
rarely used the expertise of those
around him. Retired Air Force
Capt. Ned Avary testified in court
that he traveled extensively in
South America looking for possi-
He investments for the company.
But despite his recommendations,
he said he knew of no money
that actually was invested.
HERE ARE SAME of the con-
sultants of Rewald's company:
-Gerald N.Y.C. Lam, a part-
time District Court judge and
attorney. Lam was one of several
attorneys Rewald was associated
with. Lam and his law partners,
Robert Jinks and Timothy Holzer,
were looking for office space in
1978 at the same time Rewald
was moving his young company
from the Amfac Building to the
Grosvenor Center. Lam, Holzer
and Jinks agreed to lease part of
the 26th floor with Rewald and
thus began an association that
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 Approved For Release 2010/08/10: CIA-RDP90-00494RO01100690039-9
Re-%a/cad' F~-~led' to Act
Consult
1, uIlts
"Continued
frnm Dom.... n__
- - an three attor- - -- 11 a for Rewald or
net's becoming consult
what he is doing now has said that mo
t
t
an
s
s
..o-
of the ',f
As a consultant, Holzer review- -David Baldwin, not the Bald- (ices' were merel after a tiff with sunny Wong. "On aper" or ,d Tocal o investment possibilities, wm in the company name, but a only desks manned by instme als ant yho reRiudolpi , an account.
deluding Tap Pryor's oyster Rewald acquaintance fro_ and that no actual investments reviewed tax shelters.
Waukee. Baldwin owns a in night Mil_ the were made. Hajadi, a -Mary Rudolph, an attorney
aiming venture. Pryor soug club in Mild graduate of
, from Rewald to kee hhs Milwaukee called the University of Chicago, Opened n s ho was
?d working on the comps-
p "Safe House," a name coined the Singapore office. Y' proposal to begin a South
Ompany afloat, but Holzer Holzer money coup- from houses spies use when they OTHER "FOREIGN
eked against in in
Seas Airlines route between Ha.
w
are on the ru
he venture P
h
consult
ryor declad b ant"
n The naf i
.me o thencluded:-Also Edwired' cnsltats were:
asoun
.reank- club is ironic in view of Rewald's -,-Jason li'ong, a lawyer,s ~ptcy shortly after Bishop, Bald- clai m that he has connections 's worked n the Taiwan office, `Edward Hoffman, an Illinois
Rewald, Dillingham who resident, who was 11'ong?s bankruptcy. & the CIA. A knowlegable source cording to company sources, hired as a con-
ac- sultant in the travel and market
Holzer is now workin with said Rewald was so enthralled by -Charles Conner, who w
g Baldwin's club, whose' motif is wand's contact in Sweden. as Re- ing field. His association with Re-
trustee Hayes in the bankruptcy "James Bond-type stuff," that he' -Paul Gantt, who ran the wand is one of the most tragic,
and Lain is joining the firm of
Stephen A. Nordyke. Jinks spends planned to open a club with the , peete, Tahiti, office Which company sources say. Hoffman
an
much of his time in California same name in Hawaii. invested his X200,000
actually was a. double hulled in s in the company, ewhi hshe
:there he is in private practice. -Nolan Metzger, a consultant canoe wth a a thatched roof strue. g
Lost. He is now having to live on
with with a master's degree in busi. ture on it.
ATTORNEYS involved less administration. Metzger was Social Security benefits.
in the company were: supposed ted as a -Gunadi Gautama, who' was -Richard Spiker, formerly
D the Alden Newland, one of the otject work he "Safe listed as a consultant in Jakarta, manager of the Waikiki
attorneys working n in ware House" -John d Hawaii. Pusat Indonesia, and posed in a branch
tseveral Aus
capacities on a consultancy spies, who hasem rged as one of comp an of Hawaii National Bank, who
P Y Picture with other con traveled to New Zealand and
ohsbasis. settants. Gsays G's attorney, trails on investment-hunting
-Ralph Black, local the most controversial figures in Peter Lee, says Gautama was trips. Spiker is a defendant in a the Who also handled varolo f eg 1 for erwhead case. the dscl office actually only an investor. Gauta-is the ma and two other Indonesians e- lawsuit filed by an investor who
matters. here and his association with Re-
wand's company just claims Spiker directed Hawaii Na-
-John Ing, an attorney who ward has helped fuel speculation vested about $I Million in Re tional Bank customers to Bishop
aided Black. x.
,
aldwin
that perhaps Rewald does have she coIlae. Hayet es has days r beforeefore $Wnno m,H Rewald, Dillingham
F.
+-Da ~id F. Day, a senior assnr,. h err __ -
t
th
e S
e "iggest loser" of all
l vaancisco law aroused when as
firm further
of Br
an rrancisr and learned that Kindsehi did not and the invetiming stors because of the size
Harrison, according to a company
release. Day actually file a criminal complaint of his investment.
was to head the against Rewald, charging him who worked for Rewald. Toda, .
The office never officially opened filed by police. Rewald was first
The office of the company's col- arrested on the basis of corn- ke D, had worked as a stockbro
lapse. tier for Prudential-Bache Securi-
Qtlier, consultants included: pllaints bD Despite inds hi and another ties and as an insurance agent.
-Daniel Clement, former city that he lost some $200,000 in the Her securites ne included insurance financial and
Councilman, who joined Bishop, company, sources said Kindschi estate
Baldwin, Rewald Dillingham & receiv i securtes analyses.
1'i'ong in May, specializing in es- Baldwn, Rewald, Dili ng ham o & eluded:
fate planning and international Wong days before the bankrupt. OTHER WOMEN consultants in-
usiness. Clement had been a c , Y -Karen Ann Koshko, who was
_.r_ president
vice president for estate planning Y the com
tepeated attempts, Cement could resp. V1 t7
onsi1911
ble cforulthe
1-o be, reached for cnr,,.
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- lion- dollar investment savings tac-
count.
-Michael Dailey, Polo-playing
son of Island polo figure Fred
Dailey, who was hired as a con-
sultant because of h,
S Polo ad
n business connections in Argentina mp 0141
and Chile. The company was con- ;oa 0Aiju
ank Argentina oriChilea , a souceewi h i `sell?u
in the company said. Dailey, w o eqa .sua )u 1*ell is fluent in Spanish, was tassist
in the project. 140 JO U AIP
-Kenneth Sanders, who Re- Cuuioo .11
waid hired to handle public rela-
tions and advertising.
overseas "offices." Trustee Hayes its real estate pub
--ya crier stint with the company in lie accountant hir~ic~ntI ed _-' ax? Pc
saimbai
-ONOLULU, HAWAII ?
t
trese
a A 3
ugust? 1983
VOL. 72, NO. 242 ,.
Five Sectecans 60
Page 25
s(
Advice
U I t
Approved For Release 2010/08/10: CIA-RDP90-00494RO01100690039-9