REWALD IS HELD ON 100 COUNTS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP90-00494R001100700127-9
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 2
• Document Creation Date: December 22, 2016
• Document Release Date: July 5, 2011
• Sequence Number: 127
• Publication Date: August 31, 1984
• Content Type: OPEN SOURCE

Approved For Release 2011/07/05: CIA-RDP90-00494RO01100700127-9
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HONOLULU STAR-BULLETIN (HI)
31 August 1984
wald Is el
on 00 C%Rul s
Calls. Isle Legal Action `Silly Stuff,'
A it5 Rescue from Congress Allies
W a
There were iew~ surprises in
By Charles Memminger Rewald said he had been sus
cessful, that if he were indicted, the indictment. Basically, it for
Star-Bul:et,n Writer his supporters, including some in mas~ly charges Rewald with of-
When told that a federal Congress he would not name, as lenses that haveciaenandg d by
grand jury might be preparing well as former FBI agents. bankruptcy other
to indict him this week, Ronald would come to his defense. investigators familiar with Re-
R. Rewald said he was not con- In the interview, Rewald said wald's operation.
cerned w ith the "silly stuff hap- he was living in Los Angeles. IN ESSENCE, the indictment
pening in Honolulu." working for a "communications" charges that Bishop, Baldwin.
Rewald, in characteristic fash- company he would not identify. Rewald. Dillingham & Wong was
ion, said that his allies in Con- Told. tI at he might be indicted nothing more than a shell
gress would come to his aid if this eek. Rewald said be had company Rewald used to bilk
and when he was indicted. been hearing about impending M million from about 400 inves-
"I'm prepared to blow the lid indictments continually since tors.
off this whole thing." Rewald February and that such talk did The indictment specifically
said in a telephone intervie" not surprise him anymore. In charges that Rewald:
fact, he said, he was looking for-
Tuesday. ward to Monday when his family / Lied. when he swore under
Today. Rewald is in the Gusto would be together for the first oath that the CLk had directed
dv of U.S. marshals after FBI time since his company collapsed the iccnding of Bishop, Baldwin.
agents arrested him in Los An. more than a year ago. Lied when he said the CIA
geles ' arrest ~' came after the REWALD provided him with fake diploma-,
cThe arr Judge nHpenceD has that been from Marquette Universip? and
coount unt jury here returned a 100 indictment charging the pressuring the government to re- that the CIA directed him to
former Hawaii businessman with turn an indictment against him. misrepresent that Bishop, Bald-
mail fraud. securities fraud. per. "He's been the judge, jury and win investments were insured by
jury. failing to keep records, in. executioner," he said. the Federal Deposit Insurance
come tax evasion. interstate At 1:55 p.m. Hawaii time yes- Corp.
transportation of stolen securi. terday, FBI agents, armed with a
inves v money and other federal warrant hiisresidencarre e at tors Smoney,for h sn per onal
ties
SO
viofos. 647 South June St. in Los An- benefit, including $270,000 for
SOME OF THE perjure gales social, and sexual intercourse
charges are the result of sworn Rewald is being held in lieu of with women," $256,000 in con-
statements Rewald made in $0,000 bail pending a removal nection with polo, $264.000 for
which he said the CIA was re- bearing today in Los Angeles. If horses. $719,000 for residences,
spor.sible for setting up his Rewald does not fight extradi 570 for ranches, and 5467,
company Bishop. Baldwin. Re- tion, he will be returned to Ha- S7 for cars.
wald. Dillingham & Wong. waii as soon as possible to be
During the past few months, arraigned, according to John / Convinced investors ?'espe-
as the U.S. attorney's office was Peyton, assistant U.S. attorney ciall??those. who were retired or
Working to build its case and who has been heading the Re- suffering from illnesses or per-
presenting it to the grand jury. Wald investigation. sonal, tragedy" that they could
Rewald Has on the Mainland. The grand jury returned the trust him to handle their finan-
drumming up support for his massive indictment against Re- cial and legal affairs.
contention that the CIA set up wald at 1:30 p.m. yesterday,
Bishop. Baldwin as a front and bringing a range of charges V Owes more than $.600.000 in
used it to funnel money to for- against the 41-year-old former in- income taxes.
eign projects. vestment counselor.
Continued
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 Approved For Release 2011/07/05: CIA-RDP90-00494RO01100700127-9
r" Used the U.S. mail to send
out false information about the
company in an effort to attract
investors.
/ Illegally transported more
than $300,006 between Hawaii
and the Mainland.
/ Failed to keep adequate
records in accordance with Se-
curities and Exchange Commis-
sion rules.
The Indictment charges that
all of that and other statements
concerning the CIA are false.
U.S. Attorney Dan Bent prais-
ed the work of assistant U.S.
Attorneys Peyton, Ted Green-
berg, David L. Katz and Jeffrey
Steness, the FBI and IRS for
their "extraordinary efforts" in
connection 'with -"this extremely
complex and 'time-consuming
investigation."
HE SAID THE 13-month long
investigation required interview-
ing hundreds of witnesses and
examining hundreds of thou-
sands of financial records.
Rewald's local civil attorney,
Robert Smith, had no comment
about the indictment.
Thomas Hayes, administrator
of Rewald's bankrupt company,
said he had been told by his
-lawyers not to comment on the
indictment.
The indictment caps more
than a year of intrigue that
began when Rewald tried to kill
himself on July 29, 1983.
The suicide attempt came
after inquiries were made about
the background of the mysteri-
ous investment company.
After that, a number of
company lawyers and consult-
ants quickly resigned and disas-
sociated themselves from Re-
wald.
Even Wong, company presi-
dent and 50 per cent stockhold-
er, resigned. He later pleaded
guilty to mail and securities
fraud and apparently has been
aiding in the government inves-
tigation of Rewald. .
SHORTLY AFTER the suicide
attempt, a group of investors
forced the company into bank-
ruptcy. Within hours, the bank-
ruptcy trustee discovered that
the company had conducted
virtually no investment business
and that millions of dollars were
missing.
While some investors have
continued to press their claims
and hold Rewvald responsible for
a
/ Lied to an IRS investigator
during an official inquiry. ,
As part of his scheme to de-
fraud investors, Rewald allegedly
failed to tell investors that-
V He had pleaded guilty to a
theft charge involving a Wiscon-
sin franchise in 1976.
i' He was bankrupt in Wiscon-
sin in 1976.
/ Investors money primarily
was used to pay office expenses
and for his personal benefit.
/ Only about $600,000 of $22
million actually was invested.
/ No kamaaina families by-
names of Bishop, Baldwin or
Dillingham were associated with
the company.
/ Despite claims that there
was a waiting list for clients,
"virtually no person wishing to
invest" was refused.
For the first time, information
Rewald included in his sealed
affidavits was made public, in
the indictment, particularly his
description of how the CIA al-
legedly set up Bishop, Baldwin.
Those statements are the basis
of some of the perjury charges.
ACCORDING TO THE indict.
ment, Rewald lied when he said:
"Toward the end of 1978, (CIA
Bureau Chief Eugene) Welch
suggested that (Bishop, Baldwin
president) Sunny Wong and I
establish a second firm which
would specialize in the Far East
and in doing so use names as
part of the firm which were syn-
onymous with Hawaii." Some of
the names they considered, be-
fore settling on Bishop, Baldwin
and Dillingham, were Castle, -
.Cooke, and Cassidy.
Rewald also said in his affida-
vit that Welch told him to claim
that the company had a lengthy
history and that its gross sales
were more than $1 million. He
said Welch told him the CIA
would provide him with fake
Marquette University degrees.
their losses, others have joined
Rewald in suing the CIA. Those
investors believe that the CIA is
responsible for the company and
therefore their money.
Rewald also has won support
from some of the national news
media which focused on his
claims that the company was a
CIA front. Rewald has been de-
picted in a British Broadcasting
Corp. documentary as a "spy left
out in the cold."
Intelligence committees for
both the U.S. House and Senate
have investigated the CIA links
and found no significant ties.
The CIA has acknowledged that
it used Bishop, Baldwin as a con-
tact point for agents and as a
mail drop.
Rewald claims that several
agents used Bishop, Baldwin for
a cover and that the company
was running up to six covert
projects.
REWALD ALSO has claimed
that he stole secret plans for a
Japanese high-speed train for
the CIA and was involved in a
secret $10 million arms deal with
Taiwan.
Approved For Release 2011/07/05: CIA-RDP90-00494RO01100700127-9