STRICTLY PERSONAL: EXCERPTS FROM MY DIARY

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP90-00552R000605480011-8
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 21
• Document Creation Date: December 22, 2016
• Document Release Date: March 30, 2011
• Sequence Number: 11
• Publication Date: October 1, 1985
• Content Type: OPEN SOURCE

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i RED
JACK ANDERSON'S WASHINGTON LETTER
October 1985 Volume II, No. 19
STRICTLY PERSONAL: EXCERPTS FROM MY DIARY
September 9 -- Received angry telephone call from famed
criminal lawyer Melvin Belli in San Francisco. He's outraged
over trial in Honolulu of Ronald Ray Rewald, who has been
accused of criminal fraud in collapse of his investment firm.
Contends firm was front for CIA operation. With snort that
could be heard from coast to coast, Belli charged that judge
is covering up for CIA.
STAT
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A-12 Friday, September 13, 1985 The Honolulu Advertiser
Reyvald secretary- cries for brother
But she holds `no bitterness toward Ron'
By Walter Wright
Advertiser Staff Writer
Ronald Rewald's personal secretary yes-
terday broke down and wept on the stand
for her brother, Sunlin Wong, who went
to prison for his role as president of Bish-
op Baldwin Rewald Dillingham and Wong.
Wong was sentenced to two years in
federal prison after he pleaded guilty to
two counts of fraud in the collapse of the
company and implicated Rewald, who is
on trial on 98 counts of fraud, perjury and
tax evasion.
Fenlyn Kimura, now a teacher, could
not stop tears when she was questioned
about her feelings about her brother's
plight.
After a short recess in the federal court
trial, Kimura said of her brother, "I feel
for him. However, he is an adult." She
said she had always told her children that,
when one is an adult, one is responsible
for one's actions.
As for Rewald, Kimura said, "I hold no
bitterness toward Ron. He has always
been good to me ... fair in every way,
and I don't bear him any ill will."
Rewald's attorneys tried to suggest that
Kimura was motivated to testify against
Rewald by her feelings about what had
happened to her brother.
Kimura testified at length about Re-
wald's spending to acquire and run the
Hawaii Polo Club, an enterprise that cost
$26,000 a month for everything from new
grass to $250 blazers for staff members
and her own $627-a-month Mercedes 450
SL.
Free polo tickets or club memberships
were extended to celebrities including
Jack Lord, Tom Selleck and Jim Nabors
and to political leaders including U.S.
Sens. Dan Inouye and Spark Matsunaga,
Gov. George Ariyoshi, Lt. Gov. John Wai-
hee and former Mayor Eileen Anderson,
Kimura said
She said she, didn't ask questions about
the rumors she had heard about CIA con-
nections at the company because it wasn't
her business. There was one two-drawer
file, she said, to which only Rewald and
one secretary had access and which con-
tained papers, some of them newspaper
clippings, related to the CIA.
She said those and all of the company's
other files were removed from the office
by Rewald's security guards the afternoon
before Rewald attempted suicide in reac-
tion to a television broadcast raising ques-
tions about his company.
Rewald admits taking money from
investors under false pretenses but says
he did it in the belief the CIA would reim-
burse him the cost of maintaining his
"cover" as a wealthy businessman who
used his business and social connections to
gather intelligence for the CIA.
The CIA admits using the firm to "back-
stop" some personnel but denies setting
up or running the firm or participating in
the alleged fraud.
In other developments yesterday, three
more women from Rewald's past took the
stand in federal court and said they te-
ceived $73;000 in checks from him.
A bench warrant for the arrest of a
fourth woman, Susan McGinnis, was can-
celed at the last minute when her lawyer
--promised she would appear in court today.
U.S. District Judge Harold Fong al4o
canceled a bench warrant for the arrest of
Playboy magazine centerfold Cynthia
Brooks, who is listed as one of the 400
investors who put money into Rewald's
company, on her lawyer's promise she will -
appear in court next week. -
Two of the women who testified yester-
day about receiving checks from Rewald
said they had "social contact" with him. A
third testified to having sex with him
three times.
The judge has allowed testimony about
the women, despite defense objections, on--
grounds it may be evidence of Rewald's
income and of where investors' money
went.
Clothier Andy Mohan testified yesterday
about. Rewald's purchases of $475 suits,
$110 slacks, $55 shirts and a $900 tuxedo.
Another vendor said:. Rewald spent about
$5,000 for the massive monogrammed iron
gate outside his Kalanianaole Highway
home.
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Honolulu, HI
(Honolulu Co.-Oahu)
Star Bulletin
(Cir. D. 117,729)
AUG 3 0 1985
.Hens P. C. B. Est. 1148'
4y Handwriting Incident Gets
Rewald Lawyers in Trouble
By Charles Memminger
Star-Bulletin Writer
U.S. Judge Harold Fong has ordered two of
Ronald Rewald's attorneys to explain why they
should not be held in contempt for allegedly
engaging in unethical conduct during the trial.
The order stems from an incident Wednes-
day in which federal Public Defender Michael
Levine obtained an example of a CIA agent's
handwriting by having the man sigff-Me back
of a subpoena.
Levine, in reaction to Fong's order, asked
that the entire three-man defense team be re-
lieved from the case.
He charged that the defense was "under
siege" by both the court and prosecutors.
"We cannot do for Mr. Rewald what needs
to be done in this case," Levine said.
However, Fong denied the request. He said
that Rewald is getting the best defense possi-
ble considering the security restrictions and
the fact that his attorneys are provided by the
government.
YESTERDAY MORNING'S events were trig-
gered by the previous day's cross-examination
of John Mason, a career CIA officer who now
works on contract with the agency.
Upon leaving court on Wednesday, Mason
was approached by Levine's investigator and
served with a subpoena to testify as a defense
witness. Mason was told to sign the subpoena
to verify that he had been served.
Earlier in the day, Fong had denied Levine's
request that Mason be forced to provide a
signature to prove that he is who he claims to
be.
Mason testified that he met Rewald in Los
Angeles in 1979 in order to set up a CIA cover
for another agent. Rewald told his attorneys
that the man on the stand was not the same
man he had met with in Los An eles.
Despite Fong's order that mason did not
have to provide a handwriting sample, Levine
directed investigator Charles Rose to get Mason
to sign the subpoena. Officials from the federal
court clerk's office and the U.S.Marshal'sServ-
ice said recipients of subpoenas are never
asked to sign their names.
LEVINE SAID HE took full responsibility for
issuing the subpoena but said he did not think
Fong's order precluded him from trying to get
Mason's signature.
Fong said that a protective order has been
issued in this case to protect the lives of
Judge Harold Fong
Denies defense request
agents and that the release of a signature
could compromise security.
The judge said he believes that Levine tried
"to circumvent the spirit and order of this
court."
He ordered that all signatures of Mason, in-
cluding any photocopies made from the sub-
poena, be returned to the court to be destroy-
ed.
Deputy Federal Public Defender Brian
Tamanaha also evoked the judge's ire by al-
legedly misrepresenting bankruptcy figures
during the questioning of former CIA field
office head Jack Kindschi.
Kindschi, who now lives in Madison, Wis.,
claims he and his mother are owed more than
$200,000 they lost when Rewald's company col-
lapsed in 1983. Tamanaha said he had been
-told by bankruptcy officials that Kindschi only
is owed $10,000 and that Hazel Kindschl actual-
ly owes the bankrupt estate money.
Prosecutors argued that that was a misrepre-
sentation designed to impeach Kindschi's cred-
ibility.
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Attorney grills former agent
from page A-3
offices.
But Kindschi said he .knew of
no, CIA ' regulation prohibiting
his.actions.
Two other;~ishop Baldwin
cone Cants were identified yes-
terday as having had some
links to the CIA while on the
Bishop Baldwin payroll.
Kindschi, who once stood,
eyeball to eyeball with the.
Soviets in undercover opera
tions in Europe, testified he'
probably dropped his guard
when he came home to Ameri-
ca to work in the CIA's overt,,
public "Domestic, Collections
Division," ultimately running
the CIA's one-man public office
in Honolulu.
Kindschi admitted he was
probably "premature" in ac-
cepting a free car from Rewald
a few weeks before he actually
retired from the CIA in July
1980.
But he said he understood the
car, and draws of $1,000 a
month which he began receiv-
ing in 1980, were related to his
earlier $47,000 investment in
and potential employment with
another Rewald venture, Inter-
pacific Sports.
Later, the draws gave way tQ,
monthly paychecks from Bish-
op Baldwin itself, Kindschi said,
and had reached. $4,000 a
month in January 1983. That
money was paid whether.
Kindschi did any actual work
as a "consultant" or not, he ac-
knowledged. Any actual work
be did - such as rewriting a
brochure and press release and
afting quarterly reports on
tjie economy - was billed at
an hour.
John Kindschi
"Here to tell you the truth"
Rewald's assertion that some-
how the FDIC would bail out
investors up to $150,000 if Bish-
op Baldwin should ever go
bankrupt.
So, he added, did a lot of
other professionals who invest-
ed with and/or worked for the
company.
Kindschi also said he believed
Rewald's representations that
the company was an old one,
even though he knew it had
been incorporated in what he
the. criminal case have been,
ruled irrelevant by U.S. District
Judge Harold Fong and many
of those that have been admit-
ted in evidence have large
areas blacked out.
One of the sources has been
identified as "John Doe 14," a
CIA contract agent winding
down his career when he joined
Bishop Baldwin just three
months before retiring from
CIA work.
Kindschi denied on cross-
examination that he had "di-
rected" Rewald to hire John
Doe 14. He acknowledged that
a special set of Bishop Baldwin
brochures was- sent to- John
Doe 14, omitting Kindsehi's
own name as a consultant.
Those circumstances - and
Rewald's, own private claims -
suggest that John Doe 14 is
Charles Conner, the man hired
as Bishop Baldwin's consultant
in Sweden and a man Kindschi
said he knew "socially" when
Kindschi was working under-
cover in Sweden.
? John Doe 14 is the first per-
son mentioned so far in the
case as having worked for pay
for the CIA and Bishop Baldwin
at the same time.
But the government says the
CIA's relationship to John Doe
14 was not related to Bishop
Baldwin, that the CIA did not
ask Rewald to use or hire him
for any CIA activity and that
the CIA in fact was unaware of
John Doe 14's activities for
Bishop Baldwin until ter it
collapsed. 1~~~//,~
A CIA relate J is ith yet
another Bishop Baldwin con-
sultant, Capt. Edwin "Ned"
Avary, was suggested by the
defense in cross-examination o
Kindschi yesterday. '
Kindschi denied having had
previous CIA-related contact
with Avary, but Tamanaha pro-
duced a document purportedly
showing Avary had been
checked out for use by the CIA
as early as March 1973.
Avary, a former Pan Ameri-
can World Airways pilot and
an inveterate traveler in his re-
tirement, confirmed in an inter.
view last night that he hac
done "volunteer work" for the
CIA, "like a hell of a lot o:
other people. I was what the3
call a walk-in," he said. .
thought was its latest incarna-
tion only in 1978.
Although Bishop Baldwin it-
self was not a cover company
for the CIA, Kindschi said,
there. were "equities" and
"sources and methods" to be
protected when it collapsed.
That was why he initially
evaded questions from some
he'd received in which others. investigators, Kindschi said. --
questioned Bishop Baldwin's But now, Kindschi said, "in
claim of $150,000 insurance ' this particular case the sources
from the Federal Deposit Insur- and methods have gone by the
ance Corp. (FDIC). board, my secrecy oath has
The FDIC in fact insures
deposits only to $100,000, and
the* only in banks.
But Kindschi said that despite
his background as a high school
eco mics teacher, despite his
wid6 reading in financial jour-
nalsaand despite others' persist-
ent 4uestions, he still; accepted
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Deputy Federal Public De-
fe~nder Brian Tamanaha con-
frbnted Kindschi with, letters
been waived, negated, and I am
here to tell you the truth."
The CIA nevertheless is still
attempting to protect some of
its sources and methods which
were threatened with exposure
by the Rewald affair.
Hundreds of classified docu-
ments sought by the defense in
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The Honolulu Advertiser
won"". 8eytsmber 2b ues A
Rewald `arms deal' documents
entered in evidence
Sy Walter Wright
~, seat w,rj+
Documents relating to alleged Ronald Rewald
arms deal negotiations with an unidentified "big
man" and with an "awesome but affable' Leba.
noes " Were introduced into evidence at
Rew al's fraud trial yesterday.
But an FBI agent *ho Investigated the fi-
nanoes of Rewald': firm said he found no Ovi-
dInce they yhhadeals ything were tondo with the
FBI agent Glenn Martin said talk of arms
deals and big eomnissions from them were
among rumors floating In the wake of the col-
lapse of Bishop Baldwin Rewald Dillingham &
W .
lie said he didn't try to track down the possi-
ble auras deals, but suggested those leads were
traced by other invasti4ators. Martin said he did
examsne the company a banking records and
found no evidence of arms deals.
Wayne Parsons, one of Rewald's lpdntsd attorneys, battled for most of the day to
troduce soon. of other documents, many of
them clearly containing national security, infor-
matioo which he suggested showed Rewald was
dolly mode than minor cover "backstopping" for
the CIA,
Rewald admits taking money from investors
Older false pretenses, but says he did it to
maintain his cover as a wealthy businessman
white spying for the CIA.
The CIA says it paid Rewald about $2,800 to
maintain telex and telephone facilities that its
plrsonnel could give as their own when
m closed srb~
In closed Jngs on CIA-related evidence,
edge Harold Fong ruled before
the trial that no such evidence would be admim
able unless It tended to show CIA authorisation
or control of expenditure of Bishop Baldwin
fundss.g
da oafte'r another close wd ehariing position y ~
He allowed the admission of two telexes from
Bishop Baldwin consultant Edwin "Ned" Avary
only after parsons mentioned in front of the
jury that the documents he was trying to intro-
duce dealt with military weapons.-
In one, Avary said,
~ try. fit.
awesome fantastk milt
ands yet Lebanese gorilla this week
.01
In another, Avary told Rewald, "awaiting ur-
gent details as to firmness of order from the biff
man here," and referred to itemization of
"heavy equipment" mentioned in another
communique.
Those two telexes, and other documents in-
volving Bishop Baldwin consultant Russell Kim,
indicate Kim and Avery were travelling at Bish-
op Baldwin expense In an effort to buy or sell
weapons,
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Amo ... tie its Parsons t1
to tntrcdvo
to Rev& e way a latter ao q out
soosK for ai "moaiae have
me equtpafs~t
tll~,at n acid #01 can , wmts down they've
lltbds ft
anus F 11 there a>?e Pownal
km to m in the world. fromm Mo.--
fast but "you haven't ltabliah-
~Baidwin. wm arms sales fib mop
Paream that even the Po mobility of a
Yale 0puld ttiat B4hop Bald in was dol4
red bifbss It Codia 1md t have
been .in a position to colleen nv me nu~t to
cover its Ons to tnveeto, ,
And ~e he Jwy
should we the docu-
>w as it d decide whether Martin, the
V. Nf withM oo dnan fraud,
by
Ra
appear, tttr
R
awvd s
evil attoeney, Robert Smith, addressed to the
tm "tbe encaBishop Baldwin cowues, pyins
Aan arm dial is owes o 81 Ba1
a*y reported to have said shortly follow.
thk Bishop Baldwin collapse that such a
Intl
H.
He could not e night for com-
ment b be reached last
Parsons argued that the fact some CIA-related
mad~? refeeme to Bishop Baldwin the Offidem jmdWQ Me CU P~~'s r"vpeoral lors9
i}ig and*aiut 1 ttnooe cI ose
But lbns ruled those dooumenla
- well, sayft "what ~lishop Baldwin that
Rewald dJnvqjvg oes on his own tlmi, bVelem onald
POMUOM s o"" by Rawaldt witht gawad oot+.
-naaoralrr Zobel and with otherpe
were ter
f part of a CIA prr4ect to shel
~~ ~doouMaley" Rew
megta.14 his claimed,
p~~ dy in evidence dq~
for CIA offic r Char Ricer, for a "onus'"
asked if they didn't-show the CIA was iast-.
LOS Rewald to maintain a lavish lifestyle to
backstop Rkb4rdson's cover.
. debt rt old needed the ad~en ~iidicated only that
that appeared to be substantial. e' compagy
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'The Honolulu Advertiser
ik-14 'hlday, 060M k % to
Reward fury starts its deliberations;
ytv.,quick verdict seed
Walter Wright
4.IN#W ,
Amid Indications it will take
t them at least a few days so
wade through more than 2,800
exhibits and reflect on teeth.
mony from 140 witnesses, the
Rewald jury went home last
night after tour hours of delib-
erations.
Tim must consider 1o aepa.
rate charges against 43-ypr-01d
Ronald ay Romabl,_
businessman from dais,
who after arriving here In 1978
built a flashy financial facade
on other peoplegs money.
RewWwho onee hobnobbed
hers on his qwn polo field with
Air Force generals, Hawaii
Politicians. Arab princes, an
and Phil ppinee British nairres,
could be sentenced to about 500
Years In prison If aaovitted.
Alternate jurors who were
released yesterday appeared far
from unanimous in their assess-
ment of the case. One leaned
toward acquittal, one toward
conviction, one declined to say,
and three others made no com-
ment.'
Their reactions sugggteid Re.
weld's lawyers succeeded in
planting some seeds of doubt
about the CIA's relationship
with Rewald.
Rewald himself left the
ctwlhouse harvm an acquuittttal lots, the
crop of questions In jurors'
minds.
The Jw y must be useg ions
in any verdict. A, hung
fury
would result in a atlstrla{and a
new trial on the charges,
Two of the alternate jurors
released Yesterday said the .
didn't think there was muc
more in Rewald's CIA connect
Lion than telephone. Telex and
stationery, as admitted to by
the CIA for maintenance of
"light comment cover."
"I don't think there's substar,
tiad etlldenee" that the CIA di?
rected Rewaid to spend inves-
tors' money as Rewald?ciauaed,
said Kerry Moyer. a Caul if
club employee. "B I thyoink
there it some CIA iNroiraesst.
possibly a little-more than
what was revealed at trial,
"'''kind of somewhere in between
what-each side was saying."
Moyer said at times he felt
"the whole story wasn't being
presented," but said part of the
reason m have been because
of Judge road.ltlong's rulings
that much of what the defense
wanted to bring in was irrele.
4 ant. He said ftng'as "irnpar.
teal - you can't really question
his Judgment on that. If he
doesn't feel to relevant, you
can't dell with" what's outside
the case.
The key, Moyer said, was
what the law provided. whetb,
er Rewald's claim of CIA au-
thority would excuse him from
taking nrohey from investors.
Another juror, an insurance
clainhs clerk who asked not to
be Identified. said that "to be
honest with you, no," she didn't
think there was much to Re.
wald's CIA connection beyond
the telephone Telex bills,
but that she had kept an open
mind and was prepared to
examine the CIA question
close.
clerk also said she found
the CIA witnesses to be believ-
able. and the 1 stimony from
investors who lost money con-
vincing.
'I woke thl>f m60n1u . , and
I sort of Made rP my mind, but
1 would _ have gTiven myself the
E,
, ass 1046
a
alternate, at social
Nift-aid she, had "plent
y
T, one" gout the CIA and
wan 4'to "look into the docu.
ments" because she felt "they
the b* .yu "SHY. with
The didn't 10" worker said she
bWeve 4ormcr CIA
Honolulu otticejobfet Jack KidmW 4N4 Was f of to ise other witn tt~i-
Y. including Rewald himself
and his secretary, Sue Wilson.
The three. alternates indicate
ed they ware not particularly
scandalized by the undisputed
allegations that Rewald spent
more than $910,000 on sexual
and Social Intercourse with
,*omen.
`' '.Everybody does It," one of
the women alternates said.
The alternates weed a ver-
dict nay be b rd to reach. One
said 4he ?v would come
nett 'weak. Another sal4 tha4
since the prosecution and de-
fense had taken 14 months,
there was no reason the jury
shouldn't take as long,
"The others still up there
have got a tou h decision," said
Moyer. ''If th are going to
look through all that, ... they
are going to have IIi tough."
The jury was not allowed to
take notes, nor will it have a
chance to review numerous harts 'But It took with to
h it in to t ~r
room carton attar carton of
. bank records, CIA documents,
canceled checks and other
pieces of paper that tell the
or much of It, of Bishop
8d in Rewald.p~ilingham 1k
Wong.
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3ionoIuIu *tor8uI1etin
T vrsdaq. October 17, 1913 A-3
Alternate Juror Says She Would
Have Acquitted Rewald,
ehorles Memminger
dta,.Bwnetin write
One of the alternate furors
released from the Ronald Re-
weld ttisl today said she would
have voted to acquit Rewald of
fraud charges,
U.B. Judge Harold Fong dis.
n~isaed six alternate Jurors to
allow the panel of 12 regular
jurors to begin deliberations
a?tdr, an 11?week trial.
One of the alternates was told
not to talk to anyone about the
can because she may yet be
called on to deliberate should
one of the 12 Jurors have to
withdraw. ace live other
alternates, only three agreed to
talk to reports".
One woman, who asked not to
be identified, said she had
"plenty of questions" about the
CIA's Involvement in Rewald's
company, Bishop. Baldwin, Re.
wall, Dillingham & Wong.
SHE SAID SHE would have
voted "not guilty" if she had
voted this morning. She said,
however, she would have re?
Dtaiaed open to "discussion"
with other Jurors.
Another woman alternate, who
also asked not to be named, said
she bad "sort of made up my
mind" but she would not say
how she would have voted. She
did say that she did not think
RewaId's connection to the CIA
was more than Just providing
telephone and telex backstop.
, ,Kerry ~Mo)yer essaid she wanted
to watt until the verdict Is re-
turned before he would say how
he would have voted, -
He said it seemed that. at
times during the trial, all was
not being told about the CIA in.
voleement,
Moyer said the truth probably
what "tthhee o ernment band e the
defense said.
ATTORNEYS YESTERDAY
wrapped up their closing argu?
meats with the prosecution call.
Ing Rewald a "nineheaded ser?
ppeent" and the defense charging
the government with a cover-up.
"Where there's a lot of smoke
said Deputy Federal?Pu~ De.
fender Brian Tamanaha about
the t to m1Mii la___ Re 's cos g
TWW
n Feederato the ll Prosecutor Ted Green.
berg agreed that there was.
gmo e. But he said It was crest.
ad by "a smoke machine at the
defense table."
"There's so much smoke in
this room it's hard to sse,"
Greenberg said.
He then launched Into a sloe.
Ing argument that at times
seemed more like a name-calling
session. He called Rewald a Liar,
cheater and thief who "wormed"
his Way Into an Assseodciation with
the Calling ewald a a Il~ ydra, a offiby
mythical beast.
That caused federal Public Do.
tender Michael Levine to protest
Greenber 's "character aseaetiga.
tion" of > ewald,
GREENBERG cured prepoa~r
ous Rewaldlr calms that tee CIA
told him l set ong
win, Rewald,
to take money from citizens.
"Mr. Rewald wane ~rou to be-
lieve syl yaw thagovernmeat told him,
et
money... and to
spend It," Greenberg said. Is
said It was ridiculous to think
the government "decided we
needed this bankrup , tty
criminal" to in" Nrfadoasia and
set up a fake business in Hawall,
Greenberg questioned why the
CIA would want Rewald to
speed millions of dollars an him.
self and family, Including buyer
jewelry, un collections and
mrugs.
He also questioned why the
CIA would want Rewald to
spend $280,000 of investors'
money on sexual and social
favors from women.
Rewald "blames all of his
crittmee on the CIA," Greenberg
said, yet he took money from
"sick and dying" investors who
trusted him.
Tatnanaha, however, told the
Jury that the government at.
em led to cover v T real can.
nectptons to Rewald as early as
1962 It was then that the IRS
began an w:tigating Rewald and CIA the
StOPPed tstepprpeedd i"n and briefly
THE CIA DEMANDED at that
time thet Rewald turn over all
his CIA documents, 'hmanaha
said.
Then, aware that Rewald was
taking money from investors
the CIA pulled out and allowed
$7 million more to be taken In
before the eventual collapse in
Ju]Y~ 1988, Tamanaha said.
"if the CIA knew (the compa?
ny was faker,, why didn't they
tell anybody? Tamanaha asked
the jury.
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ZIIonoIuIu liar-bulletin
Tl wrio . u bib 17, 19S5 AA
Jury Begins Deliberations in
Rewald Federal Fraud Trial.
d;7 rles 00 ninga- ?.
The An in Ronald R.wald's
federal fraud trial was to
deliberations today if ter
two > of Instructions from
UAtJ Harold Fang.
torneys yesterday wrapped
up their closing arguments with
the prosecution cal Rawald a
"ntaedteaded serpent and the
defense charging the govern.
mept_ with a cover
Where then'. a 1 of smoke
.. there's a fire somewhere,"
said Deput Federal Public De-
fender Brian Tamanaha about
the . government's alleged at.
tempt to minimize Raw id's con-
nect3oa to the CIA.
Federal Prosecutor Ted Green.
her agreed that there was
anto~e. Hut he said It was creat-
ed by "a smoke tnaehlae at the
defense table."
`There's so much smoke in
Gr enbe room saki s hard to nee,..
? He then launched Into a cloa-
iag argument that at times
seemed more like a name-calling
session. He called Rewald a liar,
cheater and thief wbo "wormed"
his way into an association with
the CIA. He capped It off by
calling Rewald a ydra,. a nine-
hadea mythical beast.
That caused federal Public De-
fender Michael Levine to protest
Green 's "character alsasaina-
tion" of Revald.
GREENBERG called Rewald's
claims that the CIA told him to
set up Bishop Baldwin, Rewald,
Dillingham & Wong to take
money from citizens prepoeter-
ous.
.1,tr. Rewald wants you to be. him
toaseteayour l that Sam.. wand to
ssaaiidn it was rtdicubw
the government "decided we
needed this bankrupt, petty
criminal" to lave taco and
set up a take business In Hawaii
CIA w berg qua want ioaRwhy into
spend mucus of dollars o him-
self and family including
jewelry, gun collections an
custom-made rugs.
CIAe woouuldauw~ant ~Raww lid Ito
spend $290,000 of investors'
money on sexual and social
favors from women.
Rewald "blames 1 of his
crimes on the CIA."aGreaaberg
said yet he took money from
"sic>~ and dying" Investors who
trusted him.
Tamaaaha, however, told the
jury thin the government At,
tamp~,~ to cover as its real eoa-
nectiotus to Rawald as sarly as -MS
anRI was then twald and
the CIA stopped in and briefly
stopped the
THE CIA DatANDED at that
time that Rewald turn over all
his CIA documents, Tamanaha
Then, aware that Rewald was
taking money from Investors
the CIA pulled out and allowed
$7 million more to be taken In
before the eventual collapse In
July 18_, ~T ~ma'tnahya ~ said. ~/y~ was ~ if f the
CiA kne camp..
hell anybody?' TA Ah,stased
the?ry.
14= =Nwaffw"
overameait createdcertain
ddb o rs,R.poi'idoadet
that tool a CIA "contact"
aheet in =I while R-
weld's assoelation with the ageA-
cy
t; "I ,subm1t coat huedtoyon . for another year.
.. that card
>Iatlats," Tamaoada amid at tie al-
le ed miring card for 1fRh
the first part of the
-
overnm nt's openln
statement.
assistant V.S. Attorney John
Pey called Rewald a par who
c imed to be a CIA agent in the
same way be chew d to be a
41 loothd
eddRi bcarsiPat.
tern of use in wacoetln, ai eg
before be claimed assodagoa
with the CIA.
CIA
? 7 of clocked going 110 mph in
A.
Z Zone. No sweat. I inured a
ay out of It, and what a more,
I share.
'Here's the perfect defense for
anybody with a speeding ticket.
1Tust go to court and la &
"Your hoior, the C A made
r do it."
Don Paul
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honolulu $tor4UulletLi (D
Wedneidey, October 16, 1955
Rewald CIA Defense Called
`Just One More Lie',
By Chorus M.mming r
Star-Rwgetia WA W
Ronald ftwald's claim of
being a CIA agent Is just one
more lie Rewald has told In
order to 1teal million of dollars
from investors, a federal court
jury was told this morning.
Assistant U.S. Attorney John
Peyton described Rewald as a
man who has lied to virtually
everyone. The pattern of lies
bean long before Rewald came
to Hawaii in 1978 and before he
began to blame the CIA for his
misfortune.
Peyton's remarks came during
the government's closin errater.
Mont alter 11 Meeks of tt . B.-
wald is on trial on 98 counts of.
fraud, perjury and tax evasion
in connection with his invest-
ment scheme.
Throuabout Peyton's lengthy
presentations, BMW kept his
bead lowered while he took
.notes on a yellow Neal pad.
was packed `? courtroom spectators wanting to catch the
final hours of one of the state's
most heavily publicised trials.
Peyton constantly reminded
the fury to question Rewald'( al-
legations that the CIA was re-
and
sponaible for the Iwo misrep
resentations Rewald made.
pundreds of Investors.
Paayyttoon described how Rewaliir~
constantly changed his story
fwaldt ~D linghaamp~h Wad did
,'and how investments Were
made. Rewald at times told
investors a "William Dillingham"
was part of the firm and later
that a "Randall Dillingham" was.
fag act, there never was Dill-in w
n firmed
= SAM REWALD lied about
Investments being insured by
the Federal Deposit Insurance
ccoompany and athe boogut his personal
* Pe P Wound. aid Reward with the Lim,
to
tell investors pertinent inWorma-
tion about himself: that he had
been convicted for theft in WW
cousin, that he never actually
played professional football and
that he hid gone bankrupt.
He said Rewald also lied about
his connections to the CIA and
about bethg directed by the CIA
to set up BBRD&W.
Alt the IA pwrovide claim him now
that the
fake Marquette University ddiplo.
~, In Wbconssin,, long a ebefo e,
his involvement with the CIA
pccurred In HawalL
Peyton def told the Ivry
tion the . to ques-
ense contention tha
the CIA put more than $3,000 fort
telex and telephone expenses
into the company,
"If there is any contention
that money was coming from
somewhere (other than the
investors) where is the evi-
dence?" I eyytt~oonn said. He said the
purpose of Rewald's scheme was
to make mon&~y for him to~ spend
on himself. Of the $31 million
brought in by investors, Rewald
spent 55.` million on himself,
aid.
"tis money was spent
for the CIA?" p~ytp~ asked.
PEYTON CCNC DEDShat the
CIA had made three "serious
mistakes" in dealing with Re.
weld.
One was the failure to do a
complete background check on
Rewald when be began to pro.
vide "light cover" for the ageo-
cyFailina in that the CIA com.
pounded the problem by having
the CIA Honolulu fied office
chief Jack Kindschi write an err
easement of Rewald. Instead of
rforming a professional check,
Rewald, ~ a al
all of tbe mis-
representations Rewald su
The third mistake was last the
Tom I Pop AA QL I
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0
I4oholu1u Sfor?Oul.'w
Wednesday, October 16, 19S$
to supplied IRewaid with three
over storlee on how to handle
is tax problems Peyton said.
Peyton said Is defense will
y to use those "serious errors
judgment" to relieve Rewald
i any rssponsiblity of stealing
iveetors' money.
? Peyton said the CIA was as
>Qiuc a victim of Rewald as any.
One else.
Brian Tsmaaaba, deputy feder?
41 puhltc defender, was expected
1o make the dosing - argument
for Rewald this afternoon, r
11hat, 'prosecutor Ted braes
as to finish the government
oeing remarks.
Judge Fong said the fury -will
oar a t two hours of instruc?
on! before it begins delibera-
on.
.
None of the 18 people who sat
lr+ the jury box for more than
two months knew it be or she
was a juror or an alternate.
After the closing arguments are
completed. Jude . Fong was to
dismiss the six alternate Jurors.
Jurors watched 1 number of
former CIA agents take the
stand and describe their associa?
qon with Rewald. They saw one
ant, Kindschi, break down in
Man v he described how his
pother lost her life savings to
wald.
The saw former. CIA office
f Jack Rardin et choked up
hen he described he was
eprimanded for his handling of
ewa
ld. . Rardin said it was the
?nly "black spot" on his 30-year
lA record.
ewald Ca
Coatbw/ from rase 4ee
se
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The Honolulu Advertiser
Toddy 70 l Y,
`Smoky' Rewald case
going to jurors
WIgthULQQc&?
i. ~yy Walter Wright
-' ai etitm- S1,r!! wroff
Jurors in the Ronald Rewald
fraud trial will start deliberat-
ing today whether there is any
fire behind Rewald's smoky
tale of CIA control of his in-
vestment firm, Bishop Baldwin
Rewald Dillingham & Wong.
"Where -there's smoke,
there's fire," Rewald attorney
Brian Tamanaha said yesterday
in a closing argument. Contra-
dictions and coincidences to
documents from "the 97 atest
intelligence agency the
world" can't be explained away
"by poor, bumbling, I'm-a?vic?
tim CIA agents," Tamanaha
said.
Prosecutor Theodore Green-
berg shot back: "There's no
fire. There's a smoke machine'
'Over there" at the defense table
"and ft's pouring out smoke"
intended, like the lies told to
Investors, "to get people to
have confidence by fuzzying up
the edges."
Rewald admits tanking money
under false pretenses, but con-
tends he did so at CIA instruc-
tion to maintain his ''cover."
Tamanaha called the prosecu.
tion case one of "desperat
W
in which an old woman a
wheelchair, a blind man and a
dying cancer patient were ppas--
raded before the jury, than fol-
lowed by women Rewald paid
for sex, all in an effort to get
the jury to "hate Mr.'Rewald.'
The Jury, Tamanaha said, was
not there "to judge' i! Mr. Re.
weld is good or bad.' That
judgment will come but not in
;this. world." I . '
Greenberg countered that it
was not pleasant "to have
brought those women before
you. It was not intepded to
embarrass them 9.r to offend
your sensibilities, but it had to
be done."
? For while Rewald eonfded
that his spending on a lavish
lifestyle was supposed to s
hence his CIA cover so be
could mingle with other
wealthy met,, $287000 of the
money was t "on these se-
cret, cla~ndeetirta meetings with
worsen" in a downtown Mono-
lulu apartanent. Greenberg said.
In fact, Greenberg mid, "you
can cotwtet him ... just on his
? spending the mono on the
women. Did be tell ~ llnvett-
tore be wee tskin their money
and supporting . 2 different
'
-women?
Assistant U.S. AttaM John
Peyton argued that 97 of the 98
fraud, tax?evadon and
counts againsRewald ch g
him with lying in one way or
another to investors, the Se.
curities and Exchange Cor " 4 -
lion, the IRS. the FDIC, and lr
federal court peooeedIn .
When he lied to 400 saw
tore, Peyton said. Rewald gds
more than $20 million from
them and pocketed $5.5 mil ion
See, jury on Pegs A'4
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The Honolulu Advertiser
Jury starts deliberating
on Rewald case today
from page On
for his own use.
sinker." - cial cover, what Would the de-
Although the prosecution In-
stated several times that "the
CIA iR not on trial here." they
were pressed to respond to the
dafense insistence that the
CIA's own documents suggest
Bishop Baldwin was tailor-made
by the CIA as a cover opera-
tion.
Peyton said the CIA "became
Rewald'? victim as well" be-
cause of three major "errors in
judgment":
? A glowing endorsement to
headquarters showed Honolulu
office chief Jack Kindachi went
for Rewald "hook, line and
waived a background investiga.
ton of Rewald so he would
keep providing light commer-
cial cover.
? Central Cover staff sent
Rewald three cover stories to
deflect IRS questions about
cover companies.
Tamanaha said the case boil-
ed down to CIA records which
he suggested were doctored or
post-dated as part of a continu.
Ing coverup of. the real relation.
ship between Rewald and the
CIA. "The government and the
CIA want to wash their hands
of this whole dirty affair,"
If the CIA had known in
early 1983, as it claims, that
Rewald was a fake, why didn't
they tell someone before more
investors poured another $7
million into Bishop Baldwin.
Tamanaha asked.
Tamanaha and Greenberg
c.isagreed over a series of
cables describing potential
covers for a CIA officer.
Tamanaha said they showed
the CIA layin out a "legend"
for the Bishop Baldwin cover.
? The Office of Security
Greenberg said Rewald had
set up Bishop Baldwin with Its
phony names and begun bilking
investors b before the able,
were sent. He'd displayed a
phony Marquette degree long
before meeting a CIA man who
supposedly -supplied it, Green-
berg said.
And Rewald, far from count.
ing on the CIA to pay his bills,
agreed he'd take money only
for necessary office and admin.
istrative expenses and billed
the CIA for only about $3,000,
Greenberg said.
"The CIA turned out to be
the biggest patsy in this case,"
he said "If the CIA hadn't been
stupid enough, gullible enough,
to let Rewald provide eommer.
fence have to talk about? Noth-
ing. Take away the CIA, and
there's nothing.
"He'd have you believe that
(the CIA said) we need Ronald
Rewald, this bankrupt petty
criminal, to to Hawaii and
take money frame the old and
the rich and the young and the
poor, so Ronald Rewald can
play polo with Enrique Zobel."
a millionaire from the Philip-
pines.
"If the CIA wanted that kind
of person, with wealthy con-
tacts, it had a lot of them."
Greenberg said. "To have
someone appear to be a
Wealthy businessman, they. (the
CIA) call up a friendly bank
and say, 'have a balance sheet
(for this man) that says $5 mil-
lion.' They didn't need that In
Hawaii, they didn't want that."
Rewald, Greenberg said,
.'wrapped himself in the Ameri-
can flag and the CIA not out of
patriotic motives but out of
greed. And when he got
caught, he spit on the flag" by
lying about his relationship
with the CIA. Greenberg said
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JIonoIuIu
$tor6u1lettn' &
liwm
Closing Arguments Waited
jn Rewald Trial
-by c . MemmMgse
gtar.lRaDetiN 1YNter
'lie Ronald Rewald trial r "x11
over except for the shoutlag." as
one lawyer put It.
Attorneys for both sides have
been huddled In their offics
since Monday preparing for the
"shouting." or mentor expected to take up meat
of today.
No more motions will be filed.
No more complaints will be iodg.
J ID the judge. No more irft-
nesses will take the stand. After
II weeks everything that either
side coulb do to help its case has
been done.
' Assistant US. Attu Jobn
Peyton, a veteran trial lawyer,
g: 11
sovernnmentth's closing aarrggum the
e
He will be followed by Brian
Tamanaha, the young deputy
fedwal public defender who has
been the point no In Bewsid s
TTboo ore Green
attorney from the Juatioee De-e-
eat who has been Involved
in a number of trials Involving
-the CU, will conduct the final
part of the government's closing
argument.
THE GOVERNMENT lets to
addrea the fury twice, t fury
will be told , because it has the
burden of Proving that Rewald
ui ty ~vyyoondd a reasonable
doubt."
to
Both sides are expected to
argue that 16 4111 concept at
length. The defense case has
been framed around creating
doubt In the minds of the
Should one juror of the
eon Pagel not be convinced that
Rewald r guilty d per-
jury and tax evattap, case
?' Will end In a mrtriaL The gov.
arnamtt WM then be faced with
the ad
proceas00fof retrial,
" 'ironically, none of the le pso.
pie who have been eg to the
Jury box for snore t an two
months know it they are uron
or alternates. After the
arguments are complete U.1
Judge Harold Fong will tls,mgr
the Ms alternate jurors.. The
altdhrnates have been known only
to the judge and attorneys, to
assure that all of the jurors will
trial attention during the long
The Unusually large number of
alternates was chosen because of
e possibility that one or mom
jurors would be torcod, throusyt-
tlAeas or Other, problems, io
Ithdraw, i
NONE of the "iarot'h however
has been forced to drop out U
the trial. In fact, there have
been only a few times when
trial was delayed because a juror
was late getting .W the court.
room.
None of the jurors has even
a- ppeathe sed~lu- omay be
because they have an a tong
the - of colorfull famous and
sometimes mysterious people
taking the stand to tedtity.
Jurors watched a number of
former CIA a ents take the
stand and describe .their aasocia.
Lion With Rewald. h did not,
however, see hard.polled agents
In lcenchcats. They saw one
agent. Jack Kindschi break
down in tean as he described
how his mother lost her Ids av
chief lack Rardla ---et choked up
when be described bow be was
reprimanded for his handling of
Refwyald. Rardin said It was the "Mwk
CIA record.~ oohis yar
as THZ y aOeYst mat ark Lord
Iol a "damnable lie" RewaN bad
-When be
said Loo B op, Baldwrin, Rows d ,Dining.
barn A Wong. But the famous
television actor awed and nod.
dad at the jury as he left the
stand.yy strim of
women e t e mad and
te,U,
Peg. #4, l. 1
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Wed d.y. Otlebe- 1`, 1NS Meuelely 6*4Ils i Aye
:Closing Arguments .Dude
..,In.. l 1 Rewald Case
01"M him pop an
ty that they received money
from Rewald for social or sags]
? cowtaet. There was standing
..room only In the court when
blonde model this Brroooks, a
y
into
Will box. t dust Odthe
fury she had receivedtdsome
money from wald. but also
wprpa lbs deal of prseod In
? 19eS.
The jury heard Rewald's for. unft scribe how rke wajd ova a ul~
him to try to bribe a Wa
gym to give a fake spiritual
read to an elderly woman Re-
Wald was trying to cultivate as
an investor.
J the tour whsome ng d b In
bow he attended the Los An-
;; a Qsles "funeral" of J. Raa~nddaall D%
Bisshop~and win, did with
. ? actuaa~lly exist The dalyear-eid said ssttroeeta of Los Angeles to a day
J until was 50 io rsRarn from
the "funaral.
WONG d'= Is servings two
year prison tam af~eading
uilty to man and fraud
company. his part in runnli $eweld's
~Som meeyJuros were aela chuck.
i line when Cant. Ned_Aurv took
i he turvhetrd testimony
Atto aid pre the "ikaka"
airline pilot awl former Aew-ld
from body tram a Na timo
ootbal ue Official to Its.
wald's bodYCWA The iotr ra.
ment tihrIn
who lost lt -~ ww0uuld pat oD
man, e as c pple a b{ion
and awoman who lam her band and sops Alk a plane trask
than 2c0 pia peat on by mite
goveweerrnmentthan 1, the def nse put OR
fs
The fury also did not no the
man w was to be the 's
star wit s, Rewald hi At
the last minute. Rewald decided
not to take the stand. The ra.
son, aeeo OM to hit attorneys,
vrtts that Judge 1bm refused to
1st Rew41d a6o~ett the full
;714 of w dadon
the The ruled
months before the srial that the
only CIA evidence that Could be
allowed by the defense would be
that d0vl
managedrdirectthe CIA ed or eostrtrolisd
the' ettimte~~^b afternoon, ~
will begfn tb " $11 tae
evidence it bas eard. ,
after what is to be
days of deliberathe fury
will return to the courtroom
with its veed$ct. It is fining that
the courtroom is named Aha
Kupono," or "Justke."
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