THE DECLINE AND FALL OF REWALD

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP90-00494R001100690004-7
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 2
• Document Creation Date: December 22, 2016
• Document Release Date: August 10, 2010
• Sequence Number: 4
• Content Type: OPEN SOURCE

Approved For Release 2010/08/10: CIA-RDP90-00494RO01100690004-7
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The Decline and Fall of Rewald
By Charles Memminger
Star-Bulletin Writer
After 12 hectic days of revela-
tions, the dust is beginning to set-
tle on the gothic-lettered facade
of the "international investment
company" Bishop, Baldwin, Re,
wald, Dillingham & Wong.
The title of the company,
which once conferred dignity and
a sort of aristocratic arrogance,
now seems to be some sort of a
bad joke to some investors. There
is no Bishop. There is no Bald-
win. There is no Dillingham.
There is a 41-year-old former
Wisconsin sporting goods dealer
named Ronald R. Rewald who
shuffled into court yesterday. his
freedom checked by leg shackles
and a $10 million bail.
There is Sunlin L.S. "Sunny"
Wong, an Island real estate
promoter cooperating in the
investigation of the company,
who walked out of federal court
last week after testifying before a
secret grand jury investigating
the company-
Just as Rewald surrounded his
name in the company title with
well-known Island names, during
his daily business he surrounded
himself with respected Island per-.
sonalities and professional people.
He created an air of wealth
and tradition, riding in chauffeur-
ed limousines, running the polo
club, sipping cocktails with the
Island's upper crust and working
out of an elegant downtown of-
fice.
BUT IN 12 days, all that has
changed. Now that the opulent
haze that enveloped the company
is gone, this is what is left:
-The company is under inves-
tigation by so many agencies that
to list them is to create alphabet
soup: the FBI, CIA, IRS, SEC and
HPD.
-Some $17 million in investor
money is unaccounted for and a
court-appointed bankruptcy trust-
ee has found only a small part of
it.
-The company is not one of
the oldest international invest-
ment firms on the Island as was
claimed;, it only was incorporated
in 1978. -
-Rewald is not the veteran in-
vestment counselor he has held
himself up to be. In fact, In 1976
he was in personal bankruptcy
and a sporting goods company of
which he was president also went
bankrupt.
-Rewald never attended Mar-
quette University or played
professional football for any team
as he had said.
-There apparently are no for-
eign offices of Bishop, Baldwin,
Rewald, Dillingham & Wong, as
claimed in company brochures,
according to bankruptcy trustee
Thomas Hayes, but merely
"desks" in rented offices and
individuals who were wired
money, every month to keep the
"office", open. The New Zealand
office never existed. The Guam
office existed on paper only. The
.International Tree House was
'claimed as an "office" by the
company because it was leased on
a month to month basis from the
International Market Place by an
old Rewald acquaintance, re-
staurateur Don Beach. Beach, in
turn, was the "Rarotonga office"
by virtue of hisjesidency there.
THE AURA surrounding Bish-
op, Baldwin, Rewald, Dillingham
& Wong disappeared during an
amazing series of daily events,
which began at the end of July.
Attention was focused on the
company with the release of an
economic report on Hong Kong
that the company touted as one
of the most extensive ever done.
But like the company, the report
contained more flash than sub-
stance.
Respected economic analysts
called the report sophomoric and
poorly done.
The company had been under
Turn to Page A-6, Col. 1
Approved For Release 2010/08/10: CIA-RDP90-00494RO01100690004-7
 Approved For Release 2010/08/10: CIA-RDP90-00494RO01100690004-7
.. 6 Honolulu Star-Bulletin
A
pitulation of the Saga of Ronald. Rewald'
Ronald R.
saying Rewald made "false repre-
sentations" to him about the
company. After Newland's resig-
nation, several other consultants
quietly sever themselves from the
company. A company spokesman
-Aug. S: Trustee Hayes is given
duplicates of company records,
which an employee had hidden in
a safe deposit box without Re-
wald's knowledge. Wong's attor-
ney says Wong is voluntarily
cooperating with agencies investi-
gating the firm. Members of the
news media are allowed to view
Rewald's plush office, which con-
tains a waterfall among the sculp-
tured rocks along one wall. The
waterfall is turned off.
It is learned the company also
is under investigation by the IRS
for possible unpaid taxes between
1977 and 1981. In a rare late
evening hearing, U.S. Judge Har-
old Fong freezes all of Rewald's
personal assets. Hayes says he
uncovered evidence that 300
investors put some $17 million
into the firm. He also found evi-
dence that Rewald used some of
the money for his personal ex-
penses, such as paying the mort-
gage on his $1 million house and
$3.5 million North Shore ranch. A
federal grand jury meets to hear
evidence from former company
employees.
-Aug. ti: The Star-Bulletin re-
ports that Waimanalo land Re-
*ald leased for a ranch actually
is state land leased to polo en-
thusiast Nolan George. The
transaction is under investigation
by the state Department of Land
and Natural Resources.
-Aug. 7: Rewald hires attorney
Brook Hart to represent him.
Hart delivers the missing files to
.the federal court for safekeeping
until it can be determined who
has the right to review them.
Hart suggests that there may be
some papers in files which show
a connection between the Cl,
and Rewald and asks that sow
,,one with classification clearan
go through files first.
-nug. o ' '- lo: Rewald pleads not
change Commission charges Bish- -Aug. lboth charges in state
op, Baldwin, Rewald, Dillingham guilty & Wong with securities fraud. District Court. He hires attorney
The SEC also charges that Re- Robert Smith attoo handle agents and
wald gave false information to pects
the SEC. U.S Judge Martin Pence CIA officers go through the files
expands the freeze on Rewald's to see if there is any classified.
assets to cover anything not documents there as Rewald-
covered in the earlier order. Re- claims.
wald checks out of hospital late In another development, a $351-
at night and is arrested by Hono- million suit is filed against Ra-
lulu police for investigation into wald, Wong and Big Island att
theft charges. ney William Jolly on behalf
-Aug. 9: Rewald is charged investors Danielly Wallace ead of
with two counts of theft by Mary
deception in connection with the company's Big Island office.
complaints filed by two investors. He also invesood money in the
Bail is set at $10 million, believed company and is listed as creditor
to be the highest in Hawaii's in bankruptcy.
Cootlnued from Page One
Investigation for several months,
not only by some of the media,
but be several government agen-
rks. 'rbe release of the Hong
Kong report attracted further sterious d a with.thethigh-sou ding
comp pany
name.
The Star-Bulletin had been
tr} Ing for two months to inter-
v(ew Rewald
Dates delayed eset, but
igyarlably they were y
the company.
.on July 29, KHON-TV news
first reported that the company
hid some problems, problems
that now seem minor in compari-
son to the more recent develop-
ments.
Rewald attempted to kill him-
self in a Waikiki hotel room.
Sources said he cut his wrists on
Friday night, but was not found
uttil Saturday at noon, barely
alive. One source said if Rewald
had arrived at the hospital a half-
hour later, he would have died.
THIS IS WHAT happened dur-
iqg the next several days to the
company many once considered
an investment giant and to Re-
wald. whom many considered one
of the wealthiest men on the Is-
land:
.-Aug. 1: Bishop, Baldwin, Re-
wald, Dillingham & Wong closes
it$ doors in the wake of Rewald's
suicide attempt. Rewald is in
Qyeen's Hospital in serious condi-
tion. The public learns that state
r gulatory agencies had issued
two subpoenas to the company as
part of an investigation of the
company's activities. Rewald's
background, including his past
fipancial problems and the fact
that he did not attend Marquette
Univer}tty as he claimed, is dis-
also Is dlaclosed Rewald and
Wong are the sole owners of the
company.
Alden Newland, the
company's legal counsel resigns,
maintains that the company is
reorganizing itself and that it is
open for business although all ac-
counts are frozen.
-Aug. 3: Mary Bitterman, head
of the state Department of Com-
merce and Consumer Affairs an-
nounces that Sunny Wong had re-
signed from the company. Nerv-
ous investors begin to complain
to Bitterman that they are unable
to get their money. It is learned
that the company is under inves-
tigation by- the Securities and
Exchange Commission and the
FBI. It also is learned that compa-
ny files had been taken from the
office by Rewald's security
guards during the weekend and
it is feared by some officials that
the files have been destroyed.
-Aug. 4: At the request of some
investors, U.S, Bankruptcy Judge
Jon Chinen forces the company
into involuntary bankruptcy and
freezes all of the company assets.
Hayes is appointed interim trust-
ee and immediately goes to Bish-
op, Baldwin. Rewald, Dillingham
& Wong offices in the Grosvenor
Center to secure the office and
have the locks changed.
Sue Wilson. the office manager,
arrives at work with the company
mail. Hayes asks for the mail and
Wilson turns to leave. He follows
her to the elevator, informing
her of the court-ordered take-
over. Wilson gives him the mail,
but refuses to identify herself or
answer questions. Wilson's where-
abouts are unknown for several
days, but she is finally served
with a subpoena to appear before
a federal grand jury when she
visits Rewald in the hospital.
Approved For Release 2010/08/10: CIA-RDP90-00494RO01100690004-7