FEDERAL COURT CONTINUES FREEZE OF REWALD ASSETS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP90-00494R001100690005-6
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 1
• Document Creation Date: December 22, 2016
• Document Release Date: August 10, 2010
• Sequence Number: 5
• Publication Date: August 16, 1983
• Content Type: OPEN SOURCE

Approved For Release 2010/08/10: CIA-RDP90-00494RO01100690005-6
Federal Court
Continues Freeze
}
of Rewcild
Assets
9 3
*By Charles Memminger
Star-Bulletin Writer
Federal Judge Martin Pence
this mormmm! ordered the continu-
ation of a freeze on the assets of
Ronald R. Retiald and his bank-
rupt company after being told by
the bankruptcy trustee that $17
million in investors' money has
been spent.
Pence described Rewald's
company - Bishop, BaldwinRe-
Wald. Dillingham & Wong -'as a
"ponzi scheme" in which
from new investors was u edn to
Pence said investors' money
was put into a bank account that
amounted to "a poi bowl" that
Rewald and other company offi-
'REWALD, ALREADY fihargec
in state court with theft of inves
tors' money, also may face feder
al criminal charges. v f
Anita Nagler, attorney for th(
Securities and Exchange Commis
sion, said her office has beer
working closely with the U.S
attorney's office but said it wouh
be up to the U.S. 'attorney t(
press criminal charges against Rc
wald or any other company offi
vials.
U.S. Attorney Daniel Bent sail
this morning that his office i
working with the FBI in its inves
tigation of Rewald and Bisbor
Baldwin, Rewald, Dillingham I
Wong, but would not say I
charges are forthcoming.
Federal charges apparentl;
would be tied to the allege(
fraud violations the SEC has a
ready filed against Rewalc
Charges also could relate to th
use of the mails or communic:
Trn to Page A-7. Col. 1
cials dipped into for personal and
company expenses.
Instead of investing the money,
Rewald used it for his expensive
lifestyle, including paying for
"the polo club, his Rolls Royces,
and his big house," Pence said.
"There's no question his assets
came from the poi bowl" the
judge said.
PENCE'S RULING -
bankru a after
said th
that, other' than some furni
~
ture, other officelfixtui'es and ap
proximately $200,000 ii cash, all
of the company assets a> gone.
"What you are tellii3ig me is
this company has no assets?'
trustee attorney Jame( Wagner
asked Hayes.
ed "That's right," Hayes respond
.
After this morning's ytearing
Hayes said he will seek the turn
over of all of Rewald's persona
assets which Hayes estimated
would be worth about $1.5 mil
lion.
After the hearing, Rewald'
attorney Robert Smith said Re
wald's personal assets may be
worth $3 million and that Rewalc
is willing to turn them over t(
the trustee if Rewald can play
role in the dispersal.
During the hearing, Smith tok
Pence that Rewald was anxiou
to help out. but Pence said it wa:
Approved For Release 2010/08/10: CIA-RDP90-00494RO01100690005-6