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August 10, 2010
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September 8, 1983
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Sanitized Copy Approved for Release 2010/08/10: CIA-RDP90-00494RO01100690055-1 Listens- In Rewald sturday trial will .inCluuc ouuc~. "allow ?-------- ancipig and light refreshments. Hayes contends the boat' It host 1s $3. Music will be by the worth only about x.500 and has itt at Iawail SteefBoat- t f i i }Manning a Fiesta to let Rewald out of prison to search for assets. Th* Puerto Rican Heritage Also today. Hayes was to seek a o iety of Ilawail will sponsor a federal court order allowing'hiin t-st fiesta" at 8 p.m. to sell Rewald's boat "Nancy" - )sle Puerto Ricans es a been a r Jmbaros Diamantes. The f g cs. The re il of the builders awaiting re l h i a a Pt be in the soc t?hted Puerto Rican Association pair- comp* t*y . wahts the boat i he zing his assets as part of the sparsely end of the 26th floor. Hayes kruptcy proceedings. ut Judgte Robert Won Bae moved the company there last fig declined to rule on the week to save rent money. ion until Wolff files a formal Rewald concentrated his search que'st in federal court to have on files relating to an Indonesian me of toe assets released, a tea plantation in which his rove Hayes opposes. company had allegedly invested. `1 don't want one penny releas- But Hayes said he already investi? d." Hayes said after the hearing. gated the reported plantation and What are we going to do, rip off that nothing was found. e creditors even more?" "There was no plantation." Wolff said his associate, Mich- Hayes said. eJWilson, had asked U.S. Judge HAYES SAID Rewald was quiet tin Pence to release some and spent his day going through M1oney for Rewald to defend him- files which secretaries brought at *:If against two state theft his request. At about 3 p.m. he arges, but Pence refused. was taken hack to Oahu Com- hang said he wanted the re- munity Correctional Center, iiest made formally through where he is being held in lieu of Court documents. $10 million bail. R ASKED AFTER the proceeding Hayes said that because Rewald nw much money he thought was unable to help uncover any else would allow released for assets, he will not he allowed to fytvatd's defense. Wolff said, return to the company offices. He aZero.' also said Wilson will be not be back to help look for assets. V'olff told Chang his office "I don't need Wilson ... Rewald ;ranted to withdraw as Rewald's or anyone else." Hayes said. attorneys because Rewald is un Carlisle also said this morning able to pay his attorneys. Wolff it was unlikely Rewald would be said the case would be time-Con- taken from prison again. $unting for whatever attorney Carlisle said it was unusual that takes the case and if there is the furlough was granted, but oing to he a change in attor- said it was akin to a murderer nays, now would be a good time. being released to help authorities ,iudge Chang asked Wolff to find a body Rewald's attorney could not be as Attorneys Seek His Case to Drop By Chorles Memminger contact the Public Defender's Of- srn.-Hutle'n+~ tv~~re'r face so it can begin an investiga- tion into Rewald's financial situa- Ronald Rewald. for the second tion and clear the way for Chang (jay this week, was taken from to rule on the indigency question. prison this morning, this time to The Public Defender's Office has attend a state court hearing on a not started such an investigation tt4btion by his attorneys that they on its own. Chang said, because it he allowed to, withdraw as his was worried it would be uneth- t_oUnsel. ical. Rewald was taken from prison When Wolff leaned over and fbr seven hours yesterday to go asked Rewald if he would mind if through the files of his bankrupt the Public Defender's Office company. Bishop Baldwin Rewald began such an investigation, Re- Dillingham and Wong, in search Wald shook his head in an agitat- assets to pay off investors who ed manner and said, "It doesn't ut; from $10 million to $12 mil- make any difference." ct Y into the company but he was THROUGHOUT the proceeding. c-t much help. Rewald, his arms chained to his was sides. rocked his head bark and lYt's said ptcy t Rewruald'sts ee search Thomas laycs said runless and Rewald will not he forth and appeared uninterested e turned to the company offices. in the court activity. "The condition of his coming Rewald's unusual release yester- sown, and in order for him to day came after a deal was struck Continue, coming down, was that between Rewald's attorney. Rob- e had to produce something of ert Smith. Deputy City Prosecutor ubstance." Hayes said. "He did- Peter Carlisle and Hayes. Rewald was brought to the of- fives at Grosvenor Center under TODAY. ATTORNEYS Peter guard at about 8 a.m. and began Wolff and Brook Hart sought to going through company records tv ithdraw as counsel and also with the aid of his former office ed that Rewald be declared manager Sue Wilson and his for- w4skigent so a public defender mer secretary Mira Kanashigi. ld he apppinted to represent Hayes said. Wolff said Rewald has no The search did not occur in his ey to use in his defense be- plush former office - the one e of two federal court orders with the waterfall - but at a d office at the reached for comment yesterday, but on Tuesday, Smith confirmed Sanitized Copy Approved for Release 2010/08/10: CIA-RDP90-00494RO01100690055-1 Sanitized Copy Approved for Release 2010/08/10: CIA-RDP90-00494RO01100690055-1 Piiysicians Invested AM& in HaviIy i t,x8y Charles Memminger 51nr-f3!rih -RWIetitt Writer The attorney and administrator fortlfie Hawaii Physicians Protec? ih'c'AssOciation. which invested `10 in the bankrupt company Bit, Baldwin. Rewald. Dilling- halil'& Wong. has been removed fron 'his position because of his association with company head ltm' td Rewald. Vttisselli D.C. Kim, who resigned as~t;al r consultant to Rewald's eks n.; alntnst two ears ago. ce> oleo that he no' longer is aitt`F+ hey to the physicians' associ- aifoKaaiitl said his removal is just p of the fallout from his rela. Iitin5-: ,rifh Retkaid. T'h'e Physicians' association ho-aiident "uii lin Kong in the d+rr.lrank's (;ins. 1.ennr tenter suites in 1980 KIM SAID HE be-,an doing Borne legal work for Rewald. but 'vas surprised when Rewaid in eluded his name in nmpan- !it- erature listing hint a> a consult. ant. Kim said he uas too hu'.y I r\ In" to gel his own husirn'cses .going in the Far East to do much work for Rewaid, and finally. in late 1981, he resigned as one of itewald's attorneys. However. he continued to maintain his office there. he said. Kim had a close relationship with Rewald. In fact, he prepared Rewald's will and.bought Re? wald's Kumukahi Place house in Hawaii Kai, the house Rewald bought from former Cambodian Prime Minister Lon Not. In retrospect. however, Kim concedes that he actually did not know Rewald as well as he had thought. lie had accepted Re. wald's claim that he had graduat? ed from Marquette University I ? .aw S: hool and played profes- sional football. "Everyone wanted lo I)eheke in Ron," Kim said. Orie of Kim's legal projects was the transfer of 75 shares of Ko- rean od stocks from retired Gen. Hunter Harris to Rewald's compa. ny. At one point, an investor offer- ed to buy the stocks for $5,000 a ,hare. but Rewald hung on to client. Kiln said. WHEN REWALD went to the coulpanv offices Wednesday on a special furlough from prison to look for company assets, one of the persons he called was Kim. Kim said Rewald asked him to see it there still was a buyer for the stocks Kim said he could not PORTRAIT OF THE QUEEN--lydio Maioho, left. curotor' of the Royal Ma soleu * e i pr se s Her tyyrupn of Queen Ltnuotcatant to trustees of the Office of Hawaiian Affairs yesterday. Ma oho said the photo was given to her by the late Helen Kane of Nanakuli, it was restored by Ipo and Kunani Nihipali. -Star Bulletin Photo by Ken Sakamoto. Saturday, September 10, 1983. Honolulu Star-Bulletin A-3 Rewald's Associates Testify Before Federal Grand Jury y Charles Memminger Siftr-Bidleriu Writer bankruptcy trustee Thomas Hayes this week but that was postponed. Chang said. Wilson also was given a subpoe- na to produce office records by detectives in the police depart- inent's white-collar crime unit, but ('han>g said Wilson had no records to turn over Rewald is being held in lieu of 810 million bail on two state charges of theft of investors' money. The FBI is one of several federal agencies investigating Re- wald to see if he had violated any federal taus. t-rupt company Bishop. Baldwin. Rew id. Dillingham & Wong met for bout seven hours yesterday Sunli L.S.Suriny Wong testi- fied Yesterday as he had done during the earlier grand jury ses- sion. long would make no corn. ment as he left the courthouse shortly before 4:30 p.m. Also testifying was Sue Wilson. Rewald's former office manager Wilso 's attorney, Howard Chang, would not say how- long Wilson appea ed before the grand jury. While at the federal court- house, however, Wilson was serve eel with a subpoena to testify be- fore the Oahu Grand Jury. Chang said he did not know who would be the target of the state grand jury in light of Rewald's previous indictments. WILSON, HAS been described as Rewald's. "right-hand man" and accompanied him to the company office Wednesday when Rewalct was Ill nut of"prison for a short hole In help look for company assets. Little has been heard of Wilson since the company shut down. But Chang said Wilson has not been in hiding and has complied with every subpoena and sung coons she has been served with, Wilson was scheduled to he interviewed by attorneys for Sanitized Copy Approved for Release 2010/08/10: CIA-RDP90-00494RO01100690055-1 Sanitized Copy Approved for Release 2010/08/10: CIA-RDP90-00494RO01100690055-1 to Oust By Charles Memminger Siar.Bullerin Writer The mother of the beneficiary of the multimillion-dollar Halvor. sen Trust filed suit in federal court yesterday, seeking to have attorney Robert Jinks replaced as the trust's administrator and charging that he mismanaged the trust's funds. Jinks denied the allegation and said the suit is rooted in an ad. verse relationship he has with Elizabeth L. Halvorsen since he represented her husband in acrimonious divorce proceedings in 1978. Leland Don Halvorsen, a sports. man and retired oil man, was murdered in 1978 and the case is. still unsolved. At the time of his death. Halvorsen was separated from Elizabeth and divorce pro- ceedings were under way, Jinks said. The trust, set up three years before the murder, listed Halvor- sen's son, Kit Lee, as the benefici- ary. Elizabeth Halvorsen, who lives next-door to Ronald R. Rewald's Kuliouou house, had invested $805,394 of her own money in Re. wald's bankrupt company, Bishop. Baldwin, Rewald, Dillingham & Wong. JINKS SAID he was not sur- prised that Halvorsen wants him replaced as trustee because of the poor relationship he had with her. Before Leland Halvorsen's death, Jinks said he was seeking a restraining order to keep her from coming into contact with Halvorsen because of.the couple's stormy relationship. "This was not a normal di- vorce." Jinks said. Before the divorce was com- pleted, Leland Halvorsen was shot to death. Although a 47-year-old man eventually was arrested and charged in the case, charges eventually were dropped. Mrs. Halvorsen s attorney, Susan Tius, would not comment on what led to the suit being filed. In her complaint, Mrs. Halvor- sen charges Jinks with "various acts of mismanagement, self-deal- ing and breach of fiduciary duty," including making "impru- dent and unreasonable invest- ments into Bishop, Baldwin, Re- wald, Dillingham & Wong." She said Jinks mismanaged the trust assets by co-leasing the Grosvenor Center office space occupied by Rewald's company. and that he failed to file tax returns. Trust A drninisfrato able. As a result, he said, the trustee has to find tax-sheltered investments for the trust money. Jinks denied that he has failed to file tax returns for the trust. "All of the taxes have been pre. paid and there are carry--overs for subsequent years," Jinks said. THE STAR-BULLETIN reported erroneously in a previous story that there was a x4.086 state tax lien against the trust. Actually, the lien was against Elizabeth Halvorsen personally for 1981 in- come. The confusion stems from the complex trust arrangement in which Kit Halvorsen is the bene- ficiary but Elizabeth Halvorsen is his guardian. "She is not involved in any way in the trust," Jinks said. Even though. Jinks said, when he found out that Elizabeth Hal- vorsen had lost her own moneeyy in Bishop, Baldwin, Rewald. Dill. ingham & Wong's collapse, he in- creased the amount of payments to Kit Halvorsen and personally gave Elizabeth Halvorsen money to live on. Jinks also defended his use of the trust to co-lease office space at the Grosvenor Center as a sound investment. CONCERN ABOUT the Halvor. sen trust surfaced after Thomas Hayes was appointed trustee of Bishop, Baldwin, Rewald, Dilling- ham & Wong when it was forced into bankruptcy a month ago. After looking at the company records, Hayes discovered that most of the company's $10 to $12 million in assets were gone. Most apparently were spent on Re- wald's exotic lifestyle. Two large trust funds, ' e McCormick trust and the Mitclloll trust, were found to have be,bn drained of their assets. Beckixie Elizabeth Halvorsen also was list. ed an investor and the Halvorsen trust was listed in connection with the office lease, there was some confusion as to whether any Halvorsen trust assets were invested in Rewald's company. There also was concern because Jinks was a consultant to Rewald as well as the Halvorsen trustee. Jinks, however, while acknowl? eging that he had used Rewald's company as a conduit to move some trust funds into tax shel. ters, has steadfastly denied that any trust funds were put into in- vestment accounts. Hayes has said he has not uncovered any evidence that ahy trust money was invested. In Hawaii... Friday, September 2, 1983 Honolulu Star?Bulle+in A-3 Rewald Pr~-Trial Puoirci-ty Alarms Public -s Defender By Ellen Dyer RUBIN SAID people have asked Maui Correspondent his opinion about the kind of sen- tence Rewald ht recei e. He KAANAPALi, Maul - Honolulu s aid these ndiv dtuals do not even Public Defender Barry Rubin said know what Rewald has been yesterday he is "seriously con- charged with. cerned" about pre-trial publicity "I think there has been a com- surrounding the case of Honolulu r~lete saturation" in terms of pub- businessman Ronald R. Rewald. licity surrounding the case, Rubin Rewald headed the company of said. He said the "very complex Bishop, Baldwin, Rewald, Dilling- issue of pre-trial publicity" will ham & Wong, which was forced have to be dealt with, by lawyers into bankruptcy three weeks ago, for the prosecution and defense. with most of the estimated $10 Rubin said that he did not million to $12 million dollars in. know whether his office would vested in the firm unaccounted be handling Rewald's defense. He for. said Rewald has not applle- to "I am seriously concerned assestanclec defender's office for about what I see," Rubin said. He But he noted that Honolulu also said that he could not attorney Brook Hart has indicat- "understand the $10 million" bail ed, in a motion to withdraw as JINKS DENIED all the allega- ? set for Rewald, who has been in. Rewald's attorney, that Rewald is tions. and said he was not sur- dieted by the Oahu Grand Jury indigent and that a public de. prised it was filed. on two counts of theft. fender should be appointed.. "Anytime there has been this Rubin's comments came during Rubin was among six panelists kind of publicity', I guess any- a meeting of the Hawaii State who gave their views on.the topic thing can happen." he said. "It Law Enforcement Officials As- "Law Enforcement and. the goes back to Don's death. We sociation. The meeting continues Media." 'Mfrs. Halvorsen and Jinks- did through today at the Maui Marri? not have a Rood relationship be- olt EARLIER yesterday. Thomas Halvorsen Guardian Sues Cardoza. the regional commissioh- r of the Internal Revenue Serv- ice, said law enforcement and the media "have similar goals - integrity and honesty in our soci- ety and government. While :tie system is not perfect, it is add can be a workable. tool" for.-4a "better enforcement effort ands satisfaction of the public's right to know." .. Cardona said it is "essenttalo government functions" that e public be kept informed to en- able people "to comply with nec.? requirements, protect their lives and property, and influence po- litical decisions. It is the media that provides the best conduit of this information to the public, and it is the media who can hest expose government misinforma- tion or conduct detrimentat_rjo the public good." He said this "creates a nati el tension between the media $rstd enforcement" but he Old that "is proper because it tPJifls to keep both sides alert, res live and honest in'their roles Sanitized Copy Approved for Release 2010/08/10: CIA-RDP90-00494R001100690055-1 Sanitized Copy Approved for Release 2010/08/10: CIA-RDP90-00494RO01100690055-1 from page one -nade by one of the sporting goods compa- .iy employees. Rewald said he was charged :)ecause he was an owner. Because the,proceedings were "far away rotii, my tome; (pis ? I 'recall--, approx1m tely 160 miles): it was economically' unfeasible or me to fight the prosecution." he said. It made more sense. to plead guilty to a :nisdemeangr.. which f did." Rewald also said he paid the money back. ? Schooling - He said he was born in Milwaukee, Wis., in 1942 and grew up *.here, "attending" South High School. Rewald made no reference to his claim, stow rejected by the university itself, that he was graduated from Marquette Univer- ;ity and its law school, but his Kansas City Chiefs training camp roster listed his col. :ege as Marquette. indicating Rewald was claiming that association almost 20 years ago. ? His family - He said he married his present wife, Nancy Imp Rewald, when he was 18, and that they have three daugh- ters and two sons, aged 12 to 19. ? The Central Intelligence Agency - "The information out thus far on Rewald's or (the company's) connection to the CIA, if any. has not come from me regardless of what the (bankruptcy) trustee or media purport. My only position thus far has been one of no comment to anyone in this re- gard.' Rewald's affidavit was filed in support of his motion seeking release of some of his assets to pay for his defense in a criminal theft case and in civil proceedings against him and his company. He is being held in Oahu Community Correctional Center on S 10 million bail on two theft counts. He also sought to block a motion for a summary judgment that would declare his company bankrupt Jlfitttout irisl. estimated. that..O 'i million, to $12 million into Bisisop. Baldfvly since its formation in 1977, and that most of the money is gone. Rewald attempted suicide by slashing his forearms on July 29 after Channel 2 televi- sion broadcast a report, of state regulators' questions about his firm, He was arrested on his release from Queen's Medical Center and has since been indicted on two state counts of theft. His only previous public statement was an interview with television reporter Larry Price while Rewald was still in the hospi- tal. Rewald's affidavit was part of a larger package of documents sealed Friday by the U.S. district court clerk on belief that itall came under a sealing order issued Thurs- day by C.S. District Judge Martin Pence because of possible reference to the CIA and classifiable national security matters. The filings were made by attorney Smith. who said earlier that he was going to request that a portion be sealed in any event, but that part of it contained no classifiable materials. The Advertiser was able to review a copy of the non-classified portion 'of the filing. It included only one reference to the d0 fio 'statement about that agency. It , also tained several local newspaper clippings efe to the alleged CIA con- nection. ',x3 T1.e sealed do tifhents have been refer- red to the U.S. attorney'; office and the CIA for examination in detatj. When the clerk's office closed Friday. the U.S. attorney's office had not made 'v~'ic any conclusions about which por- -' the filing, if any, should remain tc iinrlnrctnnrl that (`TA nor-nn- Ronald Rewald motion for summary judgment in the bank- ruptcy case. Smith gave notice in the filing of his intent to rely on classified information in Rewald's case - a move that would lay the basis for seeking dismissal of charges against Rewald if the federal government refuses to release such documents. The federal government hasn't filed criminal charges against Rewald. Smith said his client has been railroaded by the media and hamstrung by the courts. "If' it appears to the court from the evi- dence adduced thus far publicly that Mr. Rewald has run amok with investors': money, then it is equally true that the media has run amok with publicity ir; %hiss. case anf tpus_ fat hash swept the - lega e d, tried., and . fot>ii `, in the; pubut' press and has been deprived `by the court' system of any means "of defending himself. all without a trial by jury, which is his constitutionali,right, _ uu America,. this is not Rewald. Smith said, must be allowed ac cess to his personal assets to pay for his criminal and civil defense. The company assets, Rewald said, -in- clude: ? Wendell Phillips' oil. drilling invest- ments, potentially worth $1 million. (Hayes- says these may be worthless or may bring 5750,000. depending on whether oil is struck somewhere off the coast of Korea.) ? An interest with Honolulu attorney Russell Kim in a 'Far East trading compa- ny due $175,000 in commissions, half of which would come to Bishop, Baldwin. Kim is a formal legal consultant to the firm who maintained his law offices in Re- wald's suite at Grosvenor Center. Kim could not be reached for comment yester- day. An allegedly delinquent $75,000 loan from the company to a John Von Crom in American Samoa. (Von Crom, reached by telephone yesterday, said he received a personal loan of $9,000 from Rewald in 1979 and - later - a $30,000 loan from Bishop, Baldwin to finance a condominium nabie to pay`bil[ck' the k"sana, Von Crom std, he arranged ~o deed the condomimi- um and its pi'toperty to the corporation in never comp'et'ed the deed transfer and t Bishop. Baldwin was unable to sell the property.) ? Promissory notes totaling more than- $130,000. most of them apparently from Kim. (Hayes said. these and the Von Crdm loan may not be collectible.) ? Office furnishings worth $2 million. (Hayes says $150,000.) ? Bank accounts with $280,000 on depos- it. (Hayes confit s.) ? ' A $500,000 interest in Motor Cars Ha- waii. (Only $241,000, says Hayes.) ? Some $40,000 in sporting goods stores. -(Hayes confirms,) Rewald said his personal assets have a net value, "at best," of $3 million, includ- ing a $1.8 million equity in his home. He said he bought the home with money made from sales of his Wisconsin home (a $23.- 000 profit) and his former Kumukahi Street home. Those transactions, he said, pro- duced the $50,000 down payment on his present home, plus the $200,000 due and paid a year later, - He said Kiel still owes Rewald's wife, Nancy. $137,000 on a promissory note. Rewald did pot dispute the bankruptcy trustee's claim that his mortgage- payments had been made with Bishop. Baldwin funds. But evert if that were true, Rewald said, the total '-was no more than $340,000, indicating that he had a right to 42 percent of the value of the equity in the home. (Hayes has said the home is an sit. of .the company 4nd the equity maybe worth - hs d? shop, Baldwin (will be) in 'a' position. id assert a claim for damage against those responsible for the present chaos." The claims .would include the value of work.or projects halted, when his firm ?hut"d' Rewald said. "On July 29, before I learn- ed of the Barbara Tanabe television broad- cast (raising questions about the firm),. I had completed, a deal with Cliff Melim' of Northwestern Mutual Life Insurance Co. for a 10. .percent interest in a $29 million project 'involving Mokuleia 'Homesteads, a large residential project on Oahu." Not so. Meltln said Friday night. Melim said Rewald-'s ggested he had the political get;;tie Mokuleia project through the, -government bureaucracy, and would do so for it 10perccnt interest. "I said we'd think about itK" 'Melim said, but it was a long way fronl''an. agreement. The -same day. Rcwald said, he had re- ceived a report "from one of our consult- ants who had just returned from Spain to outline. .a project in which Bishop, Baldwin e ?,;1A1}ld. had a $22 million contrpll- lingInterest in a residential developme in Soto Grande, Spain." Hayes, said the company to his kno4- edge has no interest in any real estate developments in Hawaii. Spain or ant- where e'Ise. 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PM* :3 ci~ 7; 0 0. 0 Sanitized Copy Approved for Release 2010/08/10: CIA-RDP90-00494RO01100690055-1 Sanitized Copy Approved for Release 2010/08/10: CIA-RDP90-00494RO01100690055-1 today / Mond Sept. 19, 1983Y' Had no intent clients, Rewald insists By Walter Wright .tdrertiaer Staff Writer Ronald Rewald suggested yes- terday that'had he intended to defraud investors in his firm he would not have accepted invest- ments from family and employ- ees, and he would have fled with $680,000 in cash instead of attempting suicide on July 29. But the bankruptcy trustee in the case countered last night that Rewald's operation was "a fraud, an absolute scam, and it is an absolute disservice to the public and those who may hope to get their money back for Re- wald or. his attorney to repre- sent what was going on as le- gitimate." Rewald - who contacted The Advertiser last night through his attorney, Robert A. Smith -- says there is no need for the $10 million bail in his theft case because he has no money stash- ed away so he cannot flee. Smith said some of Rewald's points are ' included in docu- ments filed Friday in federal court. Those points are in the "confi- dential" portions of the court filing, Smith said, but they themselves do not involve classifiable information. The court has sealed for government review any filings relating to any connection between Rewald and the CIA or to other classi- fiable matters. Rewald`$ company appears to have been used at least as a mail and telephone "drop" for five CIA "cover" entities. Hayes confirmed yesterday, that many of Rewald's relatives and employees were among those who lost funds as inves- tors. However, he said, that fact does not prove Rewald inno; cent. Smith also raised a new argue ment about Rewald's intentions; "'If he intended to bilk thcf company of money for his own personal gratification, there was $280,000 in Hawaii National, Bank and $400,000 in a payroll account on July 29 which he could have taken" and flea in- stead of attempting' suicide. , It is Hayes's position that Re4 wald spent much of the compa. ny's money on himself over 4 long period of time, and he finally was about to be caught: "If things were going so well oil July 29, why did he attempt sui, tide?" Hayes asked. Rewald also said that Hayes told him during Rewald's visit to the company offices two weeks ago that he believed he could account for "every penny" of the money that came through the firm, and that he said it had all been spent. "That," Smith contends, "does away with the notion that there are vast amounts of money stashed away. And that in turn does away with the argument for a high bail" on grounds Re- wald is so rich he could meet a lower bail and flee. Smith said. Rewald's argument holdi water, Hayes said, only if yoo assume that Rewald got only money that first hit the compa- ny books. Rewald yesterday also "cor, eon V a he e affidavit: He ass his personal net worth is $4 mil. lion, not $3 million, and that Bishop, Baldwin, Rewald, Dill- ingham and Wong is due $175,- 000 in commissions from a trad: ing company in the Far East, not half that amount as report- ed. Rewald's and the firm's assets have been frozen by the court. Rewald also augmented the record on his education. lie said he received a degree from a junior college in Wisconsin, and then, in the mid-1960s, took at least three night courses from Marquette University. Rewald reportedly had claim- ed earlier that he was graduat- ed from Marquette. Sanitized Copy Approved for Release 2010/08/10: CIA-RDP90-00494RO01100690055-1 Sanitized Copy Approved for Release 2010/08/10: CIA-RDP90-00494R001100690055-1 Saturday, September 17, 1983 Honolulu Star-Bulletin A-3 ;, Rewald Trustee Asks Change in Sealing of CIA Records By Charles Memminger Star-Bulletin Writer The trustee of the bankrupt In- vestment company Bishop. Bald- win, Rewald, Dillingham & Wong plans to ask a federal judge to modify his broad order sealing records in the bankruptcy case related to the CIA. The order, issued by U.S. Judge Martin Pence Thursday, created some 'confusion among court clerks and attorneys as to what exactly, was to be sealed and what was not. Attorneys also were worried about the broad wording of the order that seemed to limit them from even talking about the CIA to anyone, whether It related to the case or not. The order said, in part, that ..all parties and their attorneys and their agents ... are hereby prohibited from communicating to any person ... information relating to matters pertaining to the CIA." That prompted one of Ronald R. Rewald's attorney's. Peter Wolff, to wonder whether the order violated the First Amend- ment. IRONICALLY, THE order was issued because Rewald's civil attorney planned to submit court documents that might contain classified information. The U.S. Attorney's Office filed a motion to have all documents mentioning the CIA sealed. Court clerks, both in the U.S. District Court and U.S. Bankrupt- cy Court, reacted to the order by saying that all documents filed in Rewald's cases would be sealed because they did not have time to figure out which documents might be sensitive and which were not. By yesterday. the confusion about the order had subsided somewhat, but there still was not general agreement about how the court records would be handled. A District Court clerk's office official said that only documents filed by Smith or the U.S. Attor- ney's Office would be sealed. But it still was not clear if the court docket sheet, which lists all docu- ments filed in a case, would be public. Bankruptcy court clerks, how- ever, showed their docket sheet on the case to reporters, saying that it was public. To complicate matters. Smith filed a stack of memorandums and documents yesterday, some of which apparently have nothing to do with the CIA but were seal- ed. Smith filed a motion stating that he planned to use classified information in Rewald's defense and also asking that some of Re- wald's frozen assets be released to pay his attorneys. COURT OFFICIALS would not release any of those documents. Another motion sealed with apparently no connection to the - CIA is a request by Smith to have Hayes pay insurance premiums on lte%%ald's life insurance policy. Attorney Don Gelber, repre? scenting trustee Thomas . Hayes. said he thought the motions were not sealed and he had showed them to at least one news report- er. Smith also filed 94 exhibits and a confidential affidavit by Rewald that also were sealed. As far as Smith's request to re- lease assets to pay attorneys' fees, Gelber said he definitely is against it. He said the assets represent property acquired with money "taken from investors under false pretenses" and to allow the funds too he used in ltcwald's defense is lulu rolls.. Sanitized Copy Approved for Release 2010/08/10: CIA-RDP90-00494R001100690055-1 Sanitized Copy Approved for Release 2010/08/10: CIA-RDP90-00494RO01100690055-1 B-2 Thursday. September 15. 1983 The Honolulu Advertiser Rewald lawyers request funds be freed for fees Ronald Rewald's attorneys yester- day asked the' bankruptcy court to re- lease money to pay for Rewald's de- fense against state charges he stole inves:crs' money. The request was set for hearing Sept. 21. The _t:orneys. Brook Hart and Peter wolf`. tried last week to withdraw as Rewaid's counsel on grounds Rewald canpal, them. Bu. State Circuit Court Judge Rob- ert \Vxn Bae Chang told Wolff first to make a formal bid for funds previous- ly froze i by the federal court. Sanitized Copy Approved for Release 2010/08/10: CIA-RDP90-00494RO01100690055-1 Sanitized Copy Approved for Release 2010/08/10: CIA-RDP9O-00494RO01100690055-1 Trustee Preparing Rewpj Claim L isf By Chormmi ger investors who have yet to s ?p Star-Bullertn Writer forward, but said he will abe some point. unless an investor asks specifically that he not do e so. s As of yesterday, about 150 if claims for more than $6 million n had been submitted by investors More than half of the some 400 people who invested in the bank- rupt company Bishop, Baldwin, Rewald, Dillingham & Wong have not filed claims in U.S. Bankrupt- cy Court But bankruptcy trustee Thomas Haves said he will be submitting. claims for all of the investors at ;1ni1 by husitrcssi's that did work lot- ttnmald lewald's coin uuty Hayes estimates that from $10 million to $12 million was invest- ed in the defunct company. C lainis submitted, however, in- clude the promised high interest rates the investors were told they would receive. With that interest, the money owed investors could be as much as $17 million. Hayes said that as of this week, he has uncovered assets worth BANKRUPTCY proceedings were scheduled to begin again today in federal court. but a hearing before U.S. Judge Martin Pence was continued until Tues- day, llaycs said Ilaves said that. so far, most of the claims submitted are legiti- mate, although there are a few that appear to be "phonies," Haves said. Hayes said one man has claim- ed the company owes him about $250,000. Mayes said the money was actually just a "stroke pf the twtu" transfer of funds from Re- wald's "phony" account to the man's. Hayes said he did not know exactly when he will he submit- ting claims for the majority of by the wishes of those who ddtrt want to make a claim. HAYES IS continuing 61$ search for company assets, espla? cially in foreign hank accounts. and with sometimes amusing i&e- sults. Haves uncovered a Swiss hank account in Rewald's name that container) only $8.50. One of the most intriguing dis- coveries was Rewald's plan in 1982 to buy an entire hank in Chile that appeared to have been nothing more than a scam in which Rewald would have been the victim He said the people behind the bank scam apparently were set- ting up Rewald, but that for rea- sons unknown Rewald did not come up with the $200,000 they wanted. Hayes said had Rewald come up with the money, he would have found himself having to then produce $3 million to clear the title to the bank or lose the $200,000. Meanwhile, Rewald's criminal attorneys, Brook Hart and Peter Wolff, have filed a motion in federal court seeking to have some of his frozen assets released to pad fur attorneys fees in his slate criminal rase. The action was taken upon the order of state Circuit Judge Rob. ert Won Bae Chang in connection with Wolff and Hart's motion to withdraw as his counsel. IN HIS affidavit filed with yes- terday's motion. Wolff said he an- ticipates "a need to litigate in the U.S. District Court over the re- lease of certain materials which have heretofore been sealed by the court. It is anticipated that the fees for defending this case would he quite substantial." Sanitized Copy Approved for Release 2010/08/10: CIA-RDP9O-00494RO01100690055-1 Sanitized Copy Approved for Release 2010/08/10: CIA-RDP90-00494RO01100690055-1 vV y w u Y C Y Cb '~ N " ?- `c a c + o ~_+ 0 0 QL L f/f+ dr il o a, Y ?=coCa-C*_8ay~ 5+:~-. oC M S 3 ~ ~ v~OG c - m E ? A A t~..'~...r y c C~ Yt00G C p... ca'os o 3oa~nca... g. co ion ~,yla%o c SEmE?. L?aE5 ;a L .. .. OL Y G7 ;^ . 0. H ~1y y. sY .u..7.-' i~rQ. a./.j co Gc aO- i C A^ N O C'. L7 6 A O im::~ ca o L? ~-" a >. `c vies c Es ca .E ~..: v is :X. 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Rewald. Dillingham and Wong and Manoa Finance are leaving our investment com- munity financially crippled as well as skeptical. In order for persons such as Ron Rewald to get into the -business of soliciting money for in- vestmer)t. he need only apply and pay a $50 registration fee to the state Dept. of Commerce and Consumer Affairs and obtain an excise li- cense and off be goes into business. ' Should he orothers like him decide that those monies are to,be used for other than investing. the wrath of the law will surely intervene, how- ever the penalty for such acts are classified under the law as class C type felonies. The maxi- mum 'penalty for a class C felony is-.five years. Clearly a crime that should carry a $10 million ball should be treated a bit more severely. Perhaps we.-,,sshould urge our legislators to enact laws that would provide more protection for the, investment community as well as the publie,.,at large.,"'I,suggest a few laws that could help 0 `V.. ' t.. C E >> y" C a) V C W E co c o?o oy o u ~~?~ G u u F i, y : C: C cC C~. O M c7 cC c, 'C W v 'r-, Sanitized Copy Approved for Release 2010/08/10: CIA-RDP90-00494RO01100690055-1 Aloha Today is Thursday. Sept. 8, 1983 Entertainment Music Television, cable TV's an- swer to radio, is breaking new ground in pop music world Page D-6 'Focus ;.. 1, . Education writer Laurel Loo 'takes in-depth look at legacy of Bernice Pauahl Bishop: fihe Kamehameha Schools Page 0-1 Sports ;Chris Evert Lloyd advances to her 13th consecutive women's semifinal with victory at U.S. Open Page C-1 The Index 4 sections, 48 pages Ann Landers D5 Asia-Pacific roundup Bridge D Canadian news roundup Classified ads Comics ' D rossword zzle n an on vacatlon dItorials A14 Entertainment 136-8 Erma Sombeck . 06 ocus lobo e port onolu u Calendar q ,. oney.. -----$s Ms. xit on vacat Names a aces ational news roundup 1 Obituaries 1 s Bather A ord game ning himself o the reservoir y not big enoug duck to get ou - no ripples, ,the water, no no severed d Big Critter reservoir. ? The Litt a 2i -foot ' (or cayman) in the same ary and sent Honolulu man - a in- of the can grow what do th ? There ment is gi Gator Aid camp $1 rd0.5 a te As 6, raise AU esti donaf bin pai 'left prison ght'. hours to -T~,? ,'look r assets of his mbatued firm of Bishop, Bald- . .. _. . ?i+----._,:1 Dillingha,n and he.,failed to find anything rtfruste'e handling the compa- (ala'- `cy proceeding. eat' former Grosvenor Center offices by two guards. He _ was wearing s%' eatshirt, leg chains and hand- cuff s. The handcuffs were re- mpveCi whenhe entered the of- fice s so he ,, c uld ;Iexamine the files. Assisting in-'.the, search apt Re- wald's request were~,Sue"?Wil-- `'kewald's "right-hand man, `- and. 4{ rsonal secretary Myra Kane- 5pe shige. - were searched by a prison ma- tron before being allowed to join,Rewald in the office. Rewald was described as being "very businesslike." Hayes added: "His world has crashed down on him and, he was obviously down, but he.was See Rewald's an Page A-5 Sanitized Copy Approved for Release 2010/08/10: CIA-RDP90-00494RO01100690055-1 Sanitized Copy Approved for Release 2010/08/10: CIA-RDP90-00494R001100690055-1 isle., Firm to Join in A d m in is.ter~n g H~lvOrsen Trust By Chcfllbs~erm rnger -moved as trustee. It Is not known ed Her if the Ault will be dro pp . Star- Bulletin Whiter ` attorney declined comment on Attorney] Robert -Jinks has the agreement. agreed to allow Hawalian?,;Trust In her suit, she charged the Co. Ltd. to become eo?trustec...of 'Jinks mismanaged the trust. the rnultimilllon.. dollar Halvorsen links denied it and said he was Trust. not surprised the suit was filed Jinks was named in a` ,federal because his relationship with Mrs. court suit last week that threat Halvorsen has not been the best coed to have him removed as 'since he represented her husband trustee, In the couple's divorce proceed- In an interview before the Ings agr4entent?was'reac.lied yester day. Jiaktt,ways had MEANWHILE, an attorney for .wanted a trust company to assist creditors of Bishop, Baldwin, Re- in the management of ?.tl%q trust, Wald, Dillingham & Wong yester- but thatno-,-local; company. was day asked that a federal court intetrestet'vj+ieen! it was ,set up judge finalize the company's several yearn ago. bankruptcy and appoint a perma- .; The trust was set up by oilman nent trustee. and Big Island sportsmann,Leland Robert Smolenski, representing Don Halvorsen before;,>he was the same group, of creditors that murdered in 1978. The;~ttust bene? forced Rewalds company into ficiary is llalvorsen's son, kit Lee. bankruptcy, filed the motion to Halvorsen was separated from his clear the way for eventual liqui- wife. Elizabeth, and divorce pro- dation of the company's assets ceedings.. had begun at thlt. time without going to trial. ,.,his death.,a ^ Rewald's attorney, Robert The trust',:,became, a 016011 t:. t. Smith, opposes the order and has bald Ire ,R1~iva'?~d's investment tin Pence approved the sale of ;:I ishop, Baldwin, Re- the bankrupt company s shares of wald, Dillingham & Wong. After Aspengfen Travel back to the Ihe. company was forced into majority owners of the travel - r__ ?cfor, Including tl}e assetp .bf 'lever Hayes, said Rewald had agreed to `al large trust funds. Investigators buy, , 51 percent interest in the were worried that the Halvorsen company for $60,000 and had paid Trust was among those that had $15,000 into the travel company been "drained." so far. A lot of the company's t. a + h. R! business came from travel, ar? t kk , ,:~ .Dt. k rT:.Js J1 ,W lrs~f hm, ai n alned lned:> wIAtl~Iement ~ l01` . wA~d co Iglt?_.. to ----- ments, Wagner said. +~; -. - -? .there was' ? money .,ves~ecl,..,In the company at the tI*ietaof its ' WAGNER ALSO sought permis- Vollapse. Unlike most trusts, sion to have Hayes sell Rewald's :assets in the Hal,vorsen,,trust. are 37-foot cabin cruiser, named taxable and-have to be invested "Nancy" after Rewald's wife. The An tax shelters to protect, the boat is only. worth about $1,500 to .fund, he said. Most trust Qompa- $2,000, Wagner said, pad probably riles did not want to get involved could not be sold for that ,be- in that type of a trust, he said. cause of the poor state of repair Elizabeth Halvorsen, who lives it is in. next door to Rewald's Kalanlan? Attorney Smith opposed the aole Highway house, invested sale, saying the boat is an asset $805,394 of her own money in Re- that should be protected until a `wild's company. She is one of judge rules on the company s many creditors waiting to see bankruptcy. Rewald told Smith how much of their investments, the boat is worth $40,000. elf any. N%ill be returned during Pence put off any decision on the bankruptcy proceedings. the sale of the boat until attor- She filed suit against Jinks last neys see if the boat can be week as legal guardian of Kit moved to a Coast Guard lot and Lee, seeking to have Sinks re- stored. Sanitized Copy Approved for Release 2010/08/10: CIA-RDP90-00494R001100690055-1 Sanitized Copy Approved for Release 2010/08/10: CIA-RDP90-00494RO01100690055-1 -16*2 Honolulu Stor-Bulletin Monday, Septembor.l2,.,.toaa HAT a ghat sports weelren4 nM rL~ - win over Colorado, Std' a thanks to an*awesome defensive I '.displaythat 'should have the rest of t- letic Conference- . ',r espectallyquarter- t, backs extremely 'if nervous'-,. . Thegr,1 there was .& wealth" ,., to.` serve` 't (ru of'a , the final two minute., of g me Ye tw ?da>i They made-.up for it, sort of, with a..titV repeat following - the Second eame.) . r' t had to switch Over a~ld tcbJlmhy 't GSniors 'whip Ival* Lendl in the U '" ?Opeq'' d :r. Te , ? urner s w -I'm cable chanti~J see thq be'dolls madt`by Mrs. Hatseyo Funampto and her students of c t Funamoto doll studio of Hon6- lulu Ado`ther nwer" T-shpt has surfaced t wall, Dills g am Wong...And All I Got Was My T-shirt." . s holding a; news conference today to announce plans' for aseries of Aloha Friday Pau Hana Concerts." The City & County. which is interest- ed' in the revitalization of ditb~i-n Honolulu, is t ,- ,+.aj . ....r .,,., Stevenson, a member of the onoluth,.Svmpho - , ) .-.. 6..,... .....,., v,, t1Uta! t~;au Nlrllises- a j'condo to stay in while -there-for selling te, the' most Symphony season subscriptions.. 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