$671 MILLION SUIT FILED BY REWALD AGAINST CIA

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP90-00494R001100700043-2
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 1
• Document Creation Date: December 22, 2016
• Document Release Date: July 5, 2011
• Sequence Number: 43
• Publication Date: February 7, 1984
• Content Type: OPEN SOURCE

Approved For Release 2011/07/05: CIA-RDP90-004 94RO0110MM0700043-2
7 February l.!184 II ?ilU~~
$67 7 Million, Suit Filed
bRewald ainst CIA
Y
By Charles Memminger that he would be suing the CIA.
Be:?.
t
r
+~p
esen
tos. a group %)I
investment counse- who contend they invested
for Ronald Rewa)d today filed a money in Rewald's company be-
$671 million suit against the CIA, ~ cause they thought it was con-
but the grounds for the suit re- nected to the CIA
main secret under a federal court ` Sources have said that at least
order. , one. CIA agent used Rewald's
R.ewald's civil attorney Robert comany for cover and several
Smith this morning filed the suit business associates have said they
,in. L.S. District Court. here and believed the company was doing
filed an identical suit by mail in work for the CIA While running
U.S. Claims Court in Washington; the company, Rewald also was in.
., Smith said the suits were filed
because Rewald believes "be has
claims against the agency" and
that pursuing those claims is "the
only way investors are going get
back their money."
MEANWI-IILE, a group of
-Noitbern California investors
filed suit yesterday against the
CLA, seeking $5.5 million damages
for allegedly portraying Rewald's
company - Bishop, Baldwin, Re-
Wald, Dillingham & Wong - as a
CLA operation.
Although the grounds for Re-
wald's suits are secret, it was the
first time Rewald has publicly.
charged that the CIA had some-
thing to do with his company.
While others involved in the
company have suggested Rewald's
operation was a front for CIA ac-
tivities, Rewald, through his attor-
all about the CIA.
Belli and then to Wisconsin to
While charging in general; visit his wife and children whom.
terms that the CIA.was liable for, he has not seen since his arrest.
damages, the specific grounds for; six months ago. Tomorrow, Cir-
tbe suit are sealed. A federal, cuit Judge Robert Chang will
court order signed by U.S. Judge; hear Rewald's request to travel.
Martin Pence last year restricts.,
parties involved in the Rewald; THE SUIT filed yesterday was
case from referring to matters, brought by Robert W. Jinks of
pertaining to the CIA. ; Napa, Calif., doing business as
The Hawaii chapter of the, Napa Properties, and. 14 Napa
American Civil Liberties Union is; County investors in the partner-
challenging that order, contend-' ship.'
ing it is too broad. The suit said Jinks and the 14
SMITH ANNOUNCED two:
weeks ago, after disclosing that;
he had joined forces with San-
Francisco attorney Melvin Belli,
volved in several other companies
described by sources as CIA
"fronts."
Judge, Pence and bankruptcy
administrator Thomas Hayes .have
said Rewald's involvement with
the CIA was minimal and does
not explain his alleged use of
investor money for his personal
expenses.
In September, CIA attorney
Robert Laprade filed an affidavit
in which he said the CIA was not
involved in the formation of the
company and had "absolutely
nothing to do" with Rewald's al-
leged theft of investor money.
After the company was forced
into bankruptcy in August, some-
$17 million in company funds was
found to be missing.
Rewald was released from
prison last week after relatives
and friends posted $140,000 bail.
others 'invested $597,938 In the
company . from October 1982
through June 1983.
According to the suit, Rewald
told Jinks that the company was
a CIA operation -and funds invest-
ed, including principal and inter-
est, were "secured and backed by
the full faith and credit" of the
United States and guaranteed by
the CIA .
. It further claimed Rewald said
the investment was being used
for the CIA and national security,
and the company was started by
the agency to "infiltrate interna-
tional banking -operations in
order to discover transfers of
capital to and from communist
countries."
Rewald also said the invest.
ment would have a guaranteed
growth of at. least 20 percent.
annually, the suit alleged. ^;''n:'`.
.Dale Peterson, CIA public" al:
fairs officer in Washington, said
he would have no comment on
the suit, but said documents
released by a court in Hawaii
indicated the CIA involvement
with the company was "very,
minor,yery small."
Approved For Release 2011/07/05: CIA-RDP90-00494RO01100700043-2