INVESTOR DOUBTS CIA RESPONSIBILITY

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP90-00494R001100700051-3
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 1
• Document Creation Date: December 22, 2016
• Document Release Date: July 5, 2011
• Sequence Number: 51
• Publication Date: February 13, 1984
• Content Type: OPEN SOURCE

Approved For Release 2011/07/05: CIA-RDP90-00494RO01100700051-3
13 February
,investor- Doubts
--~lA .Responsibi
By Charles Memminger
Szcr-Bulletin Writer
HUGH Fraser doesn't" buy the argument
that the CIA is somehow responsible for
the V50,Cn0 be lost by 'investing in Bishop,
Baldwin, Rewald, Dillingham & Wong even
'though be would really like.to.
"I definitelyhope there -is.1CIA involve-
ment),". said "Fraser. "And'.I hope that uncle
Sam will. write out. a check for-117 million
and pay '.off.:all the ,-investors. But I'm not
holding my breath:"
Fraser 'thinki Ronald Reaald "is account-
able" for"the money investors placed with his
company.' ~y ` s- >?' .
It was Fraser' who led a .small group of
investors- to federal court.-:last summer and
successfully forced Rewald:s-.company into
bankruptcy. He also was the: first. person to
file a criminal theft -complaint against Re-
w?ald, which led to Rewald's. arrest. Fraser
was convinced then that the investors had
been taken in an investment scam and he still
feels that way. . .
FRASER SAID A LONGTIME friend and'
investment counselor who was associat
d
e
. Rewald persuaded him to invest his money~in
the company in I98 Aft
er getting a
promised 50 percent return on his money
"within civ month
b
n _
s
e met
and
~ Az
convinced to invest more. He said he found
.Hugh Fraser.,-'
" i do -think- now that it has been a swindle -
t from the beginning," be said:'"It-looks to me,
as (U.S. Federal Judge Martin) Pence said,
that it was a Ponzi scheme and nothing but a
swindle. I 'don't see anything to the contrary.
And I know a lot of investors don't see any.
thing to the contrary. There are people who
have been living from -hand to mouth ever
since.."
F'RASER A1SO -DISAGREES- with FRew-ald's
contention, as disclosed in a recent interview,
that it was panic by a small group of investors that led to the collapse of the company.
"Tbe only one who panicked was Rewald.
He was the one in intensive care with his
arms all bandaged," 'Fraser said. "He said be
had attempted suicide because of pressures
brought down on him. I think that is panic.
He caused the downfall, nobody but himself."
Fraser, an insurance company executive
who works in a building just across the scree
from where Rewald's offices were, said that i
Rewald had not tried to kill himself, Fraser
might not have pursued the bankruptcy or
filed the criminal complaint.
"I could talk to nobody," be said. "Sunny.
Wong (company president) was gone. Every,
body was gone. Nobody was left to talk to.
Rewald was. under guard up at the hospital:
So be brought the downfall.' And when (au-
thorities) looked into (the company) it was a'
"
big charade.,
-
r==a-a". uvru tnougn rtewaid did not outline
.clearly how the money was actually going to
be invested.
''Be. said they had large money deals, that
they moved money in and out,"Fraser said.
"But he said 'We don't know when the next
one is coming up. but we've got a lot of big
money and we can go in and out. Your
money is always guaranteed and "you can get
it whenever .you want.' I didn't think h
e was
. a fast talker or a suede-shoed -salesman:"_
a 14a c~:A o.....-tom i-.
io
h
..
n .t
e C.LA
although Fraser did notice a plaque on the
office wall: with a CIA logo on it.
Nevertheless, "Fraser does not think
the CIA
is responsible for investors' money.
"His CIA involvement, to 'me, is..another
shibai," Fraser said. "He's got a large ego and
be liked to be associated with movie personal-
ities,._ like (Jack) Lord.. I think. be has always
been -on this ego trip the football player'
bit, the - polo players .. I think maybe. a
retired CIA. person got involved (in the
company) and (Rewald) was ableto
putthat
. . in his mind and make it bigger and bigger. I
would like to be proven wrong."
Despite losing his money, Fraser. said be, is
not angry at Rewald.
have no. animosity against the guy. I
don't want to punch him out or anything like
that This is business. 1 want to get my money
back. I don't want to see him wiped out or
;anything," Fraser said. "I think he -did a/
pretty hard thing to a lot of people. I think
be cook a lot of money from a lot of people
who are really destitute now.". '
Approved For Release 2011/07/05: CIA-RDP90-00494RO01100700051-3