MILLIONS OF YOUR TAX DOLLARS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP90-00494R001100710043-1
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 2
• Document Creation Date: December 22, 2016
• Document Release Date: July 26, 2010
• Sequence Number: 43
• Content Type: OPEN SOURCE

JI Approved For Release 2010/07/26: CIA-RDP90-00494RO01100710043-1
Millions of Your ~ ax Dolla
-wn v,- rot am WW 104" The truth. slowly working its way Out,
By Tom Vokfftiffa seems to be that Bishop. Baldwin,
An c.litnaiCJ S6 million iii as Rcwald, Dillingham A Wong was a ma-
monc) has been spent by an army of jor CIA cover oleratirnn. virtually
lice in a massive replaciltg the infamous Nugan-Iland
efror, t to vilify giand
one fm man. It rivals the bank operation (based in Australia in
effort the 1915(1,)
Watergate Cover-up and vendetta in .Ron was a long-standing operative
Cost to taxpayers and outclasses and when the cover was blown due to in.
Watergate when it comes to the cot handling of a problem, a malicious
variety of government agencies in- flrwaii press and a bungling judiciary.
volsed. he was left holding the bag. He was will-
1 he Ronald Rcwald affair has seen lug to take a'small tall early on. rather
gmcrnment agenclc, orchestrating an than endanger or uncover any CIA rela-
apparent con,lnra.) to play down a CIA tiotiships, but when the CIA turned on
If,r.u 1%'110 11 101 r. lunc 17 and pre- him, he fought hack."
vioelsI . So tar the kcwa ld case has in- Thal summary Como from a source
vohcd agent, hunt the Justice Depart- close to Rewald, who asked not to he
mint, the I UI, CIA, Securities Lx- identified, for obvious reasons. Al. the
e Commission, the Internal Reve- case has unraveled over the past two
chan
g
sue Service, the Federal Deposit in. years. Rewald's counterclaims appear
surance Corporation and the federal and accurate and the government can. de-
state courts in Hawaii. spite the S6-Ihillion expenditure. appears
Reectltly the Federal Communications a sham.
Commission also got into the act when CASE HISTORY
the CIA complained that AUC-Televi- Now that Rewald has a new team of
lion tal,ificd the news. ABC has been attorneys the history or this case has
fully exoneramird by the FCC, much to become clearer.
the chagrin of the CIA and Director The SPOTLIGHT has been close to
W'illiant Casey. the Rewald story since early sprung,
The 116-million tax-paid cost is more 1984, when many investors finally decid-
than the amount said to ha,c been lost ed that Rewald was telling the truth and
by investors who were supposed to have the CIA was covering tip, so they filed
been bilked by Use investincul firm lawsuits against the CIA for their lost in-
formerly headed by Rcaaid: Ilunolulu- vestments.
based Bishop, Baldwin. Rcwald, [)it- Along with the British Broadcasting
gingham & Wong, an im?cstment firm Corporation and a local Hawaiian news-
and mapsi ( IA cnvcr upcration. paper, The SPOTI 1riHT broke the
This Case has exhibited government story of alleged attempts on Rewald's
pressure against a eiucen. which life by CIA-supported hit men. ABC-TV
establishes a new prectdenl for bur- picked tip the story tpld by self-described
eaucr:uic arrogance, bureaucratic bung- hit man Scott Barnes, and incurred the
ling and oveikill. wrath ill Casey and the CIA. Barnes, a
Originally the CIA filed with the court longtime CIA operative according to
a ,worn staicnicni saying the agency had congressional investigation documents,
nutlutig whatsoever to do with Ilisliop, et11tcsud that he had hevn hired to kill
Baldwin, kcwald. Dillingham A Wong kewald while the front man languished
and Run kcwald; then in a second af- in Hawaii State Prison.
fiu.tsit filed p rsirrally by William Barnes sticks to his story, and all in-
C,iscy. dii xtor of the CIA, the CIA dicatoils up to now, despite continued
swute if only had a minor role, like CIA dcutals. arc that Barnes has tiled
telephone use and incidentals. Then in some truth.
still a third affidavit, the CIA swore, still When the Bishop. Baldwin. Rewald,
under uallt. that the agency created file Dillingham A Wong cover was first be-
euscr operarinus including Bishop, ing blown apart. Rcwald tried in obtain
Baldwin. Rewald? Dillingham & Wong. lie company fib and two them over
Big Brother Has Thumb in Pie
A recent news break flora Ilawaii couirsomi is Rig Brother's complicity in the
Ronald keaald caw. causing music consternation I'm taxpayers footing the hills.
Jackie Voss was a Bishop. Baldwin. kca,dd, Dillingham & Wong employee,
lprmcrh Rewald's secretary and a person wall modest CIA document clearamice.
She tried in fell "invcsnigators" her story cal ly oil lite expensive affair hill it is ju,t
now .omulg ow.:un.uist ?
Shortly after Rea_IJ', "suicide aticilipt" aped blown Cover (Kee related st.ry),
Mlns Voss was grabbed by two nice and an official of the New Zealand govern-
ment what desperately wanted access iti the Ifi,hup, IIaiJwin, Rcwald, Dillingham
W\ ',mg record, rixutt.
Bob Mien (a aril-kuuwn Honuhdu hu,iuc?nl.utI and his huedyguaid I lugclo
(?euocII IIled W hrtbc Mlis% V41,,, glen Ihre:ueuc,) Iiet by ,aytng site meld wind up
dead it she didn't .)file tip atilt the Lev to the santpilter room.
In a sworn allidaut. Miss Voss slate, that the men wanted kewald's "green
hook" the, lawek 411 exec cuter)
Muss Vu,s mangier to confound her abductors and then rail to Hall Irain, the
1 III', 6C.id. I tic I III then waned" tier 141 "gvi the giants 4111" the ulhcl, amid it has
sittsC hrcn .unlit mcd flat life, limier, "got tie go ad,,"hut tint ping ha, been Jour.
Miss V,,,, alleges that the men wanted I.e rise her "some Iltshop. Ikduwm.
Rewald, Ihllincharn & Wong dollars today" but ahcn she returned Io the 1 III the
aycncy wasn't "uuerested.,,
the CIA agents to protect the agency. Rcwald has filed a civil sail apil
However, no one from the "company" Hays, ehrgiag than the trtwes It
(CIA) would get anywhere close is libeled and shrtdeed No. I. one i
kewaw in order to quietly purge the stance. Rawuld has charged, the (ruse
fees. This forced Rewald to turn them
over to a U.S. district court judge. Mar-
tin Pena.
Thai was a sad mistake.
PANIC
Rewald's attorney advised Pence that
sensitive documents and classified
materials were involved, but the judge
ignored the plea and publicly announced
that a CIA team from headquarters
would core to Hawaii to inspect the
files. Now the media was akvtcd. and
the CIA evidently panicked.
Agents arrived and removed a few
hundred documents under the eye of the
press and the court-trying to make
light of the issue, but asking that the
material he "seated in the interest of na-
tional security."
Lalcr, The SPOT1.IGHT's source re-
called, agents "did a job on the re-
mainder of the files, making sure that
numerous documents vanished without
the Court or the press knowing."
The CIA cover-up began by alleging
that Rewald was a master con artist who
bilked investors out of a reported $21
million in a "Ponzi scheme." and that
Rcwald was trying to use The CIA as a
scapegoat.
The $21-million fie am bonawad
by the media, but it wan another bar-
eaucratic twist of truth. Pence appointed
Thomas Mayes as the federal bankrupt-
cy trustee in the Bishop, Badwim,
Rcwald, Dillingham A Wong-Rewald
case and I laves quickly announced that
S-) 1,700.11111) was missing, even before he
had obtained any records.
The figure was reduced to "about S6
million" after the records were perused,
but Ilayes also contended incorrectly
that no unesiments had been made by
Bishop. Il:ddwm, Rcwald, Dillingham A
Wang.
The Implication was that Rewald had
absconded with millions of dollars and
spent it all on himself-haying polo
ponies, a polo field and an estate and so
forth.
INVESTMENTS
"The record indicates that more than
61) businesses surfaced that were, indeed,
investments mule by Bishop, Baldwin,
Rewald, Dillingham & Wong," the
mute st,cs.scd.
discovwed a deeply personal pho
graph and dMcalaed it indbaiminas
in an of I ,ffI offset to harm Rewal
reputation Said damage Rewaw's of
riage of 24 years.
"Like Judge Pram before him,"
source paid. "Hayes did not think of
repercussions of releasing seasil
docuriewts and be literally sus
several sal documents out to
press." .
One stick doCmmctr leased along
Ilaycs destroyed the u'oscr of J,
Sager, former CIA station chief
Moscow. The document, according
sources, was clearly marked "classif
lop secret."
Two comes of theft by deception s
finally lodged against Rewald by
slate of Hawaii-the only two Cott
ever returned by that state's grand
despite two yeas of hearings.
One of the counts stemmed from
inadvericnl testimony of Rewa
closest friend and a former CIA sta
chief in Hawaii. Jack kindschi, a as.
CIA agent for many years, trying
distance himself from Rewald, acts
caned Rewald's arrest in 1993, full
ing a r s Iicriolsc "sal lik gsemgr"
RAWOM
The two counts of Ikllt by dwq
Fund for Defense
A special defense fluid for Ron
Rewald has been created by ano
mous donors.
A. Brent Carruth. a' Los Ang,
attorney, told The SPOTLIGHT i
documents hate been tiled volt
courts indicating that file fuuJ
been created and that he and allot,
Melvin Belli are seeking to del
Rewald against the fraud and tax,
sion charges he is facing.
Carruth said the confiJentiahi
the donors has been guaranteed
the attorneys. He would not comn
further.
A source clove to the Rewald
told The SPOTI IGHf, "MIuJ
the money is Coming from other
operatives who don't like the h
mint Ronald 1:,rs been setting."
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 f . % Approved For Release 2010/07/26: CIA-RDP90-00494RO01100710043-1
Fund Spy Scandal Cover-Up
resulted in the largest bail demand in
Hawaii's history: $10 million," the
source added.
"Kindschi controlled Rewald and
Bishop Baldwin for the company the
CIAO," the source continued. "lie
iterally authored all the Bishop,
13aldwin. Rewald, Dillingham & Wong
,iterature, including the brochures con-
aining lies and misrepresentations used
o build the company (Bishop, Baldwin,
ic%ald, Dillingham & Wongi up. Later
hese same lies caused the appearance of
raud on Rcwald's part."
A year after the two state charges, the
eds indicted Rewald on 100 counts of
raud, perjury and tax evasion.
The prosecution has since asked that
he perjury charges be dropped. These
ire the charges relating to Rewald's
aaims that the CIA was behind all his
voes.
As had as it appears, the handling of
he bankruptcy is not nearly so Big
trothcrish as the handling of Rewald's
a,c h) the FBl. the I I.S. Justice D part-
ncnt, the CIA and the federal court in
lawaii lice (clatcJ story).
In a land ssher'c citirens are presumed
nnswent until found guilty we have an
,ten case of government suppressam
,set of control. "A government of ilre
'topic, for the people? Which people?"
%:%.ilJ's family has asked.
The investigation into Rcwald was led
?y Bill Irwin, head of the FBI's Ilawaii
(lice.
"Bill Irwin was a confidant of Ron
:calld," the source esplau.cd. "tic
.ad been introduced to Ron by former
cation chief Jack Rardin. Irssin met
?uh Rewald at least two times in the
ompany safe house and had offered
:caled advice (tape recordedi 4911 how
e could best protect himself on large
rots sales abroad involving kickbavks
foreign uffi.rals."
In other worts, the FBI's main in-
cstigaior knows lull well the depth of
tcwald's insolsenrent with the CIA-
shich is allegedly being questioned, but
rot necessarily inscstigatcd.
3OOR TO DOOR
,,When they w4*t0 trying to build a
:ate against Rcw:dd, they went Joss, tat
I..or with an IRS atrenr named Jisseph
:.tmpalonc and U.S. attorney John
'cyton. posing as an FBI man. Cam-
,.done told clients and friends of
tcssaid that it w.is coinmon knowledge
that Rewald was a womanizer-at least
it became common knowledge after
Carnpalone spread it around.
"Campalone knew Rewald was under
CIA protection because he had been told
earlier to 'stand down' when he tried to
investigate Bishop, Baldwin, Rewald,
Dillingham & Wong," the source re-
lated.
According to the source:
"Peyton arrived on the scent two days
after Rewald's cover collapsed. As the
brand-new assistant attorney he was
handed the biggest case in Hawaii
history.
"Peyton says is was all a mere coin-
cidence; that since he was a newcomer he
had no work load, thus the assignment.
Peyton alleged no connection with the
CIA on his part, but the fact is he came
down from a position as chief of litiga-
tion for the CIA in Washhrgton to depu-
ty U.S. attorney in Hawaii-sonic coin-
cidence!
"Peyton is an operative and his
Hawaii cover was blown by David Tay-
lor of the BBC just to prove that point.
Taylor was given a telephone number of
a U.S.-hascd intelligence operation by
an insider and he called the number,
then asked for 'Major Peyton.' Peyton
went crazy, wanting to know how
Taylor got the number. Still. U.S.
district Judge Harold Fong saw no par-
ticular conflict of interest in this in-
Approved For Release 2010/07/26: CIA-RDP90-00494RO01100710043-1