REWALD TRAIL LOOKS AT HIS EXPENDITURES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP90-00494R001100710124-1
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 1
• Document Creation Date: December 22, 2016
• Document Release Date: July 26, 2010
• Sequence Number: 124
• Publication Date: September 5, 1985
• Content Type: OPEN SOURCE

Approved For Release 2010/07/26: CIA-RDP90-00494RO01100710124-1
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Thursday, Sepismber S, 1985 A,3 $tor?OuIIQ`N
1 RewaI4STti~I
Looks at Nis
Expenditures
by Charles Memminger
Star-Bulletin Writer
p The government moved, from
s ence ye dayytto how Ronald dRewald spent
some of the millions of dollars
invested in Bishop, Baldwin, Re-
wald, Dillingham & Wong.. - -
Felix Weyle, a construction
contractor, described how he
made luxurious renovations to
Rewald's downtown office and a
'Waimanalo ranch.
He said Rewald was "very
pleased" with the $50,000 face-
lift done for Rewald's 26th floor
Eoffice in the Grosvenor Center.
That renovation included con-
struction of an $8,000 rock and
Fiberglas waterfall, and installa-
n of deep plush carpeting and
$20,000 in furi4ptre.
The government contends the
renovations were shade with
investors' money. ,lRewald claims
that the CIA wanted him to
project a wealthy image in por-
traying himself as an interna-
tional businessman.
Whatever the case, Rewald
spared no expense in surround-
ing himself with luxury, accord-
ing to Weyle. That included put-
ting white, plush carpeting in
the Waimanalo ranch house,
against the advice of Weyle.
WEYLE SAID that when he
walked through the Waimanalo
property with Rewald, what he
saw was a "rundown, roach-in-
.fested" area with a broken down
A-frame house and a few shacks.
From 1982 until the collapse of
Bishop, Baldwin, Rewald, Dilling-
ham & Wong in July 1983, Re-
wald pumped 5980,000 into the
ranch.
That included rebuilding the
A-frame house and a clubhouse
and completely renovating .the
horse stables, Weyle said. He
said the polo field also was im-
proved and an. "old-English"
style gate was built with pillars
and wrought-iron, complete with
Rewald's initials.
Earlier. yesterday, a CIA se-
curity clearance officer testified
that if the CIA wanted Rewald
to set up and. staff a proprietary
corporation, it would have con-
ducted a full background check
onh r.. .. _., ._
Instead, the CIA conducted
only a shallow investigation and
overlooked Rewald's Wisconsin
theft conviction.
Rewald claims that BBRD&W
was a CIA proprietary, or a
company set up solely for use by
the agency.
THE CIA denies that. It says
that Rewald only provided "light
cover" for a number of agents
by providing telephone and telex
"backstopping."
Mitchell Lawrence, a CIA se-
curity officer, said Rewald was
cleared to provide backstopping
despite an FBI check that turn-
ed up his conviction of selling
unregistered sports, franchises.
He said it was a case of "low-
risk, high-gain" in using Rewald.
Lawrence admitted that he
had written an internal CIA
memorandum in which he said
that it was "unsound to proceed"
with Rewald and that Rewald's
theft conviction might only be
"the tip of the iceberg."
But because the need for
cover was urgent, he agreed that
Rewald be cleared.
That clearance allowed Rewald
to receive secret information
and use his company, CMI Corp.,
as a cover for Charles Richard-
son, a covert CIA agent operat-
ing out of the West Coast,_
Approved For Release 2010/07/26: CIA-RDP90-00494RO01100710124-1