CIA OFFICIALS TOUCHED BY SCANDAL
Document Type:
Collection:
Document Number (FOIA) /ESDN (CREST):
CIA-RDP90-00552R000404000021-2
Release Decision:
RIPPUB
Original Classification:
K
Document Page Count:
1
Document Creation Date:
December 22, 2016
Document Release Date:
July 8, 2010
Sequence Number:
21
Case Number:
Publication Date:
July 14, 1981
Content Type:
OPEN SOURCE
File:
Attachment | Size |
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Body:
Sanitized Copy Approved for Release 2010/07/08: CIA-RDP90-00552R000404000021-2
RADIO 1V REPORTS,
4701 WILLARD AVENUE, CHEVY CHASE, MARYLAND 20015 656-406
FOR
PUBLIC AFFAIRS STAFF
STAT
STAT
PROGRAM
CBS Evening News
STATION
WDVM-TV
CBS Network
DATE
July 14, 1981
7:00 PM
CITY
Washington, DC
SUBJECT
CIA Officials Touched by Scandal
DAN RATHER: The breath of scandal blew on the Reagan
Administration today. It came from Wall Street and the super-
secret CIA complex at Langley, Virginia. The new man in charge
of covert spying activities, Max Hugel, quit amid allegations
of stock manipulation. And the man to whom he resigned, CIA
Director William Casey, himself came under fire In a separate
allegation of stock shenanigans. In both cases, the allegations
involved activities before their CIA appointments.
Lem Tucker has the story of Hugel's resignation.
LEM TUCKER: In the end it was not Max Hugel's total
Jack of experience in the world of intelligence gathering which
proved to be his downfall at the CIA, it was instead his past in
the world of business, where he was experienced. And it was at
the hands of two former Wall Street stockbrokers and business
partners.
ti
Thomas McNeil and his brother Samuel alleged that during
the mid-1970s, Hugel fed them inside information on two companies
Hugel was connected-With Brother International and Syntronics In-
ternational. The Information was then used by the McNells to
trade the companies' stock before it was divulged to other inves-
tors or made public. the Securities and Exchange Commission has
often In the past considered such dealings improper and/or I I l e-
gal.
The McNells also alleged that Hugel secretly funneled
more than $100,000 into their securities business, thereby finan-
cing trading activity in'Hugel's own stock. And they alleged
that Huge! arranged for this man, Robert Howard, President of
Syntronics, to buy stock in.Hugel's company, hoping the purchases
oFR Sanitized Copy Approved for Release 2010/07/08: CIA-RDP90-00552R000404000021-2 cIPALCmEs