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: 
AttachmentSize
PDF icon CIA-RDP90-00552R000404000021-2.pdf50.79 KB
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