LETTER TO F. JAMES SENSENBRENNER, JR. FROM CHARLES A. BRIGGS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP90-00552R000605480020-8
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 3
• Document Creation Date: December 22, 2016
• Document Release Date: June 30, 2011
• Sequence Number: 20
• Publication Date: March 20, 1985
• Content Type: LETTER

Sanitized Copy Approved for Release 2011/06/30: CIA-RDP90-005528000605480020-8
CcnUal IntclG~?er~oc llgency
~~,
OLL 85-0518/2
2 2 MAR 1985
The Honorable F. James Sensenbrenner, Jr.
U.S. House of Representatives
120 Bishops Way, Room 154
Brookfield, WI 53005
Dear Mr. Sensenbrenner:
This will acknowledge recei t of ou of
18 February, addressed to enclosing a
letter signed by several r cons ituents, alleging that
the firm of Bishop, Baldwin, Rewald, Dillingham & Wong was
formed by Mr. Ronald R. Rewald at the "direction of and
funded by the Central Intelligence-Agency to carry on
government intelligence work."
The Agency has received so many inquiries concerning its
alleged involvement in the Rewald case that the enclosed
statement was prepared to respond to all such inquiries.
If you feel additional information is necessary, then I
am required to respectfully zefer you to the House Permanent
Select Committee on Intelligence, in accordance with
procedures established by the Congress.
Sincerely,
/s/Charles A.~Briggs
Charles A. Briggs
Director, Office of Legislative Liaison
Distribution:
Original - Addressee w/enc
1 - D/OLL w/enc
1 - DD/OLL w/enc
~ - C/PAO w/enc
1 - OG /enc
1 - PA w/enc
1 - OLL ecor w enc
1 - OLL Chrono w/o enc
STAT
STAT
STAT
STAT
Sanitized Copy Approved for Release 2011/06/30: CIA-RDP90-005528000605480020-8
 Sanitized Copy Approved for Release 2011/06/30: CIA-RDP90-005528000605480020-8
Ronald R. Rewald Case in Hawaii
Ronald Rewald is a businessman who operated an investment
counseling or brokerage firm in Honolulu. That firm, Bishop,
Baldwin, Rewald, Dillingham and Wong (BBRD&W), collapsed into
involuntary bankruptcy on 4 August 1983 and Rewald is the
subject of a state criminal action charging him with theft by
deception and a 100-count federal indictment for fraud,
perjury, and tax evasion. Moreover, the United States
Securities and Exchange Commission (SEC) has brought a civil
action for fraud alleging violations of the Securities Act of
1933, the Securities Exchange Act of 1934, and the Investment
Advisors Act of 1940. As a result of the SEC action, the
court ordered a preliminary injunction freezing the assets
and records of BBRD&W and barred Rewald from the investment
business and revoked his registration as an investment
advisor.
Surrounding the case have been claims that the alleged
misconduct of Rewald and BBRD&W was undertaken at the behest
of the Central Intelligence Agency (CIA). On 20 September
1983, a CIA official filed an affidavit in the Rewald proceed-
ings stating that "(1) the CIA did not cause Bishop, Baldwin,
Rewald, Dillingham and Wong to be created nor has the Agency
at any time owned, operated, controlled or invested in BBRD&W
and (2) the CIA was not aware of and has had absolutely
nothing to do with Ronald Rewald's alleged appropriation to
himself of the funds of BBRD&W or its investors." While the
CIA did request that certain documents in the BBRD&W files be
placed under seal with the court pending further review, the
court noted in its order that it had reviewed the documents
and found that there was nothing in any of the documents
which might indicate or possibly lead to the location of any
assets of BBRD&W. Moreover, an investigation of the cause of
the bankruptcy and the disposition of funds has been
conducted by the federal trustee. A report filed with the
federal court by the trustee, setting forth the derivation
and disposition of BBRD&W funds, answers many of the
uncertainties which might exist in the minds of investors.
It should also be noted that the Senate Select Committee
on Intelligence (SSCI), the House Permanent Select Committee
on Intelligence (HPSCI), and the President's Intelligence
Oversight Board (IOB) have been fully briefed with respect to
this matter. In this regard it is fully relevant to note the
recent report of the HPSCI (HR 98-1196, January 2, 1985,
page 14):
Sanitized Copy Approved for Release 2011/06/30: CIA-RDP90-005528000605480020-8
 Sanitized Copy Approved for Release 2011/06/30: CIA-RDP90-005528000605480020-8
The Committee as a practice does not publicly
comment on cases currently being tried, but
the Rewald case in Hawaii requires some mention.
The Committee can find no evidence that the CIA
instructed Mr. Rewald to engage in the financial
activity that has brought him before the bar of
justice.
At the present time, the federal criminal prosecution of
Rewald remains in the pretrial discovery pY~ase; at a hearing
on 15 March 1985, the trial judge established firm guidelines
for the remaining discovery and set forth a procedure under
which the defendant's discovery requests and the government's
objections would be duly considered. While no trial date was
set, a hearing was scheduled for 20 May 1985 at which time
final decisions on the issues of materiality and
admissability would be rendered.
Sanitized Copy Approved for Release 2011/06/30: CIA-RDP90-005528000605480020-8