REWALD ASSOCIATE ADMITS FRAUD

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP90-00552R000605480094-7
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 1
• Document Creation Date: December 22, 2016
• Document Release Date: March 30, 2011
• Sequence Number: 94
• Publication Date: June 15, 1984
• Content Type: OPEN SOURCE

Sanitized Copy Approved for Release 2011/03/30: CIA-RDP90-00552R000605480094-7
ASSOCIATED PRESS
15 June 1984
REWALD ASSOCIATE ADMITS FRAUD
HONOLULU, HAWAII
An associate of former investment counselor Ronald Rewald has admitted that
he knowingly helped defraud investors in the now-defunct company he and Rewald
operated.
Sunlin L. S. "Sunny" Wong, 35, pleaded guilty in U.S. District Court on
Thursday to one charge each of mail and securities fraud.
He entered his pleas several hours after being indicted by a federal grand
jury. The plea-bargain calls for him to testify against others involved in the
case.
Wong was released on his own recognizance pending sentencing July 23. He
faces a possible 10-year prison term and fines of $11,000.
Wong was president, secretary and a director of Bishop, Baldwin, Rewald,
Dillingham and Wong, which collapsed shortly after a suicide attempt by Rewald
last July 29. Like Rewald, Wong was a 50 percent stockholder.
The company invested only $630,000 of the $22 million paid into the company
by 400 investors, according to the 22-page indictment.
The rest, it said, was diverted to Rewald'5 "lavish lifestyle," Wong's
$100,000-a-year salary and payment of salaries and "interest" to create a "false
facade of legitimate investment activity."
Wong and Rewald engaged in activities that gave the appearance of substantial
investment activity, "when in fact the actual investment of investors' money was
virtually non-existent," the indictment said.
Rewald was not charged in the federal case, but U.S. Attorney Daniel Bent
said the investigation is continuing.
Rewald faces state charges of theft in connection with the operation. He is
free on bond and is in San Francisco looking for a job.
Reached at the San Francisco office of his attorney, Melvin Belli, Rewald
denied Wong's court admission.
"I knew he was making a deal with the government, but I didn't think he would
lie about it," Rewald said.
Samuel P. King Jr., Rewald's attorney in the state case, questioned whether a
jury would believe Wong now that is he a confessed swindler.
Rewald maintains that he set up and operated the company at the request of
the Central Intelligence Agency. The government has denied the claim,
although court records indicate the company did provide cover for at least one
CIA agent.
Thomas Hayes, court-appointed trustee in the bankruptcy case against the
company, said the federal charges bear out his view that the CIA connection
doesn't explain or excuse the loss of millions of dollars of investor money.
Sanitized Copy Approved for Release 2011/03/30: CIA-RDP90-00552R000605480094-7