DETAILS OF REWALD LAWSUIT REVEALED

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP90-00552R000605480127-0
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 1
• Document Creation Date: December 22, 2016
• Document Release Date: June 30, 2011
• Sequence Number: 127
• Publication Date: February 12, 1984
• Content Type: OPEN SOURCE

Sanitized Copy Approved for Release 2011/06/30 :CIA-RDP90-005528000605480127-0
HONOLULU STAR BULLETIN (HI)
12 February 1984 ~~~ f~ ~(MMn
Details of Rewald laws i~
reveale
By jay Hartwell
'~
he ~ says
Ronald Rewald, in a lawsuit against the "These funds were co-mingled in the
Central Intelligence Agency, alleges exten-
sive CIA involvement in his investment
compan}-'s activities. This involvement, the
suit says, eventually caused Rewald's
company and its investors to lose money.
His S671 million lawsuit against the CIA
was filed Tuesday in U.S. District Court and
Bishop Baldwin investment account and
used in (a) meeting Bishop Baldwin over-
head, (b) legitimate Bishop Baldwin invest-
ment" transactions in which the CIA had no
interest, and (c) CIA-directed projects ... "
according to the .suit.
"The CIA knew that its funds were co-
was unsealed Friday. ~ mingled with the funds of Bishop .Baldwin
Because the CIA has refused to acknowl- ~ and its clients. The CIA also knew the man-
edQe its full role with Rewald's investment ner in which Bishop Baldwin raised acid
ham and Wong, Lhe firm sustained 535 mil-
lion in general and special damages, Re-
wald's good name and income potential,
were destroyed and personal assets totaling
S4 million were lost, according to the suit.
Specifically, the suit says Rewald was di-
rected by the CIA to establish two cover
operations in Honolulu in 1977 and 1978
and was directed to establish another firm,
Bishop Baldwin, that would specialize in
the Far East and Southeast Asia.
"Bishop Baldwin grew, establishing of-
fices in foreign countries, many under CIA
idirection. The Agency established an oper-
ating budget for Bishop Baldwin of several
million dollars, and the Agency used Bishop
Baldwin checking .accounts and reimbursed
. Bishop Baldwin and its agents and employ-
' ees their expenses for Agency work," the
suit said.
The suit named nine companies, including
Bishop Baldwin, which it said the CIA used,
some "completely and exclusively for cov-
ert CIA operations."
"These companies existed, in whole or in
part, for the sole benefit of the Agency.
,Many company employees were retained ~or
carried at the request of the CIA and per-
formed functions of tasks requested and di-
rected by the CIA and its agents and repre- ,,,
, ney Melvin Belli in San Francisco.
sentatives. ' ~ __
%"
~
The suit also said the CIA and its`
representatives used Bishop Baldwin's in- _ _ , .
vestment account and other investments. to
shelter money of "highly placed" foreigners
and for the CIA's own use. So, the suit said,
Bishop Baldwin's main depository had funds
from legitimate investors, funds from the
CIA and cover funds from the foreiRriers.
-+CIA_ extensively involved in firm,
obtained funds from legitimate .investors
and. knew what representations were made
by Bishop Baldwin to legitimate investors
to induce them to invest their funds."
The suit also said the CIA "gave assur-
ances" that it would act in good faith with
Bishop Baldwin and would protect the
company from outside interference investi-
gations by government agencies" and that
it would provide "financial support and
complete protection" for Bishop Baldwin
personnel deemed to be "extremely valu-
able."
The CIA, the suit said, did not act in good
faith nor protect the company and its per-
sonnel.
Thomas Hayes, the bankruptcy court
trustee who took over Bishop Baldwin, "has
said that he found evidence of only a slight
CIA involvement in 'the investment firma-
Rewald is free on a 5140,000 bond pend-
ing his tirial im state court later this year;on.
charges that he stole money from two'Bish-
op Baldwin investors. Rewald's firm -went.
into-bankruptcy last year, leaving hundreds
of investors wondering what happened~to
an estimated 517 million in funds.
Rewald has the court's permission to go
to the Mainland for three weeks to visit ~iis
family in Wisconsin and to meet with attor-'
Sanitized Copy Approved for Release 2011/06/30 :CIA-RDP90-005528000605480127-0