$671 MILLION SUIT FILED BY REWALD AGAINST CIA

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP90-00552R000605480137-9
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 1
• Document Creation Date: December 22, 2016
• Document Release Date: June 30, 2011
• Sequence Number: 137
• Publication Date: February 7, 1984
• Content Type: OPEN SOURCE

Sanitized Copy Approved for Release 2011/06/30 :CIA-RDP90-005528000605480137-9
HONOLULU STAR BULLETIN (HI)
7 February ,1.gR4 ~U~15
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i f Fi
~ ion v e
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ewa a~nst
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By Charles Memminger that he would be suing the -CIA.
Scat-Buuetin td'riter Belli represents a group of inves-
Embattled investment counse- ~ tors, who contend they invested
!or Ronald Rewald today filed a ' money in Rewald s company be~
$671 million suit against the CIA, ~ cause they thought it was con-
but the grounds for the suit re- netted to the CIA.
main secret under a federal court- Sources have said that at least
order. ;one .CIA agent used Rewald's
Rewald's civil attorney Robert '~ company for cover and several
Smith this morning filed the suit { bustness associates have said they
in. U.S. District Court:.here and ;believed the company was doing
filed an identical suit by mail in :work for the CIA. While running
U.S. Claims Court in Washington, 'the company, Rewald also was in-
D.C. volved in several other companies
Smith said the suits were filed described by sources as CIA
because Rewald believes "he has ?~Jud e~ Pence and .bankru tc
claims against the agency" -and g p y
that pursuing those claims is "the administrator Thomas Hayes .have
only way investors are going get said Rewald's involvement with
back their money." the CIA was minimal and does
MEANWHILE, a group of
Northern California investors
filed suit yesterday against the
CIA, seeking 55.5 million damages
for allegedly portraying Rewald's
company -Bishop, Baldwin, Re-
wald, Dillingham & Wong - as a
CIA operation.
Although the grounds for Re-
wald's suits are secret, it was the
first time Rewald has publicly
charged that the CIA had some-
thing to do with his company.
While others involved in the
company have suggested Rewald's
operation was a front for CIA ac-
tivities, Rewald, through his attor-
neys, has refused to comment at
all about the CIA.
While charging in general;
terms that the CIA. was liable for
damages, the specific grounds for;
the suit are sealed. A federal
court order signed by U.S. Judge;
Martin Pence last year restricts.
parties involved in the Rewald
case from referring to matters
pertaining to the CIA.
The Hawaii chapter of the,
American Civil Liberties Union is~
challenging that order, contend-;
ing it fs too broad.
SAfITH ANNOUNCED two.
weeks ago, after disclosing that;
he had joined forces with Sane
Francisco attorney Melvin Belli,
not explain his alleged use of
investor money for his personal
exppenses.
In September, CIA attorney
Robert Laprade filed an affidavit
in which he said the CIA was not
involved in the formation of the
company and had "absolutely
nothing to do" with Rewald's al-
leged theft of investor money.
After the company was forced
into bankruptcy in August, sofne
$17 million in company funds was
found to be missing.
Rewald was released from
prison last week after relatives
and friends posted $140,000 bail.
Smith said Rewald -would like
to go to California to meet with
Belli and then to Wisconsin to
visit his wife and children whom .
he has not seen since his arrest
six months ago. Tomorrow, Cir-
cuit Judge A4bert Chang will
hear Rewald's request to travel.
THE SUIT filed yesterday was
brought by Robert W. links of
Napa, Calif., doing business as
Napa Properties, and 14 Napa
County investors in the partner-
ship
The suit said links and the 14
others ~ invested $597,938 in the
company from October 1982
through June 1983.
According to the suit, Rewald
told links that the company was
a CIA operation -and funds invest-
ed, including principal and inter-
est, were "secured and backed by
the full faith .and credit" of the
United States and guaranteed by
the CIA.
It further claimed Rewald'said
the investment was being used
for the CyIA and national securfty~
and the company was started by
the agency to "infiltrate interna-
tional banking operations in
order to discover transfera of
capital to and from communist
countries."
Rewald also said the invest?
ment would have a guaranteed
growth of at .least 20 ~ercenv
annually, the suit alleged.. ;? ' ~ ' ~ .
.Dale Peterson, CIA pu lit' af'
fairs officer in Washington, said
he would have ao Comment on
the suit, but said documents
released by a court in Hawaii
indicated the CIA involvement
with the company was "very ,
minor,~very small."
Sanitized Copy Approved for Release 2011/06/30 :CIA-RDP90-005528000605480137-9