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December 22, 2016
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June 30, 2011
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September 23, 1983
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Sanitized Copy Approved for Release 2011/06/30: CIA-RDP90-00552R000605480154-0 HONOLULU STAR BULLETI 23 September 1983 Rid.Operatior, $irnIIcr.f HandLtd. C ase a 1 ; re 111? " 1w ACCORD ING TO news reports Star-Bulletin writer als who were involved with both in tNatWaN,lireet Journal and s; Frank Nugan and Ronald Rewald, e Officials involved in'the invest; i police and other officials said in Australia, tHan a ndwNugan gation of Ronald Rewald's bank- they know of no direct connec had laly and Nugan rupt company were struck by the tion between the two operations. 'h:,,prnrevpe cl run an similarities between Rewald's ; izing ieel testate speculation operation and that of Australian tided with the ut withu thhighly Rh - rise coin publicized and g tax, ? eltet-:?`rsestat speculation financial :entrepreneur Frank x shel Nugan. fall of Nugan Hand in 1980, some observers believe Rewald's Rewald -chose = to start his Like Rewald's, Nugan's -empire, company might have been a ?Wmg, with partner Sestat built around Nugan Hand InC.. o yWong, an island: real estate evolved rapidly and established pcat" of Nugan's operation.. promoter.-RewaK ,too, started his evolve around tea world. s an A though Bishop, Baldwin. Re- company undee,g$different name, offered inventors high Nugn Wald. Dillingham & Wong . was CMI Investmen`ts, and later returns . their..invPstments and used for- g~ weafter 1978, it really began to changed it to Bishop. ng.dwin, mer military and CIA officials as Rewald, Diningam & Wong. corpora officers and consult- Anthony Granito, head of the After opening the. bank in the ants. police department's white-collar Cayman Islands,;Nugan Hand Inc. After the news media began re crime unit, said police are aware expanded --dramatically, opening porting a e nt s media troubled of the similarities between the 'Offices in Argentina. Chile, Tai- company, o attempted ricide. , two operations, but also have wan, Malavsia,' Europe, 'Hong When Nugan's operation came -found the direct connection be- Kong, Hawati,.San Francisco and tween he two under the i scrut ny of gover n- But. ment investigators, Nugan killed But, Granfto ere "We are not himself.. going to say there - is not a con- lays. ed a possible link between the The natural question for offi? two enterprises. Special agent cials in Hawaii investigating Re- Howard Dare said the FBI was Wald was whether Rewald had "aware'' of Nugan Hand and any connection with Nugan Hand ,'could find no connection be? Ltd., whether he used the Austra- ;i ween that and Rewald's' opera m an ~ p as a model for his operation or whether it was merely a coincidence that Re- wald's rise and fall was so similar to Frank Nugan"s. 'There are so many parallels, it is difficult to imagine they are just coincidental,", ~ said Thomas Haves, trustee of Rewald's bank- rupt company, Bishop Baldwin, Rewald, Dillingham & Won However, Hayes said he has found no investors or consultants common to both companies. other points,!. around the world. Rewald opened branches in many of the same locations: Investors . poured millions into offices around the world, based on promised returns of at least 15 percent, much higher than the prevailing rate at the time. Re. wald's offer to. investors. locally was 20 percent. Hayes said he of an eerie feel Nugan Band collapsed just I ing reading about Nugan Hand after it had established an office Bank and the rest of Nugan's in Ha\`aii. t'i'hen .Rthe ps compa? operations because of the similar. , n`. fell. it era. in the process of ;ties to the Rewald case, e stablishing offices in New Zea- To understand Hayes'reaction, :land and possihl} Australia. fi- one first has to be familiar with Much of '\'U al's success due to the credibility of its ofWas ffi Ylttigan's operation and the paral eers and consulants. including . Iels to Rewald's company, former hi-h ranking military offi Nugan, described as a frenetic . cers. young lawyer, formed his bank in 1976 with Michael Jon Hand, a former Green Beret who had handled some CIA operations in C01V77NU Laos after the Vietnam War. Sanitized Copy Approved for Release 2011/06/30: CIA-RDP90-00552R000605480154-0 Sanitized Copy Approved for Release 2011/06/30: CIA-RDP90-00552R000605480154-0 When Rewald was found near Frank Nu an and Ronald Re T!IESE INCLUDED: death. in a Waikiki hotel room, g -Adm. Earl P. Yates, former his suicide note referred to his Wald shared a common personal- chief war planner and policy alleged service to his country, ity trait other than their desire to maker for the U.S. Pacific Corn- which led. to speculation that he run international co ioi}s mand in llawaii. who was presi- might. have been doing some and associate with powerful erful pen- dent of the Cayman Islands bank. "-intelligence work. '? pie. They also both liked to speed -Retired Army Gen. Ed Black, " money nn themselves.. Events following Nugan's sui- known to s a llauaii resident, who was presi- cide and -Rewald's attempted sui- Nugan was pe dent of Nu;iian Hand Inc.'s Hawaii aide are money "in manic style," accord- 'similar. l office. . 'Within hours of the discovery ing to news reports. He pal -Retired Air Force Gen. Le- of Nugan's body, -company insid- 8500,000 to remodel his laviO Roy .1. Manor. chief of staff for ers began ransacking the offices waterfront home, hauling in sabd the U.S.- Pacific Command, who and: hauling off or destroying to make a beach. Shortly befo& reportedly rata Nugan Hand's company files. A similar scene his death, he had arranged 30 Manila office took place in Rewald's office, but buy a $2.2 million estate. x -William Colby. formerly head the records later were turned According to, court testimonl.. of the ('IA. who worked for over to the court Rewald spent . up to $250,000' Nugan Hand in a variety of posi month for his: personal expens?,,' tions, including running the THE AUSTRALIAN equivalent including the upkeep,of.his man' Nugan Hand office in Panama. of a, bankruptcy trustee quickly ' polo ponies, his two ranches a$d Gen. Black when interviewed took over Nugan Hand in an at- 'his ?$1 million Kuliouou home. recently, said hecknew of no con- ;tempt -to-recover company assets, investors 'I'iIERI: IS a ,big difference :b nection betw d but it a ared that:ihe N ppe een . ugan. Han and Rewald's company. He said ;bad been.. part of a swindle that twt en i two:: men and '>;t} nr~arati1% ilnauAVar m,b Yf ..3 Mn the Nugan off Ice here never real. ! ' """"~' "' ?"?F '-VV a'i"`iV"' ,;'::Authorities do have` .Reveal .ly opened. Bi hop Baldwin. Rew,Cl;;Diliing- files and key people an Rewal4ss He said b4. had met Rewald ham & Wring also was forced operation, such as Wong, are t t and us ee was a a was a ptcJ pproach to be a consult. pointed. It was discovered that gators. And : unlike ;.Nugan, 14- ant or asked IF invest in Rewald's $12 million in investors' money Wald still is around to-talk if Ve: Jack Kindschi, who was head of death, Michael Hand in late i' Rewald's, company did and wt( t the CIA officf here when 'Nugan donned a disguise and slipped odt.happened to the millions of- d Hand collapsed, eventually be- of -the country. He has not been lays invested in it. came a consultant to Rewald and seen since. - Much of Nugan Hand still t`e ingested in his company. Gen. Ar? In contrast, ,,as investigatoPs. mains a mystery,. nold Braswell, the recently re- closed in on Rewald's roippany, tired commander of Pacific Air Sunlin Wong, company president Forces. was ,considering joining resigned and began. telling whdt Rewald's company. Retired Gen. he knew to a federal grand jury. -Hunter Harris -also had close ties Rumors of CIA involvement, to Rewald and was considering drug smuggling and gun running becoming a consultant. swirled in the wake 'of Nugan RESPITE THE Nugan Hand's Hand's collapse. But government apparent healthy financial ap- officials said any possible espio- pearance, it was only a year after nage activities had nothing to do the bank was formed that prob- with the apparent swindle of lems began to develop. Australian investors. -. police began investigating the if the CiA or any other intelli possible involvement by Nugan Bence organization. had intended and Hand in. heroin trafficking. to use Nugan Hand as a cover for By 1978. questions about the covert operations, it was a clumsy company's business dealings and attempt and one would have ejc- financial stability had surfaced. petted a more professorial effot That year Nugan and his brother from an intelligence organiz - were charged with fraud con- tion," a government report, said.,' cerning the activities of a Nugan- - owned corporation. U.S. JUDGE - Martin Pence That spooked investors and by made a somewhat similar remark 1979 Nugan was trying frantically about ?Rewald's CIA connections. to keep the bank and other relat- - In Issuing a trtrder sealing ed companies (afloat.- some classified documents found On Jan. 2. 1980, Nugan was In Rewald's files, Pence wrote: found shot to! death in his Mer- "Rewald, through his contacts cedes on a deserted road outside with members and former mem- of Sydney. Th'e death was official- bers of the CIA, considered. hilfi- Iy classified a suicide. In his pock- self a more important, undis- et was found he business card of closed private associate of the lawyer Williaiit Colby. That card ! CIA organization than he was ih focused attention on the possibli- fact. This judge saw nothing In ly that Nugan Hand might have the documents to indicate that been involved with the CIA. any of Rewald's slight involve- ments with intelligence activities explained any of the financial ac- tions of This company)." Sanitized Copy Approved for Release 2011/06/30: CIA-RDP90-00552R000605480154-0