REWALD CASE SOME OF FIRM'S FINANCIAL RECORDS WITHHELD BY CIA LAWYERS REPORT

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP90-00552R000605480175-7
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 2
• Document Creation Date: December 22, 2016
• Document Release Date: March 30, 2011
• Sequence Number: 175
• Publication Date: August 20, 1983
• Content Type: OPEN SOURCE

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HONOLULU ADVERTISER (HI)
20 August 1983
Rewald case
Some of firm's financial records
withheld by CIA, lawyers report
By James Dooley
Advertiser Staff Writer
A federal magistrate yester-
day recommended that financial
:records from the bankrupt firm
of jailed Honolulu businessman
'Ronald R. Rewald be turned
over to the Internal Revenue
Service.
And' Rewald's attorneys yes-
terday said they were told that
some of the firm's financial
records had been withheld by
the Central Intelligence Agency
following a review of corporate
files for national security pur-
poses.
Representatives of the CIA
began reviewing corporate
documents from the files of
Bishop, Baldwin. Rewald. Dill-
ingham and Wong. Inc., last
week at the request of Rewald's
criminal defense attorney Brook
Hart.
Rewald had told employees of,
his firm in the past that the
company was involved in an
unspecified way with the CIA.
John Kindschi, former CIA
station chief in Honolulu, work-
ed as a consultant for Rewald's
firm and allegedly invested
more than $200.000 with the
company.
Rewald was charged by police .
last week with two counts of
theft - one of them related to
the - Kindschi investment with
Rewald's firm.
Kindschi reportedly did not
file a formal complaint with the
police and Rewald attorney
Hart said he believed Kindschi
at one point wanted the police
to withdraw the complaint.
Kindschi attorney Richard 1 Thomas Hayes. the interim
Griffith said his client had no `bankruptcy trustee who -took
comment on the matter.
It is -known, however, that
Kindschi testified before the
grand jury that later indicted
Rewald on the -same' theft
charges, as well as a federal
grand jury investigating Rewald
and his-firm.
Rewald has been in custody
since his arrest last week on
the state. charges. He has been
unable to post $10 million-bail.
An initial review of Rewald
corporate records last week re-
sulted in the withholding of un-
specified material by the intelli-
gence agency, according to
Peter Wolff, .an associate of
Hart. -
"I believe there was some
material held out by the CIA
people," Wolff said yesterday.
A second review of corporate
documents was made by the
CIA Thursday, and one more
document was reportedly with-
held.
Hart and Wolff say they don't
know what has been taken.
"It's my understanding that
there is supposed to be at least
a generic identification of the
documents withheld. Of course,
in some cases. I suppose even a
generic description might tend
to compromise security, so. that
may not be possible,"' Wolff
said.
"`As I understand the proce-
dure, the material withheld is to
be preserved and reviewed by
the (federal) court pending a
determination that it is classi-
fied," Wolff said.
If the material is not classi-
fied, it is to be turned over to
control-"of Rewald's company on
Aug. 4. The corporate records
are also to be made available to
Hart's firm and to the -Securities
and -Exchange Commission,
which has lodged a civil fraud
complaint against Rewald and
his firm in federal court -here.
Most, if not'all, of the various
law enforcement agencies now
investigating Rewald and - his
firm did not begin to actively
do so until after Rewald at-
tempted suicide July 29 and the
company was forced into bank-
rupcty proceedings Aug. 4.
But documents on file in
federal court show thate. IRS
has'been-investigating ewald's
tax liabilities since .at- least
February.
A summons for financial
records made out in February
was' served March 7 on Re-
wald's firm by IRS special'
agent Joseph Camplone. the
documents show.
It required the firm to surren-
der bank records, payroll ledg-
ers, corporate tax returns, stock
certificates, accountants' work
papers, financial statements and
names, addresses and records of
financial transactions with
clients or customers.
Court files show that only a
portion of the material was
turned over to the IRS, and an
.enforcement action requiring
surrender of the remainder was
filed in federal court July 27 -
two days before Rewald at-
tempted suicide. A copy of the
enforcement action was served
on company attorney Tim Holz-
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er the morning of Aug. 2. Holz-
er resigned from the company
later that day and now works
for oankruptcy trustee Hayes.
Hayes, who has control of the
company records now under the
authority of federal court. was
not represented in court yester-
day.
Deputy U.S. attorney Carol-
Muranaka told Federal Magis-
trate Thomas Young it was her
understanding that Hayes did
not oppose enforcement of the
summons.
The IRS documents on file
state that Camplone, attached to
the Criminal Investigation Divi-
sion of. the IRS, has been inves-
tigating Rewald's personal tax
liabilities for the years 1977 to
1981.
The documents also show that-
some material, including compa-
ny bank statements, canceled-
checks and deposit slips for
several corporate checking ac-
counts in town for "the years
19S0., and 1981:: were turned
.over to the IRS. in April.
Hayes has said in court previ-
ously that he has been unable
to reconstruct a corporate finan
cial history before 1982 because
he did not have the banking
records. `0 ..
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