STILL TO TESTIFY: 'BIGGIE' DEFENSE WITNESSES AND REWALD

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP90-00552R000605490026-1
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 1
• Document Creation Date: December 22, 2016
• Document Release Date: September 16, 2010
• Sequence Number: 26
• Publication Date: October 4, 1985
• Content Type: OPEN SOURCE

Approved For Release 2010/09/16: CIA-RDP90-00552R000605490026-1
HONOLULU ADVERTISER (HI)
4 October 1985
Still to testify: 'biggie' defense -witnesses
and Rewald
ply Walter Wri;ht
Teti witnesses. have testified for
Ronald Rewald ao far, and about 15
more will take the stand before Re-
wald himself tells his story next
week, defense attor-
ney. said yesterday.
"The biggies are yet
to came? ' U.S. T)ia-
trict Court Judge liar.
ol~ng inquired yes-
"Yes. Your honor,"
said Brian Tamanaha.
the assistant Laderal
r
dettrA?
who
w
ca
ried
the 1~ll his Wk
has carried of the defense case,
One p ~pec prospective "biggie" Is author
'Ralph alcOehee, a former CIA em-
ployee offered by the defense as an
Ypert on CIA practices. Judge For4
Ms weighing the government's reques
,that McGehee be barred from testify-
ing on grounds he has no knowledst
of the facts or relevant CIA practices.
Rewald, charged with fraud, tax
evasion. and perjury. admits taking
money from investors under false pre-
tenses, but says he did it under CIA
authority to maintM a "cover" as a
wealthy businessman,. The CIA denies
that. but admits using Rewald and his
companies to help provide commercial
cover for some personnel.
Two other witnesses - Napa.
Calif.-.attorney Robert Jtnlu and for-
mer Rewald secretary Sue Wilson
were dipgped by the defense yester-
day be ause.thay have indicated they
fegr they are targets :Q tstratnal
lrWes yb and would therefore In,
yoke their Fifth AAxenQment rights
not to testify.
Arid Jude Fong quashed subpoenas
for two vtAer defense witnesses~
for-
mer Honolulu FBI qhi* Wuliam
Ervin and FBI agent Hal..lirahall,
who dealt i'ith Rewald as a potential
volunteer source before his ooridpany
collapsed.
Those who trestilied for Rewald yes-
terday included:
? Secretary Myra Kaneshige, who
said telephone calls to CMI and some
other companies In the offices of
Bishop Baldwin Rewald Dillingham &
Wong were supposed to be routed to
Sue Wilson, and that there was a
special' black telephone in Rewald's
personal office, since identified as list-
ed to a CIA backstop cover company.
? Secretary Patricia QWlo, who had
testified earlier there was no connec-
tion between the $15,000 Rewald
Save her and her social and sexual
relationship with him, said Rewald
.'didn't say yes or no" when she
.asked him once if he was in the CIA.
but demanded to know where she had
heard that, and got such an expres-
sion on h,s face that "it frightened me
I'll never forget It."
Cello said Rewald was "conserv-
ative in a classy way" and that "peo-
ple really took advantage of his kind-
ness" because they "knew he couldn't
say no. It was always take, take,
take."
? Rewald chauffeur Franklin Ki uii
said he drove CIA Director Stanfield
Turner from one end of the interna-
tional airport to the other between
planes after Rewald sent him to pick
up the CIA's office director In Hono-
lulu. Jack Rardin. He said he also
drove Rardin, CIA officer C.L. Rich-
ardson, former CIA Honolulu chief
Jack Kindsehi, and celebrities or for-
eign magnates including lack Lord,
the sultan of Brunei. Enrique Zobel,
the earl of Tyrone, Prince Saud
Mohammad of the United Arab
Republic and Prince Raymond Bahan
of Malaysia. Kipilll said he invested
over $70,000 himself in the company
because "I was really impressed with
the CIA" connection that Rewald had
told him about.
? Gardell Simpson Jr. of Pacific Re-
sources Inc. testified that he tried to
get Rewald appointed honorary con-
sul for Indonesia when he became
concerned that PRI would no longer
pay Simpson': $20,000 salary and
$60.004 in expenses to maintain the
consulate office here. Simpson said
PRI's interest in the consulate was to
maintain goodwill with one of its
principal petroleum sources, but that
he thought PRI's Jerry Rehberg, who
was the honorary consul, might retire
and that the funding might end.
Simpson insisted the $5.000 credited
to his own Bishop Baldwin account
was cash from his own file cab,net,
despite defense suggestions that Re-
wald opentd Simpson's account to
pay him for a trip in which Simpson
touted Rewald as a prospective
honorary consul. Simpson said he
knew nothing of Rewald's CIA ties at
the time.
Approved For Release 2010/09/16: CIA-RDP90-00552R000605490026-1