REWALD PROSECUTION MAY REST CASE TOMORROW

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP90-00552R000605490040-5
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 1
• Document Creation Date: December 22, 2016
• Document Release Date: June 30, 2011
• Sequence Number: 40
• Publication Date: September 26, 1985
• Content Type: OPEN SOURCE

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Approved For Release 2011/06/30: CIA-RDP90-00552R000605490040-5
HONOLULU ADVERTISER
26 September 1985
Rewald prosecution may
rest case tomorrow
!r Walter Wright
epN... SON Wpm"
The prosecution is expected
to rest its case against Ronald
Rewald tomorrow at the con-
elusion of eight weeks of trial,
U.S. District Judge Harold
Fong said yesterday.
Then Rewald will mount a
defense expected to take at
least two weeks, ultimately tak.
ing the stand himself to tell his
story of CIA influence and
international intrigue.
Bringing in more evidence on
the 98 counts of fraud. perjury
and tax evasion, the prosecu-
tion yesterday called more gov-
ernment officials and investors
to testify.
Robert L. Miller, a staff attar..
ney with the U.S. Securities
and Exchange Commission, said
Rewald claimed in filings with
the SEC that be Graduated
from Marquette 'University
(Marquette says he did not) and
did not acknowledge a 1976
misdemeanor petty theft con.
viction for violation of. Wiscon-
sin's franchise investment laws.
Roger Hood of the Federa:
Deposit Insurance Co ration,
staff said claims by Rewald'
company that its accounts were
insured by the FDIC for $150,-
000 were false.
Both men said Rewald or his
attorney wrote letters to the
agencies blaming "over-eager"
subordinates for claims about
insurance and investment ac.
counts and assuring that the
claims weren't being made and
the accounts were being closed
out.
Rewald acknowledges receiv-
Ing investor money under false
pretenses but says he did it at
CIA instruction to maintain his
"cover" as a wealthy business-
man.
Rewald's attorneys yesterday
acknowledged that evidence
shows he transferred more than
$1.3 million from Bishop Bald-
win's accounts to accounts he
maintained for himself. his wife
and his sporting goods vent
tunes, The prosecution contend=
Rewald actually spent a total of
about 35 million of investor
money for his own benefit.
As evidence that Rewald
knowingly misreported his In.
come to the Internal Revenue
Service. the prosecution intro-
duced financial statements Re.
Wald had given Hawaii Nation.
al Bank in connection with loan
application. Those statements
showed Rewald claimed assets
of $564,000 and annual income
of $70.206 in July 1979 and
assets of $5.2 million and annu-
al Income of $250,208 In Octo-
ber 1981.
Investor Mary McKenna of
Honolulu said she invested "all
the money I had." $75,000 In
insurance proceeds from an
auto accident in which her
back was broker,. in hopes the
promised 20 percent interest
would bupport her and her
college-age son. She said anoth-
er $72.000 from the sale of
property also went to her ac-
count at Bishop Baldwin.
McKenna broke down in
tears when she testified that
she lost the entire amount, less
some "interest" that was paid
her periodically. She said she
has sold almost everything she
owns and has seen her son take
on two jobs to try to bring in
tsROney.
Earlier yesterday, Rewaid's
attorneys hammered at the
government's chief expert wit-
ne>As. FBI Special Agent Glenn
Martin, a certified public ac-
countant, over the fact that Re-
wald didn't set aside a stash of
m. ney with which to flee. De-
fense attorney Wayne Parsons
asked if records didn't indicate
Rewald could have stashed mil-
lions of dollars from the time in
early 1983 when he first learn-
ed he was under investigation.
Martin insisted that operators
of pyramid or "Ponzi" schemes
usually don't set money aside
and that Rewald had to keep
spending money to keep up ap-
pearances or the company
would have collapsed sooner.
Parsons suggested a more
likely scenario was that Rewai;i
expected it big infusion of fund.
from supposed arms deals.
Approved For Release 2011/06/30: CIA-RDP90-00552R000605490040-5