CIA AGENTS ADMIT WORKING WITH REWALD

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP90-00552R000605490097-3
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 1
• Document Creation Date: December 22, 2016
• Document Release Date: June 30, 2011
• Sequence Number: 97
• Publication Date: August 23, 1985
• Content Type: OPEN SOURCE

Approved For Release 2011/06/30: CIA-RDP90-005528000605490097-3
UNITED PRESS INTERNATIONAL
23 August 1985
CIA AGENTS ADMIT WORKING WITH REWALD
HONOLULU THE CENTRflI INTELLIGENCE AGENCY GflVE fl SECURITY
CLEARANCE TO AN INYESTMENT COUNSELOR NOi~ ON TRIAL ON CHARGES OF
BILKING f22 MILLION FROM HIS CUSTOMERS AND USED HIS OFFICE AS A
FRQpT~ FORMER AGENCY OFFICIALS RDMIT.
EUGENE WELCH CHIEF OF THE CIA STATION IN HONOLULU FROM 1976 TO
1978, AND HIS S~.ICCESSOR~ JACK KINDSGHI~ TESTIFIED THURSDAY THAT THE
GIA CLEARED RONALD REWALD TO RECEIVE 'CONFIDENTIAL' 8UT NOT 'SECRET'
INFORMATION.
KINDSCHI SAID THE AGENCY INSTALLED A TELEPHONE AND TELEX IN
REIiALD'S OFFICES IO GIVE THE IMPRESSION THAT AGENTS OVERSEAS WERE
liORKING FOR A PRIVATE COMFflNY IN HONOLULU,
REIiRID~ 4i: IS ON TRIRL ON 98 COUNTS OF fRAUD~ TAX EVflS10N AND
PERJURY IN THE 1983 COLLAPSE OF HIS INVESTMENT FIRMS BISHOPS BALDiiIN~
REWALD: DILLINGHAM AND WONG. ABOUT 4Q0 INVESTORS LOST X22 MILLION IN
THE COMPANY'S FRILURE.
RE~iALD CLAIMS NELCH DIRECTED HIM TO SET UP THE INYESTMENT COMPANY
AS A CIA COYER.
NELCH~ A PROSECUTION WITNESS IN THE U.S. DISTRICT COURT JURY
TRIAI~ DENIED GIVING REWALD SUCH AN ORDER. HE SAID REIiflLD CRME TO THE
AGENCY IN 1978 flND OFFERED TO COLLECT INFORMATION WHILE TRAVELING IN
ASIA.
BELCH SAID HE THOUGHT THE CIA MIGHT USE RE~lALD A5 A SOURCE OF
INFORMATION ON ECONOMIC ISSUES IN THE FRR EAST BECAUSE OF HIS
SUPPOSED EXPERTISE.
NEICH flDMITTED A CiA CLEARANCE CHECK~ON REWALD FAILED TO TURN UP A
NISCONSIN THEFT CONVICTION. IT ALSO FAILED TO SHOW THAT HIS CLAIMS TO
HOLD DEGREES FROM MARQUETTE UNIVERSITY AND MASSACHUSEtTS INSTITUTE OF
TECHNOLOGY WERE FALSE.
THE FORMER CIA QFFICIRL SAID A FORM HE FILLEO OUT AFTER HIS 1978
MEET111G KITH REI~ALD NOTED TNflT REXAID HAD PROMISE BUT l~AS SO
ENTHUSIASTIC 'THRT HE MAY HOVE TO BE CAUTIONED NOT TO LET THAT
ENTHUSIASM CLOUD HIS JUDGMENT ABOUT WHAT HIS REflL CAPABILITIES ARE.'
KINDSCHI DESCRIBED RONALD AS 'AN EAGER BEAVER' ANXIOUS TO OO MORE
FOR THE AGENCY.
HE SAID HE SUGGESTED THE AGENCY USE REIiALD'S FIRM WHEN HE WAS
ASKED TO RECOMMEND A PLACE TO PUT A PHONE AND TELEX MACHINE IN ORDER
TO GIVE THE IMPRESSIQN THAT AGENTS ABROAD WERE WORKING FOR A COMPANY
IN HONOLULU.
KINDSCHI SAID REWALD LEFT THE GOMMUNIGATIONS EDUIPMENT IN HIS
QFFIGE LONG-AFTER THE CIA STOPPED USING IT.
Approved For Release 2011/06/30: CIA-RDP90-005528000605490097-3