CIA DESERTED REWALD, LAWYER SAYS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP90-00552R000605490124-2
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 2
• Document Creation Date: December 22, 2016
• Document Release Date: June 30, 2011
• Sequence Number: 124
• Publication Date: August 8, 1985
• Content Type: OPEN SOURCE

Approved For Release 2011/06/30: CIA-RDP90-00552R000605490124-2
HONOLULU STAR-BULLETIN (HI)
8 August 1985
CIA Deserted Rewald, Lawyer Says
Fraud Defendant Is Characterized
a- Charw #AMMis or
sw,ftfaw wow
Sbe ON IM @Lq=
seldwift RewaKD111
WWO emnuige Word
b~ bleared by the agency.
a
federal this soorning.
pepatty Federal Puma Defend-
er Brim Tantasaba described
iteweld so "a man who fovea his
country and believed Is the
CIA.' But the CIA absadoned
Service inv tloo bedeo
in left 1IhBI, be said. and favesti-
masm led to the col-
of Rewald's o 1 1 - ny to
That deeeriptlun of Rewald
coo_icla with am given by As-
sk%M US. Attorney
t~ who in day =a0e'Mald 10105
a man who d his Iiesited
CIA Un hilt hundreds of
Investmrsroyf n~IWees of doers. hove to 48dde
whether - RewaK charged whi
eenltiple fraud and perjury
convene. was tee spy left out in
the tool." in 'hmaataoa's words,
or the architect of a .I~
eR VWA scheme." as
by lbyto~
TAItANABA SAID that it Be.
vrttiL ws nab a swiNir. be
ens
It do what mom mud
i dw wane there's a steal of
MWM7 avaUabls seaerhere
when the Stan eaisapaes.
He said Resusld ws not dis?
tavesiew
pate that sd spent
tlonsabout his e-, e! . Bet be
asked the jury item -be by pullout,
It can learn why Rewald spent
the Ta 6a said the money was
spent to create the image of a
wealthy bus man so that Re
wald could carry out his role for
the ClnA of meeting wealthy for-
ts eded -beyond the
CIA's wildest eapectatioos" when
established
ranker and the Sullen of
be said. Rewald made
his contacts initially through the
Hawaii Polo Club which the CIA
directed
satd. Rewald to do, Tbaana-
as
'the Spy left VUt in me Cold
Rewaid's uw!lationuihp with the
a~ in Hawaii began In I848
wrltcn be introduced himself to
Eugene Welch, the CIA Statloa
chieL But his role grew
and soon his company.
was set up at the agency's re-
~a a dhaves or events.
llll'S 80ARD of dtrec-
JGjs WW termer CIA stelim
chief Jack [iriterf sad Ned
Aviary. whoa Taswsaake Mid
had werhsd far the CM An we
the 1h ~ - was RMWMK Jerry
Sig sit Qres d stmt WWO
Russell clsaa-
ad by 00 a& be ad&
The company also provided
Cu r
cover for CIA agent
the dder 01 foreign
atenkpoce resources for the
west Comet. it was Rkhardeoa"s
twee. Jaen Mason, who had Re-
wald sip a secrecy eontsaet
with the agency. 'tamale said.
Another agent who worked to
the Far past also was listed as a
BBRD&W consultant. But be-
cause of national seturky. be
will only be referred to dvr9
the trial as "John Doe 14,
Tamanaka said.
In fact. her _characters" tn-
valved in the case will Only be
referred to in the trial as "John
Does 114" and Jane Does 1-i"
became o~ national secnritj.
Tanaraba said it was Rewald's
to convey alocertt - that
made him an mum to the
HE SAID THAT, at citrus. Res
wald's [ant lifestyle. which in-
volved money, cars and
women,' went Re~waallddesdbead.
Mr. Taasanaba said. "But he believed
he was Ming a valuable role for
the CIA."
Because Rewald was "an ama-
thsd ,problesrt As a result. its
to tar
orectme
aa? anunuosber of
and its eventual
Just %soore the eompono col~
lapse. the CIA asked Rewald to
turn ON RuwW that
the d0culMe a w CORO?m
the GA.- '
crotsveresNlm vhb Barden when
he suspected that be was being
abaodotted-
Tsmanaha said the CIA did to
Rewald what it does when an
operation is thretteo k ''they
cover their tracks and then cat
and run"
PEYTOM IN HIS
atat s-. odd
used his charm to convince
invftors to put money into the
coculmusy.
closedP d pIy that the CIA did
shop an PBS muesli,
But ~rtop said tort the C A bed did so agenc bKMM about Rawald what the
wvet tl on geoid to as
When Rewald kept
that the IRS probe
activi-
ty.- Peyton saik the agency de'
~ to vew send somesce, to Rawall
whatever k was Re-
wald was
TWO eeke"st`'~.ter? e.avbeed
*a4 t1bove was im
x~huM RS
saftle condoned. 1141 s"
p the CIA lssalve
Mem is Bswald's aneem bad
netWtDg Batas out of millo s
He described how a
by
built rep the company in
soliciting investments with
proutises of high returns.
But the $ allies taken in
over live years never was invest-
, said, Instead. about
ii0 Ilea was panback to
t for
investors. 6&5 million
company overhead and mom of
the rest went for Rewald's per-
sonal eipenses. he said.
yes-
raiteroon TRMJL after
terday
were swam In. But Only U.S.
Judge Harold Fong and the
attorneys know which jurors
the aller-
ae pa and which mare
nates.
g said that would helpla
'~ that aV;=_1 The
~ expected to last hree
months.
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 Approved For Release 2011/06/30: CIA-RDP90-00552R000605490124-2
Peyton said all bat one of the
98 counts against Rewald Involve
charges that be led to o[fidals,
lavegocs and otbera.
It began when Rewald moved
to Hav" and started the
as ~-an dabaja P
seiteae.'
Ptdtott said Rem M, Nod about
the oo~lie~yb COOK whkA Be-
wra dead wart htei 10 'L
drat thane said woald be
safe and insured. He also said
Rewald bed about the extent of
OUR &RY charges to
"h
late directly to Rewaldi clahos
in sworn affidavits that his
up at the diree-
UOR of The CM
For inslaser, Rewald said is
one affidavit that former CIA
station chief Welch had take
Marquette Cnti ersity diplomas
printed to Rwe Rewald tredibit-
ty.
.
But Pe) we said Rewald Hide
the claim that be attended mar-
quette in a IM application with
the Secajities and Ezeban
Cominminift tuo ye m befire he
ever meet Welch.
PEYTON SAID Rewald haled
investors into a false sense of
sse
draw their money. Ile curit they would am said wMh-
wald did this by sending VA-1
cial rep" sad fake
But the mast `outrageous" let-
ter seat Out was one anaouermn
the "death' of Grant Rao&*
Dillingham. purportedly the
lingbam., in the company
Utle.
_DAliaabaaR, along with Bald-
>Pweptsa said sever exWet
NevtrtieIc*, be said, itewaid
"at Comp"y !!5-18
Dwkt
Lee attend Wafted
mere MkOft 4C MLA for a t as
Wa cc tm rim RIM
to IHawalL reyy$ a said,
Approved For Release 2011/06/30: CIA-RDP90-00552R000605490124-2