D.C. HEARING ON REWALD CONSIDERED

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP90-00552R000605490161-1
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 1
• Document Creation Date: December 22, 2016
• Document Release Date: September 16, 2010
• Sequence Number: 161
• Publication Date: December 19, 1984
• Content Type: OPEN SOURCE

Approved For Release 2010/09/16 :CIA-RDP90-005528000605490161-1
HONOLULU STAR BULLETIN (HI)
19 December 1984
D.C. Hearing
on Rewald
Considered
By Charles Memminger
Star-Bulletin lNriter
A congressional subcommittee
hearing on the Ronald Rewald
case is being considered in the
wake of a visit here by two con-
gressional investigators.
Michael Barrett and Peter
Stockton; attorneys for the
House .Energy and Commerce
subcommittee on oversight and
investigations, left Hawaii Satur-
day after spending several days,
collecting information, here,
about the Rewald case. ?
The subcommittee, which over-
sees the Securities and Exchange
Commission, is' interested in
SEC's regulation of Rewald's de- .
f unct investment company, Bish=
op; Baldwin, Rewald,' Dillingham
& Wong.?-Specifically,. the? com=
mittee is interested in whether
the Si9,stopped any SEC investi-'
gallon of Rewald's company:?=-?.. _
Neither ,Barrett nor Stockton
could be reached to comment
about .the scope of their probe
while in Hawaii. But Barrett con-
f firmed earlier that the commit-
tee was investigating SEC's han-
dling of Rewald's company. ,
Thomas Hayes, administrator
of Rewald's bankrupt- company,:.
said he met for three hours with
the attorneys and discussed what
he knows of the company. He~
said the subcommittee may hold
hearings on the Rewald case .but
said they, would not be held
until after the new Congress is
sworn in next year and the legis-
lators have settled down for
business. ? ~~~'~ -
ASSISTANT U.S. Attorney
John Peyton said he met with
the investigators but said he
could not discuss the meeting.
Michael Levine, federal public
defender and Rewald's attorney,
said he did not talk to the con-
gressional investigators although
he wanted to.
He said he would welcome
congressional hearings, even if
they came before Rewald's trial
on charges that he defrauded
investors out of millions of dol-
lars.
"To the extent that they ascer-
tain the truth ... I'm fully in
favor (of the hearings), he said.
"The truth will do nothing but
help Rewald's criminal case."
Rewald's defense hinges on his
claim that the CIA set up and
ran his company. The govern-
ment contends that the CIA had
only minor involvement in the
company, using it as, a mail drop
and phone contact point.
Nevertheless, the courts have
sealed some material retrieved
from Rewald's files and sealed
other, court documents later
filed in the case. ~ ;~
THE" HANDLING of such
classified materials creates some
complications in this type of
criminal case: ' ~~ ~:?'~-
On Dec. 11, U.S. Judge Harold
Fong. signed a protective order,
detailing proceedures that '-will
be used in handling classified
material and having materials_
sealed by the courts. Tfie proce-
'dures are set forth, in the feder-
al Classified Information' Proce~
dures Act. -
Under the order, Department
of Justice Security Specialist Jo-
seph , A. Norris was appointed
court security officer. Norris will
decide;.what materials involved
in the', case are classified and
how they will be stored. ' .,::.
Levine will receive clearance
from. the Justice Department to
see secret materials after. signing.
a . "nondisclosure agreement"
and.a sworn statementsaying he
:will abide by Fong's protective
order.
Approved For Release 2010/09/16 :CIA-RDP90-005528000605490161-1