REWALD'S ATTORNEY GRILLS KINDSCHI ON FIRM'S CIA TIES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP90-00494R001100710085-5
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 4
• Document Creation Date: December 22, 2016
• Document Release Date: July 26, 2010
• Sequence Number: 85
• Publication Date: August 26, 1985
• Content Type: OPEN SOURCE

Sanitized Copy Approved for Release 2010/07/26: CIA-RDP90-00494RO01100710085-5
The Honolulu Advertiser
** Wednesday, August 98, 1* A33
Rewald's
attorney grills
Kindschi on firm's CIA ties
By Waiter Wright
t+~rfrir~ S sfI ii?rifn
Ronald Rewald's attorney
hammered at a key prosecution
witness all day yesterday, sug-
gesting that ex-CIA agent John
Kindschi was too smart to be
Ignorant of Rewald's miaeepre.
sentations and that Kindschi
tried to use a CIA cover opera
tton to enrich himself.
Kindschi admitted that he
rode the Bishop Baldwin gravy
train first class until it crashed,
earning 70 percent on one in-
vestment and drawing pay that
topped $7,000 a month and in.
cluded perquisites such as a
new car and a liberal travel
allowance.
But Kindschi denied that
Bishop Baldwin was a CIA
cover operation and insisted he
believed Rewald's claims about
the company and its ,invest-
meats to the end.
Rewald admits taking money
from investors under false pre,
tenses, but says he did it to
maintain CIA cover as a
wealthy businessman and in
the belief the CIA would reim-
burse the money.
Kindschi said it was a "baid-
faced lie" to. suggest that he
hid behind a CIA Dover to line
his own pockets at Bishop Bald-
win.
The money he got, Kindschi
said. turned out to be his own,
and far from all of what he in-
vested for himself and his
mother.
His own testimony and prose-
cution and defense documents
showed Kindschi to be involved
with Rewald personally and
financially long before Kindschi
retired from the CIA and at a
time when Rewald was being
used at least to provide "back-
stop" cover for other CIA per-
sonnel through a phony compa-
ss located in Bishop Baldwin
ooiifces
Bat Kindschi said he knew of
ago CIA regulation prohibiting
his actions.
Two other Bishop Baldwin
consultants were identified yes-
terday as having.had some
links to -the CIA while on the
Bishop I1dwin payroll.
Kindschi. vrho once stood
eyeb*ll to eyeball with the
Soviets In undercover opera-
tions 'in Europe, testified be
probably "dropped -his guard
viYh+lgt be caste home to Amerl-
ca to work in the.. CU', overt,
tblic "Domestic CoMectloas
ivtaiort," ultimately running
the CIA's we-man public -office
In I1onoalglu.
Kipdschi admitted he was
probably "'premature" In ac-
cepting a free car from Rewald
a few weeks before he actually
feared from LKA 3n ' July
1690.
But he said he understood the
car, and draws of $1,000 a
month which he' receiv-
tag in 1*, were 'n ated4o his
eariierS'*?,eoO-invetment in
and potixttal employment with
another Meriwld venture, Inter-
pacific Sportis.
John Kindaahl
"NNW to too you the bvth"
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UO F, ' A m A4MtW Wedaes4* , Aagi 91i, no "t
i.ater. the dram to
mon checks Gish
oaitself, am.
month J~ * $& The
money was paid whether.
Kindecbi did any actual work
as a "cons 11 nt' -?af ~Q be ac-
work
he c ... sub _ rewriting a
brochure and pews release and
drafting yimrtarly reports on
tO an ~` w billed at
fonder Braan T ie con--
fronted ,Ktndactd
hUU4ft
e'd received la , w others
elai;110,0 0 iu ance
from the Federal Deposit Insur-
ance F" (FDIC).
The FDIC in fact insures
deposits 4mly to $100,000, and
then only the boks.. -
raid that dessppite
-- - as'p J bchool
Wi
WIM.
iwp~lted
Re d"a ?asiertico that some.
how the .1IC' would bail out
Investors ** toilta0,000 if Bish.
op Baldwin should .ever go
bankrupt:
So, by add4 did r a ld of
other esiiaaals who inyast-
ed with aod/oe worked for the
company,
Kindechi also Mid he believed
Rewald's rgpfesentations that
the company was an old one,
even thq agh ? he knew it had
been gpaorat*d. in what-he
''ht Wad Its Ist incarna-
tion wily in 1P?&
' wlthd q1 Bishop Baldwin it-
self wab t>s 10 cover eotrtpany
for the CIA. Kindad~ti said.
there were "equities" and
"sources and metteods" In be
protected when it collapsed.
That was why he initially
evaded questions from some
investigators, Kindschi said.
But now, Kindschi said, "in
this particular can the sources
and methods have gone by the
board, my secrecy oath has
been waived, negated, and I am
here to tell you the truth."
The at nevertheless ? is still
attempting tp protect `force of
Its sources Ind methods which
were threatened with exposure
by the Rewald affair.
Hundreds of classified docu
m I ght $gtpe defence is
the e:rlminat ease have been
ruled irrelevant by U.S. District
Judge Harold Fong and. many
bf those that have been admit-
ted In evidence have large
areas blacked out
.' One of the sources has been
Identified as "John Doe 14," a
CIA contract agent winding
down his career when he joined
Bishop Baldwin just three
months before retiring from
CIA work.
Kindschi denied on cross.
examination that he had "di-
rected" Rewald to hire John.
Doe 14. He acknowledged that
a special set of Bishop Baldwin
brochures was sent to John
Poe 14, omitting Kindachi's
own name as a consultant.
Those circumstances - and
Rewald's own pnvate claims -
suggest -that John Doe 14 is
Charles Conner, the man hired'
as Bishop Baldwin's consultant
in Sweden and a man Kindschi
said he knew "socially" whi'
Kindscht was working under
cover in Sweden
.John Doe 14 4s the. first per
son mention . .o , tat in th
case as he errii ed fbr pa
for the CL dad 4Op Bald
at the same tbrae+ t
But the govenunent says th
CIA's relationship to John Doe
14 was not related to Bishop
Baldwin, that the CIA did not
ask Rewald to use or hire him
for any CIA activity and that!
the CIA in fact was unaware of.
John Doe 14's activities for,
Bishop Baldwin until after it
collapsed.
STAT
A CIA relatio th yet
another BiehopdrRf son.
sultant, Capt.'QDdwin 'Wed'
Avery, was 'rwgeeted b the
defense in craa+ectatniziat of
Kindachi yesterday.
Kindschi denied
previous CIA-related
with Avery, but Tamaxikba pro.
duced a documentp yI
showing ? Avery had'
en
checked out for use b the CIA
as early as March 1973.
Avery, a former Pan Amer1
can World Airways pilot and
an inveterate traveler in his re-
tiremant, confirmed.m an -ibter}
view last' sight that. be hadih
done 'volunteer..wprk" for th+~
CIA, - "like a hell of :a jot
of
other people. I was what the
c4li a walk-in," he said.
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Tuesday, Augwt 37, 1985 A-3 , tar-, uiietin
Rewald Defense Grills
Ex-CIA Official
Kindschi Asked to Explain Payments for
Consultant Work' at Investment firm
!ak Kindschi
Q iu*ioned by the defense
By Charles Memminger
Star.Stiiietin Writer
Ronald Rewaid's lawyer this
morming continued questioning
former CIA office chief Jack.
Kindscbl Jbout money he receiv
ed from ald while Kindschi
was 15W working for the CU.
The iii odoning is an apparent
Kindbi'; credibilit aby hi h.
ib discrepancies in his
Y
office chief that Rewald came to
anti for chopp,wBaalld in when be
retired from the agency,
Kindschi laid d aestlon-
Jobrib~eyto that ? he first began
reeefvia~-h198 MI. y+ from Rewald in
Marc
Dey Federal Public Defend.
er rian Tamanaha, however,
grgduced checks
ogoing back to
re-
ceived snore p $ pp Frmm
Rewald.
Revlid is on trial, charged
r:. with Mud and -perjury counts
KINDSCHI stressed again this
nil mves6et,t 69IDn=1 v_ Sjahen. morning that he had gotten his
. wont _. _~ __W_...- _ aaaumsd he -did not fit Paid by
At the heart of the defense Rewald until he folned the
case Is the all anom n that the _ , co~fpaay In II~i.
CIA met upp and ra Rev aid'. let maid hM 4M read" =Low a
comppaanny, min tried to cover its month cheeha but thought they
traclra*bon the company ool? in Won ~~ Rewaldff his $47,000
lissesaddschMa second CIA field goods stores. sporting
STAT
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This morALAg, Kindsc con-
ceded that Itewald bad ven
hi
m m tb l assed scar in Dunne lEO, a KindleN from the CIA,
He was quite Insistent that I
take the ear," Alndsehi said "I
took It to _
Tam ed he thought its was thical to
take a car while Kill aCIA em.
loyee. Klndachi
was not aware of rep any ea uls--
tions prohlbiting It. Besides
Kindschi said, be already had
submitted his resignation.
Kindschi, who made about
*50,000 a year as a CIA employ.
e% said did bother him
thtt the 4000 a he recely-,
ed from his sporting geode ln?
vestment were written on' Blab-
op, Baldwin checks and not the
sporting goods account.
"In my mind it came out of
the same poi bowl." he said.
Tamanaha also question
Kindschi's memory. concerning
the submiuloa of CIA security
checks for Rewald employees.
Kiadachi said he remembered
asking that a "nays check" be
run on sue Wilson, Rewald's
M s reti7 and office manager, on
Jeu - 8, IMO.
BUT HE SAID he did net
remember sending a similar re-
quest for consultant Ned Avary
on the same day.
Reweld claims that Averya
former military and civilian
pilot participated In a number
of Gt1A-related projects out of
eluedin a em~~'~wggl to seat u' in. a
military arms deal-with Taiwapn.
Avery has denied that.
Klndschi said he did vary our-
gat lso hthat e %he ddnot meet Ayvarryy e
until 1902.
Tamanaha, however, produced
the "name check" form that was
STAT
sent to CIA headquarters to
Washington, D.C. from the
Honolulu field office in July
18e0. Kindsehl was head of the
office at the time, but was in
the process of turning It over to
his successor, Jack Rardin.
Avary'a "name check" also
shows that he had been cleared
b the CIA as a contact in
March 1973.
Avary denied in an Interview
with the Star?Bulletin last year
that he had ever done any work
for the CIA.
Ktudschl said he has' no recol?
lection of preparing or sending
in Avary's CIA name check.
A similar check was sent
In for Rewsld, wahich resulted in
him being cleared to receive se'
cret information. That name
check failed to turn up that Re.
wald had lied about his college
background, that he had been
bankrupt and that be had a
theft conviction in hftlwaukee.
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