REWALD INVESTOR RELATES FIGHT TO RETRIEVE MONEY

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP90-00494R001100710138-6
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 1
• Document Creation Date: December 22, 2016
• Document Release Date: July 26, 2010
• Sequence Number: 138
• Publication Date: September 14, 1985
• Content Type: OPEN SOURCE

Approved For Release 2010/07/26: CIA-RDP90-00494RO01100710138-6
Saturday. September 14, 1985 A4 Star ulledn
, .? za s._ t, How
Rewald Investor Relates
Fight to
By Charles Memminger
Star-Bulletin Writer
When Bishop, Baldwin, Re-
wald, Dillingham & Wang col-
lapsed in 1983, Patricia Ann
Ebert breathed a sigh of relief.
Several months before the fall,
Ebert had withdrawn $735,000
from Ronald Rewald's bogus in-
vestment company.
Then she got the bad news
from Thomas Hayes, the man ap-
pointed trustee after angry
investors forced Rewald's compa-
ny into bankruptcy. Ebert,
Hayes said, would have to return
$228,000 to the bankrupt estate.
That amount was the phony
interest Ebert received on her
investment.
But Ebert showed no bitter-
ness toward. Hayes when she
testifie4_ yonerday at, Rewald'a
"Mr. Hayes was just doing his
obw," she said. "I believe it's Mr.
eald's fault."
Of the many stories concern-
ing investors who lost money In
BBRD&W, Ebert's has one of the
bl
e to
happier endings. She was a
at least get most of her money
out of the company. But that did
not happen easily, she said.
Ebert, wife of dentist Dr. John
Ebert, opened a number of ac-
counts with Bishop, Baldwin.
THEY INCLUDED pension
plans for the dentist business,
trust accounts for her children,
personal and other business ac-
counts. She was looking for tax
shelters and Rewald promised
that he could handle all of the
financial planning, she said.
But it became obvious in 1982
that Bishop, Baldwin was not
handling the accounts the way
Retrieve Money
VYV -IpNwY. -
company company hired outside c t
ing firms to do w t she
thought his company was sup-
posed to be doing.
In the spring of 1982 she
began to try to close out her
accounts, but Rewald and his
lawyers made the process dif-
ficult.
At the height of her battle to
get her money out of the compa-
ny, Rewald sent her a letter con-
gratulating her for becoming a
At the height of her
battle to get her money
out of the company,
Rewald sent her a letter
congratulating her for
becoming a 'millionaire'
and suggesting she take
him to lunch.
She said she received $33,000
overall from Rewald during a
'.social relationship" that lasted
until the Bishop, Baldwin col-
she was leaving the court-
room, McGinnis smiled and nod-
ded at Rewald and he smiled
back.
Retired Air Force Gen. Ben
Cassiday testified yesterday that
he was becoming nervous about
his $45,000 investment in the
spring of 1983 because interest
rates everywhere but in Re-
wald's company seemed to be
dropping. He decided to leave
his money in until July so that
he could take advantage of the
gqttararterIy interest rates. By that
three, however, the company col-
lapsed and Cassida was among
hundreds of other Investors who
lost millions of dollars.
HUGH FRASER, the man con-
sidered partly responsible for
forcing Rewald's company into
bankruptcy, testified yesterday
he lost )48,000 in the collapse.
After Rewald attempted sui-
cide in July 1983, Fraser led the
effort to have BBRD&W forced
into bankruptcy to protect
whatever assets were there.
Although the bankruptcy came
only days after the suicide at-
tempt, it was too late. Investiga-
tors found that all of the $'12
million put into the company by
investors was spent by Rewald
on company overhead, personal
expenses or to pay back early
investors.
Rewald faces 98 counts of
fraud, perjury and tax evasion
in connection with the collapse.
He maintains the company was a
CIA operation and that he took
investors' money on orders of
the CIA.
"millionaire" under the care of
BBRD&W and suggesting that
she take him to lunch. Ebert,
however, said she did not consid-
er herself a millionaire at the
time and did not intend to take
Rewald to lunch.
She finally managed to get all
but $60,000 of her original in-
vestment out of the company,
Ebert said.
ALSO TESTIFYING yesterday
was Susan McGinnis, a model
who got to know Rewald in 1982.
McGinnis said Rewald paid for
her to go to Europe twice to
help opt her modeling career.-
Approved For Release 2010/07/26: CIA-RDP90-00494RO01100710138-6