Dungeon Spies: Left Hand Doesn't Know It's Right

 

Dungeon Spies: Left Hand Doesn't Know It's Right

by, Unwanted Publicity Intelligence

LOS ANGELES - July 21, 2008 - Spy versus Spy, Classified alibi defenses, two (2) spies - working separate missions - both targeted for assassination, and imprisoned where they were left to rot as U.S. government sacrifices, until one revealed the 'other spy' was an ongoing threat to U.S. National Security.

The court cited Ronald Ray Rewald as having committed crimes through his investment firm by swindling hundreds of investors out of millions of dollars.

Ron Rewald conceded, during his U.S. federal criminal trial, his numerous false promises to investors and spending their investment monies on countless luxuries - including purchasing a polo club - was because, the:

U.S. Central Intelligence Agency ( C.I.A. ) instructed him to create BISHOP BALDWIN REWALD DILLINGHAM AND WONG INC. ( BBRD&W ) for CIA 'intelligence benefit' with the CIA 'promising to reimburse' BBRD&W for these expenses incurred during the course of 'initiating and maintaining intelligence contacts'.

Represented by defense attorney Mr. A. Brent Carruth ( Van Nuys, California ), defendant Ronald Ray Rewald was convicted in U.S. District federal criminal court ( Los Angeles, California ) on a ninety-four ( 94 ) count federal criminal court indictment, citing:

Investment Advisor Fraud;

Securities Fraud;

Subscribing To A False Document;

Falsely Representing Accounts As Insured By The Federal Deposit Insurance Corporation ( FDIC );

Failure To Maintain Books And Records As Required By The Securities And Exchange Commission ( SEC );

Interstate Transportation Of Stolen Securities Or Money;

Income Tax Evasion;

Mail Fraud;

False Statement To A Federal Officer; and,

Perjury.

The principal defense at trial, taken on appeal, by Ron Rewald was that during 1978 the U.S. Central Intelligence Agency ( CIA ) instructed him to spend investors' monies to support his extravagant lifestyle used as a pretext to cultivate personal and business relationships with high net worth businessmen and foreign potentates to further the supply of intelligence for the U.S. government.

Hearing his defense and appeal, two (2) federal courts rejected all his arguments, however the appellate court accepted one (1) requiring further review by the U.S. District Court.

In 1978, Ron Rewald and partner Sunlin L.S. Wong formed the investment firm BISHOP BALDWIN REWALD DILLINGHAM AND WONG INC. ( BBRD&W ) in Honolulu, Hawaii.

Rewald began luring investors into BBRD&W "investment savings accounts" promising guaranteed returns of 20%, plus 5% to 7% more dependent on BBRD&W earnings.

On August 4, 1983, a U.S. federal bankruptcy court-appointed Trustee took over BBRD&W, which by that time held four-hundred ( 400 ) investor losses totaling $22,000,000 (USD) million. BBRD&W was found without enough assets to repay $17,000,000 (USD) owed to investors forcing an involuntary federal bankruptcy petition against BBRD&W.

Ron Rewald misrepresentations about BBRD&W and its investment savings account were bold and imaginative, claiming it was one of the largest most venerable investment firms in Hawaii with roots dating back 65-years.

Ron Rewald falsely described BBRD&W clients as including four ( 4 ) U.S. President Administrations, Elvis Presley, amongst other individual investors' whose average net worth was $4,000,000 million.

Rewald, reporting a 90% rejection rate of applicants, mentioned a 2-year waiting list of investors to become BBRD&W clients.

Rewald sometimes described their investment savings accounts as merely break-even accommodations for the BBRD&W wealthiest clients.

BBRD&W investment consultants, motivated by 50% commissions, aggressively sought client investors from around the world.

Rewald promised BBRD&W investors, it pursued an "ultraconservative investment policy" with savings accounts guaranteed by the FDIC, LLOYDS of London, and another insurer.

The key aspect of this financial fraud was like most in that BBRD&W discouraged investors from withdrawing funds, but to do this Rewald told investors "earnings" were tax-free, unless withdrawn.

BBRD&W maintained a facade of investor prosperity, by periodically mailing letters and reports to investors, to document BBRD&W purported glowing financial performance.

In short, Rewald argued 'lack of criminal intent' necessary for conviction. Rewald filed an Affidavit outlining his alleged relationship with the CIA, prior to his federal criminal trial, claiming he:

- Operated for the Central Intelligence Agency ( CIA ) as an agent;

 

- Carried out all actions - relevant to the indictment - upon CIA Orders;

- CIA Domestic Collection Division ( DCD ) Honolulu Office Chief Eugene Welch instructed him and Sunlin Wong to establish BBRD&W for CIA benefit;

- His CIA mission was to cultivate social and business contacts with wealthy and well-placed businessmen and government officials;

- His fake collegiate degrees in business administration and law from Marquette University were provided by the CIA;

- The CIA expanded BBRD&W use to include transferring funds through its investment savings accounts to covert foreign intelligence operations;

- The CIA used BBRD&W accounts to hide bank wire transfers sent to highly placed foreign diplomats and businessmen who sought to "export" currency to the United States; and,

- The CIA used BBRD&W to facilitate arms sales to several foreign countries.

Rewald did not take the stand, although his defense introduced extensive evidence of his CIA relationship at trial, through testimony in the government's case-in-chief of several former CIA officials.

CIA DCD Honolulu office Chief Eugene Welch was first to meet Ron Rewald whose mission was to collect intelligence data on foreign persons and matters from private U.S. citizens ( known as "contacts" ) voluntarily offering assistance to the CIA where sometimes these contacts developing information from meeting a foreign citizen while traveling abroad, would telephone the CIA DCD with unsolicited information the contact felt may benefit U.S. intelligence officials.


The DCD telephone number, listed under "Central Intelligence Agency" in the telephone book, and officers such as Eugene Welch are known as overt agents, because they are publicly acknowledged to be CIA officials.

After a long career in the CIA, Welch moved to Honolulu in September 1976 to become chief of the CIA DCD field office having one (1) professional employee ( Eugene Welch ) and one (1) clerical employee.

Welch had never been to Hawaii before moving there in 1976, and considered Hawaii a desirable assignment approaching his retirement, however before moving to Hawaii he had not heard of Rewald until June 30, 1978 when he received a telephone call from him at his office expressing great sympathy for the CIA and the intelligence community at large claimed he recently returned from visiting a Far East country he thought would be of intelligence interest, and asked to meet Welch. Believing Rewald to be a potentially helpful contact, Welch agreed to meet Rewald for lunch on July 6, 1978.

Welch heard Rewald claim, he:

- Had B.A. and M.A. degrees from Marquette University plus a Ph.D. from the Massachusetts Institute of Technology ( MIT );

 

- Was a professional football player with the Cleveland Browns;

 

- He assisted the CIA by surveilling radical student groups in college during the Viet Nam War; and,

 

- Owned a chain of retail sporting goods stores under an entity named CONSOLIDATED MUTUAL INVESTMENT CORPORATION ( CMI ) in Wisconsin ( USA ); and,

 

- Planned to travel the Far East, including ‘China’ and ‘Japan’, to establish manufacturing sources for sporting goods.

 

After meeting Ron Rewald for lunch, Eugene Welch submitted a standard "name check" preliminary search via readily available established agency information channels to determine whether derogatory information existed, and biographical data Rewald had supplied during the meeting.

 

Once a name check is approved from CIA, a field officer may brief a contact as to CIA requirements, indicate regional interests possible in a particular foreign country. The contact may also become privy to classified information, up to the level of "secret."

 

On June 30, 1978 when Ron Rewald initially called and spoke with CIA Hawaii station DCD Chief Eugene Welch a 'source contact card' was begun and additional entries made surrounding their meeting discussion during lunch for his files.

 

Almost 30-days later, near the end of July 1978, Welch telephoned Rewald to determine if travel plans mentioned during that lunch were ever made.

 

Welch also indicated, to Rewald, he would be retiring and his successor would be Jack Kindschi.

 

Jack Kindschi, soon afterward, traveled to Honolulu and began familiarizing himself with the area and the office while Eugene Welch was still Chief who introduced Kindschi to established CIA contacts in Honolulu.

 

Although Ron Rewald was 'not' an established CIA contact, Eugene Welch thought Rewald's his planned foreign travels might make him a future useful source. Welch was impressed by patriotism with Rewald and his great enthusiasm for the role of the intelligence community.

 

In July 1978, Rewald invited Welch and Kindschi to dinner at his house for Kindschi's upcoming visit in early August 1978 to introduce Rewald and Kindschi.

 

Jack Kindschi testified the dinner was simply social and no CIA business was discussed.

 

Eugene Welch made another entry on his source contact card reiterating Rewald's possible use as a source of foreign intelligence information and never saw Rewald again when he left Honolulu, Hawaii on September 15, 1978 as Jack Kindschi took his place as Chief of the CIA DCD Honolulu office.

 

Before Welch departed Honolulu he prepared a standard practice report summarizing the background and potential usefulness Ron Rewald might make as a CIA contact.

 

Shortly after Jack Kindschi and his wife arrived in Hawaii, Ron Rewald invited them over for dinner with his wife and family, which initiated a family friendship leading to other social visits two (2) or three (3) times a month. The Rewalds were the Kindschis' closest friends in Hawaii.

 

Jack Kindschi later signed the summary report, Eugene Welch drafted, and submitted it on September 14, 1978 to CIA ( Washington, D.C. ).

 

About 1-weeks later, on September 22, 1978 CIA DCD Honolulu, Hawaii Chief Jack Kindschi received a reply from CIA approving use of Ron Rewald as a contact; Rewald's name check was also approved.1

 

Professing to be eager to help the CIA in any way possible, Ron Rewald repeatedly volunteered professional services to Jack Kindschi. Both met frequently.

 

CIA DCD Chief Jack Kindschi records reflect 10 meetings in the last 3-months of 1978, 24 meetings in 1979, and 13 meetings in 1980 during which they would discuss travel plans of Ron Rewald and CIA requirements for particular countries.

 

During other meetings, with Jack Kindschi, Rewald would report the substance of his conversations with foreign businessmen.

In October 1978, an opportunity arose to accept an offer for further assistance provided from Rewald when Jack Kindschi received a cable from CIA headquarters seeking assistance in obtaining a commercial TELEX, telephone and FAX number, and address in Hawaii for two (2) covert agents operating in the Far East the CIA needed to provide from a private company willing to offer 'light cover' or "backstopping" ( intelligence vernacular ) for these foreign agents requiring an office to confirm any inquiries to falsely show the agent was associated with a commercial enterprise.

Kindschi identified three (3) possible persons for this backstopping, but recommended Rewald who repeatedly volunteered assisting the CIA DCD Honolulu office through his failed Wisconsin company CONSOLIDATED MUTUAL INVESTMENT CORPORATION ( CMI ) that had diversified business interests in the Far East.

On November 6, 1978 CIA headquarters agreed to use Ron Rewald to create a backstop. The initial backstop was H & H ENTERPRISE but later renamed CANADIAN FAR EAST TRADING CORPORATION ( CFET ) after learning a legitimate company already named H & H ENTERPRISE existed elsewhere but only on paper. Rewald arranged TELEX and telephone for the fictional company CANADIAN FAR EAST TRADING CORPORATION ( CFET ).

 

If Rewald received an inquiry, he was to say that the company was a 'general Trading firm' incorporated in Hawaii, and that the two (2) 'agents' were "Sales Managers" who conducted their business in "Viet Nam" and "Cambodia"prior to 1975.

The CIA reimbursed Rewald for the TELEX and telephone expenses, but did not pay Rewald for his assistance.

On May 18, 1979 Jack Kindschi sent a cable to CIA headquarters stating Ron Rewald volunteered to provide any additional support services the CIA might need, based on Rewald's claim his business - CONSOLIDATED MUTUAL INVESTMENT CORPORATION ( CMI ) - was moving into a new building and additional resources would be available.

Jack Kindschi included a description of Rewald's business identified only as CMI, stating it was involved in financial planning, investments, real estate, and so forth, and that Elvis Presley was a former client.

Rewald offers again came at another opportune time for the CIA seeking commercial cover for its CIA Foreign Resources Division ( FRD ) southern California division Chief Richard Richardson (aka) Richard Cavanaugh, a covert CIA agent.

The CIA FRD contacts foreign nationals - livingin the U.S. - seeking assistance with CIA intelligence gathering.

 

Assisting Richard Richardson (aka) Richard Cavanaugh was John Mason, a covert CIA employee for 25-years, securing 'commercial covers' for CIA agents, and was assigned to the CIA Corporate Cover Branch ( CCB ) responsible for obtaining cover for covert agents.

Richardson evidently had seen the CIA cable of Jack Kindschi offering Rewald and CMI services because he contacted John Mason between May and June of 1979 requesting more information on Ron Rewald and CMI.

On June 8, 1979 John Mason requested immediate CIA approval to contact Rewald about providing cover for Richard Richardson (aka) Richard Cavanaugh, however Mason was only granted provisional CIA approval for "contact and assessment only" because CIA security learned Ron Rewald had been involved in the sale of unregistered stock or franchises in Wisconsin.

Mason contacted Rewald and arranged to meet him in Los Angeles, California on June 25, 1979 for 1-hour to outline the cover needs, for Richard Richardson (aka) Richard Cavanaugh, described in an internal CIA memorandum noting "well-backstopped cover identity" stating, in-part:

"The cover should permit Richard Richardson to portray Richard Cavanaugh as a personal assistant or representative of the senior officer or owner of a substantial [ or substantial appearing ] company or other public organization.

 

The senior or owner should be prepared, in case of an inquiry, either personally to substantiate 'Richard Cavanaugh' exists and holds the claimed position or have the person in his office to which queries would be likely directed do so.

The head of the company should be the kind of individual who plausibly could have been a major political contributor before a strict limitation on donations to political candidates was imposed."

Earlier on July 3, 1979 Mason contacted CIA security recommending the background check be waived because "[n]o agency money will be advanced to Mr. Rewald, and the operational target and details will not be revealed to him."

Later, Rewald was informed by Mason that the CIA would have to conduct a 'comprehensive background check' on Rewald before they could use him or his company as its backstop for Richard Richardson (aka) Richard Cavanaugh, but Rewald claimed his belief in participating with the CIA was contingent upon the 'usual background check being waived'.

Mason showed Rewald a copy of the standard CIA business agreement, a such as Rewald would have to sign in order to provide cover for a covert CIA field agent, which also stated the CIA agreed to reimburse the person for actual expenses associated with the provision of such cover.

On July 15, 1979 Ron Rewald subsequently signed that CIA business agreement making it effective and did so on behalf of CMI.

Mason and Rewald were the only two (2) whom discussed using CMI as Richard Richardson (aka) Richard Cavanaugh CIA commercial cover, but Rewald then mentioned his recently having formed another firm named BISHOP BALDWIN REWALD DILLINGHAM AND WONG INC. ( BBRD&W ).

Mason finally had Rewald sign a U.S. government secrecy agreement - different from the type of secrecy agreement used for CIA employees - after Rewald was aware of CIA plans to provide cover support for its CIA field operative Richard Richardson (aka) Richard Cavanaugh.

A few days after Rewald meeting with Mason he was telephoned by Rewald indicating his willingness to have Richard Richardson (aka) Richard Cavanaugh work in a cover position as a fictional CMI fictional representative for the west coast of the U.S., a position Mason earlier suggested. Again, Rewald also expressed great consternation over the full background check Mason had mentioned.

Although Mason did not hear back from CIA security until October 25, 1979 regarding Rewald's clearance to provide cover to CIA Foreign Resources Division ( FRD ) southern California Dvision Chief Richard Richardson.


FRD arranged Richardson to meet Rewald during July 1979.

Significantly, Richard Richardson needed his Richard Cavanaugh cover immediately.

Subsequently, the CIA authorized an expenditure of only $2,000 a year to reimburse Ron Rewald for providing Richard Richardson with the Richard Cavanaugh cover services.

On July 9, 1979 CIA DCD Chief Jack Kindschi received a TELEX informing him of the impending visit of CIA FRD division Chief Richard Richardson to Hawaii and instructing Kindschi to introduce Rewald and Richardson.

CIA DCD Chief Kindschi testified he only acted as an intermediary in the Ron Rewald contact transaction for the CIA, and brokering that had met FRD division Chief Richard Richardson for the first time when he came to Hawaii in July 1979, with Kindschi further claiming that afterwards he had no involvement in the Rewald relationship with CIA FRD division Chief Richard Richardson or his covert assignment.

In August 1979, Richardson sent a CIA memorandum, to the CIA FRD office handling his assignment, which provided the following description of Richardson's cover:

"...can be described as a principal in a major Hawaiian and West Coast investment firm [ CMI, subsidiary of BBRD&W ] which has major interests in Asia as well as the U.S. The partners in this firm are from some of the oldest, wealthiest, and most influential 'Families' in Hawaii. As a result, the company - and these Families - are greatly concerned with matters relating to the political and financial affairs of the State of Hawaii, Asia [ Japan ], plus 'other locations where they have interests', as well as having extensive influence on the U.S. mainland. To protect their interests and the interests of the State of Hawaii these Families have always maintained close political connections with any current Administration through major campaign contributions, appropriate discrete lobbying, and by providing advice ( Foreign Policy Advisors ), consultation ( Foreign Policy Consultants ), and maintaining friendship with 'key political party' and 'other central figures' in the government."

Although Richardson Richardson was not called as a witness by Rewald during his trial, the U.S. District Court ruled documentary evidence admissible relating to the Richard Richardson relationship with Rewald.

CIA FRD Chief Richard Richardson, while portraying his CIA cover as Richard Cavanaugh, recommended BBRD&W as an investment to certain acquaintances and even opened a personal account for himself.

In addition, certain BBRD&W brochures identify Richard Richardson as "Richard Cavanaugh," an employee of BBRD&W.

As indicated in the August 1979 CIA memorandum, of Richard Richardson to his Foreign Resources Division, it evidently concluded "CMI, subsidiary of BISHOP BALDWIN" presented a better commercial cover than did CMI alone but beyond that as a Rewald trial defense failure - to call Richard Richardson as a witness - leaves that relationship with BBRD&W a matter of speculation.

On July 26, 1979 CIA DCD Chief Jack Kindschi received a request that CANADIAN FAR EAST TRADING CORPORATION ( CFET ) serve as a "backstop" ( cover ) for an additional foreign agent, and Rewald agreed.

Except for the CANADIAN FAR EAST TRADING CORPORATION ( CFET ) receiving what was believed to be one (1) misdirected TELEX about a fashion show, inquiries during its entire existence - where the expectation was that the backstop would be used infrequently - was little if anything at all.

On September 8, 1979 CIA DCD Chief Jack Kindschi received a TELEX from Washington D.C. asking for his candid assessment of Ronald Ray Rewald, in light of Rewald's then-pending application for clearance to serve as a commercial cover for Richardson, and in response Kindschi wrote a long glowing recommendation of Rewald noting that Rewald "sets high standards of moral conduct in everyday life," "is a man with no apparent vices," and had "no apparent evidence of deception in his character." Kindschi's letter also noted the only area of skepticism was Rewald originally contacting the CIA as a "walk-in." "In other words, he came into the office without being invited."

 

 

CIA DCD Chief Jack Kindschi was never told by Rewald about his Wisconsin sporting goods chain having gone bankrupt.

 

 

Not long after coming to know Ronald Rewald, CIA DCD Chief Jack Kindschi developed a financial relationship in addition to professional and personal ties with Rewald.

 

 

In early 1979 Rewald spoke to Kindschi about investing in his sporting goods store, claiming to have been successful in running a sporting goods chain in Wisconsin, but only showed Kindschi his new store in Kaneohe, Hawaii where he claimed plans to open up to six ( 6 ) more athletic stores on the island. Rewald also disclosed ambitious plans to manufacture athletic clothing in Taiwan.

 

 

Kindschi immediately invested $5,000 in Rewald's store and for an additional $42,000 agreed to buy a 10% stake in Rewald's company.

 

 

On January 31, 1979 Rewald wrote to Kindschi on CMI letterhead stating the name of the chain in Hawaii would be HAWAII SPORTS CENTERS with sales for 1978 at $936,318 (USD).

 

 

In March, CIA DCD Chief Jack Kindschi borrowed $42,000 from the Federal Credit Union and transferred it to Rewald.

 

 

Throughout 1979 and into 1980, Rewald sent Kindschi periodic reports and newsletters describing the sporting goods chain dramatic financial success.

 

 

In 1980, Kindschi and Rewald began speaking about the upcoming retirement of Kindschi who originally planned to go back to the mainland U.S. but Rewald was anxious to have him stay in Hawaii, mentioning a position might be available at BBRD&W after his retirement. Kindschi testified Rewald suggested, that upon his retirement, Kindschi should begin taking draws out-of his $42,000 investment in Rewald's sporting goods chain.

 

 

CIA DCD Chief Jack Kindschi retired on July 17, 1980 but after 5-months returned to Hawaii during December 1980.

 

 

Kindschi received several lump sum payments totaling over $8,000 he failed to recall in his direct testimony, and received his first (1st) payment of $3,000 on June 30, 1980 while he was still CIA DCD Chief in Hawaii.

 

 

Kindschi claimed he thought this was reimbursement for the expense of leasing a new Buick automobile Rewald insisted on providing for Kindschi after his retirement, however Kindschi was uncertain what the other payments were for.

 

 

Former CIA DCD Chief Jack Kindschi testified he began receiving $1,000 a month from Rewald's business in March 1981, after he retired, however upon cross-examination it became clear Kindschi actually began receiving $1,000 a month from Rewald in October 1980 as checks drawn on a BBRD&W account proved.

 

 

Kindschi also appeared unclear as to whether that money was being deducted from his aggregate investment or a return on his investment.

 

 

Although Kindschi testified to both, interestingly he filed his claim against BBRD&W - during its U.S. federal bankruptcy case - stating only his initial $5,000 investment.

 

 

In March 1981, Rewald fulfilled his promise to bring Kindschi on board BBRD&W.

 

 

Rewald asked Kindschi to work as a contract consultant on special projects, and Kindschi was paid $60 per hour for his work where his first two (2) projects involved research assignments for a couple of Rewald's wealthy foreign associates.

 

 

Kindschi's work involved some travel, sometimes with Rewald.

 

 

Kindschi also began to write special and quarterly reports sent to BBRD&W investors addressing a variety of topics, usually focusing on particular geographic regions.

 

 

Rewald also asked Kindschi to edit the BBRD&W publicity pamphlet, called "Directions" and an article featuring BBRD&W in the local Chamber of Commerce publication where Rewald supplied predicate factual information.

 

 

Kindschi recommended Rewald hire a person - referred to as "John Doe 14" at trial - and Rewald hired John Doe 14 as a consultant who eventually took charge of an overseas office of BBRD&W.

 

 

At the time John Doe was hired, and for 3-months thereafter, John Doe 14 was a CIA contract agent who made investment suggestions and identified individuals who might invest or offer investment opportunities.

 

 

The jury was told that "Bishop-Baldwin did not implement any of the investment suggestions, and no investment was made as a result of John Doe 14's contact with people."

 

 

During the time Kindschi worked as a contract BBRD&W consultant he also became an investor.

 

 

In June 1981, Kindschi was told by Rewald he had opened an account in Kindschi's name at BBRD&W for $1,000 saying that BBRD&W was going to stop opening new investor savings accounts, and it was a great opportunity to invest in before they were unavailable. Rewald said he advanced that money out-of personal funds. Kindschi agreed and repaid Rewald soon afterwards.

 

 

Subsequently, Kindschi became a major investor investing $124,000 for his own parents, plus an additional $139,000 of his own funds that he borrowed $100,000 to make his investment but lost it all after BBRD&W went bankrupt.

 

 

On September 22, 1982 Kindschi accepted an unexpected invitation to join the BBRD&W executive committee, which included a $2,000 a month consultant fee, plus continued to receive $60 per hour for work on particular projects.

 

 

Kindschi attended a total of four ( 4 ) meetings as a member of the BBRD&W executive committee claiming he was an observer, learning about BBRD&W investment projects, but between January and February 1983 received a pay raise to $4,000 per month.

 

 

Former CIA DCD Chief Jack Kindschi saw his successor become CIA DCD Chief Jack Rardin in Hawaii.

 

 

CIA DCD Chief Jack Rardin arrived in Hawaii by July 6, 1980 and Kindschi introduced him to Ron Rewald soon afterwards because Rardin was to meet Kindschi's "primary contacts."

 

 

On July 10, 1980 CIA DCD Chief Kindschi testified the Far East CIA agents informed him backstopping services were no longer needed, and Rewald was informed the TELEX and telephone should be disconnected.

 

 

Rardin testified that the Far East CIA cover was an "ongoing operation" when he arrived and that he discussed its continuation with Rewald in July 1980.

 

 

Rardin recalled the Far East CIA cover had been stopped for a couple of months, but was asked to renew it.

 

 

CIA DCD Chief Jack Rardin continued processing monthly TELEX and telephone expenses incurred in this cover.

 

 

Rardin spoke with Rewald about Rewald's foreign travels, just as Jack Kindschi had.

 

 

Rewald occasionally came by Rardin's office to ask for a briefing on a particular country he planned to visit.

 

 

Rardin testified, "I always stressed to him [ Rewald ] that you are going there primarily for your business and not for me, but if in your conversations and meetings with foreign businessmen and so on, if you would hear these kind of things, we'd be interested."

 

 

While Rardin considered Rewald a friend and generally an excellent source of foreign intelligence, he did not develop the sort of extensive relationship Kinschi had with Rewald, however CIA DCD Chief Jack Rardin did invest $1,500 with BBRD&W that was later withdrawn.

 

 

During Jack Rardin's tenure as CIA DCD Chief, he recalled requesting name checks from headquarters for several BBRD&W employees, including Rewald's secretary Susan Wilson who handled TELEX and telephone paperwork for the CIA backstop cover.

 

 

Rewald introduced Rardin to 3 or 4 employees, and Rardin requested name checks after concluding they might be able to provide useful information developed through their own private travels abroad. He spoke with 2 of those employees once or twice about CIA Domestic Collection Division interest in foreign countries.

 

 

Before the end of August 1980, CIA DCD Chief Jack Rardin recalled meeting U.S. west coast CIA Foreign Resource Division Chief Richard Richardson (aka) Richard Cavanaugh, and knew generally that Ron Rewald was providing some sort of CIA cover for Richardson - although Richardson did not report to him - leaving Rardin unfamiliar with the nature of Richardson's CIA assignment there in Hawaii.

 

 

CIA DCD Chief Jack Rardin believed a BBRD&W pamphlet listed the CIA cover name "Richard Cavanaugh" used by Richard Richardson as its employee.

 

 

In November 1982 CIA DCD Chief Jack Rardin received a call from Rewald about an on-going U.S. Internal Revenue Service ( IRS ) investigation into the financial affairs of Rewald who was unsure how to explain the TELEX and telephone expenses for the Far East CIA cover operation to his accountant and was requesting direction.

 

 

Rardin passed Rewald's request to CIA headquarters asking Rardin to obtain further information from Rewald. Rardin spoke with Rewald and sent a TELEX to CIA headquarters outlining their conversation.

 

 

Significantly, Rewald said he received payments not only for the TELEX and telephone, "but also for passing funds to individuals in the Middle East, Argentina, Hong Kong, Taiwan, Indonesia, California, and Hawaii."

 

 

CIA DCD Chief Jack Rardin CIA TELEX communication to CIA headquarters claimed no personal knowledge of Rewald's alleged payments, but had no reason to doubt the veracity of Rewald, stating Rewald was a "patriotic individual who tended to quickly follow instructions to the letter."

 

 

In response to Rardin's CIA TELEX, two (2) CIA officers traveled to Hawaii - twice in January 1983 - to speak with Rardin and Rewald.

 

 

At the first January 1983 meeting, Rewald did not refer to passing funds to foreign sources and specifically said the only money he received was for the telephone, teletype, and miscellaneous expenses associated with the Far East CIA backstop ( cover ).

 

 

Subsequently, CIA headquarters advised Rardin of three (3) possible cover stories Rewald could tell his accountant about CANADIAN FAR EAST TRADING CORPORATION ( CFET ) and its predecessor H&H ENTERPRISES ( HHE ). Generally, Rewald was advised to describe these companies as existing only on paper.

 

 

In January 1983, during a subsequent meeting with Rewald, CIA officials told him the IRS investigation would be held in abeyance temporarily as a result of an understanding in Washington D.C. between the CIA and IRS, but CIA officials told Rewald more time was needed to investigate the facts of his relationship to the CIA. Interestingly, within several weeks, the CIA informed the IRS it had no objection to a resumption of their investigation against Rewald. The CIA official from Washington D.C. also suggested Ron Rewald return any CIA documents in his possession.

 

 

As a result, Rardin spoke to Rewald and learned he did have intelligence-related documents in his office where Rewald provided Rardin with a retrieved stack of documents. Rardin told Rewald the documents would be more secure in his CIA office.

 

 

Some of the papers pertained to briefing requirements Rardin discussed with Rewald before his travels. Rardin commented the documents could connect Rewald to the CIA "colder than a mackerel."

 

 

Rardin was instructed to sever ties with Ron Rewald until the IRS tax investigation was completed, thereafter the CIA terminated its relationship with Ron Rewald.

 

 

The CIA also instructed CIA DCD Chief Jack Rardin to withdraw his own $1,500 personal investment in BBRD&W.

 

 

On July 29, 1983 television station KHON aired a story by reporter Barbara Tanabe raising serious questions about BBRD&W legitimacy.

 

 

On July 30, 1983 it was reported Ronald Ray Rewald attempted suicide using a razor blade to slash his forearm in the Sheraton Hotel in Waikiki, Oahu, Hawaii.

On August 30, 1984 in Los Angeles, California ( USA ), a U.S. Federal Grand Jury returned a one-hundred ( 100 ) count indictment against Ronald Ray Rewald who was originally sentenced to serve an 80-year federal prison sentence and was subsequently incarcerated in southern California at the Medium-level security facility at Terminal Island, California where 2-years later Law Library clerk Ronald Rewald met Paul Collin who had returned from Naples, Italy after obtaining foreign secrets, one of which threatened NATO defense aircraft throughout Europe and that information unfortunately later landed on deaf ears of his captors ( the U.S. Secret Service ) whom failed to recognize the intelligence value Collin brought back, and by skipping over 'it' prosecuted a federal case against Collin wholly but out-of Collin's cover used to bring the intelligence secrets directly back to the U.S. government.

Collin, filed his own Classified Information Procedures Act ( CIPA ) Alibi defense brief, which resulted in ten ( 10 ) U.S. federal prosecutors being tasked to fight the federal case against Collin, which really did not stop him from trying to get his original message across, that: He risked his life to bring intelligence back into the U.S., and then again 2-years later Collin did the same thing again, but this time it was much different - he was in federal prison trying to get his secret message out of prison to the 'proper federal agents' located over 3,000 miles away.

Very shortly after meeting Collin, in late May 1987 Rewald told Collin a CIA secret, which was:


A federal prisoner was going to appear - during the first week of June 1987 - for only a short time at Terminal Island, but whom Rewald relayed to Collin was actually a C.I.A. agent sent there to speak with Rewald who additionally cautioned Collin to distance himself from Rewald until after the man left.

The CIA agent who came to Terminal Island as a federal prisoner to visit Ron Rewald, Collin discovered was CIA agent Jerard J. Signori (aka) Jerry Signori, who arranged to have the U.S. Bureau of Prisons assign a prison inmate Federal Registration Number 90398-098, a person whom Collin personally verified as one (1) of about thirty ( 30 ) CIA agents posing in Western Europe as 'illegal arms dealers' that CIA Non-Official Cover ( NOC ) Ronald Ray Rewald purposefully named "Consultants" as listed within the BISHOP BALDWIN REWALD DILLINGHAM AND WONG INC. ( BBRD&W ) brochures.

On June 5, 1987 Signori left Terminal Island, California and Rewald asked Collin to review more private personal business case files, and between that box of papers and notebooks, along with Rewald's personal revelations about his family, Collin also learned of Rewald's plan to expose all European CIA agent arms dealers placed on the payroll as "financial business consultants" of BISHP BALDWIN REWALD DILLINGHAM AND WONG INC. and how Rewald would use the ghost writer for his book to distribute all the names. Rewald had lost his mind, wanting revenge against the CIA, after he was sentenced to 80-years in federal prison.

Collin, took it upon himself to stop Rewald from jeopardizing the lives of those unsuspecting CIA agents. But how? Collin was in federal prison where the prison phones were monitored and one could only call collect to one (1) person. Incoming and outgoing mail was monitored. And, since the U.S. Secret Service had not listened carefully to Collin earlier, the task of getting the intelligence about Rewald's plan into the hands of the proper government officials were still over 3,000 miles away.

Collin needed to carefully draft a detailed letter, and the only place to type it was in the law library where Rewald worked, which was difficult since Rewald kept wanting to see what Collin was typing, and every time Rewald approached Collin it became a distraction for Collin, who also had to cover what he was typing and provide a pretext by explaining he was doing case law research for another federal prisoner's case that was confidential.

To get the letter out of federal prison, and past all the security, Collin knew what his chances were with prison Chaplains who alert prison authorities to any attempt an inmate makes to violate prison rules.

Collin, watched and waited for an opportunity, which eventually came in the form of a very old Jewish Rabbi who visited the prison for a short time. Collin knew the only way to get close to the old Rabbi was to approach him as a sincere person trying to seriously study the Jewish Orthodox faith, which meant long preparatory hours of Collin reading to become relatively well-versed in that religion, and after Collin converted to and maintained strict Jewish dietary laws and more, the old Rabbi took a special liking to Collin who told the Rabbi that his mother was Jewish and his devote Catholic father was Irish.

Collin's letter left prison and was personally delivered to the U.S. Chief of NATO intelligence in New York. Within a few months, Collin was released from federal prison and as he stepped from the gates was picked up in a black limousine by a southern California politician who waited there with his bodyguard all morning long until almost lunchtime.

Oddly released shortly after Collin, Rewald also left Terminal Island and began a career within the motion picture industry where today he is currently employed as operations director for the AGENCY FOR THE PERFORMING ARTS INC. ( APA ) [ 405 South Beverly Drive, Beverly Hills, California 90212, USA, TEL: (310) 888-4200, E-MAIL: rrewald@apa-agency.com ] that provides his agent status with the CAROLE ABEL LITERARY agency.

Submitted by,

Unwanted Publicity Intelligence

E-MAIL: UnwantedPublicity@Gmail.Com

WWW: http://unwantedpublicityintelligence.blogspot.com/

REFERENCES -

United States of America, Plaintiff-Appellee, v. Ronald R. Rewald, Defendant-Appellant., 889 F.2d 836 ( 9th Cir. 1989 00:00:00 ) Federal Circuits, 9th Cir. ( November 13, 1989 ) Docket number: 85-1353.