Businessman Who Cited CIA Connections Convicted of Fraud, Perjury, Tax Evasion

A former investment counselor who claimed that his firm was set up for CIA covert operations was convicted Monday of 94 counts of fraud, perjury and tax evasion stemming from the company’s collapse, which cost investors at least $10 million.

The U.S. District Court jury issued its verdict against Ronald R. Rewald on its fourth day of deliberations. Rewald had been indicted on 98 counts stemming from the August, 1983, collapse of his investment firm, Bishop, Baldwin, Rewald, Dillingham & Wong.

Authorities estimated that 400 people invested $22 million in the company and that Rewald spent several million dollars of it on a short-lived but lavish life style that included an expensive home, several cars and a polo club.

About $10 million had been recovered and returned to investors, FBI special agent Glenn Martin said.

Defense attorneys said they will appeal the verdict.

Rewald contended that he was a CIA agent posing as a wealthy businessman and claimed that the agency promised to protect his firm from scrutiny and to use it for covert assignments.

However, during the trial, Judge Harold Fong limited the amount of CIA-related evidence that the defense could introduce. The agency has acknowledged that it used the firm to provide commercial cover for agents and that the company provided telephone and telex services. The CIA denied any links to the firm’s financial activities.

Fong refused to allow Rewald to testify about a sealed affidavit filed as part of bankruptcy proceedings. In the affidavit, Rewald outlined his alleged ties to the CIA.