A weak beam of light escaped the fluttering drapes, drawn behind the sliding glass
doors of the lanai. A shimmering full moon lit up the empty beach and pool some
sixteen stories below. Inside room 1632, the lamp on the night stand next to the
bed cast a dim light on the prescription bottle of Codeine #3, which was sitting
next to the bloody razor blade.
On the rumpled bed, an open Bible rested amidst the blood stains. On the floor at
the foot of the bed laid a motionless body clad only in blue shorts. Blood oozed
from a slashed right wrist.
A shiny boot roughly rolled the blood splotched body onto its back and the silence
was broken by a heavy voice, carrying a Latin accent.
“Okay, Rewald’s not dead.” Angelo Cancel, a stocky Latino snorted. “We’re in luck.”
He was accompanied by Robert Allen, a man in his late 50’s. . . . He was heavy; 200
pounds on a 5’10” frame. He grabbed Rewald by one hand. “Great. Let’s get him
into the bathroom. See if he’ll talk.”
The two dragged the limp body into the bathroom, leaving a smudged trail of blood.
Propping him up against the tub, Cancel slapped his face, the again, harder. He
seemed to revive momentarily, then slumped heavily.”
“Shit!” Cancel snarled in frustration. “He’s dying right here and now!”
“Drink,” Allen said in panic, “try giving him something to drink!”
Cancel retrieved a glass of water from the sink and held it to the dying man’s lips.
It dribbled down his chin and chest.”
“Son-of-a-bitch! It’s no use,” Cancel groaned. “He can’t swallow.”
In frustration, Cancel slapped Rewald twice more, then got right in his face, while
shaking him violently. Bob leaned foreware and lifted Rewald’s head up by his hair.
“Ron! Ron!” Allen pleaded. “Where is the green book?”
Ron’s eyes rolled in and out of consciousness. He gasped faintly, then gagged,
trying to drink. Cancel shook him once more, banging his head against the tub.
“Ron, is it here?” Allen asked in desperation.
Ron forced a gagging response. He blinked through glazed eyes, then barely
Cancel sneered calmly, then continued in a soothing voice after withdrawing a Buck
Knife from his white linen coat. “Ron, my friend. We came to help you.”
Cancel pulled the knife blade open and gently laid it on Ron’s left forearm, which he
had lifted onto the rim of the tub.
“The company always looks after its own.”
He then dug the knife tip deep into the flesh below the elbow, and slowly drew it
across the forearm. The splayed tissue pulsated bright red ooze.
The two men left the dying man alone in the bathroom, and began a hurried search
of the hotel room. After several minutes, they came up empty handed and cursed
in frustration. Before leaving they stopped at the bathroom door for one last look,
then were gone.
Soon the Chairman of Bishop Baldwin Rewald Dillingham & Wong would be
~ ~ ~
It was almost midnight as United flight #193 left the Hawaiian skies. Others, one
by one, closed their eyes and fell asleep in the large comfortable seats of the first
class cabin. Only Ron seemed unable to rest. As he stared out through the plane’s
small porthole, seeing nothing in the darkness, as uneasiness filled Ron that night.
Maybe it was a prelude of things to come, but an empty hollow feeling in the pit of
his stomach made him uncomfortable….
Oh, it wasn’t a particular concern about leaving the children. That wouldn’t set in
for at least a day or two, if normal patterns persisted. Anyway, he knew they were
in good hands …
Then, of course there were the security guards and bodyguards, four or five of
them, led by Calvin Gunderson, who had the responsibility of overseeing all
security for the Rewald family. They would never be out of his sight, although the
older ones would try all the same. But the calm, conscientious Hawaiian Gunderson,
always unruffled, would keep them safe and secure always …
The concern was not over the children. Ron, from outside observation, should have
been a man at peace with himself and very satisfied with his station in life.
Chairman of the Board ofBishop Baldwin Rewald Dillingham & Wong, now a
very prestigious and fast growing multinational consulting firm, with offices in
London, Paris, Stockholm, Hong Kong, Singapore, Taiwan, Guam, Indonesia,
Australia, New Zealand, Tahiti, India, South America and the Middle East, in
addition to several U.S. offices, including Beverly Hills, and of course Honolulu, its
Bishop Baldwin’s investments included a trust company, travel agency, airline, real
estate companies, an automobile dealership, a chain of sporting goods stores,
ranches, investment companies, a printing company, agri-business, a trade company
and school, warehouses and plantations, and office buildings. In Hawaii alone he
oversaw, along with his partner, Sunny Wong, a hundred forty employees, including
a couple dozen or so investment analysts and bankers, in addition to scores of
support people throughout the company’s world-wide operation.
He lived on a beautiful Hawaiian estate (appraised at over $2 million) on a private
lagoon, with its own private waterfall, spring and exotic fish pond, paddle tennis
courts and lush tropical gardens. In addition to the unlimited use of company
chauffeurs and limousines, he drove a Cadillac, had a Rolls Royce convertible for
his wife and sports cars for the older children to drive, and all the accouterments
of wealth from Rolex watches to custom suits, even his own string of thoroughbred
He was President of the prestigious and very exclusive Hawaii Polo Club, one of the
oldest in the United States. It listed among its members His Royal Highness,
Prince Charles of England….
Ron had a charming, almost disarming, personality that put everyone at ease,
always sensitive to the needs of others. Ron appeared a happy and successful man
who had everything. And yet, as he stared into the empty night through the
plane’s window, thoughts, worries and concerns raced through his mind. He also
had secrets, many of them.
Ron prayed the next days would go well, according to the missions’ plan. This trip
that was for all outward appearances a half business, half pleasure trip to Chile to
look at investment opportunities and play polo at Santiago’s plush and exclusive
Equestrian Club, was really far more.
Ron’s CIA cover as a wealthy Honolulu business executive, was on yet another
mission, this time taking him into Argentina, after briefings in Chile, in the middle
of a war between the Argentines and the British over the Falkland Islands. The
situation was deteriorating fast. An American could become a very unpopular
commodity in a hurry, should the U.S. government or the President say the wrong
thing, something to alienate an already strained U.S.-Argentine relationship. Yet,
the information needed was vital and critical, or at least that’s what he was almost
always told by his chief of CIA at the Honolulu station headquarters….
As the plane touched down, Ron hoped their greeting party would be there waiting
for them as planned. When they had disembarked and cleared customs, he could
see them waiting. There was Michael Daily, a young up and coming Bishop Baldwin
executive hired for his expertise in South America, specifically Chile and
Argentina, where he had lived and worked for a number of years…. His father had
previously owned the Hawaii Polo Club, in addition to a hotel or two in Honolulu.
Michael grew up, so to say, in the saddle, and was an excellent polo player …
There was Michael’s pretty wife, Becca, whom Ron had suggested should join them
on this trip, to Michael’s delight. Ron’s intentions had been for her to keep Nancy
There was also Al Lopaka, a friend and polo player from Hawaii, a devilish rogue, in
a good sense. He was a real charmer, a lady killer who retired as a professional
singer and entertainer to concentrate on his first love, playing polo, which he did
All three had been sent on ahead of the Rewalds to organize everything so Ron’s
time would be put to the most productive use. Mike Daily set up business meetings
and luncheons, and Al Lopaka set polo practice …
Santiago was an old dirty city, very poor and, since the government’s military junta
took over years earlier in their bloody coup, murdering the president, Salvadore
Allende, there was very little economic recovery….
Before leaving for the hotel and a few hours rest, they all agreed to meet for
dinner that evening at a unique little restaurant well known in Santiago, a must for
visitors. Michael had arranged for two other couples to join them, people they
hoped to be doing some business with while they were down her for Bishop Baldwin
and the CIA….
The guests were already there, Al Lopaka, Michael and Becca Daily, Gustavo
and his wife … Michael then introduced the Rewalds to General Munoz and his
wife. The general was a stern-looking middle-aged man, rigid in appearance, but
Ronald Wolfson, who was already there, served as vice president of Chase
Manhattan Bank, Santiago, and had assisted Michael on a number of Bishop
Baldwin needs. Ron had been told that Wolfson had a desire to leave Chase
Manhattan for their firm if the right deal could be structured.
Mrs. Wolfson, a former high fashion model from New York, skinny as a rail, had
obviously already taken a liking to the irrepressible Lopaka, and as the evening
progressed and the empty wine glasses accumulated in front of her, she became
bolder by the hour to the embarrassment of all except, surprisingly, her husband….
~ ~ ~
General Munoz ushered them into an elegant office and explained that they had
been summoned to meet with General Manteola, second in command only to
Pinochet and one of the four original members of the junta responsible, he said,
“For liberating Chile.”…
A few minutes later a tall, thin gaunt looking General Manterola entered … He was
smiling as he approached, greeting first Ron, by name, then Mike Daily. Obviously,
he had been briefed….
The General then got down to business, explaining that ten years ago, when they
had taken power, the junta had expropriated over five hundred businesses at the
time, and had over the years returned most, or sold them off. They had, however,
retained some, and knowing of the reputation of Bishop Baldwin Rewald Dillingham
& Wong, thought something might be worked out that would be to the benefit of
He further explained that the government of the United States had shunned any
significant relations wsith Chile under its present leadership and that Commander
Pinochet desired that relations between the two governments be improved, so that
American corporations would once again do more business and prosper together
with Chile as economic partners….
General Manterola went on to explain that they still held one of Santiago’s largest
banks in their control and would be willing to give it to Bishop Baldwin for a token
price, “Say one million dollars, U.S.” It had, he said, assets netting over sixteen
million, which they could have their auditors verify to their satisfaction first.
They really wanted it owned by a new American interest in the hope it would be the
start to stimulate other U.S. companies to do business there.
Ron said he would certainly take it back to his board of directors and check their
interests. What he really meant is he would report it toJack Kindshci, Charles
Richardson, CIA F.R. (Foreign Resources), Chief of Base and Jack Rardin, CIA
Chief of Station, and let them give the information to the home office at Langley.
For, in reality, Bishop Baldwin was their baby, a CIA owned and operated
proprietary company, and any such decision would in fact be theirs. But then they
might see some intelligence value in this, and they were always seeking new banking
The General then sweetened the deal by adding that if Ron would put this deal
together they would throw in for Bishop Baldwin, or its chairman (Ron) 2,800 acres
of prime agricultural land in southern Chile, with timber forests and excellent farm
land, included free for making the deal….
~ ~ ~
The country club was impressive by anyone’s standards, unexpectedly so for
Santiago, Ron thought as they were shown to the Wolfson’s table. Membership ran
seventy-five thousand U.S., Wolfson later told him. As the men, Ron, Michael and
Ron Wolfson paired off to discuss business, the girls, Nancy and Mrs. Wolfson,
chatted about lesser things….
Ron discussed with Wolfson the meeting they had been to with General Manterola
earlier in the day, and explained his offer. Wolfson was impressed and somewhat
in awe of the special treatment these newcomers to Chile had received. If they,
Daily and Wolfson, were to set up BBRD&W offices in Santiago, how long would it
take and how much would it cost, Ron inquired? They estimated sixty to ninety
days, and upwards of forty thousand dollars, was the consensus.
What about auditing the bank offered by Manterola? It would not be feasible to
have Bishop Baldwin do the audit. It would take a local accounting firm. Wolfson
suggested Price Waterhouse, for they had an office in Santiago and were familiar
with the Chilean economy. Ron agreed they would be best, indicating they
currently used them in Taiwan, Indonesia, and London.
After considerable discussion, Ron said at the next board meeting he would
propose the setting up of offices in Santiago, with a retainer agreement
satisfactory to Wolfson for the present…. He did tell Wolfson to contact Price
Waterhouse and see what they wanted for a feasibility study on the project….
All parted on good terms and agreed that Wolfson would be brought to Hawaii
later in the year for discussions about his future….
~ ~ ~
WEEK OF THE SULTAN
The upcoming week would prove to be one of the busiest and certainly, most
important and productive of Ron’s term as Chairman of the Board ofBishop
Baldwin Rewald Dillingham & Wong, and the CIA.
Sometimes the CIA has to target operations within the United States. Under CIA
charter, the Agency may not exercise law enforcement or police powers or
undertake internal security functions, but this does not mean it cannot operate
within the United States….
The CIA charter does not specifically say the CIA may not gather intelligence in
the United States, rather, legislation makes it clear the CIA may gather
intelligence within our borders, so long as the target is foreign. That
understanding was codified by Executive Order 12333, which President Reagan
signed on December 4, 1981….
Monday meant that he had another weekend out of the way, another successful
polo match. The Marquess of Waterford and his three sons, all excellent players,
had won a hard fought match . . . Ron’s mind was already on the new week’s guests,
the Sultan of Brunei and Ricky Zobel. This would be a serious week of work and
play, hopefully with the results the Agency hoped for….
By 7:00 a.m. he would find himself in his Eldorado convertible battling the morning
rush hour traffic into downtown Honolulu. … The air was always fresh and warm at
this time of day, so at the first stop light Ron would put the top down and breathe
in the fragrant air. There was no place like Hawaii. . . .
When Ron entered the office, one of his three secretaries, Fenlyn Kimura, would
be waiting at the entrance. She would follow him all the way into his office, letting
him know what would be on the agenda for the day. . . .
His office was on the 26th floor of theGrovesnor Center, which was Hawaii’s
newest and most prestigious complex. BBRD&W was one of its first occupants . . .
They now occupied three floors and the staff now numbered about 120 people.
The 26th floor held all the executive offices, staff, the board room, computer
offices and legal and CIA staff. BBRD&W maintained 20 full-time attorneys.
Most worked on the various operations; several also did Agency work….
Ron’s office was the size of two large suites. It was octagon-shaped with three
walls being glass. The far wall was a full waterfall with a dial to control the flow. . .
.Very impressive indeed, but then he was often meeting with billionaires and
international bankers, so anything less would not have the bill….
Fenlyn would finish going over the daily schedule, weeding out or redirecting
anybody Ron would absolutely not have to meet . . . Then Ron would meet with
Sunny Wong. Sunny was the President of BBRD&W and its Chief Executive
Officer. Although he was CIA cleared and early on was more involved in the
Agency’s operations, he was now basically running the day-to-day operations of
Sunny would bring Ron up-to-date on the normal business activities and how the
company acquisitions were working out . . . Once Sunny left, Sue Wilson would come
in and go over the needs of the staff in foreign offices. On this particular
morning, Sue brought him up-to-date on Taiwan and the fact that the staff there
was wondering when a large shipment of equipment could be expected to arrive.
Ron asked her to track down Captain Avary and get him on the phone.
Bob Jinks was also asking for support in Australia, where Bishop Baldwin was
setting up additional offices. . . . The office manager in Sweden was asking for
more company brochures. However, he wanted special ones with Jack Kindschi’s
name omitted. Jack had blown a Greek agent’s cover when he was stationed there
and they were once again dealing with this agent to get information on President
Popendreo. Ron told Sue to see that it was done. Ron also wanted to talk to Jason
Wong in Hong Kong to see how the capital flight effort was being received by the
Sue soon traced Captain Avary down and he was on the phone from Paris. He
informed Ron that he expected to firm up delivery dates for the Taiwanese on
tanks and armored personnel carriers by the end of the week and hoped to be
back in Honolulu by Saturday.
He knew that the weekend meant the Agency would be hosting the Sultan of
Brunei and Zobel, and Captain Avary always wanted to be where the action was….
Jack Rardin called to see what time Ron would meet with him . . .
Ken Sanders, the head of the public relations companies owned by BBRD&W, was
prompt for his 1:00 p.m. appointment. He was requesting Ron to do a few
interviews. The first would be with USA Today, then Pacific Business News. Ron
agreed, but when he was asked to do local media and newspapers, he refused . . .
Jack Rardin arrived at 2:00 p.m. and was immediately shown into Ron’s office.
They went over the requirements for the Sultan . . . Most of all, the objective was
to win him over and get close to him, give him anything he wanted, obligate him if
we could and get any raw intelligence he was willing to part with.
Areas of concern included OPEC Oil,Indonesia, where Ron would soon be Consul
General, and President Marcos, with whom he had a modest relationship. Like
Zobel before him, expectations were not high, so anything he could ferret out
would be highly regarded.
The Sultan had never before visited the U.S. and the Agency wanted him to feel
friendship towards the United States. Ron again reviewed his file, noting his
interest in exotic cars, polo and women. He was, after all, coming to Hawaii to play
polo at Ron’s club, by way of an invitation he had accepted from Ron through Zobel,
who Ron had been setting up for a long time in making this marriage. Ron would
invite the Sultan to their dealership for Lamborghini and Maserati. The dealership
also carried the largest collection of Rolls Royces, Mercedes, Excaliburs and other
such exotic types in the state. . . .
Ron informed Jack that he would not see him until Wednesday; and that he would
hold a reception for the Sultan at the Oahu Country Club. Ron also told him that
Ricky Zobel and Ron would try and talk some business with the Sultan after the
polo match was out of the way. He was expected to stay in Honolulu for one week.
Rardin seemed nervous, but then, he always was.
Ron had reason to feel nervous too. The IRS had been asking questions and he
didn’t have the answers. He asked for help in this area, and Rardin told him to get
another tax extension. He gave Ron three new cover stories, fresh out of CIA
headquarters and told him to choose whichever one he felt the most comfortable
with. These were lies that he was to tell the IRS agent checking into his
operations. . . .
Through the years that Bishop Baldwin had been growing and attracting attention
worldwide, they had attracted various regulatory agencies as well. The difference
was, that when the SEC (Securities and Exchange Commission), the Banking
Commission, the FDIC, and even the first time the IRS made inquiries about
BBRD&W, a simple phone call by Ron to his Station Chief or Chief of Base would
result in their immediate termination. Even the CIA Director, William Casey, had
personally assured Ron that any of that type of interference would be taken care
of by Headquarters. He need not concern himself. Why did it take them so long
to put a halt to this one? Ron blamed it on Rardin and his lack of attention to
detail. . . .
Ron, of course, had other requirements from CIA-FRD Chief of Base, Charles
Richardson and these would take priority. Charles was also the Bishop, in Bishop
Baldwin, and was now in Saudi Arabia on assignment….
Jack Kindschi arrived at 3:30 p.m., as Rardin headed back to the CIA station for
which he was chief of station. Kindschi was proud of his contributions and work on
the Capital Flight book, and justifiably so. It had accomplished what the CIA had
in mind when this effort was first called for. It had created panic in Hong Kong
among the international bankers and they knew well, with very little pushing,
billions of dollars would soon be heading to the USA.
All told, the Agency had a hundred different agents saying the same things about
the Chinese takeover and how Hong Kong “could not survive.” With that many
sources spreading the same line, the public accepted it as true, showing how
Myra buzzed Ron saying Jinks was on the phone from Australia….
Bob wanted more help than the Agency was able to give him in dealing with the
government down there. They were requesting more financial disclosure that the
Agency had to give in any other country and Ron wasn’t sure Langley wanted to
further develop the accounting records. They already had a new audited Price
Waterhouse statement to support their operations in Chile and Brazil. He doubted
they would want to extend it to Australia. The more that is exposed, the greater
the chance of blowing the cover at some later date….
Myra knocked on the door as Ron was hanging up on Jinks to tell him that Wolfson
was on the phone from Chile. Ron motioned for Kindschi to stay seated and put
Wolfson on the speaker. He was just routinely reporting in and checking to see if
Ron would be down there again soon. Wolfson was vice president of Chase
Manhattan Bank in Santiago and now also a paid consultant….
That evening the Kindschis joined the Rewalds for dinner. … Jack and Ron talked
about the objectives that could be gained with the Sultan. Women were high
among them and he would have more than a few pretty little things the Agency
controlled around to attract his attention. At this point, no one knew if he would
come alone or bring one, or both of his wives. … Zobel was newly married, so he
could not be counted on to help distract the young Sultan….
Tuesday morning at 5:45, Ron woke up and stretched for a minute or two….
At the office, the morning was routine. Around 10:00 a.m. Calvin Gunderson came
in to tell Ron he was heading out to the airport to watch the Sultan’s plane arrive….
By 1:30 p.m., Ron was back at work and getting briefings on an India request from
Chan Pasrich for military hardware for Indira and her son, Rajiv. Now they were
asking for assistance in purchasing a 747, specially equipped with command post
electronics, similar to that of the President of the United States. … While the one
ordered was everything they wanted and hoped for, the price was not right. Ron
said he could do nothing in getting a better price, but was soon told that the
problem was not the price, but the kick-back to the Gandhi family and the usual
number of military and political personnel along the way. They had cancelled
the entire order and wanted to place another one with BBRD&W’s assistance.
As far as the Gandhis were concerned, BBRD&W was just a very well-connected
firm with strong ties to the military and political leadership. Chan, of course, was
on the payroll and as a field agent knew exactly what BBRD&W really was. Ron told
Chan that he would have to run it past the station chief and get guidance from
headquarters. . . .
Clearly, India was into false billings and double payments that would benefit the
leaders, not all that unusual for that part of the world. . . .
U.S. companies could not legally be involved in kick-backs. Since the Lockheedscandal in Japan, everyone was very careful. Often, Bishop Baldwin got around this
by getting their agents named as sales representatives for the large aircraft
manufacturers, sometimes for just a single deal. That way they could take the
commission and pay it to the necessary people in the various countries. Sometimes
they even got to keep a percentage for themselves….
Wednesday started like the rest of the week….
By 2:20 p.m., Ron was at the polo club. Enrique arrived at the same time and they
looked over Ron’s best horses and had them saddled and readied for the Sultan’s
arrival. … At 3:17 p.m. a long procession of limousines approached the club and
passed through the gate. … Of the ten or so limos, the one in the middle was
especially obnoxious looking. It was a stretch Lincoln with an extended rear wheel
mount on the back fender. The Sultan soon emerged, followed by a short chubby
looking woman, his wife….
“Your Royal Highness, I am pleased you could join us and I would like to welcome
you to my humble club,” Ron said….
At 7:35 p.m., the entourage arrived at the Honolulu Club. Bodyguards from the
Sultan, Zobel and Ron were lined up like a procession and the eleven person party
were soon well seated….
Zobel led the way in most of the conversation. … After a many-course meal, it was
10:15 p.m., and while it was bedtime for the children and the women had all had
enought, Ricky and Ron suggested that the showroom of Motorcars Hawaii could
be opened for a special late night visit, Ricky thinking that the Sultan might find it
of interest. The Sultan liked the idea very much, so Ron motioned for Calvin and
whispered for him to call Bill Bartenstein. Bill ran Motorcars Hawaii….
The Sultan really enjoyed browsing and sitting in the cars. He tried many for
comfort. Ron knew, from intelligence briefings, that the Sultan already have over
two hundred, so he was surprised when Bartenstein came over and told him the
Sultan wanted to buy some. Bill asked Ron what kind of deal he should make. Ron
told him to ask the going price. Ron didn’t feel the Sultan needed a bargain,
especially since he was considered to be the richest man in the world….
The Sultan had an aide purchase two cars . . . His Highness wanted the cars as soon
as possible; in fact, he would send a plane to pick them up so they would arrive in
Brunei by the time he returned home….
It had been a most profitable evening as Ron dropped the Sultan off at his hotel….
Jim and the Sultan had even compared notes about the driveability of Feraris …
Jim had arrived at his expertise because he often drove the red Ferari Tom
Selleck, of Magnum P.I. drove in his popular series. Motorcars Hawaii were the
ones who leased the car to the television production company that produced the
Thursday morning Ron awoke at the usual 5:45 a.m. … Franklin drove Ron to the
office at 7:30 a.m….
At 2:00 p.m., Ron called Rardin and said he would come to his office. Ron needed
to stretch his legs anyway…. it was a quick walk to the Federal Building….
Ron walked down the hallway and into Jack Rardin’s office. It was a typical
government office, very nondescript, with his only personal touch being a huge
Kentucky University banner on the wall. . . . After a few minutes talking about the
Sultan and Ron’s plans, they both walked past the walk-in safe where all the cable
traffic was sent and received, past all the shredding machines to the back of the
offices where there were no windows. Here there was a large table with books of
Ron had always hated looking through them prior to overseas trips, but he now
scanned the up-to-date information of the Sultan….
Friday morning was typical of most mornings…. Shortly after he arrived at the
office, a clog was thrown into his plans. Fenlyn came in to announce the governor’s
office had called and asked if the Sultan, Enrique and he, plus their wives would
please join the governor and his wife for lunch at Washington Place, their formal
This was the last thing Ron wanted today. … Ron found himself calling Nancy and
telling her they had to have lunch with the governor at noon. She was not
General Braswell called. He was Commander in Chief of the Pacific Air Force and
he wanted to confirm a Saturday noon tennis game with Nancy and Ron, plus his
Braswell would soon, after retirement, be joining Bishop Baldwin as a full time
consultant. He was a West Point graduate and sharp as a whip.
A meeting Ron had already scheduled with Bob Allen (an Agency veteran) and
General Forrest, to discuss problems with General Hunter Harris and his drinking
and potential security risks, went as scheduled. If it had been up to Allen and
Forrester they would have had him committed. Ron felt Harris should no longer be
in a position to hear sensitive information, but felt they did have him under
control, with Jackie Vos constantly baby-sitting him. Ron suggested they go on
monitoring the situation, but to maybe keep him off the air base for awhile. …
Ron and Nancy arrived at the governor’s mansion, followed by Enrique and the
Sultan within minutes. The women were given a tour of the historic old estate by
Jene Aryoshi, the governor’s wife. Ricky, the Sultan and Ron stayed in the garden
and talked. The governor was on his way from the capital, one block away.
Bad protocol, Ron thought, but it gave him more time with his target. They talked
about the U.S. economy, and Ricky told the Sultan how well connected Ron was with
high ranking politicians and military people in the U.S. The Sultan said he kept all
his funds in Great Britain financial institutions, something Ron already knew only
too well. In fact, he could quote the names and amounts he kept in each, such as
British Crown Agents (4.7 billion dollars). Ron expressed little interest, but said
he would not trust the British after the way they ruined Hong Kong and felt that
the Falkland crisis had damaged their economy much more than anyone would have
realized. The Sultan looked concerned. Ron looked the other way. Ricky grinned
ever so slightly and shook his head, satisfied.
Everyone was shown into the main dining room and the governor joined them. Over
salad, he welcomed the Sultan and Mr. Zoebel….
The main course was a thick filet wrapped in bacon, something that was very
offensive to the Sultan, who was a Muslim. No one ate their food, and it was all
quickly removed. They all made the best of it by enjoying dessert and other than
the offer of wine, which was also rejected by the Sultan and Ron, everyone seemed
to ignore the eating portion of the event. On the way out, George Aryoshi asked
Ron if he and his wife could attend this week’s polo match. Ron had little choice
but to say yes, although he did not welcome any more distractions for Sunday….
That evening, Nancy and the children arrived at Oahu Country Club at 7:10 p.m.
for the Polo Club reception in honor of the Sultan and Zobel. The first to greet
the Rewalds was Jack Lord and his wife, Marie. They were the Rewald’s only close
non-agency friends in the islands, although Ron was certain it would not have
happened if not for his cover and profile. Jack, whose real name was John Ryan,
was now retired from Hawaii Five-O since they stopped shooting in the islands
after twelve years. He had been a good friend and was often over for dinner at
the Rewalds, or the reverse….
Ron introduced them to the Sultan and then drifted off into the crowd….
Nancy, Helen Kindschi, Marie Lord and a few other polo widows were seated at a
table, small-talking. At 8:00 p.m. toasts were started to the guests. Ron welcomed
them one more time and a number of the more prominent members provided gifts
for the visitors and their wives and generally made them feel at home. Ricky
approached Ron and shook his head about the governor’s luncheon, then asked,
“Are you asking the Sultan to transfer his money through your company?”
“Of course not,” Ron answered. “We couldn’t handle that kind of money.”
He went on to say that Bishop Baldwin would have no way of placing funds that
large. He added that no one in Hawaii could handle even half of what he had. Ron
did add that he hoped the Sultan would consider placing his money in the U.S. and
mentioned a number of investment houses in New York capable of taking such
deposits. Ricky shook his head in understanding and said, “Well, the Sultan is
thinking about what you had to say.”
Ron nodded, then added, “Good.”
Zobel said we could talk about it Monday.
Ron smiled. “Great,” he nodded….
Saturday morning, Ron awoke at 7:15 a.m. … At 12:00 noon Nancy and Ron arrived
at the Waialai Country Club for their tennis match with General Braswell and his
wife… At the polo field, the Sultan and Zobel’s Philippine team were having a light
workout, their final one before Sunday’s match….
Sunday morning Ron ate breakfast with the family on the patio. … He read the
morning paper, which featured a nice article about the day’s big polo match….
By 10:15 a.m., Jim and Jeff and Ron were in the limo on their way to the match.
Ron was on the phone with Jack Lord, telling him they would be arriving in about 12
There were already almost two hundred cars in the parking lot when Ron arrived.
In another hour the parking lot would be full. The beautiful clubhouse area would
be surrounded by limousines, some with bumper flags designating them as
governors or diplomats or military generals. Rolls Royces would be bumper to
bumper with Mercedes and Bentleys and Cadillacs….
The first game started with Jack Lord throwing in the game ball….
The first game ended with Jim and Jeff’s team eking out a one goal victory….
The main event brought the crowd to its feet for the introduction of the players.
The Philippine team was introduced first. The Sultan enjoyed the standing ovation
The game ended in a 9 to 3 victory for the Philippine team. … Ron congratulated
the winners and the losers for a game well played….
After the game, talk was of polo and the beautiful polo club. The celebration
lasted until sunset….
Before parting, Zobel and Ron agreed to meet with the Sultan in Ron’s office at
11:00 a.m. on Monday. The two shook hands and agreed it had been a very good
Monday morning Ron awoke at 5:45 a.m….
By 7:00 a.m. Ron was driving to work, top down, trade winds in his hair and the
sunshine warming him. … This was an especially important day and he was already
assessing what had been done and what was hoped for. There was no question that
the Sultan was enjoying this visit. Ron felt confident they could count on his
return, but for what? To play polo?
This was not what everything was about. … Could the Agency count on him for
information at some later date, on oil, on his neighbors, on money or assistance?
This whole mission had been a major investment, a very big gamble. It certainly
had paid dividends with Ricky Zobel alone, his insight into Marcos and world
monetary trends and other neighbors in the Far East was invaluable. But, now it
was all about the Sultan of Brunei, the world’s richest man….
It was 11:20 a.m. before the Sultan and Zobel were shown into Ron’s office. They
were made comfortable, tea and other beverages offered….
The Sultan thanked Ron for a wonderful time, both at the polo match and at
sharing “his” delightful island with him….
Enrique also thanked Ron for the game and added that he though they had been
lucky, but looked forward to playing again soon.
The Sultan leaned in Ron’s direction. “My friend, I have been somewhat bothered
by your remarks about the safety of our country’s funds in Great Britain.”
“I never intended to alarm Your Royal Highness. I only offered my humble
opinion,” Ron answered. Of course he had intended to alarm him. He had hoped
and prayed that it had.
The Sultan continued, “I have talked with my minister and he agrees with your
assessment. Would you be willing to recommend any U.S. institutions that might
better serve our country’s needs?”…
Ron knew he needed headquarter’s assistance on this one, and he knew they would
be only too happy to help….
Zobel introduced an idea he had recently been considering. Ayala Corporation, of
which he was Chairman of the Board, had an investment in Sotogrande, Spain. It
was a magnificent polo real estate development and he thought the potential was
very high indeed. He felt that it was wrongly purchased by Ayala and needed
personalized care. He also thought it was a wonderful investment to personally
It took a while before Ron figured out what he was getting at, but what it came
down to was he wanted them, the three of them, to buy it. He thought they could
have a wonderful time making some good money out of it. Finally, he proposed that
he personally advance $7 million. He added that the value at the moment was $22
million and that they could take it from Ayala with the $7 million and a note for
the balance. He asked if they would agree to join him and once the Sotogrande
project was in their names, pay back the $7 million by selling off a small portion
and keep the rest for themselves.
Ron said he would need approval of the Board of Directors for such an undertaking,
but Zobel soon made it clear that he was not talking about Bishop Baldwin. He was
talking about setting up a new company with just the three of them holding all the
stock. He explained that to lessen the complications from Spain, they could call
the new corporation Ayala of the U.S.A., or Hawaii.
The Sultan said he would most certainly join in, however, his interest would have to
be kept just between the three of them and could not be reflected publicly. Ron
saw this as a great opportunity to obligate the Sultan and Zobel and said if they
wished, he could summon one of his secretaries and attorneys, who would know just
what to do and how to structure such a corporation. They agreed and Ron buzzed
Myra and asked her to send in Tim Holzer. In four minutes, he arrived, pen and
pad in hand. Enrique and Ron explained what they wanted and he took notes. Ron
asked how long it would take for him to rush this corporation through, prepare the
documents and register the name. He said a couple of hours.
The three all looked at each other and nodded in agreement….
After more very informative conversation, Tim Holzer buzzed Ron and said that
he had the corporation papers prepared if the new partners wanted to sign them.
Ron told him to come right over.
In less than fifteen minutes, Zobel and Ron signed the papers and established
Ayala of Hawaii. Ron, Zobel and the Sultan all shook hands. They all knew that
they would be seeing a lot more of each other….
The meeting broke up at 2:37 p.m. with Ron wishing the Sultan a pleasant and safe
return home. They agreed that Ron would talk with Zobel in the nest week and
that he and Ron would go to Spain in August to check out the development and, of
course, play a little polo. … Next, they shook hands and hugged in the Arab way.
Ron was now a partner with the world’s two richest men….
~ ~ ~
THE COVER-UP BEGINS
Jackie Vos was at home watching a TV news report.
“It was just last night that Rewald was rushed to Queen’s Hospital after his
apparent suicide attempt…”
The phone suddenly rang away her concentration….
“Jackie, Bob Allen here. How are you doing?”
Bob and Angelo were in the midst of pouring over a mass of documents spread all
over the counters, beds and tables of the room in a large deluxe suite at the
Kahala Regency Apartment complex.
“Well, Bob, I could be better,” Jackie replied.
“I assume you saw the evening news last night? How about a drink this afternoon?
“Sure,” Jackie replied….
Later, Jackie was not surprised to find Angelo waiting with Bob in the bar….
“Good to see you, Jackie,” Angelo said. “You look great.”…
“I called you,” he explained, “because Ron’s in trouble. We’re trying to help him;
and you too.”
Jackie frowned, eyeing the two men warily.
“You know Ron was dirty,” Bob continued. “He was laundering dirty money. He had
plenty of time to clean up his act, get into legitimate investments, but he wouldn’t
heed our warnings.”…
“We just had to take action,” Bob resumed….
“What kind of action?” she asked.
“Jackie,” Bob replied, his voice turning cold, “we have two men coming. They’ll tell
Ron what we expect. If he obeys, he’ll live. If not, he’ll be dead by morning.”
Jackie, visibly shaken, gasped. Angelo moved a little closer to her.
“That would be such a waste,” Angelo said. “I saved his life, you know. If I hadn’t
called the hotel and alerted them, he’d be dead by now.”
“How did you know he was at the hotel?” Jackie asked, cringing away from him.
She was really frightened now. How did they know Ron was at the hotel, what
room he was in…”
“We want to help you,” Bob interjected … “but you have to help us, too.” …
“There’s a lot of money missing,” Bob explained. “We’ve located 22 million but
there’s more. Documents that might tell us where it is are missing, too.” He took a
slow sip from his glass, and fixed his gaze on her. “We think you might know where
“No,” Jackie said, shaking her head vigorously….
“You know about the green book,” Bob went on, “maybe even where it is?”
She shook her head more vigorously than before….
~ ~ ~
The CIA’s former Chief of Litigation, John Peyton, arrived in Honolulu to take
Cable traffic was working overtime between CIA Headquarters in Langley and the
Hawaii station in the days and hours following the collapse of Bishop Baldwin.
Agents were pouring over the information and material they’d taken from the
offices. Most of the material was highly classified. Langley was very concerned.
Not only because of the loss of a major company asset, but of the possible
revelations that could result.
The press was easily steered away by Agency and government personnel who did
this better than anyone else on earth. All communication was classified Secret or
Top Secret, with special emphasis placed on finding the green book. Its contents
could prove extremely useful, but even more important, they could prove damaging
beyond belief to the Agency and the government.
Peyton was commended for the outstanding job he was doing in keeping Bishop
Baldwin files out of the hands of the court-appointed bankruptcy trustees,
Ron’s attorney and law enforcement investigators….
* * *
From BOHICA, by Scott Barnes, with Melva Libb, 1987:
From the book jacket:
In 1981, Scott Barnes was asked by a member of the Intelligence Support Activity
(ISA), a top-secret U.S. government organization (as revealed in TIME Magazine,
August 31, 1987) to participate in a mission to investigate reports of live American
prisoners of war in Laos. The government-sanctioned Operation Grand Eagle
confirmed and documented the existence of POWs. What follows is an incredible
story of one man’s attempt to tell the truth despite government interference.
Documents, photos, letters, names, dates, places and phone numbers, make this
true account as compelling as a fiction spy thriller. A top-secret mission,
photographs “destroyed during processing” by the CIA, suspicious deaths, bribery
and threats, criminal convictions on false evidence, coverups at the highest levels
of government, and official pressure to quiet the media and government agencies
add to the mystery.
This is not fiction. American fighting men languish in communist prison camps in SE
Asia – forsaken by the government that sent them there….
The Initial Contact
The Hope Chapel people in Maui, Hawaii, were just as sincere and comfortable to
be with as those I’d left behind in Hermosa Beach. For three or four weeks I
bummed around on the beach. Then one of the men told me about a possible
opening for a security consultant at a Wailea Beach resort where celebrities held
big parties and golf classics. Hired to pose as a maintenance man, doing repairs and
using a long stick with a nail on the end of it to pick up cigarette butts and trash, I
was there to insure that V.I.P. guests were not harassed or disturbed and to keep
an eye on company employees making sure they did not disturb the clients….
During my time of employment at the resort, a man named Rewald held a large
party. Double security – the resort’s and the government’s – was ordered. The
government security people were pointed out to me so I wouldn’t sound an alarm if
they were seen snooping around.
Little did I realize what a significant part Rewald would play in my own life in the
Back to Hawaii
An Investment Consultant named Ron Rewald was in jail in Hawaii, waiting trial in
November. I remembered the name. His firm, Bishop, Baldwin, Rewald,
Dillingham and Wong, a front for many major illegal CIA operations, had been
charged with swindling investors out of more than twenty million dollars. Rewald,
the one we were to call if we needed more money or equipment for Bohica, was
indicted by the Federal Grand Jury on one hundred counts of fraud, perjury and
tax evasion. I was to assess his mental and emotional condition and make sure he
didn’t talk too much about his previous government dealings.
Suspicious, I said to Stein, “You guys burned me on the Bo Gritz thing. How do I
know this isn’t another set up?”
“No, no,” he said, assuring me that in the past I had been dealing with agents who
were no longer with the agency and that the Gritz mess would clear up, given
My situation had certainly not improved by staying around fighting for truth. By
this time I was receiving a lot of flak because of a letter I had written to Soldier
of Fortune magazine in an attempt to correct the misinformation in their previous
article about me. … Perhaps it would be best for me to leave the mainland for a
Upon arrival in Hawaii, I looked up my pastor/friend Ralph Moore who had gone to
Kahnoe Bay a few months earlier to open another Hope Chapel….
“What are you doing here?” he asked, wide-eyed with surprise and smiling.
“I decided to come to work with you for a while. Help you start the church.”
“Great!” … “Come in and meet some of the new people.” Suddenly he stopped and
turned toward me. “You’re not here because of the Rewald affair, are you?”…
“Rewald? Who’s that?”
“Big CIA case here. The guy’s in prison waiting trial. It’s been on the front page
of the paper nearly every day. … It smells.”
Upon my suggestion Joan Griffiths, church secretary … agreed to allow me to use
her mailing address until I had my own, then invited me to start coming to her
home in Honolulu for Bible Study.
Some days later she met me at my hotel and drove me to her Honolulu residence.
Before we got out of her car, she warned me, “Scott, I have a gut feeling that
you’re over here because of the Rewald case. If you are, please don’t involve the
chruch. I’ll say no more.”
In order for me to get into the prison to see Rewald, the CIA saw to it that the
Department of Motor Vehicles of the State of Hawaii had marked “Christian
minister” as my profession on my driver’s license….
In the role of pastor, I had written Rewald several letters that he had answered.
This helped me get in to see him successfully, although the prison staff
commented that I looked too young to be a seasoned preacher….
This worked for a couple of weeks, but every time I signed, “Rev. Barns” on the
prison register my conscience would not let me rest. I felt like a hypocrite.
“Look, it’s not working,” my contact agent finally admitted to me. “You’ll have to
get a job as a prison guard in order to make sure Rewald doesn’t talk.”
“One week I’m a minister, then the next a prison guard. How’s that going to work?”
“Don’t worry,” I was told. Somehow it was arranged for me to be assigned as a
guard to Module 8, Oahu Community Corrective Center, the module where Rewald
was in high security protective custody….
During my nine-to-ten week stay in Hawaii, Pulitzer Prize author Sy Hersh came to
the University of Hawaii to lecture on his book aboutHenry Kissinger. As a result
of the questions asked by some of the persons in attendance, his lecture included a
discussion about Bo Gritz and confirmed that Operation Grand Eagle was an
official government mission. After the lecture I introduced myself to him and he
asked if we could talk further.
We met in the oceanfront coffee shop at the Royal Hawaiian Hotel and talked
about the Rewald case also. He knew the CIA was deeply involved, especially after
the Nugan/Hand bank collapse when a way for channeling large quantities of money
out of the Golden Triangle was needed.
All over the world press releases were implicating admirals, generals and the CIA.
Millions of dollars were disappearing. David Taylor of BBC did an extensive
investigative story on the Rewald exposé.
After a one-month-long career as prison guard, my contact agents met with me at
the Royal Hawaiian and gave me orders,“Rewald must be killed.”
Another Bo Gritz game after all! I should have known!
I hurried to my hotel room and began to pack. There was a knock at my door.
I opened the door. “Yes, sir?”
It was the Honolulu sheriff. He had come to serve a subpoena from the Attorney
General of the State of Hawaii. Now what do I do? I wondered, realizing that if
Stein had lied and this was a set-up, someone could kill Rewald, make it look as
though I had done it and get me for conspiracy to commit murder.
As soon as the sheriff had left, I phoned Attorney General Tany Hong. “What’s
this all about?”
“We want to talk to you about your position at the prison and about the Rewald
case. You were hired without any processing . Why was your photo never taken, no
fingerprints or ID made? …”
“Could I talk to you right now?” I asked, wanting to get back to the mainland as
quickly as possible….
In the meantime, the Attorney General had been called to the prison on an
emergency by the FBI, so when I arrived at the governor’s offices I was
questioned by Jim Dannenberg, Deputy State Attorney General about my
ministerial status and my current job as prison guard….
Then Deputy Dannenberg asked, “What happened on that mission to Southeast
Asia you claim to be part of?”
“Well …” I hesitated to answer.
Sensing my reluctance to talk to him, he said, “Oh, well, I’m not even the one who is
supposed to be questioning you. The Attorney General should be doing that. Go
back to your hotel. I’ll note on your subpoena you were here and tell the Attorney
General when he returns you will appear for the Grand Jury investigation.
That same day I received a call from an irate Attorney General Tany Hong. He
was upset that I had talked to anyone but him and warned I was not to talk to
anyone else about the case….
He gave me a December date for my hearing, warning, “You be here.” Knowing I
was under so much suspicion that even if I had done nothing wrong I could be in a
lot of trouble, I left my car and belongings behind, bought a plane ticket under an
assumed name and flew to LAX.
Give up? Why not!
Rewald, according to reports, attempted suicide, although he claims he doesn’t
remember doing it. Both of his arms were slit. The question I ask is, how could he
have cut his own tendons in one are then pick up a knife with that same arm and cut
the tendons in the other?
During the trial, General Hunter Harris testified that at Rewald’s approval he had
given Gritz funds for Bohica on behalf of the CIA. John Kindschi, CIA chief in
Honolulu and Jack Rardin had concurred with this Rewald/Harris decision. Rewald
was found guilty of fraud, perjury and tax evasion and was sentenced to 80 years
in Terminal Island Prison in California….
After I had worked as juvenile counselor at Kern County Probation Department
only about six months, Peter Jennings did an ABC news story that told about my
connection with Gritz and the POW controversy. The CIA filed a complaint with
the Federal Communications Commission against ABC. This was the first time in
U.S. history any such action had occurred.
During the hearings, Stanley Sporkin, General Counsel of the CIA (also counselor
for the CIA who wrote up the documents on the Iran-Contra affair) admitted I
had signed a secrecy agreement. It was then ABC admitted they had given the
tapes of my interviews with Koppel to the CIA and the case was closed….
All this bad publicity caused a great deal of excitement at my place of employment.
My colleagues kept making comments like, “Hey, we saw you on Peter Jennings” …
“Who are you really?” Our new director of Camp Owen, Jim Norton, called me to
his office. “What’s all this with the CIA?”
“I really can’t discuss it,” I told him. “Besides, it’s not pertinent to my work here.”
“Well, I don’t like it, and I’m going to do everything in my power to get you fired.”…
After only a couple of days, I was informed by Norton I had been fired. The
reasons included, among other things, failure to state my alleged CIA involvement,
not giving explanations for leaving my law enforcement jobs in Ridgecrest and San
Diego and for not giving a two-week notice when I resigned from the prison guard
job in Hawaii….
I appealed and there was a hearing in Superior Court, Bakersfield. Of course, the
media were there. Judge Sarah Adler ruled against me on everything except the
failure to give a two-week notice count. Following the hearing, T. Glenn Brown,
chief probation officer of Kern County whom I respect and admire, came to me.
“Scott, I must admit you’re one of the best probation counselors I’ve ever had in
Kernville. I mean that. I can’t reveal to you why we were forced to get rid of you
but I want you to know we had no choice.”
“But you’ve ruined my life.” I was bitter. “No income. No job.”…
I was not the only one who was deeply disappointed when I lost my employment.
Donna, who was expecting our second child at the time, felt if I had never pushed
on for truth about why the two men I had seen in Laos and the who-knows-how-many others they represented were never rescued, we could have settled down to
a peaceful normal life. I could have retained a stable nine-to-five job with a
A college had advertised for an instructor with considerable college background
plus experience in security, intelligence, and investigation. … I was thoroughly
surprised to receive a call telling me I had been selected as top candidate for the
Besides teaching at the college, I continued to travel in connection with further
investigation in the Rewald case, making investigative visits to China Lake,
Miramar Naval/Air Base in San Diego, trips to Edwards Air Force Base and to
Frisco for Federal and Rewald’s personally hired attorneys.
Convinced Rewald was innocent of many of the accusations and having been set up
once too often myself, I was anxious to clear my name and get the real story
One of the major reasons Scott Barnes will never be able to “get over” the
experiences of the last five or six years is, of course, his memory of the two men
he and Jerry Daniels photographed left behind in Laos and the impact and sacrifice
this experience has caused.
But there is another reason as well. Certain people in our government will not allow
him to forget. Although he has been warned time and time again to keep his mouth
shut and has been told “I don’t know you … Forget this ever happened,” he
continues to receive calls and visitors from official governmental divisions pressing
him to reveal names and information about issues he does not even want to be
On January 3, 1987, Scott received a phone call from Mike Figpan from the U.S.
government office of Personnel Management Investigations, (619) 293-6170.
Figpan wanted to visit and discuss various cases in connection with General Vang
Pao. While with Scott, Figpan informed him someone in the government had issued
an all States order that Scott Barnes was never to be employed in any government-related job, the main source of Scott’s income. When Scott related this to Ross
Perot, he found it hard to believe anyone in government would do such a thing, but
upon checking, found not only was it true but Figpan had lied about which branch of
the government he had represented.
Within the following days, several present and former key government officials
talked with Scott about the Iran/Contra affair, seeking any information he might
have that would shed light on this case.
On January 28, 1987, Scott received a call from his brother Brian. Two U.S.
Federal agents had entered his brother’s place of business looking for Scott.
Special Sr. Agent Bill Vissard and Keith Dunkel, Federal Badge #1593, wanted to
talk to him about arms smuggling from Indochina to Central America with
Lieutanant Colonel Bo Gritz during the time of the mission and about CIA-Vang
January 29, these two U.S. agents drove into Kernville in a vehicle with license
number IG25547 and served Scott with a subpoena to U.S. Federal Court in
Oklahoma City to testify in a secret grand jury hearing in regard to the alleged
“Remember me?” Dunkel asked. Scott told him he did not. “You and I worked
together on the Hell’s Angels case about ten years ago. Remember Jeff Rome?”
“He worked on the CIA Rewald case with you a couple of year ago. He’s now in
Vegas. I’m out of the Fresno office.” He discussed with Scott many aspects of
the upcoming case and possible connections with personnel in the Executive
On January 30, 1987, U.S. Federal Supervising Marshal Mike Nelson from Fresno,
California, called regarding what would be expected of him in the case. Having
referred Scott back to the U.S. Attorney, Scott spoke to Korotash once again.
Basically he was told “This is a secret criminal investigation into shipment of arms
and explosives. I am not at liberty to discuss this any further. You will be asked
questions of the Federal Grand Jury in secret. If you do not appear at 9:30 a.m.
on Thursday, February 5, 1987, U.S. Marshals will then be ordered by a Federal
Judge to pick you up.”…
The hearing was cancelled….
Soon David Taylor warned Scott that Frank Panessa, senior inspector for DEA
Internal Security for the Office of Responsibility, would be in touch with him.
Having met with Panessa for a couple of hours and feeling that he was legit, Taylor
encouraged Scott to talk with him. A meeting was set up for Tuesday, April 7,
1987. Panessa and Bonneville, his associate, met Scott at the airport, drove him to
a supposedly secured building in the area where they talked for nearly three hours.
(Scott has since learned that the room in which they met was bugged.) This
meeting with such a key governmental official, which Scott believed would be the
breakthrough he had been seeking for so many years, he now feels was another
Where can he be heard? Whom can he trust? Where can an American citizen turn
for protection and credibility when his government persists in attempts to destroy
him? Should Scott Barnes just give up and live with the haunting memories of
How will the American people respond to his story? To the POW disgrace?
How will Bohica end?
September 13, 1985
Hawaii Five-0 Star Testifies in Fraud Case
Lord figures in real-life drama
The Mail-Star, Halifax, Dartmouth, N.S.
Honolulu (AP) – Jack Lord, who starred in the TV series, Hawaii Five-0, testified
in the real-life drama of a former businessman accused of running a $22-million
Lord testified in federal court in the case of Ronald Rewald, who is accused of
scores of fraud, perjury and income-tax charges.
He said he had considered Rewald a friend, but denied Rewald’s contention that he
was a consultant for the now-defunct investment firm of Bishop, Baldwin, Rewald,
Dillingham and Wong.
Lord testified he was unaware that his name was listed on the company’s
organization chart, that one of the company’s offices was referred to by staffers
as Jack Lord’s office, or that his name was painted on one of the company’s
reserved parking stalls.
“If he (Rewald) told anyone that I was occupying an office…it would have been a
damnable lie,” Lord said.
“I hate to be used,” Lord added. “Anyone hates to be used. I would have
considered that being used.”
Prosecutors contend Rewald bilked millions of dollars from investors to finance an
Rewald says he set up and ran the company at the direction of the Central
The agency has admitted only a minor connection with the firm, which went
bankrupt in 1983.
October 2, 1985
Government Rests Case Against Rewald
By Charles Memminger, Honolulu Star-Bulletin
Yesterday, the government rested its case against Rewald after eight weeks of
trial in which 132 witnesses were called and thousands of pages of documents were
admitted into evidence.
But the main point of the government’s case was summed up in one word by its
first witness, Thomas Hayes, administrator of Rewald’s bankrupt company.
Asst U.S. Attorney John Peyton asked Hayes what was the business of Bishop,
Baldwin, Rewald, Dillingham & Wong.
“Scam,” Hayes replied.
It was Hayes who first called Rewald’s operation a scam and a Ponzi scheme. On
Aug. 4, 1983, five days after Rewald attempted suicide, Hayes walked the few
blocks from federal court to the Grosvenor Center and took control of the
Only moments before, angry creditors had forced Rewald’s company into
bankruptcy and Hayes had been named interim trustee. As trustee, it was his
job to secure all company assets, freeze all bank accounts and keep files from
Hayes said he found no accounting books for the company. Within hours of walking
into the office, he told his attorneys, James Wagner and Don Geiber, “This looks
like a scam,” Hayes testified.
It also didn’t take long to realize that much of the company money, which Hayes
said was investors’ money, was spent on Rewald’s personal possessions. Some 30
hours after the bankruptcy declaration, Hayes was back in court to get an order
stopping Rewald from transferring any of his personal assets.
Eventually, U.S. Judge Martin Pence froze all of Rewald’s assets, leaving the
one-time multimillionaire indigent.
HAYES SAID he then began a “long and arduous task” of tracking Bishop Baldwin’s
financial activities and searching for any hidden assets….
Hayessaid he was told that there were secret assets overseas invested by
Rewald was let out of prison, where he was being held on $10 million bail on state
theft charges, to go to the trustee’s office to show him where the hidden assets
But none was found, Hayes said.
Hayes then checked out rumors thatCIA money was funneled into certain
accounts– including those of former CIA field office chiefJack Kindschiand
retired Air Force Gen Arnold Braswell— throughChase Manhattan Bank. But
Hayes said he found that the money put into these accounts came from family
members or through explainable sources.
HAYES SAID he did notcheck out rumors that Rewald was involved ina
military arms deal with Taiwan, despite seeing telexes between Rewald and two
consultants concerning the alleged deal. The government contends such a deal
never went through.
Rewald claims the arms deal would have generated some $10 million in
commissions to pay off investors.
The only real assets of Bishop Baldwin were the office furniture and a few
business that were money-losers, Hayes said. Although $22 million had moved
through Rewald’s bank accounts, during Bishop, Baldwin’s heyday, at the time
Hayes took over the main bank account was overdrawn, he said.
Hayes said he has filed a claim against the CIA but does not expect to collect any
money from the agency. Other investors also have sued the CIA in an attempt to
regain their lost money.
REWALD CLAIMS the CIA set up and ran his company and is responsible for
the investors’ money. He claims he lived a lavish lifestyle for the CIA in
order to mingle with highly placed foreigners.
The CIA denies that but does admit it used Rewald for “light cover” for a few of
It claims it gave Rewald $2,900 for telephone and telex expenses….
From FreeAmerica, by Harry V. Martin, 1995:
THE CIA AND THE NAZIS
It has been a long and intriguing tale, almost unbelievable, but finally the events of
1983 have incontrovertibly collided with the truth of 1990….
What brought this picture more clearly into focus in 1990 was the recent
publication of a book written by the Emmy award-winning producers of CBS’s 60
Minutes, Monika Jensen-Stevenson and William Stevenson. The book,Kiss The
Boys Goodbye, does not mention the main characters that played a multi-million
drama in Napa seven years earlier, but it does provide the missing pieces of a
complex puzzle involving international intrigue, murder, bankruptcy, money
laundering, covert CIA operations, and the loss of homes and money in Napa. . . .
It is about a man called Robert W. Jinks, a Napa attorney, a trustee and a
financial and real estate speculator. Close to $3.4 million … was lost when both
Jinks and his Hawaiian counterparts collapsed.
It is a similar story to LandVest, in which a barge carrying 56 tons of illegal drugs
was seized in San Francisco Bay. After the Drug Tug bust, LendVest and Joseph
Matthews Winery financially collapsed. This was followed by personal
bankruptcies of various principles associated with the scandal. The domino theory
also applied in the Jinks case.
Jinks promised investors a 20% return on their investments. Many investors
mortgaged their homes to invest in Jinks’ scheme . . . The money that Jinks raised
from Napa homeowners was funneled to a company called Bishop, Baldwin, Rewald,
Dillingham & Wong (BBRDW). . . .
Jinks had claimed at the time of BBRDW’s demise and his subsequent personal
bankruptcy, that BBRDW was a front for the Central Intelligence Agency. Few
people in Napa really bought Jinks’ story. They only focused on their personal
losses. Jinks also lost his home.
Kiss The Boys Goodbye does not mention Jinks’ name . . . But it does provide
documented proof that Jinks was telling the truth. BBRDW was a CIA operation
used to finance covert operations in Southeast Asia and South America. One of its
principles, Ronald H. Rewald, is now serving a life term in federal prison and was
targeted for assassination, according to Kiss The Boys Goodbye. Rewald had a long
CIA connection and has served both in the field and in worldwide financing
operations, even though he had no financial background or expertise. [Sounds like
he should have been a Bishop Estate trustee.] . . .
During this time period, Congress was becoming more critical of CIA operations
and was commencing to be more cautious on what was funded. Inside Job: The
Looting of America’s Savings and Loans indicated that the CIA was laundering
drug money through banks and other financial institutions during the same period
of time Jinks and BBRDW were involved in virtually “stealing” the money of
innocent Napa investors and financing covert CIA operations. . . .
In Sept 1983 BBRDW collapsed, jeopardizing Napa investments in the company,
placed there by Jinks. Approximately 400 people had invested from $10 million to
$12 million in BBRDW. At the time of its collapse, the Hawaiian firm only had $2
million in assets. Rewald, who attempted suicide after the financial collapse of
BBRDW, was convicted of embezzlement.
He received an extremely unusual sentence from the court (a court that sealed
all his records): life in federal prison.
In contrast, former LendVest Trustee Charles Duck received a 27-month federal
prison sentence for embezzling at least $2.3 million.
Rewald is currently serving that sentence on Terminal Island. The financial
collapse of BBRDW was investigated by the IRS, SEC and the FBI, all agencies
that would normally conduct such an investigation. However, the CIA was also part
of the investigation. The CIA, by law, has no domestic authority . . . BBRDW
records were sealed at the request of national security officials – again a very
unusual action. Even the prosecution of the case was rather strange.
“The really fantastic thing was that Rewald’s prosecution was led by a former
CIA man who left the agency two weeks before Rewald was indicted. Then he
turned up as Assistant District Attorney on the case. He cut off the line of
inquiry that might embarrass the CIA, and one result was that no documents
relating to the POW/MIA issue never got into the public domain in court…”
Certain evidence was not exhibited in court; all the same, the Chief District Judge
Harold M. Fong, ruled: “They relate to the highly emotional issues of the missing-in-action and prisoners-of-war,” the book states.
Under truth serum, a CIA operative told 60 Minutes that “the CIA hired him
to kill a crook namedRonald Rewald, who was also hired by the CIA to run a
bank that laundered drug money. But the crook took the agency for a ride.
He’s in jail and threatening to tell all.”
The operative said he was ordered to silence Rewald….
BBRDW was the successor to the CIA-operated Australian Nugan Hand Bank.
The Nugan Hand Bank fell in 1979 when one of its founders, Francis John Nugan,
was shotgunned to death– Australian police reported that a “CIA calling card” was
found on the body– and the other founder,Michael Jon Hand, disappeared.
“Prominent American military and intelligence figures had been associated with
Nugan Hand. The same names were mentioned in connection with the financial
institution’s successor, the Hawaiian investment firm known as BBRDW,” Kiss The
Boys Goodbye states.
BBRDW was laundering drug money from the CIA in its guns-for-drugs covert
operation. These funds were also used by the CIA for assassinations of
supporters of Asian and South American left-wing governments, according to
the60 Minutesproducers and the BBC….
But who was this man, Rewald?
Rewald, according to a host of books, was definitely a CIA operative. In fact, his
attorney, Dan Sheehan … stated in a radio program on Nov 4, 1990, that Rewald
was definitely a CIA operative. . . .
Ted Greenburg, a CIA representative objected to the judge providing Sheehan
with a security clearance. He said that it was an outrage because Rewald would be
allowed to tell Sheehan “all kinds of national security stuff.” After the judge
provided Sheehan with the clearance, Rewald opened up to him.
“So Rewald just unloaded all this stuff. This included the documents which showed
that Bo Gritz was getting letters of recommendation directly from General Staff
officers recommending him for this mission (the search for POWs in Laos) and the
money was all handled through Rewald’s office,” Sheehan said in the radio
“One of the things that Rewald told me was that he was told to come to Colorado
to pick up this huge suitcase full of cash. The cash had been laundered through
OTC NET, the over-the-counter penny stock exchange that is in Denver. Rewald
didn’t know it, but it turns out that the money came from cocaine trafficking. He
picked up the suitcase full of cash and he was told to fly to a particular place in
Uruguay and go to a specific hotel. He brought the money into the hotel and set it
down in the lobby.
There waiting for him, were Licio Gelli and Klaus Barbie.
The money was to pay for the Exocet missiles. Heinrich Rupphad cut the
Who are these people and what is the importance of the Exocet missile? The
missiles purchased at that meeting were sold to Argentina at the time of the
Falkland Island war. It was used to sink a British troop transport in May 1982,
killing hundreds of British sailors and soldiers. … It is a French-made weapon by
Aerospatiale. . . .
Known as the Nazi butcher of Lyons, France during World War II, Barbie was part
of the SS which was responsible for the torture and death of thousands of French
people under the Germany occupation. . . .
In order to escape from Europe after World War II, top ranking Nazi officials
had to pay out 40% of all the money they had accumulated during the war. Gelli
collected the funds.
Barbie did not have to part with any of his ill-gained riches– his 40% share was
paid to Gelli by the U.S. Counterintelligence Corps, which employed Barbie in
espionage work until Feb 1951….
The philosophy behind the U.S. intelligence support of Nazi war criminals was that
they could be used to spy on the Communists. … The Nazis had the organization
intact in Europe and it was deemed expedient for the U.S. intelligence to keep the
During the war, Barbie had deported Jews to death camps, tortured and murdered
the resistance fighters who fell into his hands, and served as the political Gestapo
in Nazi-occupied Lyons. At war’s end, Barbie fled back to Germany, went to work
for the U.S. and eventually fled to South America with the permission and financial
support of the United States.
In Bolivia, Barbie went under the name ofKlaus Altmann, an important business
Even in South America, Barbie’s murderous activities did not cease. As a member
of Fiancé of Death, he participated in the murder and torture in a small tin-mining community near Oruro in Bolivia. To avoid attracting attention to
themselves, the Fiancé of Death would drive into villages or working class areas in
ambulances with red crosses marked prominently on the vehicles and carry off
their victims, most of whom were never seen again….
A Nazi-hunter eventually illegally captured Barbie in South America many years
later. Barbie was bound and taken back to Europe to stand trial.
This is only one individual in the long line of Rewald connections…
Head of a 2400 member secret Masonic Lodge, P2, a neo-fascist organization in
Italy that catered to only the elite, Gelli had high connections in the Vatican, even
though he was not a Catholic. P2’s membership is totally secret and not even
available to its Mother Lodge in England. Gelli was responsible for providing
Argentina with the Exocet missile. He was a double agent for the CIA and the
KGB. He assisted many former Nazi high officials in their escape from Europe to
He had close ties to the Italian Mafia. Gelli was a close associate of Benito
Mussolini. He was also closely affiliated with Robert Calvi, head of the scandal-ridden Vatican Bank. Calvi was murdered. Gelli’s secret lodge consisted of
extremely important people, including armed forces commanders, secret service
chiefs, head of Italy’s financial police, 30 generals, eight admirals, newspaper
editors, television and top business executives and key bankers– including Calvi. . . .
The Anselmi Commission was established by the Italian Parliament to investigate
Gelli, who escaped to Switzerland, was arrested, and allowed to escape again to
South America. No one really wanted Gelli in custody because he was a friend of
Presidents, Popes, assassins, Communists, Nazis and several heads of state, along
with having a special relationship with the Central Intelligence Agency. . . .
Gelli worked both sides. He helped to found the Red Brigade, spied on Communist
partisans and worked for the Nazis at the same time, a double agent. He helped
establish the Rat Line, which assisted the flight of high-ranking Nazi officials
from Europe to South America, with passports supplied by the Vatican and with
the full acknowledgment and blessing of the United States intelligence community.
While on the one hand, the U.S. participated in the war crime tribunals of key Nazi
officials and maintained an alliance with the Communist Soviet Union, secretly the
U.S. was preparing for the cold war and needed the help of Nazis in the eventual
struggle . . . Gelli’s agreement with U.S. intelligence to spy on the Communists after
the war was instrumental in saving his life.
He was responsible for the murder and torture of hundreds of Yugoslavian
partisans. . . .
The Operations Research Office of the Pentagon was doing historical research
into the use of native collaborators by the Nazis in the hope of obtaining
information of value in the event of an American invasion of the Soviet Union. An
ex-army sergeant named Henry A. Kissinger was one of the ORO consultants.
Kissinger had served with the 970th CIC unit in Germany, where his specialty was
identifying Gestapo and SS officers hiding out among the civilian population.
Klaus Barbie was one of those hiding out. Gelli, through American financing,
helped many high-ranking Nazis escape to South America after their services were
used by American intelligence.
The Vatican provided support to Nazis and Fascists because the Communists were
the real threat to the Church’s survival. The Italian Communists would have taxed
the Church’s vast holdings and the Church has had a dismal experience with
Communist governments throughout the world– where religious freedom was
Gelli was well-connected with the Vatican from the days of the Rat Line and he
worked for American intelligence, as well. Gelli formed the P-2 Masonic Lodge …
and it was supplied with a sum of $10 million a month by the CIA. Its membership
was a Who’s Who in the intelligence, military and Italian community.
So prominent was Gelli’s influence, that he was even a guest of honor at the
1981 inauguration of President Ronald Reagan….
The Anselmi Commission Report claims that Gelli was connected to the death of
Giangiacomo Feltrinelli, a left wing publisher. Gelli was also accused in the Report
of Financing the Black Order which killed 16 people and injured 88, a Milan bombing
at the Piazza Fontana.
There were other bombings: at Rome’s National Bank of Labor and at the
monument of King Victor Emmanual II.
It was Gelli’sRed Brigadethat kidnapped and murdered Aldo Moro, the head
of the Christian Democratic party and soon to be president of Italy….
Gelli used blackmail in order to gain prominent members of his P-2 lodge. Its
membership is estimated at 2400 members, including 300 of the most powerful
men in the Western World. He was a close friend of Pope Paul VI, Juan Peron of
Argentina, Libyan Dictator Muammar el-Qaddafi, and many high officials in the
Italian and American governments. He is also reported to have had some financial
dealings with the George Bush for President campaign.
Gelli and his P-2 lodge had staggering connections to banking, intelligence and
diplomatic passports. The CIA poured hundreds of millions of dollars into Italy in
the form of secret subsidies for political parties, labor unions and communications
businesses. . . .
This covert financing was exposed by the Prime Minister of Italy in a speech to
Parliament. He indicates that more than 600 people in Italy still remain on the
payroll of the CIA.
Information Report No. 446 informed a magistrate in Trent of the following
“It wasTed Shackley, director of all CIA secret activities in Italy in the 1970s,
who presented Alexander Haig to the head of the P-2 Masonic Lodge. It was with
the authorization ofHaigandHenry Kissingerthat Gelli recruited 400 high
Italian and NATO officials into his lodge in the Fall of 1969.”
Rupp has been convicted of bank fraud. He was an operative for the CIA and is
deeply involved in the Savings and Loan scandal. A federal jury has indicated they
believe testimony that Rupp, the late CIA Director William Casey (then Ronald
Reagan’s campaign manager), and Donald Gregg (now U.S. Ambassador to South
Korea), flew with George Bushto Paris in 1980, during the election in which Bush
was on the ticket with Reagan.
The testimony states that three meetings were held on Oct 19 and 20 at the Hotel
Florida and Hotel Crillion. The subject? According to court testimony, the
meetings were to sabotage President Jimmy Carter’s reelection campaign by
delaying the release of American hostages in Iran. The hostages were released on
Jan 20, 1981, right after Reagan and Bush were sworn into office.
Iran was promised return of its frozen assets in the United States and the
foundation for the Iran-Contra deal was set into motion….
Rupp also had dealings with the Aurora Bank in Denver in association with New
York’s Lucchese crime family. Rupp was convicted of bank fraud. He could have
received 42 years in jail, but because of his ties with the CIA and the President,
he was sentenced to only two years in jail….
Rupp has been a longtime CIA contract pilot. He flew for Global Air International
out of Dallas. That airline is connected to the Iran-Contra scheme and also to Air
America, an airline used by the CIA to smuggle drugs out of Southeast Asia.
According toInside Job: The Looting of America’s Savings and Loans, “When
Rupp was convicted of bank fraud in connection with the Aurora Bank case, a
witness for the defense told the judge that the CIA commonly used financial
institutions to launder drug money or scam loans before sending the money off to
the Contras or to various other covert purposes….
* * *
It was Rupp, Barbie and Gelli who met with Rewaldin South Americafor the
purchase of the Exocet missile.
But that is only one facet of Rewald’s clandestine world, a world tied closely to the
CIA, and could even explain why Rewald has been put away for life:he knows too
* * *
Rewald’s operation is described in The Crimes of Patriots as follows: “While
covering for (CIA) agents and taking in millions from duped investors, Rewald was
hardly living in the obscurity that people like Royal Commissioner Steward say they
expect of the CIA. Rewald spent about $400,000 a month to keep lavish offices
around the world and a high-salaried staff of prominent Hawaiians, including
lawyers and CPAs. He spent $250,000 a month to please himself and his family.”
He owned a fleet of 12 limousines and other luxury cars worth up to $50,000 each,
including an Excalibur, a Jaguar, two Mercedes, a Rolls, a Continental, and three
Cadillacs. He hired chauffeurs not just for himself but also to take his five
children to baseball practice, or to lessons with their $9,000-a-month private
tutors. Rewald acquired title to his first Honolulu home, a villa, from former
Cambodian Prime Minister Lon Nol.
The CIA agent who hired Rewald became a consultant to BBRDW after his
retirement. Even Rewald’s blond executive assistant, former winner of the Miss
Teenage America pageant, worked with the National Security Agency before
being employed by BBRDW. Her resume shows she handled highly sensitive
cryptoanalysis, missile trajectory data, and space data.
One of the lawyers for BBRDW was Lt. Clarence Gunderson, a reserve Air Force
intelligence officer. When BBRDW collapsed, he was back in uniform giving
intelligence briefings to the Commander-in-Chief of the Air Force’s Pacific
Command and dealing in highly classified Soviet data. BBRDW was filled with
intelligence officers and high ranking retired military intelligence officers.
According to Crimes of Patriots, “Clients who lost fortunes in the Bishop, Baldwin
fraud say Rewald would call them aside privately, either in his office or at his
lavish parties at the private polo club he bought, and would point out the high
government officials around. He would single out CIA and FBI personnel for
particular attention. He would indicate that Bishop, Baldwin was part of the CIA,
though cautioning the clients never to repeat it. The CIA connection proved their
money was safe, he assured them.”
“If you can’t trust the government, who can you trust?” they recall him saying.
In March 1996, Rewald gave me several boxes containing hundreds of CIA
documents generated from the CIA’s secret operation in Hawaii. Within these
boxes I found highly sensitive material, including notes that Rewald had made while
the titular head of BBRDW.
Certain notes and information provided to me by Rewald divulged CIA drug related
activities, including drug money laundering. As I gathered from looking over the
material and by talking with Rewald, he was unaware of many of the CIA activities
originating out of BBRDW.
Deeply imbedded in these documents was an envelope labeled “Attorney-Client
information.” The information was dynamite, divulging secret bank accounts set up
for well-known politicians and covert agency operatives.
The notes in the envelope listed high-level people with secret CIA-funded
The names on the left side of the notes were the aliases Rewald used to identify
the people on the right for which there were secret bank accounts opened and
funded by the CIA through BBRDW:
Irwin M. Peach . . . George Bush
Mr. Bramble . . . George Bush
Mr. Apan . . . Robert W. Jinks
Mr. Grey . . . Robert Allen
Farrah Fawn . . . Jackie Vos
General Shake . . . Arnold Braswell
Mr. Branch . . . Richard Armitage
Mr. Denile . . . William Casey
Slimey Affirm . . . Stanley Sporkin
Captain Perjury . . . Ned Avary
Attorney Doright . . . Robert Smith
Arnold Braswell was commander-in-chief of U.S. Pacific Air Force (CINCPAC).
Rewald’s notes also indicatedthat fictitious names were used to hide money for
B.K. Kim, Philippines President Ferdinand and Imelda Marcos, among others.
Richard Armitage was U.S. Assistant of Defense and reportedly heavily involved
with drug trafficking while in Vietnam.
William Casey was Director of the Central Intelligence Agency.
Stanley Sporkin was legal counsel for the CIA, and then a federal judge in
Washington, D.C. In this capacity, he unlawfully dismissed one of my federal
actions seeking to expose the government corruption in which he was involved.
These notes, written by Rewald over ten years earlier when he was head of
BBRDW, provided additional evidence of U.S. officials hiding their money in secret
bank accounts overseas. The accounts were in financial institutions in Hong Kong,
Switzerland, and the Caymans.
Information on another sheet that I found in Rewald’s papers revealed activities
engaged in by CIA agents embedded into BBRDW and its various subsidiaries.
These are the activities in which Rewald refused to get involved, including CIA
These notes revealed other activities that I hadn’t known about earlier. While
Rewald was hospitalized in Honolulu, sources kept him informed of some activities
being taken to remove and hide the funds from BBRDW and subsidiary accounts.
General Hunter Harris called President George Bush to alert him that the cover
on BBRDW had been blown, and wanted instructions as to how to proceed.
CIA head, William Casey, then called Robert W. Jinks, and told him to work with
Robert Allen. Jinks was then ordered to proceed to Texas to get bank account
numbers and then go to the Cayman Islands where the accounts were located.
Rewald’s notes indicated that someone from CIA headquarters at Langley, or an
associate of Robert Allen, eventually went to the Cayman Islands and moved
BBRDW’s funds to another offshore country. Robert Smith, who wasn’t directly
involved in the money transfer but aware something was going on, leared that a
General in Texas was to give Robert Jinks bank account information and the he,
Robert Smith, was to go to the Caymans to retrieve the hidden money. General
Arnold Braswell was to assist in this removal, but because of stress and his
drinking problem, he was too unreliable and was not used.
Similar efforts were being taken to remove funds from BBRDW and subsidiary
accounts in Hong Kong and Switzerland. About this time, funds were being
received from secret arms sales and Rewald said that Ned Avary diverted these
funds away from BBRDW.
While these events were taking place, Robert Allen sought to force Jackie Vos to
disclose the whereabout of the Green Book that listed these accounts so as to
destroy the records….
Rewald Invited to Washington by President George
Rewald wrote in his notes that he had met President George Bush twice in Hawaii,
and had been invited to meet with the president in Washington for lunch or dinner,
along with someone that Rewald identified as “Brady.” All of these people were
described in Rewald’s notes by their code names, but a separate sheet of paper
identified who they were, except for “Brady.”
I asked Rewald about these, and he stated that he made the list of names with
secret offshore bank account numbers. I asked Rewald, “Referring to the
fictitious names for offshore bank accounts, do I correctly understand that you
made up the alias names yourself?”
You mean, Peach for Bush? That was done well after the collapse [of BBRDW]
and was done to disguise my reference to the accounts so that someone picking
it up wouldn’t know what I was talking about. These people certainly had
Organized Crime, by nature secretive and shrouded in a certain mystique, is
difficult to study, in the Islands or anywhere else.
Greatly complicating the effort to assign a proper weight to organized crime in
Hawaii have been unproven allegations, whispered for years and then made public
from 1977 on, that a close associate of both of Hawaii’s Democratic governors was
the leader of organized crime in the Islands.
In the end, the power position to be accorded organized crime in Hawaii …
depended heavily on whether that friend of John Burns and George Ariyoshi,
Larry E. Mehau, was or was not directing organized crime. . . .
~ ~ ~
In writing about organized crime in Hawaii, a given topic must often be left
hanging, the full picture unclear. As of early 1985, the greatest enigma of all
remained: what was Larry Mehau vis-a-vis the syndicate?
Gov. Burns in 1970 appointed Mehau to the powerful State Board of Land &
Natural Resources. At about the same time, George Ariyoshi launched his first
campaign for a statewide office, lieutenant governor, and he named Mehau his
statewide coordinator. . . .
In Ariyoshi’s races for governor Mehau played a major role . . . Ariyoshi in 1974
reappointed him to a second BLNR term . . .
There were two camps of opinion apparently believing with equal certainty that
Mehau was or was not the top man in organized crime in Hawaii….
To illustrate how widely opinion diverged on Mehau, consider the following:
In Feb 1977, KHON-TV reporter Scott Shirai aired a story following up on a
heroin bust the previous summer . . .
Quoting unnamed “reliable sources,” Shirai said there were several prominent
Hawaii residents who were members of the heroin ring who had not yet been
arrested or publicly named.
He said one was “a member of a state board – the so-called ‘godfather’ of the
operation. Several meetings were held between this State board member with
those arrested in the bust, sometimes at the apartment of a well-known Waikiki
One of those arrested worked for this entertainer and was also directed to act as
a bodyguard for a candidate for statewide office in last year’s election. That
candidate was also seen publicly with at least one of those arrested.
Then, in June, a small newspaper on Maui picked up the ball on the “godfather”
question raised by Shirai. The Valley Isle created a major uproar by publishing
several stories claiming Larry Mehau was the “godfather” of all organized crime in
Mehau subsequently sued the paper for libel, as he did a number of other media
organizations that republished the allegations, as well as several individuals,
During the furor, two Republican politicians,Kinau B. Kamalii andD.G. “Andy”
Anderson … met with the then-chief of the Honolulu Police Department, Francis A.
Keala [later to be named as an interim trustee forKamehameha Schools] … to ask
him whether, in his opinion, Mehau was a syndicate godfather.
Anderson and Kamalii, talking to reporters later, could agree about Keala’s more
concrete statements concerning Mehau and organized crime.
To quote Anderson: “Keala described Larry’s position this way: He said that
whenever there’s a gang war or fighting between factions and they want to
talk it over, they call Larry and ask him to arrange a truce. He is used as a
mediator. I understand, too, that even the police have on occasions asked
him to intercede and bring peace to some situations.”
But Anderson and Kamalii diverged radically on what this might mean.
Anderson’s understanding was that Mehau was performing a sort of public service
by mediating syndicate problems, and that this in no way made Mehau a godfather.
Anderson also said that “the chief said Larry was nowhere involved in gambling,
pimping, heroin, drugs or anything else as far as the police know.”
Kamalii, on the other hand … asked rhetorically: “If that isn’t aiding and abetting
the underworld, what is? What is a godfather?”
For statements like these Kamalii was sued in 1977 by Mehau, who simultaneously
sued a host of news media organizations and several other individuals. Most media
defendants successfully sought dismissal on grounds that they were merely
republishing statements made by the Valley Isle.
KHON-TV on behalf of itself and its reporter, Shirai, settled out of court with
Mehau in 1978 for $42,500. . . .
September 15, 1988
Reed Releases the Documents on
U.S. Probe of Larry Mehau
By James Dooley, Honolulu Advertiser
State Sen. Rick Reed, co-defendant with City Prosecutor Charles Marsland in a
libel suit filed by Hawaii businessman Larry Mehau, yesterday released to the
media some 100 pages of laws enforcement “intelligence reports” concerning
Mehau, some of them dating back to 1974.
Reed said the documents “point to Larry Mehau as the godfather” of organized
crime in Hawaii. But Mehau’s attorney David Schutter, said the documents are “a
joke” – unsubstantiated collections of “spurious” and anonymous charges. He said if
the anonymous charges had any merit, Mehau long since would have been indicted….
Reed said yesterday he has repeatedly warned the public about the “godfather.”
“But too many politicians, bankers, labor and business leaders, as well as judges and
members of the media, have continued to maintain friendly ties with Mehau,” Reed
The bulk of the reports released by Reed are intelligence reports written by
agents of the U.S. Drug Enforcement Administration between 1974 and 1979.
Several of them state categorically that Mehau – a former police officer who
now runs one of the largest security guard firms in the state – is the head of
organized crime in Hawaii….
FromPhilippine Daily Inquirer, 10/31/99:
. . . A surprise witness is expected to corroborate industrialist Enrique Zobel’s
claim that the late strongman Ferdinand Marcos gave gold bars worth $1 million
to each of his favored men….
Amid a flurry of denials and verbal attacks sparked by his controversial deposition
to Senate investigators, Zobel yesterday stuck to his story as he ended his third
day of testimony.
He also said he learned that Marcos allegedly gave the gold bars to former
President Fidel Ramos, Sen. Juan Ponce Enrile, the late Gen. Fabian Ver and the
late Rep. Floro Crisologo between 1960 and 1970….
Before he died in 1989, Marcos also allegedly told Zobel that he had given “a small
share of the gold bullion” and gold Rolex watches to 12 people. The so-called “Rolex
12” were allegedly the key strategists of martial rule….
Zobel, who was paralyzed from the neck down after an accident in 1991, yesterday
put his thumb mark on his 69-page deposition at the Philippine consulate.
The last three days were an ordeal for the 72-year-old businessman who answered
senators’ questions for several hours while strapped to a wheelchair….
* * *
Deposition of Mr. Enrique J. ZobelBefore the Senate Committee on the
Accountability of Public Officers and Investigations and Committee on Banks,
Financial Institutions and Currencies, at Philippine Consulate, Honolulu, Hawaii, on
Oct 27, 1999:
THE CHAIRMAN. . . . Earlier, we also heard that you had communicated to Mr.
MR. ZOBEL. Yes. . . .
THE CHAIRMAN. All right. And then … he also told Chuck, “Nag-usap na rin kami
nung Big Hawaiian, OK no planchado na.”
MR. ZOBEL. Now, the Big Hawaiian was here a while ago, his name is Larry Mehau.
THE CHAIRMAN. Ah, so Larry. So, you are referring to Larry Mehau?
MR. ZOBEL. Larry is here now. You could ask him directly, if Bongbong talked to
THE CHAIRMAN. Yes, we will come to that. Now this Inigo name which is
mentioned here is your son, Mr. Zobel?
MR. ZOBEL. Yes, my son.
THE CHAIRMAN. And according to this letter of yours, you talked to Inigo and
you asked him if he indeed talked with Bongbong? . . .
MR. ZOBEL. No. We called him by telephone . . .
THE CHAIRMAN. So the Big Hawaiian refers to Mr. Mehau?
MR. ZOBEL. Mehau. He is here.
THE CHAIRMAN. So, probably we will ask … We will take a break from the
testimony of Mr. Zobel to ask Mr. Mehau if he is willing to answer a few questions
regarding this point? Mr. Mehau, will you please come over, Mr. Mehau? Consul
General, will you place Mr. Mehau under oath?
THE CHAIRMAN. . . . Kindly state for the record your name, Mr. Mehau, your full
MR. MEHAU. Larry Mehau.
THE CHAIRMAN. And how it’s spelled? M- e- h- a- u?
MR. MEHAU. Yes. . . .
THE CHAIRMAN. All right. Do you know a person by the name Noel C. Calixto,
MR. MEHAU. I know of him, yes.
THE CHAIRMAN. Have you had any occasion to talk with him in the last few days?
MR. MEHAU. Yes, we had breakfast together.
THE CHAIRMAN. And what did you talk about if you can share that with us?
MR. MEHAU. Nothing as important as it was discussed here. I informed him that
I was taking care of Mr. Zobel’s security.
THE CHAIRMAN. But there was no … anything that could be interpreted to mean
that you were talking with Mr. Calixto regarding the Marcos wealth?
MR. MEHAU. Not about the Marcos wealth, but about his testimony.
THE CHAIRMAN. His testimony?
MR. MEHAU. Yes.
THE CHAIRMAN. Unless Senator Flavier wants to ask further questions.
SEN. FLAVIER. I have a follow-up question for Mr. Zobel. . . .
THE CHAIRMAN. . . . All right. Thank you, Mr. Mehau. Thanks a lot.
SEN. FLAVIER. . . . Don Enrique, yesterday you alluded to an incident purporting to
show that there was threat to life referring, I think, to your children? . . . Could
you just corroborate because I have a follow up question.
MR. ZOBEL. Well, I have had calls from my very close friends of mine to tell me
that they overheard that they wanted to harm me or my children or my
grandchildren. And please, necessary precaution in Hawaii before the
SEN. FLAVIER. Who was your informant, Don Enrique, who told you? You are at
liberty to do so.
MR. ZOBEL. Well, I’m sorry, but he asked me please not to mention his name
which I promised.
SEN. FLAVIER. That would be fine. . . .
From Honolulu Star-Bulletin, 08/25/01:
What ever happened to … RONALD REWALD ?
Scam Artist Ron Rewald Now a Free Man
What ever happened to Ronald Rewald, the man who bilked hundreds of
Hawaii residents, including many business and social leaders, out of millions
of dollars in the 1980s?
Rewald was convicted in 1985 and sentenced to 80 years in federal prison for
bilking more than 400 investors out of more than $20 million.
On June 23, 1995, Rewald was released on parole from the Federal
Correctional Institution Terminal Island facility in California. He was not
eligible for parole until October 2015, but Asst. U.S. Attorney John Peytonbelieved a back injury Rewald suffered in prison may have been a factor in
his early release.
Rewald is eligible to receive $150 per month because of the injury, which
has confined him to a wheelchair.
Following his release, Rewald lived in Los Angeles and reported to his
probation officer in Studio City. The federal Parole Commission later
released Rewald from parole, and last September, the probation office
closed Rewald’s case.
“I no longer have a file on him. It’s been quite a while since I’ve seen him,”
said Randy Limbach, Rewald’s former probation officer.
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