From Professional Football Player to Scam Artist
Between 1978 and 1983 Ron Rewald ran an investment firm in Hawaii. The firm declared bankruptcy in 1983 and was revealed to have been a Ponzi scheme which defrauded over 400 investors of more than $22 million. Rewald claimed that he had been operating the firm as a front for the CIA.
Rewald said he attended Marquette University, where he played football. His football skills attracted interest from professional teams in the National Football League and American Football League. He signed with the Cleveland Browns in 1965 and trained with the Kansas City Chiefs in 1966. In 1965 Rewald played halfback for the West Allis Racers in the Central States Football League while on a one year leave of absence from the Chiefs
INVESTING IN FRAUD
In 1978 Rewald established an investment firm in Hawaii called “Bishop, Baldwin, Rewald, Dillingham and Wong.” The firm’s name incorporated the names of Rewald and his partner Sunlin Wong, along with the names of three prominent kama’aina (long time residents) who had no connection with the business: Charles Reed Bishop, Henry Alexander Baldwin and Benjamin Dillingham.
The firm claimed that funds were guaranteed by the Federal Deposit Insurance Corporation up to $150,000, and that minimum returns of 20% annually were guaranteed. However, because the firm was not a chartered bank, it was not eligible for FDIC insurance.
In reality, the investment firm was a Ponzi scheme. Rewald used money from new investors to pay interest to earlier investors, all the while siphoning off funds to pay for his lavish lifestyle.
In 1983, the Internal Revenue Service began an investigation of Rewald when his firm’s false FDIC insurance claims were discovered. On July 29, 1983, Rewald attempted suicide at the Sheraton Waikiki Hotel, allegedly because the media was on the verge of exposing his background. Six days later, the company was forced into bankruptcy. Rewald was arrested on August 8, immediately after his release from the hospital, and was charged with theft by deception. He was held in lieu of $10 million bail, and faced 98 charges with a maximum of 400 years in prison. Sunlin Wong pleaded guilty and was sentenced to two years imprisonment.
THE TRIAL
Before the trial, Rewald presented a surprising defense, claiming that his business had been a front for the Central Intelligence Agency. In September, 1984 broadcast a two-part investigation supporting his claims. The CIA denied any connection and filed a formal complaint with the Federal Communications Commission. Rewald did present substantial evidence of the CIA connection and, at the CIA’s request; all documents from the federal proceeding against Rewald were sealed on national security grounds.
Rewald’s trial lasted for 11 weeks in 1985. 140 witnesses were called, including actor Jack Lord, who admitted to knowing Rewald, but denied that he was employed as a consultant. Rewald was convicted and sentenced to 80 years in prison.
In 1995 Rewald was released on parole from the Federal Correctional Institution on Terminal Island, California. Rewald remained on parole until 2001. As of 2010, Rewald lived in Los Angeles and operated a talent agency in Beverly Hills.
Editor Phil Robertson is an award-wining journalist and graphic designer. With a degree from the University of Florida’s School of Journalism, his career in journalism and publishing spans over 30 years, and includes positions as editor and publisher for several newspapers and magazines. During his career he has received a first-place award for investigative journalism from the Society of Newspaper Editors, and five ADDY awards for advertising design.
