-Caveat Lector-

U.S. Probes Possibility of Russian Mob "Moles"-WSJ

NEW YORK, Sept 2 (Reuters) - U.S. authorities fear Russian mobsters may have
put "moles" inside major Western banks and securities firms to help them
launder money, the Wall Street Journal reported in Thursday's online edition.


These authorities told the Journal that information from informants and other
confidential sources suggests Russian organised crime rings "are making an
active effort to penetrate the U.S. financial system."

"They'll put people in sensitive positions in the bank, so they can utilise
them at some later point," the Journal reported, quoting a law-enforcement
official with a long history of investigating Russian groups in the U.S.

But there is little public evidence of such activity, these authorities told
the Journal.

The report of possible plants comes as U.S. and foreign law enforcement
officials are investigating the handling of billions of dollars allegedly tied
to Russian mobsters in what could be one of the largest money laundering
schemes in U.S. history.

The initial investigation centred on the Bank of New York Co. Inc. , but has
widened in recent days to include the possible diversion by Russians of
International Monetary Fund loans.

The Bank of New York has denied any wrongdoing and said that it is cooperating
with the authorities.

Moscow has called allegations of Russian involvement in money laundering a
smear by Westerners and denied that it has misused IMF loans.

The IMF has said it has no evidence that its cash was diverted.

In a separate story, the Journal said on Thursday that a report which is
expected later on Thursday concludes that Russian and U.S. officials had set
up an adequate system to prevent illegal diversion of surplus U.S. food aid to
Russia.

But the same report also is expected to warn that Russian organised-crime
syndicates "heavily infiltrated" Russian ports where the food shipments are
delivered.

((New York Newsdesk, + 212 859 1700)) REUTERS

Copyright 1999 Reuters.All rights reserved. This material may not be
published, broadcast, rewritten, or redistributed.

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