October 13, 2000

U.S. Sues Harvard for $120-Million Over Use of Funds for Project in Russia

By BETH MCMURTRIE

The U.S. government is suing Harvard University and the directors of its premier development project in Russia for $120-million, claiming that the federal-aid program was mismanaged and used for personal gain.

In a civil suit filed in U.S. district court in Boston September 26, the government alleges that two managers of the program -- Andrei Shleifer, a Harvard economics professor, and Jonathan Hay, a former Harvard legal expert -- "abused their positions as

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