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. Last Updated: 07/27/2016

Harvard Officials' Investments Probed

BOSTON -- Two Harvard University officials who advised Russian officials on the country's transition to capitalism are being investigated to determine if they profited from stock investments, The Boston Globe reported Friday.

Andrei Shleifer, an economics professor, and lawyer Jonathan Hay both worked for the Harvard Institute for International Development, which was paid $43 million by the U.S. Agency for International Development to advise President Boris Yeltsin and his economists.

Federal investigators want to know if Shleifer and Hay violated federal law by profiting from investments made in Russia's stock market by Shleifer's wife and Hay's girlfriend, the Globe reported, citing anonymous sources.

A USAID investigation concluded that Shleifer and Hay gained influence over Russian capital markets they were helping establish, and had "abused the trust of the United States government by using personal relationships ... for private gain." Institute rules prohibit employees or their families from investing in the country that they are advising.