PAINEWEBBER <PWJ> BROKER INDICTED IN SCHEME
A former broker at PaineWebber Inc was
charged by a federal grand jury with involvement in a 700,000
dlr money-laundering scheme, according to indictment papers.
    Gary Eder, 41, a former vice-president at PaineWebber, was
charged with conspiracy and falsifying brokerage records in the
two-count indictment.
    According to the indictment, Eder produced more brokerage
commissions than any other broker at PaineWebber, and was its
most highly-paid broker between 1982-86.
    Eder is charged with conspiring with unnamed supervisors at
PaineWebber to prevent the filing of Currency Transaction
Reports with the Internal Revenue Service. Federal law requires
that reports be filed with the IRS for any single cash
transaction in one day of more than 10,000 dlrs.
    Asked about the charges, a Painewebber spokeswoman said the
company had not seen the indictment and had no comment. She
said Eder was suspended January 22 and resigned from the firm
on february 17.
    David Spears, the federal prosecutor in charge of the case,
said Eder received cash from individual customers in amounts
ranging up to 70,000 dlrs at a time but avoided filing reports
by depositing the cash into the customers' accounts in amounts
just under 10,000 dlrs on several different days.
    If convicted, Eder could receive a maximum jail term of ten
years and 260,000 dlrs in fines.
   
 Reuter
