December 18, 1996

Paul Chernick, manager of Council of Jewish Organizations of Borough Park, is charged with conspiring to steal more than $600,000 in government money that had been awarded to Brooklyn social services group; Chernick and other officials of nonprofit group are also charged with diverting $15,000 to public official, reportedly Assemblyman Dov Hikind; Hikind is not charged and it is not clear that his receipt of money was illegal; criminal charges stem from Federal and state probe of organization, which aids job training, local businesses and immigrants; Hikind and Sen Alfonse D'Amato are major political benefactors; ties between Hikind's campaigns and COJO also noted (M)

Hundreds of police and Federal law enforcement raid South Bronx tenements, arresting 61 people and dismantling 12 violent drug gangs; 35 people were arrested earlier in three-month effort to break up criminal network and reclaim Jose de Diego-Beekman Houses, renovated tenement complex that has become headquarters for heroin and crack dealers; Police Comr Howard Safir says gangs stole about $100,000 worth of drugs a day and were responsible for at least 18 murders since 1989; police also close down several drug-related businesses; HUD official says operation was also aimed at protecting taxpayers' investment in renovated housing (M)

Brooke Astor, 94, says she plans to close Vincent Astor foundation and give away its remaining $25 million by end of 1997, interview; foundation has donated $175 million in New York City, with Astor actively involved in process; table; photo (M)

Federal Reserve votes to leave interest rates unchanged, concluding that inflation remains dormant despite sporadic surges in economic activity; Fed's decision was widely anticipated among economists and in financial markets; Commerce Dept reports that construction of housing jumped sharply higher last month, suggesting that economic growth could be picking up again in fourth quarter after cooling down substantially over summer; graph (M)

Wall Street firms, flush once again, at least for now, are indulging themselves with expensive Christmas parties; menu at $250-a-person party catered by Glorious Foods; list of $40,000 worth of flowers gracing tables at Windows of the World; photos; Jim Natoli, 28-year-old Armani-attired broker, enumerates other ways he and associates are spending money (M)