May 23, 1997

Steven Rattner is named deputy chief executive of Lazard Freres & Co, inheriting Felix G Rohatyn's job as firm's lead banker; Rattner is seen as executive most likely to succeed Michel A David-Weill, firm's chief executive and chairman; appointed vice chairmen are Kendrick R Wilson 3d, Damon Mezzacappa, Norman Eig and Herbert W Gullquist; Lazard also names Steven J Golub chief financial officer, and forms management committee of David-Weill, Rattner, four vice chairmen, Golub and Melvin L Heineman, firm's chief administrative officer; photo (L)

Federal officials announce arrest of 20 people, including 11 corrections officers, for allegedly allowing top mobsters to turn new Federal jail in Brooklyn into Mafia social club where they plotted with visiting associates and dined in high style; prosecutors say bribed guards also abetted more sinister behavior, giving inmates access to computers with names of possible informers; ten-month 'Operation Badfellas' began after inmate seeking leniency reported blatant departures from prison routine; Inspector General Michael R Bromwich comments; Federal agents tell of inmates cooking pasta and using microwave oven; scheme allegedly involved two high-ranking mobsters who are not charged: Nicholas Corozzo, reputed successor to John Gotti, and Victor J Orena, head of Colombo faction; guards, including union leader, were allegedly paid $500 a week to arrange 'special visits' to Metropolitan Detention Center in Sunset Park; photo; food smuggled in included chicken cutlets, pasta, olive oil, garlic, vodka and wine (M)

New York City school investigators charge Brooklyn music teacher Michael Williams with sexually abusing 13-year-old female student in his locked classroom last month, and they criticize school's principal, Claude L Winfield, for failing to reassign teacher after learning of allegations; it is second case in week in which officials say that administrators in New York City public school failed to respond promptly in case involving charges of sexual abuse of student; two case prompt Mayor Giuliani to renew his call for police takeover of security at city's schools, move that Chancellor Rudy Crew opposes (M)

Dr Eric Braverman, Somerset County (NJ) physician who promoted alternative medicine on radio until his license was suspended in New Jersey last July, reaches settlement with state to have his license reinstated (S) (New Jersey Daily Briefing)

Russian Pres Boris Yeltsin abruptly dismisses Defense Min Igor N Rodionov and Chief of General Staff Gen Viktor N Samsonov, lambasting them for resisting spending cuts and restructuring of armed forces; invites television cameras to meeting of defense advisers to capture his scathing criticism; Yeltsin also reaffirms his goal of cutting military spending to about 3 percent of GNP by year 2000, from about 5 percent now; move is part of broader shift on economic policy, as reformers push for budget cuts, lower tax burden on industry and tighter controls over energy and transportation monopolies; Boris Y Nemtsov and Anatoly B Chubais, leading reformers, are named to Security Council; hard-liners in Parliament denounce military dismissals; photos; Gen Igor D Sergeyev is named acting Defense Min (S)