The phones in Mr. Greenfield's office began ringing with calls from potential clients who thought they might be able to sue for damages over the purported scheme.

Justice Department officials declined to identify the company executives who were engaged in the purported scheme.

Adaptive Systems was apparently dealing with one of the companies involved in the purported scheme, the Control Data spokesman said.

The authorities said the mortgage bank's offices involved in the purported scheme operated as a branch of a foreign bank in violation of state and Federal laws.

Such written communications, including messages sent by E-mail, would be potentially critical evidence, because they could be used to establish which executives were connected to the purported scheme.

Shortly after the purported scheme, GAF sold five million shares of Carbide stock for $115 million in November 1986.

The indictment does not charge that GAF actually made a profit from the purported scheme.

She denied knowledge of the purported schemes - unaware that the Government had seized tape recordings from Princeton/Newport's offices that would undermine her story.

Federal authorities refused to say whether city employees were involved in the purported scheme, but they said the investigation was continuing.

But the indictment sug gests that despite the disarray in the warehouse, the purported scheme was anything but disorganized.