The U.S. Government filed a $120 million suit against Harvard University yesterday, claiming it was defrauded in a $40 million federal foreign aid program in Russia administered by Harvard.

The suit, announced by United States Attorney Donald K. Stern at a Boston press conference yesterday, culminates a three-year civil and criminal investigation into possible wrongdoing in the aid program.

Several individuals associated with the University, including a current professor, are also named as defendants.

The now-defunct Harvard Institute for International Development (HIID) administered the program.

The suit claims the University failed to provide adequate supervision for the program, allowing the other defendants to profit illegally by investing in the Russian economy.

The U.S. Attorney's Office maintains that Harvard's contract required it to closely supervise its agents but does not claim that Harvard profited in any way.

"The United States bargained for a level of administration and supervision," Stern said. "Harvard had obligations, as any grantee does, and it failed to [follow through]."

But Harvard said the government is expecting unreasonable levels of supervision, noting that even the U.S Attorney's office said the other defendants made significant efforts to conceal their actions.