A PAINFUL PURGE AT THE FBI

By ERIK LARSON

THOUGH THE ATF IS THE PET DEMON OF THE MILITANT right, it is the FBI that handled the violent conclusions of two infamous confrontations: the 1992 standoff at Ruby Ridge, Idaho, and the 1993 siege in Waco, Texas. This week two House subcommittees will open hearings into the Waco assault; in the fall, hearings will delve into the FBI "shoot-on-sight" orders that some critics believe were responsible for the Idaho death of Vicki Weaver, the wife of white separatist Randy Weaver.

Last week FBI director Louis Freeh signaled his intent to cooperate with both investigations and to restore order and morale within the FBI. In a move that took a heavy personal toll, Freeh demoted deputy director Larry Potts, 47, a 21-year veteran long under fire for his supervision of the Waco and Ruby Ridge sieges. Freeh and Potts had been close friends and confidants since 1990, when they were detailed to Atlanta and successfully prosecuted a murderous mail bomber. They soon became the FBI's odd couple. Freeh was the steely, immaculately tailored prosecutor whom colleagues respected and feared; Potts was the kindly, slightly rumpled investigator agents admired and loved. Three months ago, when Potts was promoted to the No. 2 spot, Freeh boasted, "He is the very best the FBI has." Last week Freeh said Potts was "unable to effectively perform his duties" and reassigned his friend to the FBI's training division in Quantico, Virginia. Many agents felt that Potts was getting a bum rap; they believe he was one of the agency's staunchest defenders of civil rights principles.

Potts had seemed to redeem himself last April, when he expertly handled the FBI's investigation of the Oklahoma City blast. But last week he came under renewed scrutiny after another FBI official, E. Michael Kahoe, admitted destroying documents collected during an internal investigation of the Ruby Ridge episode. Now congressional investigators must confront several questions: Did Kahoe act on the orders of a superior, possibly Potts? And did the destroyed papers contain the identity of the official who issued the shoot-on-sight order? At least one FBI agent has charged that Potts gave the signal. Potts insists he did not.