MOSCOW, July 16 - RAPSI. The police searched the residencies of Master-Bank executives and employees as part of its probe into a $60 million laundering case, the Interior Ministry reports.

"Draft documents and rough notes, electronic storage media, other items and records important for the criminal case have been seized," says the report.

Boris Bulochnik, who holds 5.5 percent in the bank outright, has been its board chairman since 2001.

Master-Bank was established in 1992. It is one of Russia's 100 largest banks. Its charter capital amounts to $104.08 million.

The report also says that the bank's Vice-President Evgeny Rogachyov has been formally charged and arrested.

Rogachyov is reported to be a member of an organized group suspected of illegally cashing out of two billion rubles ($60 million). The group offered businessmen a range of services, including tax evasion schemes and money laundering.

Rogachyov was detained in Sochi.

The Interior Ministry said the regulatory authority had been notified of the violations in Master-Bank's dealings.

Banking malpractices have also been uncovered in a number of other banks. Investigators have revealed that their management used fly-by-night companies to transfer funds under false payment orders to their accounts for subsequent cash withdrawal. The scheme operators charged a fee of 3 to 7 percent for their services.

Several group members are under investigation with regard to illegal banking operations.