This is also very disturbing behavior by Blutrich and the FBI as reported by Capeci:

FBI DEMOTES SHREDDER

WILLIAM K.
RASHBAUM JERRY
CAPECI
NEW YORK DAILY NEWS
Sunday, August 8, 1999, 12:00 AM
A top Mafia investigator for the FBI has been demoted to street agent for shredding notes he took during numerous interviews of a controversial FBI informer in the John A. (Junior) Gotti case, the Daily News has learned. Law enforcement sources said FBI agent John (Jack) Karst destroyed handwritten notes of statements he took from Michael Blutrich, a lawyer who owned the topless bar Scores in secret partnership with the mob. Karst, the subject of an internal probe, had been a supervisor for about three months. "It's a serious matter in the FBI, but there do not seem to be any adverse legal ramifications," said one federal law enforcement source. Sources say the FBI has located copies of some original notes that Karst destroyed but concede that the bureau will never know for sure whether Karst destroyed notes of which no copies were made. New York FBI boss Lewis Schiliro demoted Karst several weeks ago when Karst told a superior he had shredded notes he made during the undercover phase of the probe into the upper East Side strip joint, sources said. Law enforcement sources say Karst destroyed the notes to spare further embarrassment to himself and Blutrich, who allegedly downloaded child porn from the Internet while an undercover operative for Karst in 1996. During the Gotti investigation, federal prosecutors and state Organized Crime Task Force investigators feuded with the FBI over its use of Blutrich as an informer. Other sources, noting that the FBI would not have known about the notes if Karst hadn't mentioned them, contend that Karst's actions were stupid but not venal. "It's difficult to believe he would do something on purpose to subvert justice," one source said. Karst and FBI spokesman Jim Margolin declined to comment.
http://www.nydailynews.com/archives/news/fbi-demotes-shredder-article-1.853076