intended to develop condominiums at the Hamiltonian Hotel and Island Club.

Boston-based Stavisky, 54, who co-owns the development, was indicted by a Grand Jury in Massachusetts on Friday.

If convicted, he faces a maximum of five years in prison and $75,000 in fines.

It has also been revealed that Stavisky, a lawyer by profession, has been disbarred by the Massachusetts Board of Bar Overseers.

He was kicked out in December, 1992, nine months after he was suspended pending an investigation into his activities, said Massachusetts Attorney General Mr. Scott Harshbarger.

Stavisky is alleged to have received $50,000 each from three different investors, according to a statement released by the Attorney General's office.

"When soliciting the funds, Stavisky allegedly told the investors that he was in the process of developing 88 condominium units in Bermuda,'' it stated.

"Instead of holding the investors' monies in an escrow account as he represented, Stavisky allegedly converted all of the money to his personal use.'' Last night, however, Stavisky said he was confident his name would be cleared.

"This allegation stems from a disagreement which is several years old and, unfortunately, could not be resolved amicably.

"I cannot state strongly enough that, when a full hearing of the facts is presented, this matter will be quickly put to rest.'' He also denied that he had been disbarred, claiming instead that he resigned in November, 1992 -- one month before he was allegedly thrown out.

Nobody at the MBBO was available to confirm which party was being accurate.

Stavisky's criminal case is being prosecuted by Massachusetts Assistant Attorney General Mr. Jeremy Silverfine.

Stavisky is a minority shareholder in the Hamiltonian timeshare and condominium complex, which is backed by many investors both locally and in the United States.

His business partners include Transport Minister the Hon. Ralph Marshall, Bermuda Broadcasting chairman Mr. Fernance Perry and LP Gutteridge boss Mr. J.

J. Outerbridge.

Mr.

Perry was the only one of the trio who had not heard of Stavisky's indictment when contacted yesterday.

"I don't know anything about it,'' said Mr. Perry. "It's a very serious matter.

"In light of what you've just told me, I think any comments I make might prejudice the situation.'' Mr. Outerbridge, who said he had spoken with the defendant recently, said: "At this point in time, I think it would be unfair to Mr. Stavisky for me to say anything.'' He could not say what position, if any, Stavisky held in the Hamiltonian's complicated ownership structure.

Mr. Marshall also did not want to comment, but he confirmed that seven of the 88 condos had been completed since building started last June.

A fourth investor, local horse and buggy operator Mr. Ray White, could not be contacted.

It is the second time in five months that the Hamiltonian has been hit by bad publicity.

In October, two Americans fled the Island after being caught selling timeshare units without work permits following an investigation by The Royal Gazette .

The timeshare sales operation, which others who have worked there have described as a "shambles'', were temporarily suspended after the incident.

It is not known what effect Stavisky's indictment will have on his plans to buy the Bermudiana Hotel from Trusthouse Forte, which have been ongoing since 1990.

Stavisky wants to turn the currently non-operational hotel into condominiums and executive business suites.