allegations made by Scotsman Mr. Robert Thompson, an investor in his businesses.

The allegations were made in reference to an ongoing Police investigation into Bermuda Vacations Ltd., in which Mr. Peniston holds shares, his lawyer Mr.

Delroy Duncan said.

Mr. Peniston has not yet been charged with anything, Mr. Duncan stressed. "He was only interviewed by the Police,'' he said, adding, "He strongly denies the allegations.'' Mr. Peniston was bailed at the Hamilton Police Station in his own recognizance.

He formed Bermuda Vacations and Bermuda Excursions after another company he was a major shareholder in, Bermuda Travel and Shipping, went bust last year.

Mr. Peniston told The Royal Gazette last month he was upset at accusations made by Mr. Thomson that he owed him money.

Mr. Thomson, a shareholder in all three companies, claimed he had not been paid back a cent of an $80,000 loan he gave Mr. Peniston to pump into BT&S.

And in lieu of interest, Mr. Thomson said he was given shares he did not want in BT&S and Bermuda Excursions which are now worthless because both companies are in liquidation.

Bermuda Vacations is still technically in operation but it has nothing to operate with since its only boat, the Reef Goddess , was sold to pay back its main creditor, the Bermuda Commercial Bank.

The Royal Gazette reported last month Mr. Thomson was involved in a legal action against Mr. Peniston to recover the full $80,000 loan plus interest.

MR. Llewellyn Peniston.