$275,000 unsecured bank loan to a company he held a stake in, it has been claimed.

Mr. Todd, who is under Police investigation, is alleged to have issued the loan to Bermuda Excursions, a local tour boat firm run by Mr. Llewellyn Peniston which went bust last year.

Although Mr. Todd's name does not appear on the company's share register, it is alleged that his shares were held for him by under a nominee arrangement.

Mr. Peniston, who ran the company, has confirmed in writing to The Royal Gazette that Mr. Todd was a shareholder.

Another of the company's shareholders, Mr. Robert Thomson, said: "It is my understanding that Mr. Todd held a 20 percent stake under a nominee.'' Mr. Todd denied the allegation last night. He said: "I've never held any shares in that company. I was not a shareholder.'' Mr. Todd is alleged to have authorised the loan while he was personal banking manager of the Bank of Bermuda.

He was suspended from his job in December, 1990, and resigned three months later. The bank is currently suing him for $6 million.

Police are still conducting an investigation of bank lending activities carried out under Mr. Todd.

Bermuda Excursions, which owned the Bermuda Longtail boat, was put into liquidation last year with substantial debts. The boat was sold off privately, for a sum believed to be in the region of $100,000, with the proceeds going to the Bank of Bermuda.

It is understood that Mr. Todd also held a stake in Bermuda Travel and Shipping, again in the name of a nominee, this time a Mr. Varnel Curtis. BT&S, which was also run by Mr. Peniston, went bust last year with debts of more than $1 million.

Meanwhile, the extent of Mr. Peniston's debts became clearer yesterday when it was discovered that Bermuda Supreme Court had made awards of $776,060 against him over the last six months.

One of the awards, made jointly against his ex-wife Oreta, is believed to be in relation to a mortgage on a house in Southampton, which Mr. Peniston currently shares with his second wife Shelley Bascome, a former Miss Bermuda.

It is understood the Bank of Bermuda, which is owed $518,000 in total from two loans, is considering the forced sale of the property in a bid to recoup some of its losses.

Even if the property is sold, though, the bank still seems likely to lose a significant proportion of what it is owed.

Mr. Henry Smith, the bank's senior vice president for retail banking, would not go into details about the situation.

"Quite frankly, I'm not at liberty to comment on dealings with any customer, including Mr. Peniston,'' said Mr. Smith.

"In Mr. Peniston's case, it is obvious he has troubles. We cannot comment on what we're doing for him.'' Mr. Peniston's indebtedness is documented in the Supreme Court register of judgments.

On November 14, 1991, the Bank of Bermuda was awarded $243,360 plus costs against Mr. Peniston, 46, and his ex-wife Oreta.

On January 17 of this year, the Minister of Finance was awarded $154,700 plus $500 costs against Mr. Peniston.

On March 16, the Bank of Bermuda was awarded a further $275,000 against Mr.

Peniston.

The latest judgment to go against Mr. Peniston was made last Friday when his former business partner, Mr. Robert Thomson, won a claim for $103,000, plus costs.

All the civil cases, except that involving Mr. Thomson, were settled by default after Mr. Peniston failed to answer the cases against him.

Mr. Peniston may face criminal action in connection with his business interests. Police are currently investigating his affairs.

Mr. Peniston last night refused to comment on his debts.