evidence to support allegations that he misappropriated funds entrusted to him.

Stavisky, 54, who was recently indicted for embezzlement in the US, was accused of wrongly using $450,000 of other people's money for his own benefit.

The former lawyer's admissions were made in a sworn affidavit he presented at a Massachusetts Supreme Judicial Court hearing to disbar him last December. At the same time he denied that he had committed any criminal acts.

Stavisky, who part owns the Hamiltonian timeshare and condominium complex, admitted there were sufficient grounds to disbar him for misconduct.

His affidavit, which is a public document, states: "In October, 1989, I received $50,000 each from three prospective purchasers of condominium units in a real estate development in Bermuda for which I was acting both as attorney and developer.

"The funds were intended as deposits towards the purchase of units being developed at that time.

"I agreed with the investors to hold their deposits in a Bermudian escrow account and also that the investors would earn interest of nine percent per annum on their deposits.

"However, instead of holding the funds in a Bermudian escrow account, as promised, the funds were deposited into my own law office account in Boston.

"It is further alleged that, within one week after receipt of the funds, I knowingly and intentionally expended those funds for purposes completely unrelated to the condominium developer.'' This case forms the crux of the embezzlement charge for which he was indicted by a Grand Jury in Massachusetts on March 12.

A second case brought at his disbarment hearing involved $308,841 which he had been given by two of his clients.

Stavisky's affidavit states that a civil default judgment was entered against him on February 15, 1991, after he failed to answer a complaint brought by two of his former legal clients.

"They alleged that I had comingled and converted at least $308,841 which they entrusted to me and on which I was to, and did pay, interest for a period of time.

"Their complaint alleged that, after I received funds on their behalf, I did not deposit them in a separate account but, instead, I used their funds as collateral for loans I had taken on various real estate developments.'' "When I was unable to repay the loans, my clients' funds were seized by the lender.

"I acknowledge that I owe the funds claimed by the three investors and by my clients but I have no ability to repay them at this time.'' These two cases are separate from another allegation which led to the suspension from the practice of law in January, 1991.

The Massachusetts Board of Bar Overseers accepted Stavisky's resignation as a lawyer in the state last November.

Despite this, the Board went ahead with its action against him and he was formally disbarred the following month.

In his affidavit, Stavisky adds: "Although I make these acknowledgements, nothing in this affidavit is to be deemed a waiver of any kind with respect to the assertion by me of my constitutional privileges.

"I expressly deny any allegation that I committed any criminal acts and I submit this affidavit solely for use in proceedings before the Board of Bar Overseers of the Supreme Judicial Court and not for any other purpose.'' Stavisky's partners in the Hamiltonian development include Transport Minister the Hon. Ralph Marshall, Bermuda Broadcasting chairman Mr. Fernance Perry, LP Gutteridge boss Mr. J. J. Outerbridge and Hamilton businessman Mr. Ray White.