in Victoria Street, Hamilton, which was recently put into liquidation.

Files relating to Calariva Ltd. were among thousands of documents which Police seized during a raid on Mr. Charles Vaucrosson's law firm in April, 1991.

Calariva Ltd. is principally owned by Mr. Vaucrosson and other partners in his law firm.

Police are looking into the company as part of their long-running investigation into the affairs of former Bank of Bermuda personal banking manager Mr. Arnold Todd.

Mr. Vaucrosson had close business links with Mr. Todd, who is currently being sued for $6 million by the Bank of Bermuda.

Although the Police investigation into Mr. Todd is more than two years old, no charges have been brought against him.

The Calariva Restaurant was the only asset of Calariva Ltd, which acquired the business in 1990 with a $130,000 loan from the Bank of Bermuda.

The company is believed to have debts of more than $200,000 -- about $70,000 of which comprises an overdraft at the Bank.

It is this overdraft arrangement which is at the centre of the investigation, according to sources involved with the company's affairs.

There is concern that money used to run up the overdraft was not used in the running of the restaurant, as it should have been, The Royal Gazette has been told.

The money was used for other, non-related purposes, according to two independent sources.

Mr. Vaucrosson was not available for comment yesterday. Friends said he was in an overseas hospital after being taken ill while travelling by plane from Bermuda to Canada on Monday.

It was not known yesterday which hospital he was in or how serious his condition.

Meanwhile, Calariva's provisional liquidator, Mr. Gregory Haycock, of accountancy firm Butterfield and Steinhoff, has been trying to sell the restaurant.

Mr. Haycock said the restaurant was a successful business and was not responsible for Calariva's financial problems.

"It's an ideal family restaurant,'' said Mr. Haycock. "To the extent we can determine, the restaurant was profitable.'' A number of parties have shown an interest in buying the business, he said.

Mr. Haycock would not comment on the nature of Calariva's debts or say what had caused the company to be placed into liquidation.

MR. CHARLES VAUCROSSON -- principal owner of the Calariva Restaurant.