A Business School professor charged in a civil lawsuit with failing to pay a California bank nearly $2.7 million denied yesterday that his University salary was ever docked as part of a court order and said the case has been "totally resolved."

In March, 1992, Visiting Professor of Business Administration Marc J. Epstein and two codefendants were ordered by a Los Angeles Superior Court judge to pay $2,694,463.25 to Mitsui Manufacturers Bank.

The defendants had allegedly defaulted on a $1.5 million loan. At the time of the court's ruling, Epstein was a professor at the business school of Yeshiva University in New York.

Last month, exactly one year after the California court's decision, the bank again filed charges against Epstein in Middlesex County Superior Court, charging him with failing to satisfy the judgment.

The second suit also named Epstein's new employer, Harvard University, as a trustee in the complaint.

In a preliminary ruling, Middlesex Superior Court Judge Paul A. Chernoff ordered Harvard to withhold Epstein's salary for one week.

According to an official with Mitsui Manufacturers Bank, the Middlesex County court later ordered that Epstein's Harvard salary be docked. Harvard must pay the bank $13,000 annually in equal monthly installments, to be deducted from Epstein's paycheck, said the official, who spoke on condition of anonymity.

Reached by telephone yesterday at the Hamburger Bors hotel in Turku, Finland, the visiting professor denied the claim.

"I think that is incorrect...That is not true," Epstein said.

But Epstein acknowledged that the case against him has been settled.

"That was resolved months ago," said the visiting professor, who is in Finland attending a conference. "There is nothing going on at the court as far as I'm aware."

Epstein declined to comment on the nature of the case, other than to say that he did not take out a loan from Mitsui Manufacturers Bank.

"I guaranteed a loan for someone else," Epstein said. Named in the original suit as co-defendants along with Epstein are Western Consulting Group Inc., and Western Business Investors Inc., both California corporations.

Epstein said last month's action, resulting from an ex parte motion brought by the bank, did not hold up his paycheck because he was not scheduled to be paid that week. He said the dispute was settled the following week, and never involved Harvard.

"It's a long, complicated thing...It's a personal case. It has nothing to do with the Harvard Business School and the University, I think, would agree with that," Epstein said. "The University did not even appear at any of these cases."

The Mitsui Manufacturers official also said yesterday that the bank feared Epstein might try to evade the judgment by moving. In an affidavit filed in March with the Middlesex County court, bank Vice President Karen Willey had said she thought Epstein was likely to leave Massachusetts upon being informed of the lawsuit.

The bank official who spoke with The Crimson yesterday reiterated Willey's earlier statement.

"Let me put it this way: When people move, they don't notify people who they owe money," the official said, adding, however, that it was not difficult to trace Epstein to Massachusetts.

Epstein, who said he lives in Cambridge but also maintains a residence in Houston, Texas, denied the charges in Willey's affidavit.

"It's absurd. People can make whatever statements they want, but it's just not true," he said. "Why would I leave? I was in New York for three years...I was in the phone book. Anybody who wanted to find me could find me."

Epstein said he would continue teaching at Harvard Business School next year.

According to the professor's partial resume--distributed to students in his popular course on financial reporting and management accounting last fall--Epstein has a bachelors degree in business administration from San Francisco State University, as well as a masters of business administration and a doctorate in accounting from the University of Oregon.

Epstein lists "legal and ethical responsibilities," among his research interests.

A student in Epstein's fall course said the professor was "a very caring, ethical, responsible person." The student, who spoke on condition of anonymity, said Epstein often talked in class about his ties to the Hollywood entertainment industry.

"He's an extremely skilled accountant and financial adviser," the student said. "I thought he was very good and very concerned and patient about our learning."

Business School Dean John H. McArthur was unavailable for comment yesterday.

Joe Mathews contributed to the reporting of this story.