Epstein and his lawyer denied that theprofessor tried to elude the bank. Epstein himselfnoted that his name was listed in the New Yorktelephone directory before coming to Harvard in1992.

"As you know, Dr. Epstein travels all over theplace," said James L. Rogal, Epstein'sBoston-based attorney. "I don't think there's anissue of avoiding litigation. In fact, he appearedfor his court date."

After going to court, Mitsui secured a promisefrom Epstein to pay $13,000 a year in equalmonthly installments. At that rate, the $2.7million will be paid off in 207 years.

The University investigated the matterin an attempt to decide whether Epstein's conductin the matter should prevent him from returningfor this academic year.

Participants in the investigation includedSenior Associate Dean Robert H. Hayes, Kaplan, whois the head of Epstein's department, AssistantDean of Educational Affairs Deborah N. Mauger andUniversity Attorney Allan A. Ryan Jr.

After a series of informal interviews withEpstein and financial experts, the reviewconcluded that the lawsuit was a unique situationin which Epstein had tried to help out a friend.

The suggestion that Epstein tried to deceiveMitsui troubled some professors. Still, the reviewshowed that there was nothing to the charge.

"We were very concerned about the allegation offraud," Hayes said last May. "But we talked toProfessor Epstein, talked to people in California.Mr. Ryan called some of his friends out inCalifornia, and they said there was nothing likethis involved."

Ryan acknowledged this week, however, thisweek, however, that he was unaware of the civilfilings against Epstein in Los Angeles County.

"I did not know about it," Ryan said. "The onlything we knew was the case that came here."

Ryan referred other questions about Epstein'sstatus to Business School officials. Professorinvolved in the review and other Business SchoolOfficials, including Director of CommunicationsLoretto F. Crane, did not return phone callsseeking comment for this article.

If Harvard's investigators had made eventhe most cursory check of Los Angeles County courtrecords, they would have found a long list ofcases against Epstein filed to recover moneys fromhim.

For example:

.In May 1990, Southland Commercial Real Estatein Diamond Bar, Calif., sued Epstein and one ofhis companies, Western Business Investors. Thecompany president, Charles Chinea, charged thatEpstein and his partner, Klein, repeatedly misledthem about payments on a $140,000 commission owedto his company.

At one point in an interview with The Crimsonlast year, Chinea asked what Epstein was doingnow. When told he taught accounting and ethics,Chinea said: "That's like Bill Clinton teaching aclass on marital fidelity."