The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1994, Landmark Communications, Inc.

DATE: Thursday, October 27, 1994             TAG: 9410270436
SECTION: LOCAL                    PAGE: B9   EDITION: FINAL 
SOURCE: ASSOCIATED PRESS 
DATELINE: BLACKSBURG                         LENGTH: Short :   32 lines

VA. TECH OFFICIAL RESIGNS UNTIL INVESTIGATION ENDS

Virginia Tech on Wednesday replaced the director of its Center for Transportation Research, who has been accused of improperly profiting from a computer software sale.

Former Virginia Transportation Commissioner Ray Pethtel, a university transportation scholar, was named interim director.

Antoine Hobeika said his resignation as director is temporary because he expects to be cleared of any wrongdoing.

``I do not want to jeopardize in any way the activities or good name of the center or the university,'' Hobeika wrote in a letter to his boss, Vice Provost for Research Leonard Peters.

Hobeika met Tuesday with Peters and was presented with an internal audit the school has been conducting since summer, when it was made aware of ``suspicions of inappropriate use of funds,'' said Larry Hincker, director of university relations.

No charges have been filed against Hobeika.

According to a search warrant filed in Montgomery County Circuit Court, police seized a check from Hobeika's account. by CNB