The brother of a Northern Virginia man who allegedly oversaw a major East Coast drug-smuggling ring has been arrested in Massachusetts on drug, currency and obstruction of justice charges tied to the ring's alleged activities.

U.S. law enforcement officials said yesterday Michael Lee Harvey, 28, a former Fairfax County resident, was arrested Monday in Bourne, Mass., and was being held without bail while awaiting his return here to face charges.

Harvey and his brother, Leon Durwood Harvey, 33, both were indicted on Feb. 3 by a federal grand jury in Alexandria looking into alleged marijuana and hashish smuggling operations that prosecutors said netted some $30 million. The indictment remained under seal until Monday's arrest of Michael Harvey, who prosecutors said was a fugitive.

Harvey's lawyer, William B. Moffitt, scoffed at that yesterday, saying Harvey had lived for several months in a rented house in Bourne with his wife and son and that his whereabouts was "no big secret."

Leon Harvey, a twice-convicted drug figure who now is being sought by authorities, was subsequently indicted along with 19 others, including two Washington area lawyers, by the same Alexandria grand jury on June 30 on separate drug-related charges.

The 18-count indictment made public this week charges the Harvey brothers conspired to send drug profits out of the country, once allegedly dispatching $800,000 in cash to the Bahamas via a courier identified only as John Doe No. 1.

Prosecutors also alleged that the two furnished 125 pounds of hashish on each of two occasions to an unindicted coconspirator at a motel near Dulles International Airport. The drugs allegedly were part of at least 20,000 pounds of hashish imported into Tidewater Virginia by Leon Harvey, the government charged.

Assistant U.S. Attorney Karen Tandy said yesterday that hashish brings $400 to $450 per pound at the wholesale level.

The government further charged Leon Harvey with three counts of income tax evasion, alleging Harvey claimed income for 1978-80 totaling $51,424 and a tax liability of $8,860. Prosecutors claimed Harvey actually owed $664,278 on income totaling more than $1 million for the three-year period.