UNITED STATES SECURITIES AND EXCHANGE COMMISSION

SECURITIES AND EXCHANGE COMMISSION v. BARRY C. NELSEN and ELLIS
J. TALLANT, United States District Court for the District of
Columbia, Civil Action No. 1:97CV00798

Litigation Release No. 15343 / April 22, 1997      

AAER Release No.  908 / April 22, 1997

     On April 22, 1997, the Commission filed an action against
Barry C. Nelsen, the founder, president, and CEO of the now
defunct Evergreen Information Technologies, Inc., and Ellis J.
Tallant, Evergreen's former CFO, alleging violations of the
antifraud, reporting, recordkeeping, and internal control
provisions of the federal securities laws.  

     The Commission alleged that, in connection with its 1992
initial public offering, Evergreen filed a registration statement
that contained material misstatements and omissions concerning
the status of its major product and various related party
transactions as well as false financial statements.  The
Commission alleged that Nelsen and Tallant signed the
registration statement knowing that it contained materially false
information.  The complaint also alleges that Nelsen knowingly
signed Evergreen's false quarterly report for the period ended
August 31, 1992. 

     The Commission alleged that Nelsen used Evergreen to
distribute corporate funds to himself and others, and that he
engaged in other transactions that were not accurately reflected
in Evergreen's books and records.  According to the Complaint,
Nelsen arranged for Evergreen to make illegal political
contributions  when the U.S. Department of the Navy refused to
provide certain information to Evergreen in a computer-
intelligent format that was necessary to the timely development
of Evergreen's key product.  In a vain effort to convince the
Navy to change its mind, Nelsen solicited Evergreen employees to
contribute to the campaign committees or organizations of certain
Members of Congress.  The Commission alleged that Nelsen
solicited Evergreen employees to write a total of $20,000 in
personal checks in amounts of $1,000, which were issued to the
campaign committees or organizations of certain Members of
Congress.  The complaint alleges that Nelsen reimbursed the
employees by disbursing checks from Evergreen disguised as
consulting compensation or bonus payments.

     Nelsen and Tallant have agreed to settle the action without
admitting or denying the allegations of the Complaint.  Nelsen
has  agreed to a permanent injunction from violating Section
17(a) of the Securities Act, Section 10(b) of the Exchange Act,
and Rules 10b-5, 13b2-1, and 13b2-2, and from aiding and abetting
violations of Section 13(a) of the Exchange Act and Rules 12b-20
and 13a-13.  Additionally, Nelsen has agreed to disgorgement and
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a permanent bar from serving as an officer or director of a
public company.  The settlement with Nelsen requires him to
disgorge $65,000 and to pay $26,000 in pre-judgment interest
which obligation is waived based upon his demonstrated inability
to pay. For the same reason Nelsen is not ordered to pay a civil
penalty.  Tallant has agreed to a permanent injunction from
violating Section 17(a) of the Securities Act, Section 10(b) of
the Exchange Act, and Rules 10b-5 and 13b2-2, and would pay
$20,000 in civil penalties.