U.S. SECURITIES AND EXCHANGE COMMISSION

     Litigation Release No. 15547 / October 30, 1997

     United States v. Randall Smith Kuhlmann and David Sydney 
     Darling, Criminal Case No. 97-CRZ871-H, U.S.D.C., S.D. Cal.

          The Securities and Exchange Commission and the U.S. Attorney for the
     Southern District of California announced that on October 23, 1997, Randy
     S. Kuhlmann and David S. Darling were indicted by a federal grand jury on
     one count of conspiracy, 17 counts of mail fraud, eight counts of money
     laundering, and three counts of tax evasion.  Kuhlmann and Darling were
     charged with conspiring to induce potential investors to send money and
     property to Amtel Communications, Inc. in order to participate in Amtel's
     sale-leaseback pay telephone program.  Kuhlmann and Darling, however,
     failed to disclose, among other things, that the pay telephones purchased
     by investors were encumbered property, that Amtel was not a profitable
     company, and that investors' funds were used for purposes unrelated to
     those in which they had invested.

          The criminal charges against Kuhlmann and Darling are based on the
     same activities alleged in a civil action brought by the Commission on July
     17, 1995, against Amtel Communications, Inc., Kuhlmann, and Darling.  The
     Commission's complaint alleges, among other things, that the defendants
     raised about $51.4 million from at least 3,750 investors through their
     fraudulent scheme.  Amtel sold pay telephones to investors and agreed to
     lease the pay telephones from the investor for a five year term for $50 per
     month.  Amtel also agreed to install, operate, and manage the pay
     telephones owned by investors, and to repurchase the pay telephones from
     the investor for the original cost at the end of five years.  In fact, the
     Complaint alleges, Amtel did not own the pay telephones it sold to
     investors, and it operated an undisclosed "Ponzi" scheme, whereby investors
     were paid with new investor money.  The Commission's action is continuing. 
     (See litigation release 14713) 



















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