U.S. Securities and Exchange Commission

     Litigation Release No. 15596 / December 18, 1997 

     SECURITIES AND EXCHANGE COMMISSION v. SANJEEV "TONY" SACHDEVA AND NASIM
     "NICKY" AZIZ, U.S. District Court for the Northern District of Texas, (3-
     97-CV-3103-D) (December 18, 1997)

          The Securities and Exchange Commission has filed a complaint against
     Sanjeev "Tony" Sachdeva, formerly the Chairman and Chief Executive Officer
     of IRG Technologies, Inc. ("IRG"), and Nasim "Nicky" Aziz, formerly
     Executive Vice President of IRG.  The complaint charges Sachdeva, 40, of
     the Dallas, Texas area, with directing and participating in illegal schemes
     to reduce IRG's operating expenses and increase its income, which rendered
     IRG's registration statement for its Initial Public Offering ("IPO") false
     and misleading.  The complaint charges Aziz, 38, also of the Dallas area,
     with knowingly falsifying books and records in furtherance of a post-IPO
     scheme to reduce IRG's expenses.  IRG, a Carrollton, Texas-based
     distributor of computers and computer-related equipment, is now in Chapter
     7 bankruptcy proceedings.  The Commission's complaint alleges the
     following:

          In 1992 and 1993 Sachdeva directed the company to submit fraudulent
     claims for reimbursement of certain co-operative advertising expenses to
     computer manufacturers whose products IRG sold.  Sachdeva also directed IRG
     employees to use fraudulent airline tickets for business travel.  These
     fraudulent schemes materially reduced IRG's expenses by an amount
     equivilant to 8.5 percent and 5.1 percent, respectively, of IRG's reported
     pre-tax income for the first quarter of fiscal 1993 (October-December 1992)
     and for the first and second quarters (October 1992-March 1993), and
     financial statements reflecting these fraudulently-avoided expenses were
     included as part of the registration statement for IRG's IPO in May 1993. 
     In addition, the registration statement failed to disclose that IRG had
     reduced its expenses fraudulently, or to disclose the risks that the
     advertising scheme posed to IRG's continued relationships with its key
     suppliers.  In furtherance of these schemes, Sachdeva authorized false
     entries in IRG's books and records, ignored known deficiencies concerning
     IRG's internal controls, and concealed the misconduct from IRG's auditors
     and underwriters.  

          After the IPO Sachdeva and Aziz engaged in additional fraudulent
     schemes, and directed or countenanced other fraud by IRG employees to
     reduce IRG's operating expenses.  These schemes included intentionally
     damaging computers so that they could be returned as "defective," shipping
     computers with false FCC compliance certifications, purchasing bootleg
     Microsoft software for resale, continuing to use fraudulent airline
     tickets, and attempting to evade customs duties.  With respect to the
     scheme involving customs duties, Aziz obtained a fictitious invoice that
     understated the price of computers to be purchased overseas in an attempt
     to avoid paying the import duty on the full value of the computers.  



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          Simultaneously with the filing of the complaint, Sachdeva consented,
     without admitting or denying the allegations in the complaint, to the entry
     of a final judgment enjoining him from future violations of Section 17(a)
     of the Securities Act of 1933, Sections 10(b), 13(b)(2)(A), 13(b)(2)(B) and
     13(b)(5) of the Securities Exchange Act of 1934 ("Exchange Act"), and
     Exchange Act Rules 10b-5 and 13b2-1, and requiring him to pay a civil
     penalty of $50,000.  Aziz, without admitting or denying the complaint's
     allegations, consented to the entry of a final judgment enjoining him from
     future violations of Section 13(b)(5) of the Exchange Act, and Exchange Act
     Rule 13b2-1, and requiring him to pay a civil penalty of $5,000.  











































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