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UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 14743 / November 30, 1995


SECURITIES AND EXCHANGE COMMISSION v. TRANSAMERICA WIRELESS
SYSTEMS,INC., ET AL., Case No. 94-6805-CIV-GONZALEZ (S.D. FL.)

On November 29, 1995, after a two day evidentiary hearing, the
Honorable Jose A. Gonzalez, Jr., United States District Judge for
the Southern District of Florida, found Defendant Danny Sterk
("Sterk"), his wife Fanny Sterk, and their counsel, Forrest
Sygman, Esq. ("Sygman"), in contempt of court for disbursing
funds in violation of a freeze order previously entered by the
Court.  The Sterks reside in Coral Springs, Florida. Sygman
resides in Coral Gables, Florida.   

     The Commission's motion for an order to show cause alleged
that prior to the order freezing assets owned or controlled by
Sterk, which the Court entered on August 24, 1994, Sterk placed
$150,000 of proceeds from the underlying fraudulent scheme into
Sygman's attorney trust account purportedly in trust for the
benefit of Sterk's children.  Although those funds were
ostensibly controlled by Fanny Sterk as trustee, the Commission
alleged that Sterk in fact controlled the funds.  Subsequent to
the asset freeze, Fanny Sterk and Sygman disbursed $136,910 of
those funds at the direction of and for the benefit of Sterk, in
violation of the Court's order.  Among other things, the
Commission alleged that funds were disbursed to pay Sterk's legal
bills, to pay a fine imposed against Sterk in a previous action
brought by the Federal Trade Commission, and to open a new boiler
room. 

     In addition to the funds disbursed through Sygman's trust
account, the Commission alleged that at the time of the freeze
order, Sterk had accumulated between $25,000 and $50,000 in cash
which he subsequently spent in violation of the Court order. 

     The Court assessed a total compensatory fine of $175,000,
with the Sterks jointly and severally liable for the entire fine,
and Sygman jointly and severally liable for $136,910.  The Court
ordered the contemnors to make payment within 45 days from the
date of the order. 

     On August 23, 1994, the Commission filed its complaint in
this action, alleging that Defendants TransAmerica Wireless
Systems, Inc., Intercontinental Telecommunications Corporation
and Danny Sterk ("Sterk") were conducting unregistered fraudulent
offerings of securities, purportedly for the purpose of building 
and operating wireless cable television systems.