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                SECURITIES AND EXCHANGE COMMISSION
                         Washington, D.C.

LITIGATION RELEASE NO. 14877 / April 16, 1996

SECURITIES AND EXCHANGE COMMISSION v. TELLUS INDUSTRIES, INC. AND
GLEN E. BURKE, Civil Action No. 96CV-00712 (D.D.C.) (filed April
16, 1996)

     On April 16, 1996, the Commission filed a complaint in the
United States District Court for the District of Columbia against
Tellus Industries, Inc. ("Tellus") and Glen E. Burke ("Burke") of
Las Vegas, Nevada, alleging that from 1992 through 1994 Tellus, a
publicly-owned telemarketing company, and its president Burke,
engaged in a willful fraud on the investing public by failing to
disclose that at least five state law enforcement agencies had
commenced legal proceedings to prohibit Tellus's lucrative
telemarketing operations.  The complaint seeks an injunction
against Tellus, and an injunction and civil penalties against
Burke.  

     The complaint alleges that Burke and Tellus knowingly
disseminated materially false and misleading information to
investors, in the form of Annual and Quarterly Reports filed with
the Commission and at least one publicly disseminated press
release that failed to accurately disclose law enforcement
actions brought by the states of Wisconsin, Nevada, California,
Minnesota and Idaho, and the seizure of records by the United
States Postal Service.  The complaint alleges that Burke
personally profited from the fraud by receiving approximately
$1.5 million in salary, loans and other payments from Tellus
during the period of the false disclosures.