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         UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 14892 / April 25, 1996

SECURITIES AND EXCHANGE COMMISSION V. AMERICAN TELECOM
INTERCONNECT, INC., STEVEN BARKUS, MICHAEL LOMBARDO, BRADLEY
TURNER, DAVID MUNOZ, I.B.T. FINANCIAL GROUP, INC., J.R. MUNOZ,
and PREMIER CAPITAL INVESTMENTS CIV. N0. 96-2952 (WDK) (C.D.
CAL.)

     On April 24, 1996, the Commission charged American Telecom
Interconnect, Inc. ("ATI"), a company which leased telephone
equipment, and several individuals and entities (collectively the
"Defendants"), with violations of the federal securities laws. 
The Commission alleges that from June 1992 to February 1994,
Defendants defrauded investors, many of whom were elderly retired
individuals seeking income bearing investments, of $3.7 million
through the offer and sale of unregistered and nonexempt
securities ("ATI Securities").  The ATI Securities consisted of
(i) sale-and-lease-back transactions of telephone equipment
offered by ATI, and (ii) ATI's agreements to pay interest on
money invested while ATI located telephone equipment to sell to,
and lease back from, investors.  Among other things, the
Commission's Complaint alleges that Defendants failed to disclose
to investors that ATI would not be able to pay investors the
returns it promised without using money obtained from subsequent
investors.

     In addition to ATI, named in the Complaint filed today in
the United States District Court for the Central District of
California were:

     Steven Barkus, an officer, director and 49 percent
shareholder of ATI;

     Michael Lombardo, the president, director, and 51 percent
     shareholder of ATI;

     Bradley Turner ("Turner"), an independent contractor
     responsible for directing the marketing of the ATI
     Securities;

     I.B.T. Financial Group, Inc. ("IBT"), a corporation which
     offered and sold ATI Securities;

     David Munoz, the president and owner of IBT;

     Premier Capital Investments ("PCI"), a company which offered
     and sold ATI Securities; and

     J.R. Munoz, the owner of PCI.
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     In its Complaint, the Commission alleges that the Defendants
violated the antifraud provisions of the federal securities laws,
Section 17(a) of the Securities Act of 1933 ("Securities Act")
and Section 10(b) of the Securities Exchange Act of 1934
("Exchange Act") and Rule 10b-5 thereunder ("antifraud
provisions").  The Commission alleges that the Defendants
defrauded investors by the distribution of written offering
materials that contained material misrepresentations and
omissions concerning the risk of the investment, the tax
benefits, and the commissions paid to the salesmen.  The
Complaint also alleges that the offer and sale of the ATI
Securities, which were neither registered with the Commission nor
exempt from registration, violated Sections 5(a) and (c) of the
Securities Act.  Finally, the Commission 

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alleges that Turner, David Munoz, IBT, J.R. Munoz and PCI
effected transactions in, or induced or attempted to induce the
purchase or sale of, ATI Securities without registering as
brokers or dealers in accordance with Section 15(b) of the
Exchange Act, when no exemption from such registration was
available, thus violating Section 15(a) of the Exchange Act.  The
Commission seeks permanent injunctions against future violations,
an accounting, disgorgement of unlawfully obtained investor funds
plus prejudgment interest, and civil penalties.

     In order to recover as much of the unlawfully obtained
investor funds as possible, the Complaint also names Linq Up
America (Los Angeles), Inc. ("Linq Up") and America's Choice
Communications, Inc. ("ACC"), as relief defendants (the "Relief
Defendants").  The Complaint alleges that ATI, Barkus and
Lombardo misappropriated and diverted in excess of $1 million in
investor funds to Linq Up and ACC, which were owned and
controlled by Barkus and Lombardo.  The Commission seeks
disgorgement and prejudgment interest from the Relief Defendants,
as well as an accounting of all monies obtained by the Relief
Defendants from the fraudulent offer and sale of the ATI
Securities.