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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

Litigation Release No. 15309 /  March 31, 1997

SECURITIES AND EXCHANGE COMMISSION v. RAEBURN EVANS, M.D., U.S.
District Court for the District of Columbia,
Civil Action No. 97-0612

         The Securities and Exchange  Commission today announced
the filing of a complaint in the U.S. District
Court for the District  of Columbia against Raeburn  Evans, M.D.,
alleging  that he engaged in  insider trading
in  the securities  of  Intergroup Healthcare  Corp.  (
Intergroup ), a  Tucson, Arizona-based  company.   The
complaint  alleges that by his  conduct, Evans violated  Section
10(b)  of the Securities Exchange  Act of 1934
and Rule 10b-5 thereunder.

         Specifically, the complaint  alleges that  in 1994, in 
the course  of his employment  as the  Medical
Director  for Intergroup s  Southern Region,  Evans came  into
possession  of material,  nonpublic information
concerning  meetings  and due  diligence  activities  that  were
occurring  between  Intergroup  and  potential
acquirers. The  complaint alleges  that while in possession  of
this  information, Evans  purchased Intergroup
securities prior to public  announcements on July 28 and 29, 
1994, that Intergroup was in merger  negotiations
with, and had  agreed to be acquired by, Foundation Health 
Corporation.  The complaint alleges  that from May
31, 1994,  through July 18, 1994,  Evans purchased shares  of
Intergroup common stock,  and purchased and  sold
Intergroup call and  put options. The  complaint further  alleges
that  between August 1  and October 3,  1994,
Evans  sold his Intergroup  shares and closed his  Intergroup
options positions,  realizing a  total profit of
$109,003.

         Without admitting or  denying the  allegations of the 
complaint, Evans  consented to the  entry of  a
final judgment permanently enjoining him from  violating Section
10(b) of the Securities Exchange Act of  1934
and Rule  10b-5 thereunder.   In  addition, Evans  agreed  to
disgorge  $109,003 in  profits plus  prejudgment
interest, and  also to pay a  penalty of $109,003  under the
Insider Trading  and Securities Fraud  Enforcement
Act of 1988.

         The  Commission thanks the  Pacific Stock Exchange and 
NASD Regulation for  their cooperation in this
matter.