U.S. SECURITIES AND EXCHANGE COMMISSI0N


     Litigation Release No. 15522 / October 1, 1997

     Accounting Auditing Enforcement
     Release No. 974 / October 1, 1997  

     SECURITIES AND EXCHANGE COMMISSION v. JEFFREY P. SUDIKOFF, EDWARD CHERAMY
     AND RUDY WANN, Civil Action No. CV-97-7207 AAH (RCX) (C.D.Cal.)
      
          The Securities and Exchange Commission ("Commission") announced the
     filing of a Complaint on September 30, 1997, against two former officers of
     IDB Communications Group, Inc. ("IDB"), a telecommunications company
     formerly headquartered in Los Angeles, California, for securities fraud for
     falsely overstating IDB's 1994 first quarter earnings and engaging in
     insider trading.  The Commission's Complaint also names as a defendant a
     third former IDB officer, charging him with securities fraud for falsely
     overstating IDB's earnings.  The Complaint was filed in Federal Court in
     Los Angeles.  

          The defendants in the Commission's action are:

          *    Jeffrey P. Sudikoff ("Sudikoff"), age 41, IDB's former Chairman
               and Chief Executive Officer, who resides in Los Angeles,
               California

          *    Edward Cheramy ("Cheramy"), age 53, IDB's former President, who
               resides in Jackson Hole, Wyoming

          *    Rudy Wann ("Wann"), age 40, IDB's former Chief Financial Officer,
               who resides in Los Angeles, California 

          The Commission's Complaint alleges that Sudikoff, Cheramy and Wann
     fraudulently inflated IDB's 1994 first quarter earnings
     from $9 million to $15 million, an overstatement of 66%, so that IDB's
     earnings would meet analysts' projections.  Sudikoff, Cheramy and Wann then
     publicly disseminated these overstated earnings in a press release and a
     Form 10-Q quarterly report filed with the Commission.  The Complaint
     further alleges that Sudikoff, Cheramy and Wann concealed the fraud by
     fabricating documents, knowingly making false adjusting entries on IDB's
     books and records in circumvention of IDB's internal controls and lying to
     IDB's independent auditors.  The Complaint alleges that by this conduct,
     Sudikoff, Cheramy and Wann violated the antifraud provisions of Section
     10(b) of the Securities Exchange Act of 1934 ("Exchange Act") and Rule 10b-
     5 thereunder, the reporting provisions of Section 13(a) of the Exchange Act
     and Rules 12b-20 and 13a-13 thereunder, the books and records provisions of
     Section 13b-5 of the Exchange Act and Rule 13b2-1 under the Exchange Act,
     and the lying to auditors provision of Rule 13b2-2 under the Exchange Act. 

          Moreover, the Complaint alleges that Sudikoff and Cheramy engaged in
     insider trading by selling large blocks of IDB stock in March 1994 and May

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     1994 while in possession of material, nonpublic information that IDB's
     first quarter earnings would not meet analysts' projections and that the
     announced $15 million earnings had been materially overstated.  The
     Complaint alleges that Sudikoff and Cheramy avoided losses of $649,000 and
     $2,212,500, respectively, from their unlawful trading.  The Complaint also
     alleges that Sudikoff tipped material, nonpublic information concerning
     IDB's 1994 first quarter earnings overstatement to his parents, who then
     sold IDB stock in May 1994 and avoided losses totalling $21,382.  The
     Complaint alleges that by this conduct, Sudikoff and Cheramy committed
     securities fraud in violation of Section 17(a) of the Securities Act of
     1933 and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder.   

          Additionally, the Complaint alleges that Sudikoff failed to report his
     sales to the Commission and that Cheramy failed to report his sales in a
     timely manner in violation of the stock sale reporting provisions of
     Section 16(a) of the Exchange Act and Rule 16a-3 thereunder.

          The Commission's Complaint, filed in the United States District Court
     for the Central District of California, seeks permanent injunctions, civil
     penalties, and officer and director bars against Sudikoff, Cheramy and
     Wann.  The Complaint also seeks from Sudikoff disgorgement of the losses
     avoided by Sudikoff and his parents for their unlawful insider trading,
     plus prejudgment interest.  The Complaint further seeks disgorgement of the
     losses avoided by Cheramy from his unlawful insider trading, plus
     prejudgment interest. 

          Also on September 30, 1997, the Commission instituted and settled
     cease-and-desist proceedings against Mary Brennan, IDB's former Vice
     President/Controller, and Philip McInnes, IDB's former Vice President of
     International Sales.  Brennan and McInnes consented to the entry of Orders
     by the Commission, without admitting or denying the Commission's findings. 
     The Commission's Orders find that Brennan made false adjusting entries on
     IDB's books and records and that McInnes fabricated documents in
     furtherance of IDB's scheme to fraudulently inflate its 1994 first quarter
     earnings.  The Commission's Orders find that, by this conduct, Brennan and
     McInnes committed violations of the books and records provisions of Section
     13(b)(5) of the Exchange Act and Rule 13b2-1 thereunder, and that Brennan
     caused violations of the books and records provisions of Section
     13(b)(2)(A) of the Exchange Act.














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