U.S. SECURITIES AND EXCHANGE COMMISSION

     Ligitigation Release No. 15640 / February 12, 1998

     SECURITIES AND EXCHANGE COMMISSION v. AMERICAN INTERNET PARTNERS, INC.,
     AMERICAN INTERNET PARTNERS SAN JOSE, CONNECTEL COMMUNICATIONS, INC., STEVEN
     P. HEVELL, AND JIM D. JAMES, Civil Action No. 98-1014 CAS (C.D. Cal.)

          The SEC announced that late yesterday it sued Steven P. Hevell and his
     companies American Internet Partners, Inc., American Internet Partners San
     Jose, ConnecTel Communications, Inc., and Jim D. James to stop an on-going
     securities fraud.  The SEC obtained a Temporary Restraining Order and froze
     the assets of the Defendants, who live in Orange County.  Hevell and his
     other companies are already defendants in another SEC fraud case, SEC v.
     MicroWest Industries, Inc., CV 97-9150 CAS, filed last September.  The SEC
     filed both Complaints in federal district court in Los Angeles.

          The Complaint alleges that from July 1997 until the SEC obtained the
     Temporary Restraining Order, the Defendants raised over $1.06 million from
     the sale of unregistered securities to at least 56 investors.  The
     investors are unsophisticated and live throughout the country. 
     Furthermore, nearly 20 percent of the funds invested were retirement funds. 
     The Defendants told investors that their money would be used to purchase an
     Internet service provider. The Complaint alleges that Defendants spent only
     $300,000 on Internet service equipment but did not buy an Internet service
     provider. The Complaint further alleges that Defendants misused most of the
     investor funds.  Defendants told investors that their money would not be
     used to pay sales commissions.  However, over half of the investor funds
     ($558,000) were paid to independent sales agents for commissions.  In
     addition, Defendants paid at least $76,000 to Hevell, the undisclosed
     promoter of this alleged investment scheme.  Furthermore, Defendants
     transferred $46,000 to a company in which Hevell has an interest. 
     Defendants also used at least $4,300 for Hevell s personal expenses,
     including his cellphone and go-cart racing hobby.  Finally, the remaining
     investor funds, approximately $76,000, were spent on operating expenses,
     including rent and employee salaries and bonuses.

          The Complaint seeks a preliminary injunction, permanent injunction and
     disgorgement against AIP, AIP San Jose, Hevell, and James for violating
     Sections 5 and 17(a) of the Securities Act of 1933 and Section 10(b) of the
     Securities Exchange Act of 1934 and Rule 10b-5 thereunder and against
     ConnecTel for violating Section 17(a) of the Securities Act and Section
     10(b) of the Exchange Act and Rule 10b-5.  The Court set the hearing on the
     SEC s application for a preliminary injunction for Monday, February 23,
     1998.








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