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             U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 14713 / November 7, 1995 


SEC v. Amtel Communications, Inc., Randy S. Kuhlmann, and 
David S. Darling, Civil Action No. 95-1127H (BTM) (S.D. Cal.)

     The Securities and Exchange Commission announced that on
July 17, 1995, the Honorable Marilyn L. Huff, United States
District Judge for the Southern District of California, issued a
temporary restraining order enjoining Amtel Communications, Inc.
("Amtel"), Randy S. Kuhlmann ("Kuhlmann"), and David S. Darling
("Darling") from further violations of the securities
registration and antifraud provisions, and additionally as to
Kuhlmann and Darling, violations of the broker-dealer
registration provisions of the federal securities laws.  Amtel,
Kuhlmann and Darling consented to entry of the order.

     The Commission's Complaint, filed on July 17, 1995, alleges
fraud in the offer and sale of unregistered securities in the
form of a sales-leaseback program involving pay telephones by
Amtel, Amtel's sole owner Kuhlmann and Amtel's sales manager,
Darling, who is also a registered representative.  The Complaint
also seeks preliminary and permanent injunctions, disgorgement,
and civil penalties against all defendants.  

     The Commission's Complaint alleges that between
approximately February 1992 and the present, Amtel, Kuhlmann, and
Darling have raised at least $51.4 million from over 3,750
investors nationwide.  The Complaint further alleges that Amtel
guarantees investors an 85% to 92.5% return on their investment
at the end of a five-year term, based on a $51 monthly lease
payment coupled with the return of an investor's principal at the
end of five years, through a guaranteed "buy-back" agreement.  In
addition, the Complaint alleges that: 1) undisclosed to
investors, Amtel has no ability to satisfy the "buy-back"
agreements which serve as a basis for the investment returns, as
Amtel has incurred serious net financial losses since 1992,
totalling $15.6 million as of October 31, 1994; 2) Amtel has
disseminated false financial statements to potential investors
reflecting a net profit, when in fact it has always operated at a
net loss; 3) when potential investors ask about Amtel's financial
health in deciding whether to invest, Amtel's sales agents state
that Amtel's financial condition is "healthy;" and 4) Amtel fails
to disclose to investors that it uses 14% to 16% of each
investment to pay sales commissions to the sales agents,
Kuhlmann, and Darling.