UNINTED STATES SECURITIES AND EXCHANGE COMMISSION


             SECURITIES ACT OF 1933
             Release No.  7575 /  September 9, 1998

             SECURITIES EXCHANGE ACT OF 1934
             Release No.  40416 / September 9, 1998

             ADMINISTRATIVE PROCEEDING
             File No. 9697

             CEASE-AND-DESIST PROCEEDING INSTITUTED AGAINST ERIK W. CHAN

The Securities and Exchange Commission ("Commission") announced that it
issued an Order Instituting Cease-and-Desist Proceeding Pursuant to
Section 8A of the Securities Act of 1933 and Section 21C of the
Securities Exchange Act of 1934 ("Order") against Erik W. Chan ("Erik
Chan") alleging violations of the antifraud provisions of the securities
laws.  In particular, the Commission alleges that Erik Chan caused
violations of Section 17(a) of the Securities Act and Section 10(b) of
the Exchange Act and Rules 10b-5 and 10b-9, thereunder.

The Commission's Order alleges that: (1) from January 1993 through
November 1995, Empower Telecommunication Corporation ("Empower") sold
$7.6 million of its securities to approximately 350 investors; (2) during
this period, Erik Chan was Empower's corporate secretary; (3) Erik Chan
assisted his father, who was also Empower's chairman, in misappropriating
$2.5 million of investor funds; (4) in connection with the sale of
securities, Empower distributed a Private Placement Memorandum (PPM) to
prospective investors, which was reviewed by Erik Chan; (5) the PPM
materially misstated Empower's purported agreement with Bell Atlantic,
Inc., Empower's receipt of a software license, the duration of Empower's
offering period and that Empower would not pay sales commissions; and (6)
the PPM omitted to disclose the personal bankruptcy of Empower's chairman
and Empower's $1.5 million liability to its business partner.

A hearing before an administrative law judge will be held to determine
whether the allegations contained in the Order are true, and, if so, to
determine what if any sanctions are appropriate in the public interest.