U.S SECURITIES AND EXCHANGE COMMISSION


          Litigation Release No.  15827 / July 30, 1998

          SECURITIES AND EXCHANGE COMMISSION v. RAFI M. KHAN AND TIMOTHY J.
          TYRRELL, Civil Action No. CV-98-6143 MMM (SHx) (C.D. Cal.)

          The Securities and Exchange Commission filed a complaint today in
          federal district court in Los Angeles against Rafi M. Khan
          charging him with fraud for engaging in stock manipulation. Khan,
          age 47, is a Los Angeles-area stockbroker who the Commission
          alleges manipulated the stocks of two companies, Future
          Communications, Inc. ("FCMI"), a now defunct cable television
          programming company based in Dallas, Texas, and The L. L.
          Knickerbocker Co., Inc. ("KNIC"), a celebrity-endorsed marketing
          company based in Lake Forest, California.  From June 30 to August
          30, 1993, FCMI's stock price rose from $6.50 to $27.25. Shortly
          thereafter, FCMI's price collapsed and the company declared
          bankruptcy.  From July 3 to August 11, 1995, KNIC's stock price
          rose from $6 to $52 per share.  Shortly thereafter, the price
          dropped 46%.

          The Complaint alleges that Khan orchestrated these price runs
          using a variety of manipulative practices, including acquiring
          substantial control of the market for each stock; restricting the
          available supply of each stock; making purchases to stabilize or
          raise the price of each stock; executing unauthorized trades;
          parking stock in fictitious and nominee accounts and discouraging
          sales in order to maintain control of the market; creating demand
          by making misleading statements and touting wildly exaggerated
          earnings projections; promoting a "short squeeze" scheme, i.e.,
          using market control to withhold stock from short sellers and
          concurrently raise stock prices to force short sellers to cover
          their positions at increasing prices; and engaging in trading
          collusion.  The Complaint alleges that Khan and a relative had a
          significant financial stake in both manipulations.  Khan's
          improper trading profit from the two manipulations was $552,500.
          The Complaint alleges he would have realized significant
          additional gains had he and his relative sold their available
          stock at the artificially inflated prices.

          The Complaint also alleges that Los Angeles-area stockbroker
          Timothy J. Tyrrell, age 37, committed fraud by participating in
          the FCMI manipulation.  Tyrrell was a market maker for FCMI stock
          at Reynolds Kendrick Stratton, Inc., the now defunct brokerage
          firm where he and Khan worked, and acted as Khan's trader during
          the FCMI stock manipulation.  The Complaint alleges that Tyrrell
          engaged in a variety of manipulative practices to create
          artificially high prices for FCMI stock, including  refusing to
          execute sell orders (as a means to maintain control of the market
          for FCMI stock); purchasing FCMI stock and raising FCMI's bid
          price merely for the purpose of creating artificially high stock
          prices; promoting and furthering a short squeeze scheme; and
          orchestrating a collusive trading arrangement with another market
          maker, Paul I. Comi, who worked at the now defunct AmeriNational
          Securities brokerage firm.  Comi previously consented, without
          admitting or denying the Commission's findings, to the entry of a
          cease-and-desist order, a $5,000 civil penalty, and a six-month
          suspension from associating with a broker-dealer.  In the Matter
          of Paul I. Comi, Exchange Act Release No. 39968 (May 6, 1998).
          The Complaint alleges that Tyrrell had a significant financial
          stake in the FCMI manipulation.  Tyrrell's improper trading
          profit was $224,850.  The Complaint alleges he would have
          realized significant additional gains had he sold his available
          stock at the artificially inflated prices.

          Khan allegedly manipulated KNIC stock from his one-person
          Southern California office of Shamrock Partners, Ltd., a Media,
          Pennsylvania based brokerage firm.

          The Complaint alleges that as a result of their conduct, Khan and
          Tyrrell violated the antifraud provisions of Section 17(a) of the
          Securities Act of 1933 and Section 10(b) of the Securities
          Exchange Act of 1934 and Rule 10b-5 thereunder.  The Complaint
          seeks permanent injunctions, disgorgement with prejudgment
          interest, and civil penalties.