SECURITIES AND EXCHANGE COMMISSION

LITIGATION RELEASE NO. 17246 / November 21, 2001

SECURITIES AND EXCHANGE COMMISSION v. CHALLENGE REALTY, INC., Civil Action No. 01 C 4689 (N.D. Ill.)

The Securities and Exchange Commission (Commission) today announced that on June 20, 2001, it filed an application in federal district court in Chicago seeking an order requiring compliance with a subpoena issued by the Commission to Challenge Realty, Inc. (Challenge Realty). Challenge Realty is a Nevada corporation with its principal place of business in Longwood, Florida. Challenge Realty's President is David Hampton Tedder, a resident of California and Florida. The subpoena sought documents relating to investments in Challenge Realty and Challenge Realty's operations.

Challenge Realty failed to comply with the subpoena issued by the Commission and the Commission, in its application, argued that Challenge Realty had no valid justification for its failure to comply. In response, Challenge Realty filed a Motion to Quash the subpoena. On July 20, 2001 the Court denied Challenge Realty's Motion to Quash and at hearings held on July 5, 26 and August 23, 2001, granted all of the relief requested by the Commission.