U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 16145 / May 14, 1999 U.S. v. RANDALL SMITH KUHLMANN, et al. 97-CR-2871H (S.D. Cal.) The U.S. Attorney for the Southern District of California and the Securities and Exchange Commission announced that on April 19, 1999, Judge Marilyn Huff sentenced Randall Kuhlmann to 60 months in prison in connection with a scheme to defraud investors in Amtel Communications, Inc. Kuhlmann and David Darling pled guilty to fraudulently inducing potential investors to invest in Amtel’s sale-leaseback pay telephone program. Darling was sentenced on January 11, 1999. The criminal charges against Kuhlmann and Darling are based on the same activities alleged in a civil action brought by the Commission on July 17, 1995, against Amtel, Kuhlmann, and Darling. The Commission alleged that the defendants raised $51.4 million from investors by selling pay telephones, contracting to lease the pay telephones for $50 per month, and repurchasing the pay telephones at the original cost when the lease terminated. Amtel also conducted a Ponzi scheme, whereby investors were paid returns from new investor money. For further information, please see Litigation Release Nos. LR-15547, LR-14713, and LR-16040.