FOR IMMEDIATE RELEASE                                         CIV
TUESDAY, DECEMBER 3, 1996                          (202) 616-2765
                                               TDD (202) 514-1888

                                 
           U.S. OBTAINS $340,000 FROM BAHAMIAN BANK 
            FOR VICTIMS OF TELEMARKETING FRAUD CASE 

     WASHINGTON, D.C. -- The United States has recovered $340,000
in fraudulent funds that a major U.S. telemarketing operator hid
in a Bahamas bank and will return the money to victims of the
scam, the Department of Justice announced today.       

     Frank W. Hunger, Assistant Attorney General for the Civil
Division, said the recovery partially settles a telemarketing
fraud case the Federal Trade Commission brought against Robert
Corey and his related companies.  

     "The money will be returned to the United States and given
back to investors who lost money in this scam," Hunger said. 
"This case reaffirms our commitment to seek redress and to pursue
those who defraud American investors no matter where they may
attempt to hide their ill-gotten gains." 

     Acting on behalf of the FTC, the Department earlier this
year filed and obtained an order from a court in the Commonwealth
of the Bahamas that froze funds Corey diverted to a Nassau bank
account.  The Bahamas' suit alleged that the telemarketing scheme
was operated in the United States by On Line Communications,
Corey, and the firm's president, Richard Basile.

     In a civil action filed last January in U.S. District Court
in Las Vegas, Nevada, the FTC alleged that On Line Communications
had deceived consumers with misrepresentations about the
marketability of paging licenses issued by the Federal
Communications Commission which were obtained through On Line. 
The complaint sought to enjoin the defendants from selling the
paging licenses and to refund monies to consumers injured by the
defendants' practices.

     Corey agreed to turn over the funds as part of a settlement
to end the FTC's litigation against him.  Under the settlement,
the funds will be returned to a redress fund which was
established for On Line Communications' clients.
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