FOR IMMEDIATE RELEASE                                         CIV
MONDAY, MARCH 4, 1996                              (202) 616-2765
                                               TDD (202) 514-1888

                                 
           U.S. OBTAINS INJUNCTION FREEZING $470,000 IN
           TELEMARKETING FRAUD PROCEEDS IN BAHAMAS BANK

     WASHINGTON, D.C. -- A Bahamas bank, pursuant to an order by
the Supreme Court of the Bahamas, today disclosed that a
purported U.S. telemarketing swindler and his related companies
allegedly hid about $470,000 in a Nassau bank account, the
Department of Justice announced.
     Assistant Attorney General Frank W. Hunger, head of the
Civil Division, said today's disclosure, requested by the
Department on behalf of the Federal Trade Commission, represented
the first step in recovering and distributing the money to
defrauded investors in the United States.  In disclosing the
amount, the bank acted on an order the Supreme Court issued about
a month ago.  
     "Today's action demonstrates the Department's resolve to
seek redress from those who defraud American investors, then
attempt to hide their ill-gotten gains," said Hunger.
     The Bahamas' suit alleged that the frozen funds came from an
allegedly illegal telemarketing scheme operated in the United
States by On Line Communications and Richard Basile.  The FTC
filed a civil action in U.S. District Court in Las Vegas, Nevada,
against On Line and Basile on January 23, 1996, then filed an
amended complaint February 2, 1996, adding Robert Corey as a
defendant.  
     The FTC's suit alleged that On Line Communications deceived
consumers with various misstatements, including
misrepresentations about the marketability of paging licenses
issued by the Federal Communications Commission which were
obtained through On Line.
     The complaint seeks to enjoin the defendants from selling
the paging licenses and to refund monies to consumers injured by
the defendants' practices. 
     According to an FTC affidavit filed in the Bahamian action,
the defendants set up companies and bank accounts outside of the
United States in an apparent effort to conceal assets. Documents
obtained by the FTC in the U.S. action led to the discovery of
bank accounts in the Bahamas.   
     The FTC's suit against On Line Communications was part of
"Project Roadblock," a major crackdown by the FTC and 22 state
securities agencies on certain high-pressure telemarketing
investment schemes in emerging telecommunications systems
including FCC-awarded paging licenses. 
     Under today's action, the defendants can file a claim
seeking the funds.  The Department sued on behalf of the United
States and one investor who represented the other investors 
injured by the alleged scam.  
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96-083