Securities Exchange Act of 1934
Release No. 41931 / September 28, 1999

   Accounting and Auditing Enforcement
   Release No. 1180 / September 28, 1999

   Administrative Proceeding
   File No. 3-10042
   CEASE AND DESIST PROCEEDINGS INSTITUTED AGAINST DANNY R. AUERBACH,
   MICHAEL L. GLASER AND JAMES D. MONTGOMERY, II,

   The Commission announced that on September 28, 1999, it instituted
   administrative cease-and-desist proceedings against Danny R. Auerbach,
   of Lawrenceville, GA, Michael L. Glaser, of Tempe, AZ, and James
   Montgomery, II, of Auburn, GA. Montgomery was a director of sales for
   Computone Corporation of Alpharetta, GA. Auerbach was Computone's
   national sales manager and is currently its director of North American
   sales. Glaser is the president of a customer of Computone.

   In the Order, the Division of Enforcement alleges that these
   individuals took steps that caused Computone to violate the federal
   securities laws prohibiting fraud, the filing of false reports with
   the Commission, the failure to keep accurate books and records, and
   the failure to maintain an adequate system of internal accounting
   controls. Montgomery and Auerbach are also alleged to have knowingly
   falsified Computone's books, records and accounts.

   The Division of Enforcement alleges that Montgomery altered a
   customer's purchase order so that Computone could recognize the sale
   and lied to Computone's outside auditors about the altered purchase
   order. As a result, the Order alleges that Montgomery violated Section
   13(b)(5) of the Securities Exchange Act of 1934 ("Exchange Act") and
   Rule 13b2-1 thereunder, and that he caused Computone to violate
   Sections 10(b), 13(a), 13(b)(2)(A) and 13(b)(2)(B) of the Exchange Act
   and Rules 10b-5, 13a-13 and 13b2-1 thereunder. Auerbach is alleged to
   have created a fictitious sales order while knowing that no such order
   was placed. The Order alleges that Auerbach violated Section 13(b)(5)
   of the Exchange Act and Rule 13b2-1 thereunder, and that he caused
   Computone to violate Sections 10(b), 13(a), 13(b)(2)(A) and
   13(b)(2)(B) of the Exchange Act and Rules 10b-5, 13a-13 and 13b2-1
   thereunder. Finally, the Order alleges that Glaser agreed to falsely
   represent to Computone's auditors that his employer had entered into a
   contract to purchase computer equipment from Computone and that it
   owed Computone the purchase price when in fact his employer would pay
   for the products only if it sold them. As a result, the Order alleges
   Glaser caused Computone to violate Sections 10(b) and 13(a) of the
   Exchange Act and Rules 10b-5 and 13a-1 thereunder