UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 17366 / February 20, 2002

   Accounting and Auditing Enforcement Release No. 1508 / February 20,
   2002

   Securities And Exchange Commission v. J. Donald Nichols, Jeb L.
   Hughes, and C. Sheldon Whittelsey, IV, United States District Court
   for the Northern District of Georgia, Civil Action No. 1 02-CV-478

   The Securities and Exchange Commission announced that it filed a
   settled civil injunctive action on February 20, 2002, in United States
   District Court for the Northern District of Georgia, against J. Donald
   Nichols of Atlanta, GA, Jeb L. Hughes of Atlanta, GA, and C. Sheldon
   Whittelsey, IV of Marietta, GA.

   The Commission's complaint alleges that the three defendants, all
   former officers of JDN Realty Corporation, a public company, arranged
   for cash and property to be transferred to Hughes and Whittelsey from
   third parties who sold real estate to JDN Realty. Nichols, Hughes, and
   Whittelsey failed to inform JDN Realty's accounting department of this
   compensation arrangement, and they also failed to disclose certain
   other related-party transactions. As a result, JDN Realty's public
   filings failed to disclose the executive officer compensation and
   related-party transactions, and by not properly accounting for the
   compensation, JDN Realty materially misstated its 1994 through 1997
   annual financial statements and two quarterly financial statements in
   1998.

   Nichols, without admitting or denying the allegations in the
   Complaint, consented to the entry of a final judgment permanently
   enjoining him from future violations of Section 17(a) of the
   Securities Act; Sections 10(b), 13(a), 13(b)(2)(A), 13(b)(2)(B), and
   14(a) of the Exchange Act; and Rules 10b-5, 12b-20, 13a-1, 13a-13,
   13b2-1, 13b2-2, and 14a-9 thereunder. Nichols also agreed to pay a
   civil penalty of $110,000. Hughes and Whittelsey, without admitting or
   denying the allegations in the Complaint, consented to the entry of
   final judgments permanently enjoining them from future violations of
   Section 17(a) of the Securities Act; Sections 10(b), 13(a),
   13(b)(2)(A), 13(b)(5), and 14(a) of the Exchange Act; and Rules 10b-5,
   12b-20, 13a-1, 13a-13, 13b2-1, and 14a-9 thereunder. Hughes and
   Whittelsey also agreed to pay civil penalties of $60,000 each and to
   be prohibited for a period of five (5) years from acting as an officer
   or director of any publicly traded company.
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Modified 02/20/2002