SECURITIES AND EXCHANGE COMMISSION

   Litigation Release No. 16931 / March 13, 2001

   SEC v. Charles R. Homa, Michael Gause, et al., Civil Action No. 99 CV
   6895 (N.D.Ill. October 15, 1999)

   United States v. Michael Gause, Criminal Action No. 99 Cr. 1100 (JGK)
   (S.D.N.Y., October 24, 1999)

   The Commission and the United States Attorney for the Southern
   District of New York announced that on January 2, 2001, Michael Gause
   pled guilty to conspiracy, securities fraud and international money
   laundering charges in connection with his direction of a large-scale,
   international "Ponzi scheme". Through this scheme, Gause defrauded
   more than 1,000 investors throughout the United States and elsewhere
   of more than $300 million. Gause directed the issuance and sale to
   investors of different high-interest debt securities, many of which
   bore annual interest rates of 36 percent. Gause and others represented
   to investors that the proceeds from the sales of these securities
   would be provided to Cash 4 Titles, an Atlanta, Georgia, company
   engaged in providing "car title loans," high-interest consumer loans
   secured by automobile titles pledged as collateral by borrowers.
   Contrary to the representations made to investors, however, only a
   small portion of the proceeds obtained from the sales of these
   securities were ever actually provided to Cash 4 Titles; most of the
   proceeds were used for the undisclosed purposes of paying interest and
   principal due to existing investors, as well as paying commissions and
   compensation to Gause and others.

   Gause conducted much of the fraudulent investment scheme from the
   Cayman Islands, where he controlled a network of corporations and bank
   accounts. In an effort to promote the scheme, Gause caused at least
   $24.5 million to be transferred between his Cayman Islands accounts
   and accounts that he controlled in the United States.

   Gause faces a maximum sentence of 20 years in prison and a fine of
   $500,000 or twice the value of property involved in the offense on
   each of four international money laundering counts, 10 years in prison
   and a fine of $1 million or twice the gross gain or loss resulting
   from the crime on the securities fraud count and five years in prison
   and a fine of $250,000 or twice the gross gain or loss resulting from
   the crime on the conspiracy count. In the Commission's civil action
   filed in October 15, 1999, a federal judge has imposed asset freezes
   on Gause and the 44 other defendants and relief defendants named in
   the scheme. On January 14, 2000, the Court entered a permanent
   injunction against Gause, by consent, against future violations of the
   anti-fraud provisions of the securities laws, Section 17(a) of the