Securities and Exchange Commission

Litigation Release No. 17163 / September 28, 2001

S.E.C. v. Credit Bancorp, Ltd., Credit Bancorp, Inc. Richard Jonathan Blech,
Thomas Michael Rittweger, and Douglas C. Brandon, Civil Action No. 99 Civ
11395 (RWS) (USDC SDNY)

   On September 9, 2001, the Honorable Robert W. Sweet, United States
   District Judge, Southern District of New York, entered an Order for
   Summary Judgment and issued a permanent injunction against Richard
   Jonathan Blech, the founder and chief executive officer of Credit
   Bancorp, Ltd., enjoining him from future violations of the antifraud
   provisions of Section 17(a) of the Securities Act of 1933, Section
   10(b) of the Securities Exchange Act of 1934 and Rule 10b-5
   thereunder.

   The court found that Credit Bancorp, which was based in Geneva,
   Switzerland, and Blech obtained investments of at least $180 million
   in marketable securities by promising individuals a risk-free return
   of 4% to 14% a year, without relinquishing ownership of their
   securities. The returns were to be generated by placing the securities
   in trust accounts established at major financial institutions in the
   name of Credit Bancorp. Major European banks were then to provide
   credit lines based on the value of the securities in the trust
   accounts, and the credit lines were to be used to invest in a trading
   program which would generate the promised returns.

   Rather than being deposited in trust accounts, the securities were
   placed in brokerage accounts maintained by Credit Bancorp and then
   margined or sold outright, with the proceeds being wired to bank
   accounts in the United States and Switzerland. These proceeds were
   then used to fund the operations of Credit Bancorp and Blech's lavish
   personal lifestyle. Among other purchases, Blech bought a manor house
   in Monnetier-Mornex, France, automobiles, and a yacht which was moored
   on the Cote d'Azur in France.

   The Court previously issued a Temporary Restraining Order and Asset
   Freeze against Blech on November 17, 1999, and appointed a Receiver on
   January 19, 2000. Blech is currently being held in prison in France
   awaiting extradition to the United States where criminal charges have
   been filed. The Commission acknowledges the assistance of the United
   States Attorney's Office for the Southern District of New York, the
   Federal Bureau of Investigation, the Ministry of the Interior of the
   Republic of France, the Police Department of the Principality of
   Monaco and the Office of the Magistrate of the Canton of Geneva of the
   Republic of Switzerland.