SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 17130 / September 17, 2001

      SEC FILES SETTLED ACTION FOR SECURITIES FRAUD AGAINST REGISTERED
                               REPRESENTATIVE

   Securities and Exchange Commission v. Morgan Financial Services, Inc.
   and Charles F. Morgan, Case No. 8 01-CV-1667-T-23 TGW (M.D. Fla.,
   Tampa Division) (complaint filed September 4, 2001)

   The Securities and Exchange Commission (SEC) announced today that it
   filed and simultaneously settled an action for securities fraud in the
   United States District Court for the Middle District of Florida
   against Morgan Financial Services, Inc. (MFS), a Florida corporation,
   and Charles F. Morgan, both of Tampa, Florida. In its complaint the
   SEC alleges that Morgan is the owner and president of MFS, and that,
   from September 1985 to August 2000, Morgan was employed as a
   registered representative with firms which were registered with the
   SEC as broker-dealers and as investment advisers.

   The SEC further alleges in its complaint that between December 1991
   and June 2000, Morgan and MFS raised more than $2.4 million from 17
   investors both within and outside of Florida by guaranteeing the
   safety of their invested principal and an annual return, in the form
   of monthly interest payments, of at least 10 percent. According to the
   SEC's complaint, instead of investing the funds as promised, Morgan
   and MFS used the investors' funds to make interest payments to other
   investors, to pay their own expenses and operating costs, and to
   purchase a controlling interest in a bankrupt, privately held company
   which had limited revenues, poor management and no history of profits.
   The SEC alleges that to conceal and perpetuate the fraud, Morgan
   provided to the investors false account statements purporting to show
   that their investments were safe and profitable. The SEC also alleges
   that no registration statement was filed with the Commission or was in
   effect in connection with the MFS securities.

   Without admitting or denying the allegations in the SEC's complaint,
   except as to jurisdiction, Morgan and MFS consented to the entry of a
   final judgment of permanent injunction which would enjoin them from
   future violations of Sections 5(a), 5(c) and 17(a) of the Securities
   Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934
   and Rule 10b-5 thereunder. In addition, Morgan and MFS have consented
   to a judgment which would require them to disgorge, jointly and
   severally, $1,736,699, plus prejudgment interest, provided, however,
   that the SEC waive payment of the disgorgement and interest based on
   Morgan's and MFS' demonstrated financial inability to pay.