Securities and Exchange Commission

Litigation Release No. 17942 / January 21, 2003

Final Judgment Setting Disgorgement and Imposing Civil Penalties against
Principals of a Boca Raton Company

, Case No. 01-8328-CIV-RYSKAMP (USDC/SD FL)

   The Securities and Exchange Commission announced that on January 10,
   2003, the United States District Court for the Southern District of
   Florida entered a Final Judgment Setting Disgorgement and Imposing
   Civil Penalties ("Final Judgment"), against Defendants Ulrich Garbe,
   Peggy Patterson and John Hyland, formerly principals of Sunstate FX,
   Inc. ("Sunstate"), a company purportedly in the business of trading
   foreign currency. The Final Judgment orders Garbe to pay $710,287.96
   in disgorgement, $76,712.75 in prejudgment interest and a civil
   penalty of $120,000. Patterson is ordered to pay $228,374.09 in
   disgorgement, $24,665.93 in prejudgment interest and a civil penalty
   of $60,000. Hyland is ordered to pay $124,670.24 in disgorgement,
   prejudgment interest in the amount of $13,464.667 and a civil penalty
   of $60,000. The Final Judgment also provides for the dismissal of
   disgorgement and civil penalties against Sunstate as the company is no
   longer in operation.

   The Court had previously entered, with the defendants' consent, Final
   Judgments of Permanent Injunction and Other Relief ("Judgments") on
   the following dates Sunstate on July 10, 2001, Patterson on July 26,
   2001, Hyland on October 18, 2001 and Garbe on February 26, 2002. The
   Judgments permanently enjoin Sunstate, Garbe and Hyland from violating
   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 ("Exchange Act")
   and Rule 10b-5 thereunder. The Judgments further enjoin Patterson from
   violating Section 10(b) of the Exchange Act and Rule 10b-5 thereunder.

   On April 18, 2001, the SEC filed an emergency action against Sunstate,
   Garbe, Patterson, and Hyland seeking to enjoin them from continuing to
   violate the federal securities laws in connection with their ongoing,
   fraudulent, unregistered offer and sale of securities. The complaint
   alleged that Sunstate had raised over $54 million from approximately
   160 investors, but that only 20% of these funds were actually used for
   foreign currency trading, and even these funds were only used for
   trading for a few short months. Instead, according to the complaint,
   Garbe, Patterson and Hyland misappropriated at least $2.9 million in
   investor funds for their own personal use, including the purchase of
   luxurious homes, cars and other personal items. In addition, the
   complaint alleged that, unbeknownst to investors, Sunstate paid its
   sales agents commissions totaling at least $10.6 million --