FOR IMMEDIATE RELEASE
2001-75

                              
                              
           BANK OF BERMUDA AGREES TO $67.5 MILLION
      PROPOSED SETTLEMENT IN LAWSUITS ARISING FROM SEC
       ACTION SHUTTING DOWN CASH 4 TITLES PONZI SCHEME
                              


     Washington, D.C., July 24, 2001 - The Securities and
Exchange Commission today reported a proposed $67.5 million
joint settlement of two actions filed against the Bank of
Bermuda relating to the Commission's action in October 1999
in SEC v. Charles R. Homa, et al., 99 C 6895 (N.D. IL)
shutting down a massive Ponzi scheme operated through C4T
Management, Inc. (C4T) (a/k/a Cash 4 Titles).  The Bank of
Bermuda's proposed offer will settle both a case brought by
Phillip S. Stenger (Stenger v. Bank of Bermuda, Ltd., 00 C
5740, N.D. IL), the court appointed receiver in SEC v. Homa,
and a class action lawsuit filed in Florida (Wolf v. Cash 4
Titles, et al., 00 0542 CIV, S.D. FL).  The Bank of Bermuda
has agreed to pay 50% of verified net investor claims,
attorneys' fees and costs up to a maximum of $67.5 million.
The proposed settlement will be considered in a hearing in
the class action lawsuit on October 12, 2001, in federal
district court in Miami, Florida.  On June 28, 2001, Judge
Guzman, who is presiding over SEC v. Homa, authorized Mr.
Stenger to enter into the proposed settlement.

     On October 15, 1999, the Securities and Exchange
Commission filed an action and obtained, among other things,
a temporary restraining order and asset freeze against Cash
4 Titles (C4T), Charles Richard Homa (Homa), Michael Gause
(Gause) and 23 others individual and entity defendants. On
June 1, 2000, the Commission added 16 defendants to its
action, bringing the total number of defendants charged in
the case to 42.  The Commission alleged that the 42
defendants, led by Homa and Gause, engaged in a massive
Ponzi scheme through the sale of notes and bonds and raised
approximately $300 million dollars from approximately 2,500
investors.  Investors were told that the money would be
loaned to C4T, for use in its car title and payday loan
business.  The Commission alleged that only a small fraction
of the money was used for its intended purpose, and instead,
the funds were transferred to the Cayman Islands and used to
pay existing investors, commissions to marketers and
personal expenses.  The Commission has obtained permanent
injunctions against all but two of the individual defendants
and the entities they control.  The Bank of Bermuda was not
named as a defendant in the Commission's action.
Additionally, Homa and Gause have pled guilty to securities
fraud, wire fraud and money laundering charges brought by
the U.S. Attorney's Office for the Southern District of New
York.

     On November 2, 1999, Judge Guzman in SEC v. Homa
appointed Mr. Stenger as receiver to locate, protect and
liquidate the assets of the Defendants and to pursue other
legal claims for the benefit of investors.  On September 18,
2000, Mr. Stenger filed an action against the Bank of
Bermuda (Stenger v. Bank of Bermuda, Ltd.) alleging that
high ranking employees of the Bank's Cayman Islands
subsidiary touted the C4T investment and were instrumental
in setting up the bank accounts and fund transfers that were
integral to the scheme.  Moreover, the complaint alleged
that Bank employees received commissions for marketing the
C4T investments.  Additionally, on August 2, 2000, a class
action was filed against the Bank of Bermuda and others
(Wolf v. Cash 4 Titles, et al.) alleging that the Bank,
through certain officers, assisted Homa, Gause and others in
a massive scheme to misappropriate investor funds.  The
class action complaint alleges that the Bank of Bermuda
served as a conduit for many offshore C4T financial
transactions and certain Bank officers vouched for the
credibility of Homa and Gause and the legitimacy of the C4T
investment.  As part of the proposed settlement of the
Stenger and class actions, the Bank of Bermuda has denied
liability and no court has entered a finding with respect to
the legal claims.

     Mary Keefe, Director of the Midwest Regional Office of
the Commission, commented on the proposed settlement, "In
many Ponzi schemes, investors recover less than twenty-five
cents on the dollar, and sometimes receive nothing; the
proposed settlement appears to be an excellent result for
investors."

     In addition to the money obtained in settlement from the
Bank of Bermuda, Mr. Stenger and the Commission are pursuing
other assets of the defendants from which to repay investors.
Mr. Stenger has also been appointed joint liquidator in Cayman
Islands proceedings relating to the C4T scheme.  Investors
seeking more information regarding the receiver's lawsuits and
activities should review Mr. Stenger's website at
www.cash4titles.com or the SEC's website at
www.sec.gov/division/enforce/claims/cash4.

For further information regarding SEC v. Homa contact:

Jane E. Jarcho      (312) 353-5479
Amy Stahl Cotter    (312) 353-1942
Scott Hlavacek (312) 353-1679



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