Mutual Benefits Corp.

The Securities and Exchange Commission ("SEC") announced that on May 3, 2004, it filed an emergency federal civil action seeking to halt an alleged billion dollar fraudulent securities offering affecting 29,000 investors worldwide. This action was filed against defendants Mutual Benefits Corp. ("MBC"), Joel Steinger, his brother, Leslie Steinger, and Peter Lombardi (collectively the "defendants"). MBC is headquartered in Ft. Lauderdale, Florida. The SEC's action includes a civil complaint and also a contempt motion against the Steingers. In 1998, the Steingers were enjoined from violating the federal securities laws in connection with their activities at MBC. On May 4, 2004, the Honorable Federico A. Moreno, United States District Judge for the Southern District of Florida, entered, among other things, a temporary restraining order, a freeze of the defendants' assets and an order appointing a receiver over MBC. The SEC's complaint alleges that the defendants raised over $1 billion from more than 29,000 investors through a fraudulent, unregistered offering of securities in the form fractionalized interests in viatical and life settlements.