uncharted.ca

...trustees' removal...

What they thought was the end was only the beginning.

they are about to get a Caribbean enema by some slick hotel developers.

CARLSBAD, CA, Mar 02, 2007 (MARKET WIRE via COMTEX) -- Case Financial, Inc. (CSEF : case finl inc com

CSEF (Case Financial Inc.) today announced that, on February 23, 2007, it filed suit against the Canadian Commercial Workers Industry Pension Plan ("CCWIP"), South Ocean Development Company Ltd. ("South Ocean"), Allen & Company and certain individuals for fraud arising out of their conduct with respect to prior litigation over agreements to purchase a waterfront hotel property, overlooking a golf course and marina, including a gaming license, located on the island of New Providence, Bahamas.

The suit alleges that the defendants made fraudulent misrepresentations intended to induce Case Financial to rely and act on these misrepresentations and enter into a settlement agreement resolving the prior litigation. The suit also alleges that the defendants knowingly concealed facts that would have had a material impact on the decision to enter into that settlement agreement.

Background:

On or about March 21, 2005, South Ocean and L&M Specialties ("L&M"), an affiliate entity of Case Financial, entered into a Letter of Intent ("LOI") concerning the purchase of real estate and a gaming license attached to that real estate located on the island of New Providence, Bahamas (the "Property"). Pursuant to the LOI, South Ocean was obligated to permit L&M to perform due diligence. After numerous attempts to resolve disputes that had arisen relating to the intended purchase of the Property, Case Financial and L&M filed a complaint against CCWIP, South Ocean, Allen & Company, and related individuals in the United States District Court for the Southern District of Florida ("Florida Litigation").

Between January and March 2006, the defendants in the Florida Litigation conducted settlement discussions with Case Financial. Prior to signing the settlement agreement, it was represented to Case Financial that no action had been taken regarding the sale of the Property and that Case Financial would have an opportunity to purchase the Property following settlement. Case Financial signed this settlement agreement relying on the representations concerning the disposition and availability of the Property.

The Company has subsequently learned that South Ocean was sold to Roger Stein, an investor, prior to Case Financial signing the settlement agreement at the end of March 2006.

o The Company and CCWIPP shall form an Operating Committee to oversee the collection of receivables due from advances made through the Company by both parties. This Operating Committee would be given the sole right and power to pursue collection on behalf of and for the benefit of both parties.

o The net proceeds of moneys collected by the Operating Committee or moneys received from the derivative lawsuit filed against former officers and parties, 60% of the net proceeds due to CCWIPP and 40% of the net proceeds due to the Company. Once CCWIPP has recovered $4,000,000, this division would reverse with 60% of the net proceeds due to the Company and 40% of the net proceeds due to CCWIPP.

o The cancellation of $2,500,000 in notes plus all accrued interest owed to CCWIPP by the Company.

o The return of 1,000,000 shares of the Company's common stock to the Company treasury and the cancellation of 3,000,000 warrants to purchase the Company's common stock at an exercise price of $.50
that had been issued to CCWIPP.

o The issuance of new warrants to CCWIPP to purchase up to 1,500,000 shares of the Company's common stock at an exercise price of $.25.
These warrants expire on December 31, 2008.

The Parties
1. Plaintiff L&M Specialties, Inc. ("L&M") is a California corporation having its principal place of business at 7468 Via de Fortuna, Calsbad, Califonlia 92009.