Strength of Company’s Compliance Program Results in DOJ Deferred Prosecution Agreement

SAN FERNANDO, Calif., Jan. 28, 2008 (PRIME NEWSWIRE) — Sigue today announced it has entered into a deferred prosecution agreement with the Department of Justice relating to past deficiencies in the company’s anti-money laundering compliance program. In addition, Sigue has entered into a settlement agreement with the Financial Crimes Enforcement Network (”FinCEN”) to resolve FinCEN’s concurrent investigation into those matters.

Under the terms of the deferred prosecution agreement, Sigue will forfeit $15 million to settle any and all claims related to this issue. A single charge alleging failure to maintain an effective compliance program will be filed against the company and immediately continued for the term of the agreement. The matter will be dismissed entirely after 12 months provided the company has complied with its agreed upon obligations. The Company has earmarked several million dollars to continue to evolve its industry leading compliance program and promote its governance model. The payment obligations under the FinCEN agreement will be satisfied by the same payment of the amount forfeited.

“It is important to note, the issues identified did not involve Sigue’s officers or employees,” said Sigue General Counsel Robert Pargac. “The problems identified by the government involved a relatively small group of independent agents providing Sigue’s services during the period of November 2003 through March 2005. The vast majority of our agent network and consumers were not involved in the cited activity.”

As a result of the government investigation, several agents were identified as problematic. “Sigue fully supports the government’s anti-money laundering and drug trafficking interdiction efforts,” said Mr. Pargac. “We immediately terminated our relationship with all such agents.”

According to Mr. Pargac, Sigue’s commitment to building an industry-leading compliance program began well before Sigue learned of the government’s investigation. “In December 2004, 18 months before we received any information regarding the investigation, Sigue undertook an initiative to enhance significantly its compliance program with the goal of creating the industry standard,” said Pargac. “I was hired at that time specifically for the purpose of developing and implementing a program that was unmatched by our peers. The settlement of this matter through deferred prosecution reflects the quality and integrity of the compliance program Sigue has built over the last three years.”

Sigue, a leading remittance provider in the Mexican corridor, is the first Money Service Business targeted in a series of government enforcement efforts dating back to the mid-90’s aimed at leading financial institutions. “The intense scrutiny we have been under for the past 18 months coupled with the $20 million investment in our compliance program over the past three (3) years has transformed our company,” said Mr. Pargac. “We have now set a new, higher standard for compliance and agent supervision programs that will be welcomed by our banking partners and imitated by our competitors.”

“Throughout the course of the investigation, we constantly communicated with our banking partners regarding the progress of this matter,” said Mr. Pargac. “We understand they are pleased with the resolution of this issue and are very satisfied with Sigue’s significant investment in, and continual enhancement of, our compliance program which has been raised to the high standard where it is today.”

“After the government’s thorough investigation,” said Mr. Joel Silva, Chief Financial Officer, “Sigue has emerged as an even stronger and better company with an industry-standard compliance program for our agents and a solid reputation for compliance and governance among financial services companies. Our financial condition is very strong. We are now poised to take advantage of business opportunities by assertively expanding our presence in this consolidating market while raising the standards for corporate compliance and governance programs.”

About Sigue

Headquartered in San Fernando, California, Sigue is a leading financial services company providing international electronic money transfer services to Mexico, Central America, South America and the Caribbean. The company is privately held and operates through a network of agents throughout the U.S and Mexico. Sigue has payment arrangements with leading financial institutions in Mexico, Central and South America including the Caribbean.

CONTACT:  Sigue Corporation
          Robert Pargac
          (877) 744-8394