U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 18368 / September 26, 2003

   SECURITIES AND EXCHANGE COMMISSION v. WARREN J. SOLOSKI, 1 03CV01993
   (D.D.C. Sept. 25, 2003) (PLF)

   SEC SUES ATTORNEY FOR INSIDER TRADING

   On September 25, 2003, the Securities and Exchange Commission filed a
   settled civil action in the United States District Court for the
   District of Columbia, alleging that defendant Warren J. Soloski, a
   California attorney, traded on material nonpublic information that he
   obtained while representing Pay Pop, Inc. ("Pay Pop"), a now defunct
   British Columbia-based telecommunications company. The Complaint
   alleges that Soloski violated the antifraud provisions of the federal
   securities laws (Section 17(a) of the Securities Act of 1933 (the
   "Securities Act") and Section 10(b) of the Securities Exchange Act of
   1934 (the "Exchange Act") and Rule 10b-5 thereunder). The Commission
   also issued an administrative order finding that Soloski violated the
   same provisions.

   In both its federal court Complaint and its cease-and-desist order,
   the Commission charged that Soloski received a proposed term sheet
   from an investment banking firm for a potential $8 million equity
   financing of Pay Pop. On the same day Soloski received the draft term
   sheet, he purchased 10,000 shares of Pay Pop. The Commission further
   charged that Soloski sold these shares after learning the financing
   would not close due to the issuance of at least 15 million Pay Pop
   shares via stock certificates that were free of any restrictive
   legends in violation of Section 5 of the Securities Act.

   According to the Commission, Soloski sold his Pay Pop stock while in
   possession of the following material nonpublic information that he
   obtained through his representation of the company (i) Pay Pop had 19
   million shares issued and outstanding, approximately 15 million of
   which Soloski knew to be illegally issued; and (ii) Pay Pop failed to
   close the $8 million financing despite the fact that Pay Pop had
   issued a false press release on June 28, 1999 stating that it had
   closed on the financing. As a result of Soloski's sale of Pay Pop
   stock, he avoided losses of $922.14.

   Without admitting or denying the Commission's allegations and
   findings, Soloski has consented to the entry of a final judgment
   requiring him to pay disgorgement of $922.14, prejudgment interest of
   $288.83 thereon, and a one-time civil penalty of $922.14. In addition,
   Soloski has consented to the entry of an order requiring him to cease
   and desist from future violations of Section 17(a) of the Securities