U.S. Securities and Exchange Commission

Litigation Release No. 18367 / September 26, 2003

, Civil Action No. 1 03CV01994 (D.D.C.) (September 25, 2003) (PLF)

SEC Sues Sean Nevett For Engaging In Unregistered Distribution of Pay Pop,
Inc. Stock

Nevett Settles And Agrees To Pay $386,997.96 In Disgorgement, Prejudgment
Interest And Penalties

   On September 25, 2003, the Securities and Exchange Commission filed a
   settled civil injunctive action in the United States District Court
   for the District of Columbia, alleging that Sean Nevett, a California
   resident, engaged in an unlawful distribution and sale of the stock of
   Pay Pop, Inc. ("Pay Pop"), a now defunct British Columbia-based
   telecommunications company. Specifically, the Complaint alleges that
   Nevett participated in the public distribution and sale of Pay Pop
   stock, notwithstanding the fact that there was no registration
   statement filed with the Commission or any applicable exemption from
   registration, in violation of Section 5 of the Securities Act of 1933
   (the "Securities Act"). As alleged in the Commission's Complaint,
   between 1998 and 1999, Nevett sold approximately 3.1 million shares of
   Pay Pop common stock into the market through a variety of brokerage
   accounts located in Canada and the United States. As a result, Nevett
   made unlawful profits of $257,061.01.

   Nevett settled the civil injunctive action without admitting or
   denying the allegations of the Complaint. Nevett consented to the
   entry of a final judgment (i) enjoining him from future violations of
   Section 5 of the Securities Act; (ii) requiring the payment of
   disgorgement of $257,061.01, plus prejudgment interest of $79,936.95;
   (iii) requiring payment of a civil penalty of $50,000; and (iv)
   barring Nevett for two years from participating in the distribution of
   any penny stock.

   Simultaneously with the filing of this action, the Commission also
   filed a civil injunctive action against five individuals, including a
   former senior manager of Pay Pop's transfer agent, CIBC Mellon Trust
   Company, for engaging in a fraudulent scheme to create purportedly
   "free trading" Pay Pop stock (legend-free stock certificates that
   created the false impression that the stock complied with U.S.
   registration requirements), issuing a series of materially false and
   misleading public statements and selling Pay Pop shares to
   unsuspecting investors. , 1 03CV01992 (D.D.C. Sept. 25, 2003) (PLF); .
   In addition, the Commission also filed a settled civil action and a
   cease-and-desist order against a former attorney of Pay Pop for