United States Securities and Exhange Commission

Litigation Release No. 16527 / April 26, 2000

SEC SUES FORMER CEO OF LET'S TALK CELLULAR & WIRELESS, INC. AND FAMILY MEMBER FOR INSIDER TRADING

Securities and Exchange Commission v. Nicolas Molina and Julia Vasquez, Civil Action No. 00-1479-CIV-MOORE (S. D. Florida, filed April 26, 2000)

On April 26, 2000, the Securities and Exchange Commission ("SEC") filed a complaint in an insider trading case involving the securities of Let's Talk Cellular & Wireless, Inc. ("Let's Talk" or the "Company"). The SEC's complaint alleges that Nicolas Molina ("Molina"), the Company's former CEO, and Molina's mother, Julia Vasquez ("Vasquez") traded in advance of a negative announcement on July 2, 1998 concerning the Company's fourth quarter earnings. Without admitting or denying the SEC's allegations, Molina and Vasquez consented to the entry of a permanent injunction against future violations of the antifraud provisions of the federal securities laws.

The SEC alleges that Molina learned on July 1, 1998 that it was unlikely that Let's Talk would meet analyst earnings expectations for its stock for the Company's fourth fiscal quarter, ending July 31, 1998. The SEC further alleges that Molina provided this inside information to Vasquez. The SEC alleges that Vasquez sold her Let's Talk stock on July 2, 1998, before the Company's negative earnings announcement, and avoided a substantial loss.

In her settlement with the SEC, Vasquez agreed to pay disgorgement of $20,781.25, plus pre-judgment interest, and a civil penalty of $20,781.25. In his settlement with the SEC, Molina agreed to pay a civil penalty of $20,781.25. The final judgment also permanently enjoins Molina and Vasquez from violating Sections 17(a)(1), 17(a)(2) and 17(a)(3) of the Securities Act of 1933 (15 U.S.C. §§ 77q(a)(1), 77q(a)(2) and 77q(a)(3)) and Section 10(b) of the Securities Exchange Act of 1934 (15 U.S.C. § 78j(b)) and Rule 10b-5 thereunder (17 C.F.R. §240.10b-5).