U.S. Securities and Exchange Commission

Litigation Release No. 18345 / September 11, 2003

Accounting and Auditing Enforcement Release No. 1862

United States District Court for the District of Columbia, Civil Action No.
1 03cv01905

SEC BRINGS SETTLED ACCOUNTING FRAUD CASE AGAINST STEPHEN D. PRICE

   The Commission announced today that it has instituted a settled
   cease-and-desist proceeding against Stephen D. Price, of Bronxville,
   New York, a former Vice-President for Business Development at CAIS
   Internet, Inc., now known as Ardent Communications, Inc. The
   Commission also filed a complaint in federal court seeking a civil
   penalty against Price. Without admitting or denying the Commissions
   findings, or the allegations in the complaint, Price consented to the
   issuance of a cease-and-desist order, and a judgment ordering him to
   pay a $20,000 penalty. The Commissions Order finds that Price violated
   the federal securities laws by concealing information about a
   significant sale from CAISs management and accountants, which led CAIS
   to file materially false and misleading financial statements with the
   Commission.

   The Order finds that in September 2000, Price agreed to sell more than
   $1 million of Internet kiosks to a private company, subject to an oral
   side agreement requiring CAIS to make a multi-million dollar
   investment in the private company. According to the Order, Price knew
   that the customer would return the kiosks to CAIS if the promised
   investment was not made. The Order finds that Price concealed details
   about the investment from CAISs management and accountants, and that
   his conduct led CAIS to file materially false financial statements for
   the quarter ended September 30, 2000. The Order finds that Price
   violated the antifraud provisions of the federal securities laws
   because he knew that CAIS would record the sale as revenue in the
   third quarter and overstate its results. The Order also finds that,
   due to his misconduct, Price was a cause of CAISs violations of the
   reporting and recordkeeping provisions of the federal securities laws.

   The Commission found that Price violated Sections 10(b) and 13(b)(5)
   of the Securities Exchange Act of 1934 and Rules 10b-5, 13b2-1 and
   13b2-2 thereunder, and was a cause of CAISs violations of Sections
   13(a) and 13(b)(2)(A) of the Exchange Act and Rules 12b-20 and 13a-13
   thereunder. The Commission also ordered Price to cease and desist from
   committing or causing any violations and any future violations of
   Sections 10(b) and 13(b)(5) of the Exchange Act and Rules 10b-5,
   13b2-1 and 13b2-2 thereunder, and from causing any violations and any