Securities and Exchange Commission Washington, D.C. Litigation Release No.15624 / January 22, 1998 Accounting and Auditing Enforcement Release No. 1006 SECURITIES AND EXCHANGE COMMISSION v. RUSSELL C. FAUST, United States District Court for the Northern District of California, Civil Action No. 98-0197-CAL; UNITED STATES OF AMERICA v. RUSSELL C. FAUST The Securities and Exchange Commission announced today the filing on January 20, 1998 of both criminal and civil actions against Russell Faust, formerly Chief Operating Officer and a Director of Media Vision Technology, Inc. of Fremont, California, for his involvement in the fraudulent reporting of Media Vision's 1993 financial results to the public. Faust has settled both the criminal and civil actions, which were filed today in the Northern District of California. As part of the settlements, he has agreed to cooperate with authorities in their continuing investigations into securities fraud by senior management at Media Vision in 1993 and 1994. Pursuant to a plea agreement with the U.S. Attorney's office, Faust has agreed to plead guilty to one count of mail fraud, which carries a potential prison sentence of five (5) years, a $250,000 fine, and restitution to the victims of the fraud. In the SEC case, Faust, without admitting or denying the allegations of the SEC complaint, has consented to the entry of a Final Judgment requiring him to pay $555,932, consisting of disgorgement of insider trading profits and prejudgment interest in the amount of $197,285, an insider trading penalty in the amount of $158,647 and an additional $200,000 in civil penalties, barring him from serving as an officer or director of any public company, and enjoining him from future violations of Section 17(a) of the Securities Act of 1933, Sections 10(b) and 13(b)(5) of the Securities Exchange Act of 1934, and Rules 10b-5 and 13b2-2 thereunder. The criminal information and the SEC complaint charge that Faust participated in fraud at Media Vision by directing the falsification of documents to make it appear that product had shipped in one quarter, when in fact it had not shipped until the following quarter, for the purpose of inflating revenues. The SEC complaint also charges that Faust misrepresented to auditors that Media Vision had no unrecognized product returns and that Faust sold Media Vision stock while in possession of material nonpublic information about fraud at the company. ======END OF PAGE 1======