U.S. Securities and Exchange Commission

Litigation Release No. 21835 / February 2, 2011

Accounting and Auditing Enforcement Release No. 3238 / February 2, 2011

Securities and Exchange Commission v. Louis E. Rivelli, et al., Civil Action No. 1:05-cv-01039-RPM (D.Colo.)

SETTLEMENT OF SEC ENFORCMENT ACTION BY RODNEY B. JOHNSON AND ROBERT T. HOFFMAN CONCLUDES CASE AGAINST SIX FORMER FISCHER IMAGING EXECUTIVES

The Securities and Exchange Commission announced that on January 31, 2011, the United States District Court for the District of Colorado entered Final Judgments against Defendants Rodney B. Johnson, former CFO of Fischer Imaging Corp. (“Fischer”) and Robert T. Hoffman, a former Fischer sales executive. In its complaint, filed on June 7, 2005, the Commission alleged that the Defendants were involved in improper revenue recognition and other accounting misstatements by Fischer.

Johnson, without admitting or denying the Commission’s allegations, consented to the entry of a Final Judgment that enjoins him from violations of Section 17(a) of the Securities Act of 1933 (“Securities Act”), Sections 10(b) and 13(b)(5) of the Securities Exchange Act of 1934 (“Exchange Act”) and Rules 10b-5, 13b2-1, 13b2-2 and 13a-14 thereunder, and from aiding and abetting violations of Sections 13(a), 13(b)(2)(A) and 13(b)(2)(B) of the Exchange Act and Rules 12b-20, 13a-1 and 13a-13 thereunder; prohibits him from acting as an officer or director of a public company for five years; orders him to pay disgorgement of $36,761 and prejudgment interest of $23,268; and does not impose a civil penalty based on Johnson’s sworn statement of financial condition and other documents and information submitted to the Commission.

Hoffman, without admitting or denying the Commission’s allegations, consented to the entry of a Final Judgment that enjoins him from aiding and abetting violations of Section 13(a) of the Exchange Act and Rules 12b-20, 13a-1 and 13a-13 thereunder. The court also approved the Commission’s motion for dismissal of a claim against Hoffman for aiding and abetting violations of Section 10(b) of the Exchange Act and rule 10b-5 thereunder.

On August 12, 2010, the Court entered the following Final Judgments against the four other Defendants in this enforcement action, which the Defendants consented to without admitting or denying the Commission’s allegations:

• Louis E. Rivelli, former President and CEO: Permanently enjoined from violating Section 17(a) of the Securities Act, Sections 10(b) and 13(b)(5) of the Exchange Act and Rules 10b-5, 13b2-1, and 13b2-2 thereunder, and from aiding and abetting violations of Sections 13(a) and 13(b)(2) of the Exchange Act and Rules 12b-20, 13a-1, and 13a-13 thereunder; ordered to disgorge $681,325, plus prejudgment interest of $138,859.62, however, all but $45,000 of such amount was waived and civil penalties not imposed based upon his sworn statement of financial condition and other evidence submitted to the Commission; and barred from serving as an officer or director of any public company.
   
• Teresa W. Ayers, former member of the board of directors: Permanently enjoined from violating Rule 13b2-1 under the Exchange Act and from aiding and abetting violations of Sections 13(a) and 13(b)(2) of the Exchange Act and Rules 12b-20 and 13a-13 thereunder; and ordered to pay a civil penalty of $25,000.
   
• Stephen G. Burke, former CFO: ordered to pay a $25,000 civil penalty.
   
• Craig L. Stevenson, former vice president of sales: Permanently enjoined from violating Section 17(a) of the Securities Act, Sections 10(b) and 13(b)(5) of the Exchange Act and Rules 10b-5 and 13b2-1 thereunder, and from aiding and abetting violations of Sections 13(a), 13(b)(2)(A) and 13(b)(2)(B) of the Exchange Act and Rules 12b-20, 13a-1, and 13a-13 thereunder; and ordered to disgorge $26,000, plus prejudgment interest of $15,174.19, however, payment of disgorgement and prejudgment interest was waived and civil penalties not imposed based upon his sworn statement of financial condition and other evidence submitted to the Commission.

On August 24, 2010, the Commission issued an administrative order that directs Burke to cease and desist from committing or causing any violations and any future violations of Section 13(b)(5) of the Exchange Act and Rules 13b2-1, 13b2-2, and 13a-14 promulgated thereunder; and from causing any violations and any future violations of Sections 13(a), 13(b)(2)(A) and 13(b)(2)(B) of the Exchange Act, and Rules 12b-20 and 13a-13 promulgated thereunder. The Order also suspends Burke from appearing or practicing before the Commission as an accountant with the right to apply for reinstatement after three years. Burke consented to the issuance of the order without admitting or denying the Commission’s findings.

For further information, see Litigation Release No. 19255 (June 8, 2005); Securities Exchange Act of 1934 Release No. 62761 (August 24, 2010).

http://www.sec.gov/litigation/litreleases/2011/lr21835.htm