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:
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.