U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 19803 / August 15, 2006

SEC v. David M. Pillor, Case No. C-06-4906-WHA (N.D. Cal. filed Aug. 15, 2006)

SEC Settles Charges Against Former InVision Technologies Senior Vice President for Sales and Marketing

The Securities and Exchange Commission today announced charges against David M. Pillor, former Senior Vice President for Sales and Marketing and member of the Board of Directors of InVision Technologies, Inc., a manufacturer of explosive detection machines used in airports.

The Commission's complaint, filed in federal district court in San Francisco, alleges that Pillor aided and abetted InVision's failure to establish adequate internal controls to prevent the company from violating the Foreign Corrupt Practices Act (FCPA), in violation of Section 13(b)(2)(B) of the Securities Exchange Act of 1934, and that he indirectly caused the falsification of the company's books and records, in violation of Exchange Act Rule 13b2-1. Simultaneous with the filing of the Commission's complaint, Pillor agreed, without admitting or denying the allegations, to pay a $65,000 civil penalty and to entry of a permanent injunction against future violations, in settlement of the matter.

In February 2005, InVision settled related charges by the Commission by paying $1.1 million in disgorgement and penalties and agreeing to a Commission order to cease and desist from future FCPA violations. In December 2004, InVision paid $800,000 in penalties to settle similar charges brought by the U.S. Department of Justice.

As described in the Commission's complaint, during the period from late 2001 through June 2004, InVision completed sales to airports in China, the Philippines, and Thailand. In the course of these transactions, Pillor received e-mail messages from his Asian regional sales manager that suggested that InVision's overseas sales agents and distributors intended to make improper payments or other gifts to foreign government officials, in violation of the FCPA. InVision subsequently paid invoices to its agents and distributors in China and the Philippines and improperly recorded the payments as legitimate business expenses.

InVision's FCPA violations occurred, in part, because the company lacked adequate internal controls to detect and prevent such conduct. For example, InVision's sales department provided only informal training about the FCPA to its employees and foreign agents. Similarly, the company's sales department failed to monitor its employees and foreign agents to ensure that they did not violate the requirements of the FCPA. As InVision's head of sales and a member of the company's board of directors, Pillor aided and abetted InVision's failure to establish adequate internal controls.

The conduct alleged by the Commission occurred prior to InVision's acquisition by General Electric Co. in December 2004. The Commission acknowledges the assistance of the Department of Justice in the Commission's investigation.

SEC Complaint in this matter
Litigation Release No. 19078 (Feb. 14, 2005)