The Securities and Exchange Commission filed civil fraud charges against six former executives at Fischer Imaging Corp., Denver, alleging that the executives were responsible for reporting inflated financial results for the company from January 2000 through September 2002. The complaint, filed in U.S. District Court in Denver, charges that the defendants, among other improprieties, recognized revenue on equipment sales that Fischer had not delivered to customers. The SEC wants the defendants to forfeit their allegedly "ill-gotten gains" and pay civil monetary penalties. The agency also seeks an order barring four of the defendants from serving as an officer or director of a public company. Fischer consented to comply with financial reporting laws in November 2004. The SEC investigation of accounting misstatements at the company is continuing.
The defendants are: former President and Chief Executive Officer Louis Rivelli; two former chief financial officers, Rodney Johnson and Stephen Burke; former audit committee chairwoman, Teresa Ayers; and two former senior sales executives, Craig Stevenson and Robert Hoffman. -- by Cinda Becker