-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, A0NkEvHSyvShkuUW7ZMOsDM90bGuRucgV8Ud60/jZVhCYwDnxyByf+hGR3JVyLMA JWYQs0C1Re3xmzDirBXQjA== 0001003957-97-000006.txt : 19971002 0001003957-97-000006.hdr.sgml : 19971002 ACCESSION NUMBER: 0001003957-97-000006 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970918 ITEM INFORMATION: FILED AS OF DATE: 19971001 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: RISCORP INC CENTRAL INDEX KEY: 0001003957 STANDARD INDUSTRIAL CLASSIFICATION: FIRE, MARINE & CASUALTY INSURANCE [6331] IRS NUMBER: 650335150 STATE OF INCORPORATION: FL FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 000-27462 FILM NUMBER: 97689478 BUSINESS ADDRESS: STREET 1: 1390 MAIN ST CITY: SARASOTA STATE: FL ZIP: 34236 BUSINESS PHONE: 9419512022 MAIL ADDRESS: STREET 1: 1390 MAIN STREET CITY: SARASOTA STATE: FL ZIP: 34236 8-K 1 PRESS RELEASE OF LEGAL ACTION SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ----------------------- FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 ----------------------- Date of report (Date of earliest event reported): September 18, 1997 RISCORP, INC. (Exact Name of Registrant as Specified in Charter) Florida 0-27462 65-0335150 (State or Other Jurisdiction (Commission File Number) (IRS Employer of Incorporation) Identification No.) 1390 Main Street Sarasota, Florida 34236 (Address of Principal Executive Offices, including Zip Code) Registrant's telephone number, including area code: (941) 951-2022 (Former Name or Former Address, if Changed Since Last Report) Item 5. Other Events. On September 18, 1997, the U.S. Attorney's Office in Pensacola, Florida announced that a United States grand jury had indicted RISCORP, Inc. (the "Company") and five former officers, including William D. Griffin, founder and Chairman of the Board, for various charges stemming from alleged illegal political campaign contributions. On September 18, 1997, the Board of Directors approved a guilty plea by RISCORP Management Services, Inc., a wholly owned, non-regulated subsidiary of the Company, to a single count of conspiracy to commit mail fraud. As a result of the plea being negotiated with the U.S. Attorney, it is expected that the indictment against the Company will be dismissed. Mr. Griffin has resigned from the Board of Directors of the Company and all other positions with the Company and its subsidiaries. A copy of the press release issued by the Company with respect to the foregoing matters is filed herewith as Exhibit 99 and is incorporated herein by reference. Item 7. Financial Statements, Pro Forma Financial Information and Exhibits. The following exhibit is filed as a part of this report: EXHIBIT NO. DESCRIPTION 99 Press Release, dated September 18, 1997 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. RISCORP, INC. By: /s/ Frederick M. Dawson Frederick M. Dawson Chief Executive Officer Dated: October 1, 1997 EX-99 2 OTHER INFORMATION - FORM OF PRESS RELEASE EXHIBIT 99 Form of Press Release STATEMENT OF RISCORP, INC. REGARDING GRAND JURY INDICTMENTS SARASOTA, FL, September 18, 1997 - RISCORP, Inc., today issued the following statement by Frederick M. Dawson, its chief executive officer, regarding the indictments announced today by P. Michael Patterson, the U.S. Attorney in Tallahassee. "When I joined RISCORP in May, one of my highest priorities as established by the Board of Directors was to resolve, once and for all, any remaining issues regarding the grand jury investigation of RISCORP. Now, I am pleased to announce that, after numerous conversations between representatives of the Company and the U.S. Attorney, the Board of Directors has unanimously approved a guilty plea by a non-regulated subsidiary of the Company to one conspiracy count. As a result of the plea being negotiated with the U.S. Attorney, it is expected that the indictment against RISCORP will be dismissed. RISCORP, as well as its agents, policyholders, employees and shareholders can now move forward. "Importantly, none of RISCORP's regulated insurance company subsidiaries are implicated by the plea agreed to by RISCORP Management Services, a non-regulated subsidiary. In addition, the actions underlying the indictment and plea by the Company's subsidiary did not involve the Company's insurance business. "The Company expects to be fined as a result of its subsidiary's guilty plea. While the amount of any fine will be determined by the court, the Company does not believe that it will exceed approximately $300,000. Obviously, a fine in this amount will not have a material adverse effect on the ability of the Company or its regulated insurance companies to continue conducting business. "In addition, as announced by the U. S. Attorney, four former officers of the Company and William D. Griffin were also indicted. Prior to announcement of the indictment, Mr. Griffin indicated he would be resigning all positions with the Company and its subsidiaries in order to allow the Company to continue its recent progress. These individuals are each entitled to their day in court. I personally pledge that the Company and its current employees are dedicated to the highest ethical and moral principles, as defined by the Company's Code of Business Conduct. Our employees know that any impropriety will be dealt with swiftly and decisively. "Over the past 120 days, our management team has methodically addressed the issues plaguing the Company. We have conducted a thorough reorganization of the Company, its operations and its management. We have refocused the Company's operations around its core strengths in workers' compensation insurance. We have decreased operating expenses by nearly 30 percent. We have improved relationships with our regulators. We have strengthened the Company's financial reporting capabilities, filed audited statutory statements for our insurance company subsidiaries, and continue to make progress on our GAAP financial filings. And we continue to move forward with the close of our asset sale agreement with Zenith Insurance Company. "Today, RISCORP faces a brighter, more positive future. Our present management team is focused completely on our ultimate responsibilities to our regulatory agencies, employees, agents, policyholders and shareholders, and remains committed to delivering superior quality product and service." RISCORP, Inc. is a managed care workers' compensation company offering employers integrated products and services designed to control costs, provide quality medical care, and promote rapid return to work. -----END PRIVACY-ENHANCED MESSAGE-----