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) April 28, 1999
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GOLD BANC CORPORATION, INC.
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(Exact name of registrant as specified in its charter)
KANSAS 0-28936 48-1008593
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(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
11301 Nall Avenue, Leawood, Kansas 66211
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Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (913) 451-8050
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None
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(Former name or former address, if changed since last report)
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Item 5. Other Events.
Exchange National Bank is a named defendant in a case styled Wilson v.
Olathe Bank, filed in the United States District Court for the District of
Kansas on September 11, 1997 on behalf of a putative class of over 2,400 persons
who allegedly invested at least $14,900 each in entities known as Parade of Toys
and Bandero Cigar Company. The complaint alleged violations of the Racketeer
Influenced Corrupt Organizations ("RICO") statute (18 U.S.C. 1962(c)),
conspiracy to violate RICO, negligent misrepresentation, fraud, civil conspiracy
and negligence on the part of the defendants. The plaintiffs contend that the
defendants, including Exchange National Bank, were listed in trade reference
sheets provided to plaintiffs by Parade of Toys and Bandero Cigar Company and
that the defendants made false and misleading representations on which the
plaintiffs relied to their detriment. The Second Amended Complaint seeks actual
damages in the total amount of $13,551,559.72. It also prays for punitive
damages in a total amount of $27,103,119.44. On September 29, 1998 and on March
11, 1999, the Court entered orders denying plaintiffs' successive motions for
class certification. Exchange National Bank has filed a motion for summary
judgment on plaintiff Wilson's claims. On April 1, 1999, plaintiff Wilson moved
to dismiss her claims without prejudice. On April 5, 1999, the Court granted
Wilson's motion to dismiss without prejudice. Defendants have sought
reconsideration of that order asserting that Wilson's claims should be dismissed
with prejudice.
A second lawsuit arising out of Parade of Toys styled Aaron v. Hillcrest
Bank, was filed in the United States District Court for the District of Kansas
on September 23, 1998 on behalf of 670 individually named persons. The complaint
names Exchange National Bank as a defendant and alleges similar causes of action
as the Wilson action. On April 5, 1999, the Court dismissed the claims of
plaintiffs Aaron and McCoy without prejudice.
On November 12, 1998, the federal district court ruled, in Wilson and
Aaron, that multiple plaintiffs could not join their claims in a single action.
The Court's orders provide, for the 676 plaintiffs other than Wilson, McCoy and
Aaron, that they must initiate a new action by April 30, 1999 or their claims
will be dismissed with prejudice. In response, plaintiffs have begun to commence
new individual actions in the District Court of Johnson County, Kansas. To date,
Exchange National Bank has been served with 24 petitions filed on behalf of
individual distributors. Each makes claims of fraud, negligent
misrepresentation, civil conspiracy, and negligence. The damages claimed range
between $17,900 and $37,900. Exchange National Bank denies any liability and
intends to vigorously defend these and any additional claims.
The First State Bank and Trust Company ("First State Bank"), a wholly owned
subsidiary of the Company, is a defendant in an adversary proceeding, filed on
July 23, 1998, styled Nelson v. The First State Bank and Trust Company in a
bankruptcy case pending in the Federal Bankruptcy Court for the Western District
of Missouri, filed on October 14, 1997, styled In re: Hagman's Inc. Hagman's
Inc. was owned by William R. Hagman, Jr.'s deceased brother Kenneth R. Hagman.
Until his death on September 8, 1997, Kenneth R. Hagman served as a director of
First State Bank. William R. Hagman, Jr. has had no interest, direct or
indirect, in Hagman's Inc. since 1983. In the adversary proceeding, the
bankruptcy trustee alleges that First State Bank received preferential transfers
from Hagman's Inc. in settlement of loans and bank overdrafts of approximately
$694,000 plus interest prior to the commencement of the Hagman's Inc. bankruptcy
case. There is an issue as to whether First State Bank properly perfected its
security interest in the debtor's inventory. First State Bank and the trustee
each filed motions for summary judgment on the issue of perfection, both of
which the court denied. First State Bank and the trustee then agreed to a
settlement that was approved by the court on April 9, 1999. As a result of this
settlement on April 20, 1999, First State Bank will recognize a charge in the
amount of $465,000 to its existing reserve for loan losses.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Gold Banc Corporation, Inc.
(Registrant)
DATE: April 28, 1999 /s/ Keith E. Bouchey
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Keith E. Bouchey
Executive Vice President
and Chief Financial Officer
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