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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: November 24, 1997
Complete Wellness Centers, Inc.
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(Exact Name of Registrant as specified in its Charter)
Delaware 0-22115 52-1910135
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(State or other jurisdiction (Commission File No.) (I.R.S. Employer
or corporation) Identification No.)
725 Independence Avenue, SE
Washington, DC 20003
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(Address of Principal (Zip Code)
Executive Offices)
Registrant's telephone number, including area code: (202) 543-6800
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N/A
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(Former name or former address, if changed since last report)
ITEM 5. OTHER EVENTS
On November 19, 1997, Complete Wellness Centers, Inc. ("CWC" or the
"Company") announced that on November 18, 1997 an interdepartmental team of
federal investigative officers, under the supervision of the United States
Attorney for the Eastern District of Virginia, executed search warrants at the
Company's headquarters and several of its other locations. The warrants and
related subpoenas primarily sought the Company's patient billing records and
computer systems related to various insurers including but not
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limited to CHAMPUS, Medicare, Federal Employees Health Benefits Program,
Medicaid and Blue Cross/Blue Shield of Virginia. The Company expects to have
sufficient access to its files to enable it to continue normal operations during
the pendency of the investigation. The Company has hired counsel to represent
it in the billing investigations. Management believes that it is too early to
anticipate whether such actions/investigations will have a material adverse
effect on the Company's financial position or results of operations.
ITEM 7. EXHIBIT
Exhibit 20. Copy of the press release dated November 19, 1997
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934, the
registrant has duly caused this Report to be signed on its behalf by the
undersigned hereunto duly authorized.
COMPLETE WELLNESS CENTERS, INC.
Date: November 24, 1997 By: /s/ Eugene Sharer
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Eugene Sharer, President
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[COMPLETE WELLNESS CENTERS LETTERHEAD]
FOR IMMEDIATE RELEASE
CONTACT: NASDAQ SMC: CMWL, CMWLW
C. Thomas McMillen, Chairman and CEO -or-
Victoria Harris, Corporate Communications INVESTOR RELATIONS COUNSEL:
Complete Wellness Centers, Inc. The Equity Group, Inc.
(202) 543-6800 Linda Latman (212) 836-9609
COMPLETE WELLNESS CENTERS, INC. REPORTS EXECUTION OF FEDERAL SEARCH
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WARRANTS AND RELATED SUBPOENAS
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WASHINGTON, DC November 19, 1997 - COMPLETE WELLNESS CENTERS, INC., a
multi-disciplinary physician practice management company, today announced that
on November 18, 1997 an interdepartmental team of federal investigative officers
under the supervision of the office of the United States Attorney for the
Eastern District of Virginia, executed search warrants at the Company's
headquarter office and several of its other locations.
The warrants and related subpoenas primarily sought the Company's patient
billing records and computer systems related to various insurers "to include but
not limited to CHAMPUS, Medicare, Federal Employees Health Benefits Program
(FEHBP), Medicaid and Blue Cross/Blue Shield of Virginia." Execution of the
search warrant was orderly and the Company cooperated fully. The Company
expects to have sufficient access to its files to enable it to continue normal
operations during the pendency of the investigation. Neither the warrants nor
related subpoenas stated the purpose of the investigation or the basis upon
which legal process was issued.
C. Thomas McMillen, Chairman and CEO of COMPLETE WELLNESS CENTERS, INC. stated,
"We are surprised by the actions of the government inasmuch as the Company does
very little business with the various federal health benefit programs mentioned
in the warrants and does very little billing for its affiliated clinics.
Management is unaware of any billing improprieties. The Company intends to
cooperate fully with the investigative agencies involved and to resolve whatever
issues may be presented."
COMPLETE WELLNESS CENTERS, INC. develops multi-disciplinary medical clinics that
offer, at one location, traditional healthcare providers, such as physicians and
physical therapists, and alternative healthcare providers such as chiropractors,
acupuncturists and massage therapists. COMPLETE WELLNESS CENTERS, INC. currently
manages or has contracts to manage 135 centers in 21 states. Its stock and
warrants trades on the NASDAQ Small Cap market under the symbols, CMWL and
CMWLW, respectively.
