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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 (date of earliest
event reported): April 14, 1997
Moyco Technologies, Inc.
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(Exact Name of Registrant as specified in its charter)
Pennsylvania 0-4123 23-1697233
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(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
200 Commerce Drive, Montgomeryville, PA 18936
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Registrant's telephone number, including area code: 215-855-4300
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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 Matters
On April 9, 1997, the Registrant agreed to plead guilty to a two (2)
count information charging it with distribution of adulterated drugs and mail
fraud. The Plea Agreement was filed in the United States District for the
Eastern District of Pennsylvania and was the result of negotiations between
Moyco and the government. The plea is related to the previously announced
investigation spanning almost two years concerning the prior manufacture and
testing of foot powder.
The foregoing is a summary of the press release which is attached as
Exhibit A to this report and is incorporated herein by reference. The foregoing
description does not purport to be complete and is qualified in its entirety by
reference to Exhibit A.
SIGNATURE
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.
MOYCO TECHNOLOGIES, INC.
By: /s/ Marvin E. Sternberg
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Marvin E. Sternberg
President and Chief Executive Officer
and Chairman of the Board
Date: April 14, 1997
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LOGO
Moyco Technologies, Inc.
[Moyco Technologies, Inc. Letterhead]
For Immediate Release
April 9, 1997
Contact: Joseph Sternberg
MOYCO ENTERS PLEA AGREEMENT
Moyco Technologies, Inc. (MOYC; Nasdaq), a Montgomeryville, PA manufacturer of
precision abrasives, CMP materials, and professional dental supplies has agreed
to plead guilty to a two count information charging it with distributing
adulterated drugs and mail fraud. The Plea Agreement will be filed in the United
States District Court for the Eastern District of Pennsylvania and was the
result of negotiations between Moyco and the government. The plea is related to
the previously announced investigation spanning almost two years concerning the
prior manufacture and testing of foot powder. Moyco has accepted responsibility
for failing to maintain required quality control and stability testing
procedures for foot powder which it sold to the government from 1992 to 1996. A
Corporate Officer of Moyco has also agreed to plead guilty to mail fraud related
to the prior deliveries of foot powder to the government.
The fine range set forth in the Plea Agreement is from $175,000 to $700,000 to
be determined by the assigned judge at the sentencing hearing. The fine will be
based on various factors. In addition, the possibility of further civil
restitution remains. Appropriate pay-outs are anticipated to allow Moyco to
continue operations and pursue growth opportunities.
The product involved in this case, foot powder, is no longer manufactured by
Moyco and was never a part of its core business. Moyco has retained the law firm
of Duane, Morris & Heckscher of Philadelphia, PA to implement a new compliance
program which should prevent problems of this nature in the future. The facility
where the foot powder was manufactured was closed and donated to charity.
Moyco CEO and Chairman of the Board, Marvin Sternberg, stated, "Moyco accepts
responsibility for this matter. The wrongful conduct in this case does not
represent our usual high dedication to legal and appropriate business procedures
and is contrary to our corporate policy. Our plea represents the first step in
recognizing this mistake. We apologize to the government for this conduct. We
are pleased to have resolved this matter and look forward to re-directing our
efforts to the business of this Company with improved compliance programs in
place."
CONTINUED
Exhibit A
Page 1 of 2
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(Page 2 MOYCO RELEASE 4/9/97)
Upon learning in May 1996 of an ongoing investigation of this matter, Moyco
engaged the law firm of Duane, Morris and Heckscher to immediately conduct an
independent investigation. As a result of these efforts in reviewing the foot
powder manufacturing operations, quality control procedures, records and
product, it was determined by experts employed by Duane, Morris and Heckscher
for Moyco that the foot powder sold to the government was safe and effective.
Exhibit A
Page 2 of 2
