UNITED STATES OF AMERICA
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
Current Report Pursuant to Section 13 or 15(d) of
The Securities Act of 1934
Date of Report (Date of earliest event reported)
April 1, 1999 (February 1, 1999)
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COMTEC INTERNATIONAL, INC.
(Exact name of registrant as specified in its charter)
New Mexico 0-12116 75-2456757
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(State or other (Commission (IRS Employer
Jurisdiction File Number) Identification No.)
Of Incorporation)
9350 East Arapahoe Road, Suite 340, Englewood, Co. 80112
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (303) 662-8373
This Document consists of 3 pages
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Item 5: Other Items
Litigation with Former Officer and Director
On February 1, 1999 Donald Mack, the former CEO, President and
director of ComTec International, Inc. filed a complaint in the
District Court, City and County of Denver, State of Colorado, Civil
Action Number 99CV634, Courtroom 6, against ComTec International,
Inc. ("ComTec") as well as two individual defendants, a current
officer and a shareholder of ComTec. On March 24, 1999 ComTec
filed its Answer and extensive Counterclaims against Donald Mack
("Mack"). Mack alleges that he is entitled to continued
compensation and benefits based upon a March 31, 1997 addendum to
his December 26, 1995 employment contract (which expired in May of
1998). Mack further alleges that although he resigned as an
officer in June 1998, he was wrongfully induced to resign. Mack
alleges that he is due salary, car allowance, health plan payments,
life insurance payments, stock bonuses and other items from June
30, 1998 through June 30, 2002. ComTec's answer states that the
March 31, 1997 addendum is null and void as a matter of law, denies
any wrongdoing or inducement and denies any and all liability to
Mack. ComTec's answer further states as affirmative defenses that
Mack's claims are barred by the doctrine of estoppel and unclean
hands, that the March 31, 1997 addendum was entered into under
circumstances of fraud and illegality, that Mack's claims are
barred by failure of consideration, fraud and illegality, waiver,
failure to mitigate, that Mack's alleged claims are setoff by the
counterclaims of ComTec against Mack and that Mack's alleged
damages, if any, are the result of Mack's own actions. ComTec
believes it has meritorious and virtuous defenses and anticipates
that it will vigorously and effectively defend against any and all
claims by Mack.
Claims against Former Officer and Director
On March 24, 1999, in District Court, City and County of Denver,
State of Colorado, Civil Action Number 99CV634, Courtroom 6, ComTec
filed its Answer to the complaint of Donald Mack and extensive
Counterclaims against Donald Mack ("Mack"), a former CEO, President
and director of ComTec. Among the Counterclaims of ComTec against
Mack are allegations that an agreement entered into in May of 1995,
whereby Mack gained control of ComTec through an agreement for
ComTec to purchase the assets of a corporation controlled by Mack,
KeyStone Holding Corporation, was entered into with intent to
defraud ComTec and its shareholders. Among other allegations,
ComTec alleges that misrepresentations and omissions of material
fact were made by Mack prior to the Keystone transaction, that Mack
used ComTec as an instrumentality for his own personal benefit and
affairs, that Mack acted to conceal material facts regarding Mack's
ultra vires and unauthorized acts in the name of ComTec. ComTec
further alleges that Mack took unauthorized and unearned bonuses in
stock of ComTec and cash, that the execution of the employment
addendum through which Mack is alleging amounts are now due him
from ComTec was accompanied by circumstances of fraud and
collusion, and that Mack made unauthorized use of ComTec's funds
and property. ComTec's claims against Mack include: intentional
misrepresentation/fraudulent inducement regarding the Keystone
Transaction; fraudulent concealment/constructive fraud; breach of
warranty; breach of fiduciary duty; conversion; fraudulent
conveyance; civil theft pursuant to C.R.S. Section 18-4-401 and 18-
4-405 and securities fraud pursuant to C.R.S. Section 11-51-501.
ComTec seeks monetary damages and constructive trust as well as
Declaratory Judgment pursuant to C.R.C.P. 57. ComTec believes it
has meritorious claims and will resolutely pursue its claims
against Mack.
Exhibits
None
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SIGNATURES
ComTec International, Inc.
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(Registrant)
Date: April 1, 1999
s/s Gordon Dihle
________________________________________
Gordon Dihle - Authorized Officer, CFO
and Secretary.
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