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): June 3, 1999
Surety Capital Corporation
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(Exact name of registrant as specified in its charter)
Delaware 33-1983 75-2065607
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(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
1845 Precinct Line Road, Suite 100, Hurst, Texas 76054
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(Address of principal executive offices)
Registrant's telephone number, including area code: 817-498-2749
Not applicable
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(Former name or former address, if changed since last report)
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Item 4. Changes in Registrant's Certifying Accountant
Effective as of June 3, 1999, the services of
PricewaterhouseCoopers LLP ("PWC"), as the Registrant's
independent accountants, were terminated. On June 4, 1999,
Registrant engaged Fisk Robinson, P.C., Dallas, Texas ("Fisk"),
as its independent accountants to audit Registrant's financial
statements for fiscal year 1999. The decision to change
accountants, in large part based on Registrant's efforts to
reduce operating expenses, was approved by the Audit Committee
and ratified by the Board of Directors of Registrant on June 4,
1999.
PWC's report on the consolidated financial statements of
Registrant as of December 31, 1998 contained an explanatory
paragraph raising PWC's doubt as to Registrant's ability to
continue as a going concern. PWC's report on the consolidated
financial statements of Registrant for fiscal years ended
December 31, 1997 and December 31, 1998 did not contain any
other adverse opinion or disclaimer of opinion, nor were they
otherwise qualified or modified as to uncertainty, audit scope,
or accounting principles.
During Registrant's two most recent fiscal years ended
December 31, 1997 and December 31, 1998, there were no
disagreements with PWC on any matter of accounting principles or
practices, financial statement disclosure, or auditing scope or
procedure. Additionally, during Registrant's two most recent fiscal
years ended December 31, 1997 and December 31, 1998, there did not
occur any kind of event listed in paragraphs (a)(1)(v)(A) through
(D) of Regulation S-K, Item 304, other than the identification by
PWC in PWC's letter of May 19, 1998, to the Audit Committee of
Registrant of a material weakness in the internal control environment
related to underwriting, collection and monitoring of the medical
claims factoring division. After recognizing losses incurred in the
outstanding medical claims factoring receivables, Registrant
discontinued that division in 1998.
In connection with Registrant's engagement of Fisk as its
independent accountants for fiscal year 1999, neither Registrant
nor any person acting on behalf of Registrant consulted Fisk
regarding (i) either the application of accounting principles to
a specified transaction, either completed or proposed, or the
type of audit opinion that might be rendered on Registrant's
financial statements; or (ii) any matter that was either the
subject of a disagreement (as defined in paragraph (a)(1)(iv) of
Regulation S-K, Item 304, and the related instructions) or a
reportable event (as described in paragraph (a)(1)(v) of
Regulation S-K, Item 304).
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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.
SURETY CAPITAL CORPORATION
DATE: June 7, 1999 /s/ C. Jack Bean
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C. Jack Bean, Chairman of the Board
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