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): OCTOBER 9, 1997
CLARK MELVIN SECURITIES CORPORATION
(Exact name of registrant as specified in its charter)
DELAWARE 0-17129 52-0749204
(State or other jurisdiction of (Commission (I.R.S. Employer
incorporation) File Number) Identification No.)
170 JENNIFER ROAD, SUITE 270, ANNAPOLIS, MARYLAND 21401
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (410) 841-6422
NOT APPLICABLE
(Former name or former address, if changed since last report)
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ITEM 5. OTHER EVENTS.
On October 9, 1997, the Company filed a report pursuant to Rule 17a-11
promulgated under the Securities Exchange Act of 1934 to report the
misappropriation of an aggregate of approximately $2.0 million in funds through
the fraudulent endorsement of checks written by the Company and its clients. The
investigation by the Puerto Rico Financial Institutions Commissioner, the
Federal Bureau of Investigation and the Securities and Exchange Commission is
ongoing, but has so far revealed evidence that one of the firm's brokers forged
endorsements on $2.0 million in checks and wrongfully deposited them into
third-party accounts. The Company voluntarily suspended operations on October 9,
1997 due to the missappropriation and to determine the effect on the firm's net
capital position.
In the event that (i) it is ultimately determined that the Company is
responsible for the losses caused by the forged checks and (ii) the Company is
unable to recover from the wrongdoing parties or the financial institutions
involved, the Company will not be able to reopen unless its net capital position
can be supplemented to become in compliance with the SEC Net Capital Rule.
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ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(a) Financial Statements. None.
(b) Pro Forma Financial Statements. None.
(c) Exhibits. None
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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.
CLARK MELVIN SECURITIES CORPORATION
Date: October 17, 1997 By:/s/ Cesar A. Montilla, Jr.
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Cesar A. Montilla, Jr.
Chairman, President and
Chief Executive Officer
