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): February 18, 1999
SYNETIC, INC.
(Exact name of registrant as specified in charter)
DELAWARE 0-17822 22-2975182
(State or other jurisdiction of (Commission File Number) (I.R.S. Employer
incorporation) Identification No.)
669 River Drive, River Drive Center II 07407
Elmwood Park, NJ (Zip Code)
(Address of principal executive offices)
Registrant's telephone number, including area code: (201) 703-3400
Exhibit Index Appears on page 2.
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Item 5. Other Events.
SETTLEMENT OF ENFORCEMENT DIVISION PROCEEDING. In July 1994,
the Division of Enforcement of the Securities and Exchange Commission (the
"SEC") began an investigation regarding certain trading in securities of
Synetic, Inc. (the "Company"). On March 11, 1998, the SEC filed a civil action
against Roger Licht, an outside director of the Company. The complaint alleges
that Mr. Licht provided non-public information to friends in connection with
transactions involving the Company and its former parent, Medco Containment
Services, Inc. ("Medco"), and traded on the basis of non-public information in
connection with an unrelated company. The SEC's complaint relates to the
acquisition of Medco by Merck & Co. Inc. in July 1993 and Medco's subsequent
sale of its majority interest in the Company in May 1994. The SEC's action
sought disgorgement of the alleged trading profits and an injunction against Mr.
Licht. The SEC's action did not involve or seek any recovery from the Company or
allege any wrongdoing by the Company.
Mr. Licht has reached a settlement of the SEC's action
pursuant to which Mr. Licht has agreed, without admitting or denying any of the
allegations in the SEC's action, to the entry of a permanent injunction
prohibiting him from any future violations of the federal securities laws. As
part of the settlement Mr. Licht agreed to disgorge trading profits of $58,613,
including interest, and to pay a penalty of $87,607. The settlement by Mr.
Licht, along with settlements reached with the SEC by the remaining parties
named in the action, conclude the SEC's action.
Exhibit Index
Exhibit No. Description
- - ----------- -----------
none
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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.
SYNETIC, INC.
By: /s/ Charles A. Mele
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Name: Charles A. Mele
Executive Vice President
and General Counsel
