SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 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): January 11, 1999
WADE COOK FINANCIAL CORPORATION
Nevada 000-29342 91-1772094
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State or Other Jurisdiction (Commission (IRS Employer
Of Incorporation) File Number) Identification No.)
14675 Interurban Ave. S., Seattle, WA 98168-4664
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(Address of Principal Executive offices) (Zip Code)
Registrant's telephone number, including area code: (206) 901-3000
Item 5. Other Events
(a) State of California vs. Wade Cook Financial Corporation, Wade Cook
Seminars, Inc., Entity Planners, Inc., Information Quest, Inc., Money Chef,
Inc., and Wade B. Cook.
On January 11, 1999, a civil suit was filed in the Superior Court of the
state of California by the California State Attorney General alleging
violations of Sections 1678.20 through 1693 of the California Civil Code.
The Complaint alleges that the defendants: (1) made or caused to be made
and disseminated untrue or misleading statements in violation of the
California Business and
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Professions Code; and (2) engaged in unlawful and unfair or fraudulent
practices and unfair, deceptive and untrue or misleading advertising.
The suit seeks: (1) an injunction against the Company from directly or
indirectly engaging in the alleged unlawful behavior, (2) disgorgement of
money or property acquired in violation of state or federal law; (3) a
penalty of $2,500 for each violation, but in any event not less than four
million dollars ($4,000,000) in the aggregate, (4) imposition of a
constructive trust on the money or property acquired in violation of state
and federal law; and (5) payment of court costs.
The Company intends to defend itself in this matter. The Company has not
yet made an estimate of its potential exposure or determined the impact on
its financial statements and has not made provisions for losses, if any.
(b) Resignation of Burr D. Cline
Effective January 21, 1999, Burr D. Cline formally resigned as a member of
the Company's Board of Directors. The vacancy on the Board of Directors
resulting from Mr. Cline's resignation has not yet been filled.
Item 7
(c) Exhibits
Not applicable.
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
WADE COOK FINANCIAL CORPORATION
(Registrant)
/s/ Laura Cook
Date: 02/10/99 By --------------------------------
Laura Cook
Secretary
