SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES AND EXCHANGE ACT
OF 1934
Date of Report (Date of Earliest Event Reported): January 21, 1997
CROP GROWERS CORPORATION
(Exact name of registrant as specified in its charter)
DELAWARE 0-23830 81-0491497
(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
10895 LOWELL, SUITE 300
OVERLAND PARK, KANSAS 66210
(Address of principal executive offices) (zip code)
(913) 338-7800
(Registrant's telephone number, including area code)
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ITEM 5: OTHER EVENTS
On January, 21, 1997, the court in the matter of UNITED STATES OF AMERICA V.
CROP GROWERS CORPORATION, JOHN J. HEMMINGSON AND GARY A. BLACK (Crim. No.
96-0181 (GK)) accepted Crop Growers Corporation's (the "Company") plea of
NOLO CONTENDERE to two charges brought against it by the Independent Counsel
("IC") appointed to investigate former Secretary of Agriculture Mike Espy.
Pursuant to an agreement with the IC, the Company also agreed to pay a fine
of $2 million, $1.5 million of which is payable by February 4, 1997 and the
balance of which is payable by April 21, 1997. The Company will accrue the
full amount of the fine as a charge for the fourth quarter of 1996.
The Company plead NOLO CONTENDERE to Counts One and Four of the charges filed by
the IC. Count One alleged conspiracy to make and conceal illegal campaign
contributions. Court Four (to which the Company waived venue) alleged the
making and keeping of false records and accounts. A NOLO CONTENDERE plea is
neither an admission nor a denial of guilt. The Company's agreement with the IC
concludes federal criminal prosecution of the Company and its subsidiaries for
any and all matters of which the IC is presently aware.
By its terms, the Company's agreement with the IC does not compromise or
preclude civil actions by other governmental regulatory authorities, such as
the Federal Election Commission, Securities and Exchange Commission, the
United States Department of Agriculture, or state insurance regulatory
authorities, or shareholders as a result of the allegations made by the IC
and the Company's NOLO CONTENDERE plea to Counts One and Four of the
indictment. The Company does not believe that its NOLO CONTENDERE plea will
adversely affect its ability to continue to participate in the federal
multi-peril crop insurance program, although no assurance can be given as to
what action the USDA or other regulatory authorities might take in response
to the Company's plea and its agreement with the IC.
The trial of the Company's former President and Chief Executive Officer John
Hemmingson and its former Executive Vice President Gary Black on charges brought
by the IC is currently scheduled to begin on or about January 23, 1997.
A copy of the Company's press release dated January 21, 1997, and the agreement
between the Company and the IC are filed as exhibits hereto.
On January 3, 1997, the court dismissed other previously filed charges
against the Company. See the Company's Form 8-K filed on January 14, 1997.
ITEM 7: FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits
Exhibit No. Description
----------- -----------
99(1) Press Release dated January 21, 1997
99(2) Letter agreement dated January 17, 1997
between Crop Growers Corporation and
the Office of Independent Counsel
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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 thereunto duly authorized.
Crop Growers Corporation
By: /s/ David E. Hill
-----------------------
David E. Hill
Chief Financial Officer
January 23, 1997
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Exhibit Index
Exhibit No. Description Page
- ----------- ----------- ----
99(1) Press Release dated January 21, 1997 5
99(2) Letter agreement dated January 17, 1997
between Crop Growers Corporation and the
Office of Independent Counsel 6
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