SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K / A
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15 (D)
OF THE SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED) May 5, 2003
MEGO FINANCIAL CORP.
___________________________________________
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
NEW YORK 1-8645 13-5629885
(STATE OR OTHER (COMMISSION (IRS EMPLOYER
JURISDICTION OF FILE NUMBER) IDENTIFICATION NO.)
FORMATION)
1645 VILLAGE CENTER CIRCLE, LAS VEGAS, NV 89134
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE)
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE (702) 992-4200
ITEM 4. CHANGES IN REGISTRANT'S CERTIFYING ACCOUNTANT
The Company's Form 8-K dated April 14, 2003 reporting the resignation of
BDO Seidman, LLP as the Company's certifying accountant is revised and amended
in its entirety as follows:
On April 2, 2003, the auditors from BDO Seidman, LLP ("BDO") met with the
Audit Committee of the Board of Directors of the Company. Based on the
financial results of the Company for the Company's year ended December 31, 2002,
Management concurred with BDO's proposed conclusion that a "going concern"
qualification would be required. There were no accounting disagreements.
Prior to the date BDO met with the Company's Audit Committee, BDO had
expressed its serious concerns to the Company about the issuance of numerous
checks drawn against accounts with insufficient funds. BDO inquired as to
whether the Company had instituted appropriate procedures to stop the issuance
of insufficient checks.
On April 8, 2003, the Company received a letter from BDO also dated April
8, 2003, stating in its entirety: "This will confirm that the client-auditor
relationship between Mego Financial Corp. (Commission File Number 1-8645) and
BDO Seidman, LLP has ceased." BDO was engaged in December 2002 to conduct the
audit of the Company's financial statements for its year ended December 31, 2002
and has not rendered any reports on the Company's financial statements.
On that same date, the Company was advised by BDO that BDO had received a
memorandum containing allegations of financial irregularities from a previously
terminated employee whose allegations, if true, would be a reportable event.
After being advised by BDO of the allegations of the terminated employee
contained in the memorandum and BDO's resignation, the Company's Audit
Committee, acting in a specially called meeting on April 9, 2003, launched an
investigation into the allegations contained in the memorandum. The Audit
Committee, through its counsel, engaged L.J. Soldinger Associates, LLC to review
the allegations made by the terminated employee.
The Audit Committee has selected Singer Lewak Greenbaum & Goldstein LLP
("SLGG") as the Company's new independent accountant as of April 28, 2003.
Prior to such date, the Company did not consult with SLGG regarding (i) the
application of accounting principles to a specified transaction, either
completed or proposed except in connection with a proposed acquisition that was
not finalized, (ii) the type of audit opinion that might be rendered by SLGG on
the Company's financial statements, or (iii) any other matter that was the
subject of a disagreement between the Company and its auditor (as defined in
Item 304(a) (1) (iv) of Regulation S-K and its related instructions) or a
reportable event (as described in Item 304(a) (1) (v) of Regulation S-K).
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
A copy of the response from BDO Seidman, LLP is attached as Exhibit 03-8.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Company has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
MEGO FINANCIAL CORP.
By: /s/ Floyd W. Kephart
----------------------------
Floyd W. Kephart
Chief Executive Officer
Dated: May 5, 2003