UNITED STATES
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: April 29, 2003
(Date of earliest event reported)
DCAP GROUP, INC.
(Exact name of Registrant as specified in charter)
Delaware 0-1665 36-2476480
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(State or other jurisdiction (Commission File No.) (IRS Employer Identification
incorporation) Number)
1158 Broadway, Hewlett, New York 11557
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (516) 374-7600
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Item 5. Other Events and Required FD Disclosure.
On April 29, 2003, DCAP Group, Inc. and its subsidiaries, DCAP
Management Corp., Dealers Choice Automotive Planning, Inc. and Payments Inc.
(collectively, the "Company"), commenced an action against Kevin Lang in the
Supreme Court of the State of New York, County of Nassau. Mr. Lang, a former
director, officer and employee of the Company, left the employ of the Company on
September 30, 2001.
The complaint against Mr. Lang alleges breach of fiduciary duty,
breach of employment agreements, breach of restrictive covenant agreement and
defamation based upon actions taken by Mr. Lang during the course of his
employment with the Company and thereafter. The allegations concern the
Company's relationship with Metropolitan Property and Casualty Insurance Company
("Met") and with regard to the Company's premium finance business.
The complaint alleges, among other things, that the following acts
occurred:
- Mr. Lang breached his fiduciary duty as an officer of the Company by
improperly seizing, for his own benefit, corporate opportunities of
the Company with respect to Met and diverting business from the
Company to himself or an entity controlled by him.
- Mr. Lang breached his employment agreements and restrictive covenant
agreement by causing Met to discontinue or materially modify its
business relationship with the Company and by soliciting the Company's
franchisees to do business with Met to the Company's detriment.
- Mr. Lang breached his employment agreements and restrictive covenant
agreement by engaging in a premium finance business in competition
with the Company's business. Further, the complaint alleges that he
solicited franchisees of the Company to use a competitor's premium
finance company.
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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 hereunto duly authorized.
DCAP GROUP, INC.
Dated: May 7, 2003 By: /s/ Barry Goldstein
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Barry Goldstein
Chief Executive Officer
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