International Heritage Inc – ‘8-K/A’ for 4/16/98

As of:  Friday, 5/8/98   ·   For:  4/16/98   ·   Accession #:  1010412-98-70   ·   File #:  2-97690-D

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Amendment to Current Report   —   Form 8-K
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: 8-K/A       Amendment to Current Report                            4±    21K 

Document Table of Contents

SECURITIES AND EXCHANGE COMMISSION              

Washington, D.C. 20509              

FORM 8-KA No. 1             

CURRENT REPORT              

Pursuant to Section 13 or 15(d) of the Securities Exchange Act              

March 16, 1998                
Date of Report              
(Date of Earliest Event Reported)               

INTERNATIONAL HERITAGE, INCORPORATED              
(Exact Name of Registrant as Specified in its Charter)              

Nevada                   002-97690-D         87-0421191               
(State or other juris-   (Commission File No.)    (IRS Employer                 
diction of incorporation)                           I.D. No.)                   

Carolina Place              
2626 Glenwood Avenue, Suite 200               
Raleigh, North Carolina 27608               
(Address of Principal Executive Offices)              

(919)571-4646               
Registrant's Telephone Number               

Item 1.   Changes in Control of Registrant.                                     

None; not applicable.                                       

Item 2.   Acquisition or Disposition of Assets.                                 

None; not applicable.                                       

Item 3.   Bankruptcy or Receivership.                                           

None; not applicable.                                       

Item 4.   Changes in Registrant's Certifying Accountant.                        

None; not applicable.                                       

Item 5.   Other Events.                                                         

On April 20, 1998, the Montana State Auditor's Office issued the First
Amended Cease and Desist Order (the "Order"), in the Matter of: International   
Heritage, Inc., Stanley H. Van Etten, Claude W. Savage, Larry G. Smith and      
International Heritage, Incorporated, a Nevada corporation, and their agents    
and representatives, case no. I-04-02-98-04, which amended the findings of      
fact contained in the original order as follows: all references to the          
Independent Retail Sales Representative, Johnny Daniel were removed from the    
Order; the Commission alleged that: (1) at all times material hereto, IHI's     
marketing program was not registered as a security in Montana; (2) that         
Respondent Van Etten, on behalf of IHI, falsely informed Montana agents and     
representatives of IHI that the Commissioner had agreed to rescind or cancel    
the April 3, 1998, Cease and Desist Order and that IHI's Montana                
representatives and agents were no longer subject to that Order; and, (3) that  
Respondent Van Etten failed to disclose material facts necessary to be          
disclose in order to make the statements made not misleading in light of the    
circumstances under which they were made.  The First Amended Cease and Desist   
order contained the following amendments from the conclusions of law contained  
in the original Cease and Desist Order: in connection with the offers of        
securities [through IHI's marketing program] to Montana residents, Respondents  
Van Etten and IHI violated Section 30-10-301(1) and Section 30-10-302, MCA, when
they falsely informed and knowingly made false and misleading statements to     
Montana agents and representatives of IHI that on or about April 8, 1998 the    
Commissioner had agreed to rescind or cancel the April 3, 1998, Cease and       
Desist Order and that they [Montana agents and representatives of IHI] were no  
longer subject to that Order.  The Staff recommended that the Commissioner      
impose total fines of $250,000 and order Respondents, Van Etten, IHI, Savage    
and Smith to make restitution for all financial losses sustained by Montana     
residents as a result of Respondents' alleged violations of the Montana         
Securities Act.                                                                 

On May 1, 1998, the Commissioner and IHI entered a Consent Order and  
Order Vacating Cease and Desist Orders.  With the Consent Order, the            
Commissioner and IHI seek to: provide an opportunity to educate the citizens    
of Montana of the dangers of illegal pyramid schemes and the value of           
securities statutes in the State of Montana; to avoid the expense of            
litigating the issues contained in the two orders issued by the Commissioner    
and to resolve all differences between the Commissioner and IHI.  The           
Commissioner concluded that IHI is permitted to conduct business in the State   
of Montana consistent with the modified marketing and compensation plan         
submitted to legal counsel for the Commissioner and as authorized by United     
States District Court Judge Richard Story of the Northern District of Georgia,  
Atlanta Division in an Order Approving the Modified Compensation and Marketing  
Plan entered April 22, 1998 in the action Securities and Exchange Commission    
v. International Heritage, Inc. et. al., civil action no. 1 98-CV-0803-RWS.     

Without admitting any liability under any Montana statute, IHI        
stipulated and consented to: comply with the Securities Act of Montana and the  
rules and orders promulgated thereunder; to offer the right to rescind the      
sale of any notes purchased by Montana citizens between July 17, 1997 and       
October 31, 1997; to offer refunds to all Montana citizens of any costs         
associated with a retail business agreement used by IHI as a manner of          
purchasing product in the past, less any commissions or refunds previously      
paid; provided the person requesting the refund put such request in writing     
and certifying their Montana citizenship at the time of executing the retail    
business agreement and his or her intent to terminate their association with    
IHI; pay all properly requested refunds within six months following receipt of  
said request; pay $21,000 to the Commissioner for reimbursement of              
investigative costs; contribute in 1998 to youth activities and consumer        
protection efforts in Montana, including public education about the             
protections afforded by Montana's securities laws; provide, for the purpose of  
monitoring the activities of IHI and its independent retail sales               
representatives, documents to the Commissioner upon the reasonable request of   
the Commissioner and his staff; and waive the right to a hearing on the         
allegations contained within the earlier issued Cease and Desist Orders.        

The Cease and Desist Order dated April 3, 1998 and the First Amended  
Cease and Desist Order dated April 20, 1998 were vacated.  The Commissioner     
has agreed that if the terms of the Consent Order are satisfied, he will not    
initiate any civil or administrative action against IHI or any of the           
individual Respondents as set out in the earlier issued Cease and Desist        
Orders.  Further it was stipulated and consented by the Commissioner that the   
Consent Order shall not and does not constitute a securities or investment      
related permanent or temporary injunction for the purposes of any collateral    
effects or reporting requirements under state securities laws or self-          
regulatory organization rules, nor does the Order restrict, limit, prohibit or  
disqualify the Respondents, or any affiliate of the Respondents, in any manner  
from engaging in any lawful activity or practice pursuant to the Securities     
Act of 1933, the Securities and Exchange Act of 1934, the Investment Advisors   
Act of 1940, or the Commodity Exchange Act, and/or any rules or regulations     
promulgated thereunder, and/or any state securities and commodities laws or     
acting as an affiliated person or any underwriter, broker, dealer, investment   
advisor, investment company, bank, insurance company or other entity or person  
under applicable federal or state insurance, securities, banking or commodity   
laws.                                                                           

Respondent Van Etten, on behalf of all of the Respondents, paid, upon 
execution of the Consent Order, the $21,000 reimbursement of investigative      
costs and the Company and the individual Respondents shall endeavor to carry    
out the provisions of the Consent Order as expeditiously as possible.           

On April 17, 1998, in the class action filed in the District court of 
Dallas County, Texas, F-116th Judicial District, by Craig T. Liebenforfer,      
individually and on behalf of others similarly situated v. International        
Heritage, Inc., case no DV98-2241, Defendant filed an Answer generally denying  
each and every allegation set forth in Plaintiffs' Original Class Action        
Petition and demanding strict proof thereof.  Additionally, Defendant           
requested that Defendant recover all costs of the action.                       

On April 27, 1998, Plaintiffs filed a First Amended Class Action      
Petition alleging various facts as originally set forth and contained in the    
Complaint filed by the Securities and Exchange Commission in their action       
against International Heritage, Inc. et. al., United States District Court for  
the Northern District of Georgia, Atlanta Division, civil action no. 1 98-CV-   
0803-RWS.                                                                       

 On April 22, 1998, in the United States District Court for the Northern
District of Georgia, Atlanta Division, civil action no. 1 98-CV-0803-RWS,       
Securities and Exchange Commission v. International Heritage, Inc. et. al.,     
the Court ordered, on Defendant International Heritage's Application for an     
Order Approving the Modified Compensation and Marketing Plan, that IHI is       
authorized to conduct business consistent with the modified plan submitted to   
the Court and under the continued observation of the Monitor.  The Monitor is   
directed to monitor the Defendants' level of compliance with this and the       
Court's previous orders.                                                        

On April 28, 1998, in the United States District Court for the Eastern
District of North Carolina, civil action no 5:98-CV-237-BR-2, Sharon A.         
Meckenstock, Dan H. Meckenstock, Custodian FBO Jean Carlo Meckenstock and       
Wilbur E. Meckenstock, on their own behalf and on behalf of a class of all      
persons similarly situated v. International Heritage, Inc., Stanley H. Van      
Etten, Claude W. Savage, Larry G. Smith, and International Heritage,            
Incorporated, Defendants filed an Answer specifically setting forth the         
matters which are admitted and those which are denied, and setting forth the    
following additional defenses: the Court lacks subject matter jurisdiction      
over some or all of the claims asserted in the Complaint; the Complaint fails   
to state a claim for which relief can be granted; Defendants rely on and        
assert any other matter constituting an avoidance or affirmative defends and    
the Court lacks personal jurisdiction over Defendant Smith.  Defendant's pray   
the Court: deny class certification' the relief requested by Plaintiffs; award  
Defendants their reasonable attorneys fees and costs and grant a jury trial on  
all issues.                                                                     

Item 6.   Resignations of Registrant's Directors.                               

None; not applicable.                                       

Item 7.   Financial Statements, Pro Forma Financial Information and Exhibits.   

None; not applicable.                                       

Item 8.   Change in Fiscal Year.                                                

None; 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.                             

      INTERNATIONAL HERITAGE, INCORPORATED

Date:     05/08/1998.    By   /s/ Stanley H. Van Etten                          
         _______________________________________

          President, CEO and Chairman of the Board

Dates Referenced Herein   and   Documents Incorporated by Reference

This ‘8-K/A’ Filing		Date		Other Filings
Filed on:		5/8/98
		5/1/98
		4/28/98
		4/27/98
		4/22/98
		4/20/98
		4/17/98
For Period End:		4/16/98
		4/8/98
		4/3/98
		3/16/98		8-K/A
		10/31/97
		7/17/97
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