SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    Form 8-K
                                 CURRENT REPORT
          Pursuant to Section 13 of the Securities Exchange Act of 1934

                                 August 29, 2001
                Date of Report (Date of earliest event reported)

                             FORTUNE FINANCIAL, INC.
                             -----------------------
             (Exact Name of registrant as Specified in its Charter)

        Florida                       000-6764                  59-1218935
(State or other jurisdiction       (Commission               (IRS Employer
      of incorporation)             File Number)             Identification No.)

                            10475-103 Fortune Parkway
                           Jacksonville, Florida 32256
                    (Address of principal executive offices)

                                 (904) 363-6339
               Registrant's telephone number, including area code

                           Mobile America Corporation
          (Former name or former address, if changed since last report)

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                              Item 5. Other Events

     On July 6,  2001,  a Florida  court  approved  a  petition  by the  Florida
Department  of Insurance  (the "DOI") to  liquidate  Fortune  Insurance  Company
("Fortune").  On July 9,  2001,  the  liquidation  proceeding  commenced  and is
ongoing.  Prior to the commencement of the liquidation  proceeding,  Fortune was
the  primary  operating  subsidiary  of  Fortune  Financial,  Inc.  ("FFI"),  an
insurance holding company.  FFI owns other companies including another insurance
company,  Pegasus Insurance Company ("Pegasus"),  and has an application pending
with the DOI for the  admittance of Pegasus in Florida as an insurance  carrier.
There are no  assurances,  however,  that the DOI will  admit  Pegasus  to write
insurance  policies  in  Florida,  or that FFI will be able to  continue  in its
capacity as an insurance holding company.

     The Crown Group,  Inc.  ("CGI")  purchased  133,333  shares of FFI Series A
Preferred Stock ("Preferred Stock") for a purchase price of $10 million pursuant
to that certain  Preferred Stock Purchase  Agreement dated January 12, 2001, but
effective  as of  December  29,  2000,  between  FFI and Crown  (the  "Preferred
Purchase  Agreement").  The Preferred  Purchase Agreement provides that CGI may,
under certain  circumstances,  rescind the Preferred  Purchase  Agreement.  In a
letter  dated  July 11,  2001,  CGI  notified  FFI that CGI was  rescinding  its
purchase of 66,666  shares of Preferred  Stock.  In a letter dated July 26, 2001
and headed "Revised  Rescission," CGI revised its previous  rescission notice by
stating,  "If it is determined  that [CGI] may rescind only as to all of its $10
million purchase of [Preferred Stock], or 133,332 shares, then this letter shall
be considered a rescission of the entire 133,332 shares."


     Effective as of November 15, 2000,  FFI entered into a Securities  Purchase
Agreement (the "Securities  Purchase  Agreement") to issue to Hawkeye,  Inc. and
Mid-Ohio  Securities  Corp.  FBO R. Lee  Smith  ("Smith"),  in  exchange  for an
aggregate  of $2 million of  convertible  promissory  notes  (the  "Notes")  and
warrants.  Hawkeye  loaned FFI $1.2  million in exchange  for a Note in the same
face amount and  warrants.  Smith  loaned the FFI $0.8 million in exchange for a
Note in the same face  amount and  warrants.  On January 12,  2001,  Hawkeye and
Smith converted the Notes into an aggregate of 26,666 shares of Preferred Stock,
in connection  with the  Preferred  Purchase  Agreement  (the  conversion  was a
condition to closing the Preferred Purchase Agreement).

     In a letter dated July 11,  2001,  Hawkeye and Smith  jointly  notified FFI
that they were  rescinding  the purchase of 13,333  shares of  Preferred  Stock,
which constitutes  one-half of their respective  investments in Preferred Stock.
The letter stated that the basis of the rescission was the fact that Hawkeye and
Smith had  converted  the Notes into  Preferred  Stock and FFI failed to satisfy
certain  conditions set forth in the Preferred  Purchase  Agreement dealing with
rescission  rights.  In a letter dated July 25, 2001,  Hawkeye and Smith jointly
stated,  "This letter shall serve to extend our  rescission  notice to cover our
entire  investment  of 26,666  shares in the event a partial  rescission  is not
permitted."  FFI is currently  analyzing  the  validity of the CGI,  Hawkeye and
Smith rescissions.

     On May  24,  1999,  FFI  entered  into  a  Consulting  and  Non-competition
Agreement  with  Allan  J.  McCorkle.  On  June 1,  1999,  FFI  entered  into an
Employment Agreement and a Consulting and Non-competition  Agreement with Thomas
J. McCorkle. On August 23, 2001, Allan J. McCorkle made formal written demand on
FFI for  payment of  $2,500,000.00  for  alleged  breach of his  Consulting  and
Non-competition  Agreement.  On August 23, 2001,  Thomas J. McCorkle made formal
written  demand on FFI for  payment of  $860,000.00  for  alleged  breach of the
Employment Agreement and his Consulting and Non-competition  Agreement. Also, on
August 23, 2001, Thomas J. McCorkle made formal written demand alleging that FFI
was in breach of an Agreement Regarding Severance and Change in Control and that
his demand under such agreement was included in the $860,000.00  amount.  FFI is
analyzing the validity of these claims.

                                    Signature

     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.

                                   FORTUNE FINANCIAL, INC.


Date:  August 29, 2001             By: /s/  MARK P. BROCKELMAN
                                       -----------------------
                                        Mark P. Brockelman
                                        Vice President & Chief Financial Officer