Exhibit 16


                          Letterhead of Ernst & Young

December 20, 2002



Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, D.C. 20549

Gentlemen:

We  have read Item 4 of Form 8-K dated December 23, 2002 of Mego Financial Corp.
and  are  in  agreement  with  the  statements contained in the first, third and
fourth  paragraphs  on  page  one therein. We have no basis to agree or disagree
with  other  statements  of  the  registrant  contained  therein.




                                           /s/ Ernst & Young