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 (DATE OF EARLIEST EVENT REPORTED) May 8, 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 5. OTHER EVENTS AND REGULATION FD DISCLOSURE.

RECENT DEVELOPMENTS


     During  the  year ended December 31, 2002, and through the date hereof, the
Company  experienced  unusually  high  cash requirements and operating cash flow
deficits  resulting  primarily  from:

1)     lower  sales  of vacation intervals and land parcels, largely as a result
of  the  events  of  September  11 and the events leading up to the war in Iraq,
deteriorating  general  economic  conditions,  and  low levels of inventories of
vacation  interval  and  land  parcels  available  for  sale;

2)     reduced  revenues  and  significantly  higher  operating expenses than in
prior  periods  typical  of  a  restructuring;  and

3)     substantially higher than anticipated default rates in the consumer notes
securing the Company's lines of credit which resulted in the Company's replacing
almost  $20  million principal amount of defaulted notes with an equal principal
amount  of  new  notes  prior  to the Company receiving new advances under these
lines  and  over  $10 million in unanticipated expenses.  Advances against these
lines,  generally  80%  of  the  principal  amount  of the note pledged, are the
primary  source  of  the  Company's  operating  liquidity.

     On  April  8, 2003, BDO Seidman, LLP resigned as the Company's auditors.  A
Form  8-K  was  filed  with  the  Securities  and  Exchange  Commission  ("SEC")
disclosing  this  event  on  April 14, 2003, and was amended on May 5, 2003. The
Company  engaged new auditors, Singer, Lewak, Greenbaum & Goldstein LLP ("SLGG")
to  audit  the  Company's  financial  statements for the year ended December 31,
2002,  on  April  28, 2003.  The Company's financials for the fiscal year ending
December  31,  2002,  are  unaudited  at  the  time of this filing.  The Company
believes  that  the  audit  by  SLGG  should  be  complete  by  June  30,  2003.

Consequently,  although  the  Company  believes  the  accuracy  of its financial
information,  this  Form 8-K contains unaudited financial information as well as
certain  "forward-looking  statements"  within  the  meaning  of  the  Private
Securities  Litigation  Reform  Act of 1995. The unaudited financial information
and  any  forward-looking  statements  involve  known  and  unknown  risks,
uncertainties  or  other  factors which may cause actual results, performance or
achievements  of the Company to be materially different from any actual results,
future  results,  performance  or  achievements  expressed  or  implied.



The Company reports revenues of $71.841 million for the year ending December 31,
2002,  as  compared  to revenues of $102.427 million for the year ended December
31,  2001.  The  net loss applicable to common stock (pretax) is $37.419 million
as  compared  to  $4.08  for  the comparable 2001 period.  Net loss per share is
$6.62  as  compared  to  $1.17  for  the  year  ended  December  31,  2001.

In  2002, the Company issued $14.7 million principal amount of investor debt, of
which  approximately  $6.7  million  of the principal amount is convertible into
common  stock  of  the Company at prices ranging from $4.40 to $5.00, and raised
approximately  $11.5 million in cash equity.  Warrants to issue 2,518,097 shares
of  common stock exercisable at prices ranging from $1.10 to $6.00 were attached
to  the  $26.2  million  aggregate  principal  amount of debt and equity issued.

Through  March  31,  2003,  the  Company,  with  the approval of the Home Owners
Associations  ("HOAs")  managed by the Company, issued promissory notes totaling
$1.7  million  in  exchange  for  funds  set  aside  by  the  HOAs  for  capital
improvements  that  were  in  excess  of  the  cost  of the capital improvements
actually  required.  These  loans have been, in each case, approved by the HOAs,
which  are controlled by the timeshare interval owners of each HOA.  In addition
to  the  $1.7  million  in  promissory  notes issued to the HOAs, Management has
established and documented an appropriate liability to the HOAs to represent the
utilization  of collected maintenance fees in excess of the Company's management
fees  and  the  HOAs'  operating expenses.  This liability has been reduced by a
payable  from  the HOAs to the Company, resulting in a net liability to the HOAs
of  approximately  $1.4  million,  as  of  December 31, 2002.   During the first
quarter  of 2003, the Company has added $2.7 million to this liability to ensure
continued  operations at the various resorts.  If the Company is unable, because
of  continuing  cash  flow  deficits,  to  pay its existing liability, which was
approximately  $4.1  million  as  of  March  31,  2003,  the Company may default
pursuant  to the terms of its management agreements with the HOAs.  In the event
of  a  default,  the  HOAs  could,  among  their remedies, seek to terminate the
management  contracts  and  also to foreclose on the Company's unsold intervals.

     As  of  March  31,  2003, the Company had a liability of approximately $3.1
million  for  unpaid payroll taxes, including associated estimated penalties and
interest.  In  addition,  the  Company, at various times, has not had sufficient
funds in its operating accounts to cover the checks presented against them.  The
Company  believes  that  it  has  paid,  or  made payment arrangements with, all
parties  affected.  The  Company  also  has  had  insufficient funds to maintain
certain  insurance  coverages in force, namely Directors and Officers Liability,
Employer's  Professional Liability, General Liability, and Property and Casualty
Insurance.  Moreover,  the  health insurance provided as a benefit to certain of
the  Company's  employees was cancelled in April 2003, subject to reinstatement,
and the health insurance for the remaining employees has at times been placed on
"Administrative  Hold"  by  the  carrier.

     To  meet  the  capital  needs of the Company to complete its reorganization
plan,  the  Company likely will sell certain assets or operating entities during
the  current  period.  The  purpose  of any transaction would be to reduce debt,
gain  greater  efficiencies  in  the  Company's current operations and eliminate
negative cash flow. Management also expects to convert existing debt into equity
or to obtain capital through the issuance of new equity or convertible debt both
of  which  likely  will  result  in  substantial  dilution  to  the  Company's
shareholders.

     Between  March  13  and April 3, 2003, the Company raised $2 million of new
capital  through  the  sale to Troon & Co. ("Troon") of a secured debenture.  As
part  of  this  transaction,  Troon  converted  Company  promissory notes, which
matured  on  November  8  and  15,  2002  and  were  extended to March 31, 2003,
aggregating  $1.5  million  in  principal  amount,  into  this debenture. The $2
million of new proceeds have been utilized to fund the Company's working capital
requirements.  As  of  March  31,  2003,  the  principal balance of this secured
debenture was approximately $3,580,352.  The debenture bears interest at 15% per
annum,  has  a  maturity  date  of  May  31, 2003, and is secured in part by the
Company's right to re-develop the Company's Las Vegas resort and other corporate
assets.  Troon received a loan origination fee of either 18% of the net proceeds
of  the  sale  of  the  redevelopment  rights  or  2% of the gross sales revenue
received  in connection with new units constructed pursuant to the redevelopment
rights.  Mr.  Ross  Mangano,  a  director of the Company, is a partner of Troon.

     To  meet its continuing liquidity requirements, including its plan to reach
cash  flow  breakeven,  the  Company  entered into a $3 million principal amount
short-term  loan  agreement with Mathon Fund I, LLC ("Mathon").  The Mathon loan
is to be funded in three equal advances of $1,000,000 ($800,000 after a 10% loan
fee  and  a  10% commission) over approximately a 30-day period commencing April
25, 2003.  Each advance matures 120 days after it is made and requires a payment
of  principal and interest equal to $1,250,000 at each advance's maturity.  This
loan  is secured by a general assignment of all of the assets of the Company and
a  personal  guarantee  of  an  officer of the Company. To assist the Company in
securing  the  Mathon  loan,  Troon  agreed  to allow Mathon to participate on a
pro-rata  basis  in  the  collateral  for  its  $3,580,352  loan to the Company.




     An  additional  $10  million  in capital is projected to be required in the
next  five  to  six  months  to  restructure the Company's balance sheet and pay
overdue  debentures  and  delinquent  accounts  payable.

     IN  THE ABSENCE OF RAISING THIS CAPITAL THROUGH THE SALE OF DEBT OR EQUITY,
THE  SALE  OF AN EQUIVALENT AMOUNT OF ASSETS OR A COMBINATION OF SALES OF ASSETS
AND  SALES  OF  DEBT  OR  EQUITY,  THE  COMPANY  AND  THE BOARD BELIEVE THAT THE
STRATEGIC  ALTERNATIVES  AVAILABLE  TO  THE  COMPANY  ARE  LIMITED, AND THAT THE
COMPANY MAY BE FORCED TO CONSIDER BANKRUPTCY PROCEEDINGS OR SELLING THE COMPANY.


ITEM 7.   FINANCIAL STATEMENTS AND EXHIBITS (UNAUDITED).


                           FISCAL YEAR ENDING     FISCAL YEAR ENDING
                             DECEMBER 31, 2002     DECEMBER 31, 2001
                           -----------------     -----------------

REVENUES
                              $ 71.841 M               $ 102.427 M

NET LOSS APPLICABLE
TO COMMON STOCK (PRETAX)
                              $ 37.419 M             $     4.080 M

NET LOSS PER SHARE
                              $   6.62               $    1.17



                                   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  duly  authorized.

                                   MEGO  FINANCIAL  CORP.


                                   By:  /s/  Floyd  W.  Kephart
                                   ----------------------------
                                   Floyd  W.  Kephart
                                   Chief  Executive  Officer


Dated:  May  8,  2003