U. S. Securities and Exchange Commission
                             Washington, D. C. 20549


                                   FORM 10-QSB

[X]     QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITES EXCHANGE
        ACT OF 1934

                  For the quarterly period ended August 31, 2000
                                                 -------------

[X]     TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
        ACT OF 1934

        For the transition period from             to
                                     --------------    -------------


                          Commission File No. 000-31427

                        DIVERSIFIED INVESTORS CORPORATION
                                 ---------------
                 (Name of Small Business Issuer in its Charter)


        DELAWARE                                   13-2624828
   ---------------------                         ------------
   (State or Other Jurisdiction of         (I.R.S. Employer I.D. No.)
    incorporation or organization)


                          222 East 80th Street, Apt 1H
                           NEW YORK, NEW YORK. 10021
                           -------------------------
                    (Address of Principal Executive Offices)

                    Issuer's Telephone Number: (212) 517-9964


Indicate by check mark whether the Registrant (1) has filed all reports required
to be filed by  Sections  13 or 15(d)  of the  Securities  Exchange  Act of 1934
during the preceding 12 months (or for such shorter  period that the  Registrant
was  required  to file such  reports),  and (2) has been  subject to such filing
requirements for the past 90 days.

(1)  Yes  X    No ___                                (2)  Yes  X    No ___
         ---                                                  ---

                APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
                   PROCEEDINGS DURING THE PRECEDING FIVE YEARS

Check whether the  registrant  filed all  documents  and reports  required to be
filed by Section 12, 13 or 15(d) of the Exchange Act after the  distribution  of
securities under a plan confirmed by court.

                  Yes  X          No
<PAGE>

                      APPLICABLE ONLY TO CORPORATE ISSUERS

Indicate the number of shares outstanding of each of the Registrant's classes of
common stock, as of the latest practicable date:

                                  AUGUST 31, 2000

                        Common Voting Stock - 50,000,000




                         PART I - FINANCIAL INFORMATION


Item 1.           Financial Statements.
                  ---------------------

     The Financial  Statements of the Registrant  required to be filed with this
10-QSB  Quarterly  Report commence on the following page,  together with Related
Notes. In the opinion of management, the Financial Statements fairly present the
financial condition of the Registrant.
<PAGE>

<TABLE>
<CAPTION>
                                      DIVERSIFIED INVESTORS CORPORATION
                                                BALANCE SHEETS
                                    August 31, 2000 and November 30, 1999

                                                                            8/31/00               11/30/99
                                                                        -----------------     -----------------
                                                                          [Unaudited]
                                                    ASSETS

<S>                                                                   <C>                   <C>
Assets                                                                $                0    $                0

                                                                        -----------------     -----------------
           Total Assets                                               $                0    $                0
                                                                        =================     =================

                                    LIABILITIES AND STOCKHOLDERS' DEFICIT

Current Liabilities:
      Loans from stockholders                                         $            1,928    $                0
      Accounts Payable                                                            61,731                42,649
                                                                        -----------------     -----------------
           Total Current Liabilities                                              63,659                42,649

           Total Liabilities                                                      63,659                42,649
                                                                        -----------------     -----------------

Stockholders' Deficit:
      Common Stock, $.0001 par value;
           authorized 50,000,000 shares; issued and
           outstanding, 50,000,000 shares                                          5,000                 5,000
      Additional Paid-in Capital                                               7,667,426             7,667,426
      Treasury stock, at cost, 20,000                                             (1,000)               (1,000)
      Accumulated Deficit Prior to Development Stage                          (7,688,630)           (7,688,630)
      Deficit accumulated during development stage                               (46,455)              (25,445)
                                                                        -----------------     -----------------
           Total Stockholders' Deficit                                           (63,659)              (42,649)

                                                                        -----------------     -----------------
           Total Liabilities and Stockholders' Deficit                $                0    $                0
                                                                        =================     =================
</TABLE>


<PAGE>

<TABLE>
<CAPTION>

                        DIVERSIFIED INVESTORS CORPORATION
                            STATEMENTS OF OPERATIONS
      For the Three and Nine Month Periods Ended August 31, 2000 and 1999 and
from inception of development stage of December 1, 1998 through August 31, 2000.

                                                Three Months       Three Months       Nine Months     Nine Months     Inception
                                                   Ended               Ended             Ended           Ended         through
                                                  8/31/00             8/31/99           8/31/00         8/31/99        8/31/00
                                              -----------------   ----------------   --------------   -------------   -----------
                                                 [Unaudited]         [Unaudited]        [Unaudited]    [Unaudited]    [Unaudited]
<S>                                        <C>                 <C>                <C>             <C>               <C>
REVENUE
      Income                                $                0  $               0 $              0 $             0   $         0
                                              -----------------   ----------------   --------------   -------------   -----------
NET REVENUE                                                  0                  0                0               0             0

Operating Expenses
      General and Administrative Expenses               19,331                  0           21,010               0        46,455
Total Operating Expenses                                19,331                  0           21,010               0        46,455

                                              -----------------   ----------------   --------------   -------------   -----------
Net Income Before Taxes                     $          (19,331) $               0 $        (21,010)$             0       (46,455)
                                              =================   ================   ==============   =============   ===========

Income/Franchise taxes                                       0                  0                0               0             0

Net loss                                               (19,331)                 0          (21,010)              0       (46,455)

Loss Per Share                              $             0.00 $            0.00 $            0.00 $          0.00
                                              =================   ================   ==============   =============

Weighted Average Shares Outstanding                 50,000,000         50,000,000       50,000,000      50,000,000
                                              =================   ================   ==============   =============
</TABLE>


<PAGE>

<TABLE>
<CAPTION>

                        DIVERSIFIED INVESTORS CORPORATION
                            STATEMENTS OF CASH FLOWS
      For the Three and Nine Month Periods Ended August 31, 2000 and 1999 and
from inception of development stage of December 1, 1998 through August 31, 2000.

                                                   Three Months       Three Months      Nine Months       Nine Months    Inception
                                                       Ended             Ended             Ended             Ended        through
                                                      8/31/00           8/31/99           8/31/00           8/31/99       8/31/00
                                                   --------------    ---------------  ----------------  --------------   ----------
                                                     [Unaudited]      [Unaudited]       [Unaudited]      [Unaudited]     [Unaudited]

<S>                                              <C>               <C>              <C>               <C>              <C>
Cash Flows Used For Operating Activities
--------------------------------------------------
  Net Loss                                        $       (19,331)  $              0 $         (21,010)$             0  $  (46,455)
  Adjustments to reconcile net loss to net cash
    used in operating activities:
    Increase/(Decrease) in Accounts Payable                19,082                  0            19,082               0      44,083
    Increase/(Decrease) in loans from shareholder             249                  0             1,928               0       1,929
                                                       --------------    ---------------  -------------     ----------   ----------
      Net Cash Used For Operating Activities                    0                  0                 0               0        (444)
                                                       ==============    ===============  =============     ==========   ==========

Cash Flows Provided by Financing Activities                     0                  0                 0               0           0
-------------------------------------------------------

      Net Increase In Cash                                      0                  0                 0               0        (444)

      Beginning Cash Balance                                    0                  0                 0               0         444

      Ending Cash Balance                       $               0 $                0 $               0 $             0  $        0
                                                       --------------    ---------------  -------------     ----------   ----------
</TABLE>




<PAGE>
NOTES  TO  FINANCIAL   STATEMENTS:

NOTE 1 -   INTERIM FINANCIALS

          Interim financial statements reflect all adjustments which are, in the
          opinion of  management,  necessary to a fair  statement of the results
          for the periods. The August 31, 2000 balance sheet has been derived
          from  the  audited  financial  statements.   These  interim  financial
          statements   conform  with  the  requirements  for  interim  financial
          statements  and  consequently  do  not  include  all  the  disclosures
          normally required by generally accepted accounting principles.

NOTE 2 -   GOING CONCERN

          The  Company's  financial  statements  are  prepared  using  generally
          accepted  accounting  principles  applicable  to a going concern which
          contemplates  the realization of assets and liquidation of liabilities
          in the normal course of business.  However,  the Company does not have
          significant  cash  or  other  material  assets,  nor  does  it have an
          established source of revenues sufficient to cover its operating costs
          and to allow it to  continue as a going  concern.  It is the intent of
          the Company to seek a merger with an existing,  operating company.  In
          the interim, shareholders of the Company have committed to meeting its
          minimal operating expenses.
<PAGE>

Item 2.           Management's Discussion and Analysis or Plan of Operation.
                  ---------------------------------------------------------

Plan of Operation.
-----------------

     The Company has not engaged in any material  operations  in the last fiscal
year or the period ending August 31, 2000. The Company intends to continue to
seek out the acquisition of assets,  property or business that may be beneficial
to the Company and its stockholders.

Results of Operations.
---------------------

     The Company  discontinued its operations in approximately 1998. The Company
received no revenue in the last fiscal year or the period  ending  August 31,
2000. It sustained no net income or losses for either period.

                                            PART II - OTHER INFORMATION


Item 1.           Legal Proceedings.
                  ------------------

     The  Registrant  is a  party  in  litigation  with a  former  officer  of a
subsidiary.  The Company has reached a tentative agreement to settle for the sum
of $25,000.  The Company has no knowledge of any other pending legal proceedings
in any court or agency of government, or government authorities.

     On December 2, 1998 the Company filed a voluntary  petition of  Bankruptcy,
in the United States Bankruptcy Court Southern District of New York. On March 2,
1999 the case was closed.

Item 2.           Changes in Securities.
                  ----------------------

                  None; not applicable.

Item 3.           Defaults Upon Senior Securities.
                  --------------------------------

                  None; not applicable.

Item 4.           Submission of Matters to a Vote of Security Holders.
                  ----------------------------------------------------

                  None; not applicable.


Item 5.           Other Information.
                  ------------------

                  None; not applicable.

Item 6.           Exhibits and Reports on Form 8-K.
                  ---------------------------------

                  (a)      Exhibits.

                           None.

                  (b)      Reports on Form 8-K.

                           None.



<PAGE>







                                   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 thereunto duly authorized.

                                               DIVERSIFIED INVESTORS CORPORATION


                                           Date: 01/30/01
                                             By /S/ GREGORY AURRE
                                               Gregory Aurre, Jr., Director and
                                               President