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                                                                  EXHIBIT 10.148

                             COMPENSATION AGREEMENT


         THIS  COMPENSATION  AGREEMENT  ("Agreement")  dated as of  September 1,
1998, is entered into by and between Frederick H. Conte ("Conte"), an individual
residing at 1117 Nawkee  Drive,  North Las Vegas,  Nevada,  89031 and  Preferred
Equities  Corporation,  ("PEC") a Nevada  corporation with its principal address
being 4310 Paradise Road, Las Vegas, Nevada 89109.

                                     RECITAL

         Conte  currently  is  employed  as the  President  and Chief  Operating
Officer  of  PEC.  In his  role  as  President,  Conte  is  responsible  for the
supervision of all of the Executive Officers and employees of PEC. Conte reports
to the  Chairman  of the Board and Chief  Executive  Officer  of PEC,  Jerome J.
Cohen.  Conte and PEC desire to enter into this  Agreement in order to reduce to
writing  Conte's  compensation  arrangement  with PEC for such period of time as
Conte is employed by PEC as President or until  modified by mutual  agreement of
the parties.  In  consideration  of the  foregoing,  the parties hereto agree as
follows.

1.  EMPLOYEE  AT  WILL.  Conte  recognizes  and  acknowledges   that  he  is  an
employee-at-will.  PEC may terminate  Conte at any time with or without Cause as
that term is hereinafter defined.

2. BASE SALARY.  Conte shall be paid a base salary of two hundred forty thousand
dollars  ($240,000)  per annum  payable  bi-weekly  as part of the  regular  PEC
payroll. Base salary payments shall be subject to ordinary withholding for taxes
and withholding for items designated by Conte such as for 401(k) contributions.

3.  INCENTIVE  BONUS.  In addition to his base salary due under this  Agreement,
Conte shall be paid a bonus (the "Incentive Bonus") as hereinafter set forth and
defined.  For each full (but not  partial)  fiscal  year of PEC  during  Conte's
employment  commencing  with fiscal  1999,  Conte  shall  receive a sum of money
(herein called the "Incentive  Bonus") in an amount equal to three-quarters of
one percent  (0.75%) of the  Incentive  Income of PEC's parent,  Mego  Financial
Corp.  ("Mego")  as defined in and  calculated  pursuant  to,  Mego's  Executive
Incentive  Compensation  Plan,  adopted by Mego's Board of Directors on June 22,
1994, a copy of which is attached  hereto as Exhibit  "A".  Such amount shall be
due and payable whether or not Mego's  Executive  Compensation  Plan shall be in
effect for such fiscal  year,  and shall be paid no later than ninety days after
the amount of Incentive Income can be calculated.


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4. AUTOMOTIVE ALLOWANCE. Conte shall have the use of a PEC car including al gas,
oil, repairs and insurance paid by PEC.

5. STOCK OPTIONS.  Conte shall receive stock options under the Stock Option Plan
of PEC's  parent,  Mego  Financial  Corp.,  at the  discretion  of the  Board of
Directors of Mego Financial Corp.

6. TRAVEL AND BUSINESS EXPENSE. Conte shall be reimbursed for usual business and
travel  expenses.  Conte  shall be  entitled to fly first class on any flight or
combination of flights longer than two hours in scheduled duration.

7. BENEFITS. Conte shall be eligible for all benefits afforded to PEC executives
from time to time provided Conte meets any  eligibility  requirements  set forth
for employees participating therein.

8.  VACATION.  Conte  shall have four (4) weeks paid  vacation  during  each PEC
fiscal year.

9.  SEVERANCE.  If Conte's  employment is terminated by PEC for any reason other
than for Cause,  Conte shall  receive his base salary as set forth in Section 2.
to the date of termination, and a severance payment in the amount of two hundred
thousand dollars  ($200,000),  payable fifty thousand  dollars  ($50,000) at the
time of termination,  and in three payments of fifty thousand dollars  ($50,000)
three  months,  six  months  and nine  months  thereafter.  If Conte  resigns or
terminates  his employment by PEC for any reason,  or his employment  terminates
due to he death or  permanent  disability,  he will only be entitled to his base
salary through the date of such termination.

10. DEFINITION OF CAUSE. "Cause" shall mean any one of the following acts of, or
omissions by, or actions of others relating to, Conte:

         (a) Conviction of a felony, whether or not such conviction is appealed.

         (b) Deliberate and premeditated acts against the best interests of PEC.

         (c)  Conte  is  found  guilty  of or is enjoined from  violation of any
state  or federal security law, state or federal laws governing the business  of
PEC,  or  rules  or  regulations  of  any  state  or  federal agency  regulating
any of the business of PEC.

         (d) Misappropriation of PEC funds or property.


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         (e)  Habitual  use of  alcohol  or  drugs  to a  degree  that  such use
interferes in any way with Conte's performance of his duties.

11. COVENANT NOT TO SOLICIT.  Conte agrees that so long as he is employed by PEC
and or a period of one year after  termination  of his employment by PEC with or
without Cause,  or resignation or termination of his employment by Conte,  Conte
shall not solicit or encourage  other  employees or officers of PEC to terminate
their employment by PEC for any purpose whatsoever.

12.      MISCELLANEOUS.

         (a)  This   Agreement   is   personal  to  Conte  and  the  duties  and
responsibilities  hereunder  may not be assigned by Conte  except as approved by
the Chairman of the Board of PEC.

         (b) This Agreement shall terminate  except,  to the extent  applicable,
for the  provisions of Sections 9 and 11 hereof,  on the date of  termination of
Conte's  employment  by  PEC,  or  Conte's   resignation,   his  termination  of
employment, death or permanent disability.

         (c) This Agreement may only be modified by mutual written  agreement of
the parties.

         (d) The headings to this  Agreement  are for  convenience  of reference
only and are not to be considered in the interpretation of this Agreement.

         (e) This  Agreement  shall  be  governed  by the  laws of the  state of
Nevada.


Entered into in Las Vegas, Nevada, as of the date set forth above.


Preferred Equities Corporation


/s/  JEROME J. COHEN                 /s/ FREDERICK H. CONTE
--------------------------          ---------------------------
Jerome J. Cohen                      Frederick H. Conte
Chairman of the Board


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