UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549
                                   FORM 10-QSB

                                   (Mark One)

           [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

                 For the quarterly period ended: March 31, 2001

                                       Or

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

          For the transition period from ____________ to _____________

                             Commission File Number:

                       The Cyber Group Network Corporation
             (Exact name of registrant as specified in its charter)

                   Nevada                          33-0901534
     (State or other jurisdiction of        (I.R.S. Employer Identification
               incorporation or organization)                 No.)

          720 E. Carnegie Dr Suite 200 San Bernardino, CA         92408
           (Address  of  principal  executive  offices)         (Zip Code)

                                 (909) 890-9769
              (Registrant's telephone number, including area code)


Indicate by check mark whether the registrant (1) has filed all reports required
to  be  filed  by  Section 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.
                                 Yes [X] No [ ]

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

Indicate  by  check mark whether the  registrant  has  filed  all documents  and
reports required to be filed by Sections  12,  13  or 15(d)  of  the  Securities
Exchange  Act  of  1934  subsequent  to  the  distribution of securities under a
plan  confirmed  by  a  court.
                                 Yes [ ] No [ ]

                      APPLICABLE ONLY TO CORPORATE ISSUERS:

Indicate  the  number of shares outstanding of each of the  issuer's classes  of
common  stock,  as  of  the  latest  practicable  date:  53,639,411


<PAGE>



                                 THE CYBER GROUP
                               NETWORK CORPORATION
                                 AND SUBSIDIARY
                          (DEVELOPMENT STAGE COMPANIES)
                        CONSOLIDATED FINANCIAL STATEMENTS
                           AS OF DECEMBER 31, 2000 AND
                           FOR THE THREE MONTHS ENDED
                           MARCH 31, 2001 (UNAUDITED)




<PAGE>
                                             THE CYBER GROUP NETWORK CORPORATION
                                                                  AND SUBSIDIARY
                                                   (DEVELOPMENT STAGE COMPANIES)
                                                                        CONTENTS
                                DECEMBER 31, 2000 AND MARCH 31, 2001 (UNAUDITED)

================================================================================

                                               Page
CONSOLIDATED FINANCIAL STATEMENTS

  Consolidated Balance Sheets                  1 - 2

  Consolidated Statements of Operations          3

  Consolidated Statements of Cash Flows        4 - 5

  Notes to Consolidated Financial Statements  6 - 10



<PAGE>
<TABLE>
<CAPTION>
                                             THE CYBER GROUP NETWORK CORPORATION
                                                                  AND SUBSIDIARY
                                                   (DEVELOPMENT STAGE COMPANIES)
                                                     CONSOLIDATED BALANCE SHEETS
                                DECEMBER 31, 2000 AND MARCH 31, 2001 (UNAUDITED)

================================================================================

                             ASSETS

                                   March 31,   December 31,
                                     2001         2000
                                  ----------  -------------
                                  (unaudited)
<S>                               <C>         <C>
CURRENT ASSETS
  Cash                            $    7,795  $      48,549
  Accounts receivable                  1,640          1,640
  Receivable from related party        9,250          9,250
  Receivable from officer             24,217              -
                                  ----------  -------------

      Total current assets            42,902         59,439

PROPERTY AND EQUIPMENT, net           90,724         94,685
LICENSE RIGHTS, net                   63,219         68,056
DEPOSIT                                2,776          2,776
                                  ----------  -------------

          TOTAL ASSETS            $  199,621  $     224,956
                                  ==========  =============
</TABLE>


   The accompanying notes are an integral part of these financial statements.
                                        1
<PAGE>
<TABLE>
<CAPTION>
                                                   THE CYBER GROUP NETWORK CORPORATION
                                                                        AND SUBSIDIARY
                                                         (DEVELOPMENT STAGE COMPANIES)
                                                           CONSOLIDATED BALANCE SHEETS
                                      DECEMBER 31, 2000 AND MARCH 31, 2001 (UNAUDITED)

======================================================================================

                         LIABILITIES AND SHAREHOLDERS' DEFICIT


                                                            March 31,     December 31,
                                                              2001           2000
                                                          ------------  --------------
                                                           (unaudited)
<S>                                                       <C>           <C>
CURRENT LIABILITIES
  Accounts payable                                        $   208,009   $     176,181
  Accrued expenses                                             33,538           9,722
  Payable to related party                                     52,210          52,210
  Payable to officer                                                -          13,994
                                                          ------------  --------------

    Total current liabilities                                 293,757         252,107

CONVERTIBLE REDEEMABLE DEBENTURES                                   -         169,415
                                                          ------------  --------------

      Total liabilities                                       293,757         421,522
                                                          ------------  --------------

COMMITMENTS AND CONTINGENCIES

SHAREHOLDERS' DEFICIT
  Preferred stock, $0.001 par value
    20,000,000 shares authorized
    2,000,000 (unaudited) and 0 shares issued and
      outstanding                                               2,000               -
  Common stock, $0.001 par value
    100,000,000 shares authorized
    52,988,144 (unaudited) and 38,913,077 shares issued
      and outstanding                                          52,988          38,913
  Additional paid-in capital                                5,639,746       4,274,233
  Deficit accumulated during the development stage         (5,788,870)     (4,509,712)
                                                          ------------  --------------

        Total shareholders' deficit                           (94,136)       (196,566)
                                                          ------------  --------------

          TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIT     $   199,621   $     224,956
                                                          ============  ==============
</TABLE>


   The accompanying notes are an integral part of these financial statements.
                                        2
<PAGE>
<TABLE>
<CAPTION>
                                             THE CYBER GROUP NETWORK CORPORATION
                                                                  AND SUBSIDIARY
                                                   (DEVELOPMENT STAGE COMPANIES)
                                           CONSOLIDATED STATEMENTS OF OPERATIONS
                       FOR THE THREE MONTHS ENDED MARCH 31, 2001 (UNAUDITED) AND
    FOR THE PERIOD FROM MARCH 21, 2000 (INCEPTION) TO MARCH 31, 2001 (UNAUDITED)

================================================================================

                                                                   For the
                                                                  Period from
                                                    For the         March 21,
                                                     Three            2000
                                                     Months     (Inception) to
                                                    March 31,       March 31,
                                                      2001            2001
                                                ----------------  ------------
                                                  (unaudited)     (unaudited)
<S>                                             <C>               <C>
REVENUE                                         $             -   $     6,141

SELLING, GENERAL, AND ADMINISTRATIVE EXPENSES           998,792     4,060,309
                                                ----------------  ------------

LOSS FROM OPERATIONS                                   (998,792)   (4,054,168)
                                                ----------------  ------------

OTHER EXPENSE
  Impairment of goodwill                                      -      (295,000)
  Interest expense                                     (280,366)   (1,439,702)
                                                ----------------  ------------

    Total other expense                                (280,366)   (1,734,702)
                                                ----------------  ------------

NET LOSS                                        $    (1,279,158)  $(5,788,870)
                                                ================  ============

BASIC AND DILUTED LOSS PER SHARE                $         (0.03)  $     (0.19)
                                                ================  ============

WEIGHTED-AVERAGE SHARES USED TO COMPUTE
  BASIC AND DILUTED LOSS PER SHARE                   48,028,949    30,928,409
                                                ================  ============
</TABLE>


   The accompanying notes are an integral part of these financial statements.
                                        3
<PAGE>
<TABLE>
<CAPTION>
                                                     THE CYBER GROUP NETWORK CORPORATION
                                                                          AND SUBSIDIARY
                                                           (DEVELOPMENT STAGE COMPANIES)
                                                   CONSOLIDATED STATEMENTS OF CASH FLOWS
                               FOR THE THREE MONTHS ENDED MARCH 31, 2001 (UNAUDITED) AND
            FOR THE PERIOD FROM MARCH 21, 2000 (INCEPTION) TO MARCH 31, 2001 (UNAUDITED)

========================================================================================

                                                                             For the
                                                                            Period from
                                                              For the         March 21,
                                                               Three            2000
                                                               Months     (Inception) to
                                                              March 31,       March 31,
                                                                2001            2001
                                                          ----------------  ------------
                                                            (unaudited)     (unaudited)
<S>                                                       <C>               <C>
CASH FLOWS FROM OPERATING ACTIVITIES
  Net loss                                                $    (1,279,158)  $(5,788,870)
  Adjustments to reconcile net loss to net cash
    used in operating activities
      Depreciation and amortization                                12,639        35,010
      Amortization of discount on
      convertible redeemable debentures                            59,429        87,535
      Interest from beneficial conversion feature                 218,922     1,151,213
      Issuance of preferred stock for services rendered           213,250       213,250
      Issuance of common stock for services rendered              345,571     1,623,771
      Issuance of common stock as compensation                          -       243,455
      Issuance of common stock as donations                             -        29,950
      Issuance of stock options for services rendered                   -       220,000
      Issuance of stock options as compensation                         -       237,750
      Issuance of stock as interest expense                             -       100,000
      Increase in
        Accounts receivable                                             -        (1,640)
        Receivable from related party                                   -        (9,250)
        Receivable from officer                                   (24,217)      (24,217)
        Deposit                                                         -        (2,776)
        Other assets                                                 (995)         (995)
      Increase (decrease) in
        Accounts payable and accrued expenses                      55,644       241,547
        Payable to related party                                        -        52,210
        Payable to officer                                        (13,994)            -
                                                          ----------------  ------------

          Net cash used in operating activities                  (412,909)   (1,592,057)
                                                          ----------------  ------------

CASH FLOWS FROM INVESTING ACTIVITIES
  Purchase of property and equipment                               (2,846)     (117,958)
  Purchase of license rights                                            -       (70,000)
                                                          ----------------  ------------

          Net cash used in investing activities                    (2,846)     (187,958)
                                                          ----------------  ------------
</TABLE>


   The accompanying notes are an integral part of these financial statements.
                                        4
<PAGE>
<TABLE>
<CAPTION>
                                               THE CYBER GROUP NETWORK CORPORATION
                                                                    AND SUBSIDIARY
                                                     (DEVELOPMENT STAGE COMPANIES)
                                             CONSOLIDATED STATEMENTS OF CASH FLOWS
                         FOR THE THREE MONTHS ENDED MARCH 31, 2001 (UNAUDITED) AND
      FOR THE PERIOD FROM MARCH 21, 2000 (INCEPTION) TO MARCH 31, 2001 (UNAUDITED)

==================================================================================

                                                                         For the
                                                                       Period from
                                                          For the        March 21,
                                                           Three           2000
                                                           Months     (Inception) to
                                                          March 31,      March 31,
                                                            2001           2001
                                                      ----------------  ----------
                                                        (unaudited)     (unaudited)
<S>                                                       <C>               <C>
<S>                                                   <C>               <C>
CASH FLOWS FROM FINANCING ACTIVITIES
  Proceeds from issuance of convertible debt          $       375,001   $1,787,810
                                                      ----------------  ----------

          Net cash provided by financing activities           375,001    1,787,810
                                                      ----------------  ----------

            Net increase (decrease) in cash                   (40,754)       7,795

CASH, BEGINNING OF PERIOD                                      48,549            -
                                                      ----------------  ----------

CASH, END OF PERIOD                                   $         7,795   $    7,795
                                                      ================  ==========
</TABLE>


   The accompanying notes are an integral part of these financial statements.
                                        5
<PAGE>
                                             THE CYBER GROUP NETWORK CORPORATION
                                                                  AND SUBSIDIARY
                                                   (DEVELOPMENT STAGE COMPANIES)
                                      NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                DECEMBER 31, 2000 AND MARCH 31, 2001 (UNAUDITED)

================================================================================

NOTE  1  -  BUSINESS  ACTIVITY

     The  Cyber  Group  Network  Corporation  and  subsidiary (collectively, the
     "Company"),  development  stage  enterprises,  operate  as  a  developer of
     computer  security  technology, Internet access devices, and other Internet
     and  communication  investments.

     The  Company was originally incorporated on September 24, 1998 as Hollywood
     Entertainment  Network,  Inc. ("Hollywood"), a Nevada corporation. On March
     21,  2000,  The  Cyber  Group  Network  Corporation  ("OLD  Cyber")  was
     incorporated in the state of California. On May 23, 2000, OLD Cyber entered
     into  a  share  purchase  agreement  and  purchased  9,900,000  shares
     (approximately  89%  of the outstanding shares) of Hollywood's common stock
     for $295,000. Simultaneously, Hollywood and OLD Cyber merged, and Hollywood
     changed  its  name  to The Cyber Group Network Corporation. In addition, on
     May  23,  2000, immediately prior to the purchase transaction, the Board of
     Directors  of  Hollywood  approved the disposition of the movie rights to a
     shareholder  of  Hollywood.  Therefore,  at  the  time  of the transaction,
     Hollywood  had  minimal  assets  and liabilities. Accordingly, no pro forma
     disclosures have been made. As the core business of the Company has changed
     subsequent  to  the  purchase  transaction,  the  entire amount recorded as
     goodwill  of  $295,000  has  been  written  off.  This transaction has been
     recorded  as  a purchase transaction, which is similar to a reverse merger,
     whereby  the  Company's equity section is retroactively restated to reflect
     the  capital  structure  of  Hollywood  (a  recapitalization).

     On September 13, 2000, CGN Acquisitions Corporation ("CGN") was formed as a
     wholly-owned  subsidiary  of  the  company. On December 7, 2000, CGN merged
     with  the  Company  and  ceased  to  exist.

NOTE  2  -  SUMMARY  OF  SIGNIFICANT  ACCOUNTING  POLICIES

     Principles  of  Consolidation
     -----------------------------
     The  consolidated  financial  statements  include the accounts of The Cyber
     Group  Network  Corporation  and  its  wholly owned subsidiary, Cyber Crime
     Corporation  ("Cyber  Crime").  During  the  period  from  March  21,  2000
     (inception)  to  December  31,  2000,  Cyber  Crime  did  not engage in any
     activities.  Any  intercompany  balances and transactions are eliminated in
     consolidation.

     Going  Concern  Issues
     ----------------------
     The  Company  has  received  a  report  on its financial statements for the
     period  from  March  31,  2000  (Inception)  to  December 31, 2000 from its
     independent  auditors that includes an explanatory paragraph describing the
     Company's  uncertainty  to  continue  as  a  going concern. These financial
     statements  contemplate  the ability to continue as such and do not include
     any  adjustments  that  might  result  from  this  uncertainty.


                                        6
<PAGE>
                                             THE CYBER GROUP NETWORK CORPORATION
                                                                  AND SUBSIDIARY
                                                   (DEVELOPMENT STAGE COMPANIES)
                                      NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                DECEMBER 31, 2000 AND MARCH 31, 2001 (UNAUDITED)

================================================================================

NOTE  2  -  SUMMARY  OF  SIGNIFICANT  ACCOUNTING  POLICIES  (CONTINUED)

     Development  Stage  Enterprise
     ------------------------------
     The  Company  is  a  development  stage  company as defined in Statement of
     Financial Accounting Standards ("SFAS") No. 7, "Accounting and Reporting by
     Development  Stage Enterprises." The Company is devoting all of its present
     efforts  to  its  formation and to fundraising and to search for a suitable
     operating  business,  and  its  planned  principal  operations have not yet
     commenced.  All  losses accumulated since inception have been considered as
     part  of  the  Company's  development  stage  activities.

     Software  Development  Costs
     ----------------------------
     Development  costs incurred in the research and development of new software
     products  are  expensed  as incurred until technological feasibility in the
     form  of a working model has been established. To date, the Company has not
     completed  its  software  development  to  the  point  of  technological
     feasibility,  and  accordingly,  no  costs  have  been  capitalized.

     License  Rights
     ---------------
     On  November  30,  2000,  the  Company entered into a license agreement for
     certain  rights  related  to  the Community Banking Program. The Company is
     amortizing  the  cost  of  the  license  agreement  over  three  years.

     Income  Taxes
     -------------
     The  Company accounts for income taxes under the asset and liability method
     which  requires  the recognition of deferred tax assets and liabilities for
     the  expected  future tax consequences of events that have been included in
     the financial statements or tax returns. Under this method, deferred income
     taxes  are  recognized  for  the  tax  consequences  in  future  years  of
     differences  between  the  tax  bases  of  assets and liabilities and their
     financial  reporting  amounts  at each period-end based on enacted tax laws
     and  statutory tax rates applicable to the periods in which the differences
     are  expected  to  affect  taxable  income.  Valuation  allowances  are
     established,  when  necessary,  to reduce deferred tax assets to the amount
     expected  to  be  realized.

     Basic  and  Diluted  Loss  per  Share
     -------------------------------------
     For  the  period  from March 21, 2000 (inception) to December 31, 2000, the
     Company adopted SFAS No. 128, "Earnings per Share." Basic loss per share is
     computed  by  dividing  loss  available  to  common  shareholders  by  the
     weighted-average  number  of  common  shares  outstanding. Diluted loss per
     share  is  computed  similar  to  basic  loss  per  share  except  that the
     denominator  is increased to include the number of additional common shares
     that  would  have  been outstanding if the potential common shares had been
     issued  and  if the additional common shares were dilutive. For the periods
     presented,  the  Company  incurred net losses; therefore, basic and diluted
     loss  per  share  are  the  same.


                                        7
<PAGE>
                                             THE CYBER GROUP NETWORK CORPORATION
                                                                  AND SUBSIDIARY
                                                   (DEVELOPMENT STAGE COMPANIES)
                                      NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                DECEMBER 31, 2000 AND MARCH 31, 2001 (UNAUDITED)

================================================================================

NOTE  2  -  SUMMARY  OF  SIGNIFICANT  ACCOUNTING  POLICIES  (CONTINUED)

     Estimates
     ---------
     The  preparation  of  financial  statements  in  conformity  with generally
     accepted  accounting  principles  requires management to make estimates and
     assumptions  that affect the reported amounts of assets and liabilities and
     disclosure  of  contingent  assets  and  liabilities  at  the  date  of the
     financial  statements,  as  well  as  the  reported amounts of revenues and
     expenses  during  the  reporting  period.  Actual results could differ from
     those  estimates.


NOTE  3  -  LICENSE  RIGHTS

     On  November  30,  2000,  the  Company  entered  into a Technology Transfer
     Agreement  related  to the E-Snitch Device, whereby the Company was granted
     the  license  to use the proprietary technology in the manufacture and sale
     of  the  E-Snitch  Device. Costs totaling $137,000 for the development of a
     prototype  used  for  demonstration purposes have been expensed as research
     and  development.

     On  November 30, 2000, the Company entered into a license agreement related
     to  the  Community  Banking  Program  (the  "Program"), whereby the Company
     acquired  the  right,  in  perpetuity,  for $70,000, to implement, use, and
     modify  the  Program  to  engage in the business of promotion, advertising,
     merchandising,  and  the  distribution  of  debit  cards  used  in  banking
     transactions.  In  accordance  with  this agreement, the sellers retain the
     right to use the Program. The Company is amortizing these rights over three
     years.  As  of  March  31,  2001,  accumulated  amortization totaled $7,776
     (unaudited).


NOTE  4  -  COMMITMENTS  AND  CONTINGENCIES

     Consulting  Agreement
     ---------------------
     On  March  30, 2001, the Company entered into a consulting agreement in the
     amount  of  $35,000 (unaudited) for research and development services to be
     rendered  subsequent  to  March  31,  2001.

     Litigation
     ----------
     The Company is involved in certain legal proceedings and claims which arise
     in  the  normal  course  of  business. Management does not believe that the
     outcome  of  these  matters  will  have  a  material  adverse effect on the
     Company's  financial  position  or  results  of  operations.

     The  Chief  Executive  Officer  of  the  Company  is personally involved in
     certain  legal  proceedings  in  excess of $10,000,000. The nature of these
     proceedings  arose  prior to the formation of the Company. The Company does
     not  believe  that  these legal proceedings will have any adverse effect on
     the  Company.


                                        8
<PAGE>
                                             THE CYBER GROUP NETWORK CORPORATION
                                                                  AND SUBSIDIARY
                                                   (DEVELOPMENT STAGE COMPANIES)
                                      NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                DECEMBER 31, 2000 AND MARCH 31, 2001 (UNAUDITED)

================================================================================

NOTE  5  -  SHAREHOLDERS'  EQUITY

     During  the period from March 21, 2000 (inception) to December 31, 2000 and
     three  months  ended  March  31,  2001,  the  Company  issued 9,127,783 and
     4,214,285  shares  (unaudited)  of  common  stock for services rendered. In
     connection to these issuances, the Company recorded compensation expense in
     the  amount  of  $1,278,200  and  $345,571  (unaudited).

     During  the period from March 21, 2000 (inception) to December 31, 2000 and
     three  months  ended  March 31, 2001, the Company converted $ 1,271,500 and
     $603,845  (unaudited)  of  its  Series  A  and  Series  SPA  Subordinated
     Convertible Redeemable Debentures into 15,818,663 and 9,860,782 (unaudited)
     common  shares.  Related  to  this  issuance, the Company recorded interest
     expense  totaling  $832,540  and  $218,922  (unaudited)  related  to  the
     beneficial  conversion  feature  of  the  debentures.

     During  the three months ended March 31, 2001, the Company issued 2,000,000
     shares  (unaudited)  of  preferred  stock  to  a company owned by the Chief
     Executive  Officer for services rendered. No rights or privileges have been
     assigned  to  the  preferred  stock.  In  relation to this transaction, the
     Company  recorded  consulting  expense  of  $213,250  (unaudited).

     On  January  2, 2001, the Company issued options to an employee to purchase
     250,000  shares  (unaudited)  of common stock at an exercise price of $0.10
     (unaudited)  per  share.


NOTE  6  -  RELATED  PARTY  TRANSACTIONS

     During  the period from March 21, 2000 (inception) to December 31, 2000 and
     the three months ended March 31, 2001, the Company made certain advances to
     and  had  loans  from  the  Chief  Executive  Officer of the Company. As of
     December 31, 2000, total net loans from the Chief Executive Officer totaled
     $13,994.  As  of  March  31,  2001,  total net loans to the Chief Executive
     Officer  totaled  $24,217  (unaudited).

     As  of December 31, 2000 and March 31, 2001, the Company had a loan payable
     to  a related party totaling $52,210 and $52,210 (unaudited), respectively,
     and  an  advance to a related party totaling $9,250 and $9,250 (unaudited),
     respectively.


NOTE  7  -  SUBSEQUENT  EVENTS

     Subsequent  to  March  31, 2001, the Company issued 3,700,000 common shares
     (unaudited)  for $15,000 (unaudited) of legal services rendered as of March
     31,  2001  and  $207,000  (unaudited)  of  legal  services  to  be rendered
     subsequent  to  March  31,  2001.


                                        9
<PAGE>
                                             THE CYBER GROUP NETWORK CORPORATION
                                                                  AND SUBSIDIARY
                                                   (DEVELOPMENT STAGE COMPANIES)
                                      NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                DECEMBER 31, 2000 AND MARCH 31, 2001 (UNAUDITED)

================================================================================

NOTE  7  -  SUBSEQUENT  EVENTS  (CONTINUED)

     Subsequent  to  March  31, 2001, the Company issued 2,000,000 common shares
     (unaudited)  to  the  Chief  Executive Officer for services relating to the
     E-Snitch  Device.

     Subsequent  to  March  31,  2001,  the  Company issued 66,667 common shares
     (unaudited)  for  $4,000  (unaudited)  of  investor  relation  services.


                                       10
<PAGE>
              ITEM 2. MANAGEMENT'S DISCUSSION AND PLAN OF OPERATION

FORWARD  LOOKING  STATEMENTS

Some  of  the  statements  contained in this Form 10-QSB that are not historical
facts  are  "forward-looking  statements".  They can be identified by the use of
terminology  such  as  "estimates,"  "project,"  "plans," "believes," "expects,"
"anticipates," "intends," or the negative or other variations, or by discussions
of  strategy  that  involve  risks  and  uncertainties.  These  forward-looking
statements reflect our current beliefs with respect to future events and involve
known  and  unknown  risks,  uncertainties  and  other  factors  affecting  our
operations,  market  growth, services, products and licenses.  No assurances can
be  given  regarding  the  achievement  of future results, as actual results may
differ materially as a result of the risks we face, and actual events may differ
from  the  assumptions  underlying  the statements that have been made regarding
anticipated  events.

GENERAL

The  Cyber  Group  Network  Corporation  ("CGPN"  or  the  "Company"),  a Nevada
corporation,  incorporated  on  September  24,  1998.  The Company is technology
based  with  an  emphasis on patented public Internet devices, acquisitions, and
development  of  new  computer  security devices, banking, and personal security
products.  This  phase of the Company's operations began with the acquisition of
the  previous  company's  ownership,  which  occurred  on  May  23,  2000.

Our  mission  at  CGPN  is  to  develop,  create  and a diverse portfolio of new
computer  security  products  and  services that will protect the everyday user.


<PAGE>
RESULTS  OF  OPERATIONS

     The  Company  is  a  developmental  stage  company  that, to this date, has
generated  minimal revenue. During the first quarter of operations, CGPN focused
on  the  ongoing  development  of  the Electronic Snitching Device (E-Snitch) to
bring  it  to  market  by  year-end 2001. The Company has developed the business
model  and  has made the appropriate contacts to build alliances that will bring
E-Snitch  to  the  forefront  of the computer security industry. The Company has
also developed several new personal security product lines that will be launched
during  2001.  Global  Technology  Publishing,  a division of CGPN, currently is
marketing  Memoirs  of  a  Hi-Tech  Hustler,  the fictional novel of a high tech
criminal  and  how he committed his crimes. The Cyber Crime Corporation website,
one  of  the  largest sources of computer security information on the World Wide
Web,  has  been remodeled for easier navigation by our users. CGPN has developed
the  business model for The Cyber Group ATM card and has finalized the contracts
with  the  card  manufacturer.

     For  the fiscal quarter ended March 31, 2001, we recorded an operating loss
of  $998,792.  This loss is largely due to payroll and other operating expenses.
During  the  quarter, we recorded a total of $280,366 in interest expense mostly
related  to  the  beneficial  conversion feature of the convertible debt issued.
Capital  expenditures  amounted  to $2,846, which included purchases of computer
equipment and software. Loss of operation is expected to continue through fiscal
2001.  Profitability  is  not  assured  nor  is  a stream of revenue that can be
generated  and  sustained  in  the  future.

FUTURE  BUSINESS

     CGPN  has a number of new products that have been under development and are
ready  to  be launched in the coming months.  CGPN is set to launch its new line
of  personal  security products in June 2001.  These products enable the user to
have  a  heightened  sense  of security in their home or business.   Several new
security  related  software  programs  are  in anti-virus testing stage prior to
their  release  to  the  public.  CGPN  will  launch  its ATM card geared to the
un-banked and those on public assistance. This card will allow its users to have
all  the  advantages  that  come  with a traditional bank account.   Cyber Crime
Corporation  will  have additional features that will educate its users on up to
the  minute  high  tech  crimes  that  affect small and large businesses.  These
features  will  include  computer  penetration  tests,  computer  forensics, and
network  vulnerability  testing.  In  addition,  CGPN  has expanded its' service
offering  to  include  website  development.

CAPITAL  RESOURCES  AND  LIQUIDITY

     At  the  fiscal  quarter  ended  March  31,  2001, we had current assets of
$42,902 and total assets of $199,621. These assets consist of cash in the amount
of  $7,795,  property  and  equipment  in  the  amount  of $90,724, net software
licenses  in  the  amount of $63,219 and deposits of $2,776. On December 7, 2000
through  the merger of CGN Acquisitions Corporation and the Company, the Company
issued convertible redeemable debentures that were convertible into common stock
pursuant  to  Regulation  D  Rule  504. During the quarter ended March 31, 2001,
$603,  845  was  converted  into  9,860,782  shares  of  common  stock.


<PAGE>
CASH  REQUIREMENTS  AND  ADDITIONAL  FUNDING

     It  is  anticipated that the Company will need to raise additional capital.
The  Company  contemplates  filing form SB2 to raise these additional funds. The
additional  capital  will need to be in excess of $10,000,000 for the Company to
sustain through major product launch. The Company believes that our cash on hand
is  insufficient  to  meet  our  anticipated  needs for working capital, capital
expenditures  and  business development for the next twelve months. We expect to
utilize  cash  at  a  rate  of $50,000 per month or $600,000 for the next fiscal
year.  This  additional  capital  would  cover such costs such as: marketing and
promotion,  maintaining  and upgrading our technology, overhead expenses for the
day  to  day  operation  of  the  business  and other unexpected expenses due to
economic  changes.  The  Company currently does not maintain any lines of credit
nor  do  we  have any agreements for additional capital in place. The additional
may  result  in dilution to our shareholders. The Company cannot assure you that
financing  will  be  available  in  amounts  or  on  acceptable  terms.


<PAGE>
     Without  raising additional capital, the Company may not be able to acquire
additional  companies  that  may enhance the growth of the Company. Furthermore,
development  of  additional technologies could suffer due to the lack of capital
subject  to  the  limited  available  cash  flow.  There can be no assurance the
Company  will  be  able to raise additional funds in sufficient amounts to allow
the  Company  to  successfully  implement  its  present  business  strategy  or
acquisitions  or  the  development  of  its  existing  products.


FORWARD-LOOKING  STATEMENTS

         Some  of  the  statements  under  "Risk Factors,"  "Plan of Operation,"
"Business,"  and  elsewhere  in this quarterly report constitute forward-looking
statements. These statements involve known and unknown risks, uncertainties, and
other factors that may cause our or our industry's results,  levels of activity,
performance,  or  achievements  to be  significantly  different  from any future
results, levels of activity,  performance,  or achievements expressed or implied
by  such  forward-looking  statements.

         In  some  cases,  you  can  identify   forward-looking   statements  by
terminology  such as "may," "will,"  "should,"  "expects,"  "plans,"  "intends,"
"anticipates,"  "believes,"  "estimates," "predicts," "potential," or "continue"
or  the  negative  of  such  terms  or  other  comparable  terminology.

         Although   we  believe   that  the   expectations   reflected   in  the
forward-looking  statements are reasonable,  we cannot guarantee future results,
events,  levels of  activity,  performance,  or  achievements.  We do not assume
responsibility  for  the  accuracy  and  completeness  of  the   forward-looking
statements.  We do not  intend to update any of the  forward-looking  statements
after  the  date  of  this  annual  report  to  conform  them to actual results.

         The  accompanying  un-audited condensed financial  statements have been
prepared in accordance with generally accepted accounting principles for interim
financial information and with the instructions to Form 10-QSB and Article 10 of
Regulation  S-X.  Accordingly,  they  do  not include all of the information and
footnotes  required by generally  accepted  accounting  principles  for complete
financial statements. In the opinion of management,  all adjustments (consisting
of normally  recurring  accruals)  considered  necessary for a fair presentation
have  been  included.

         Operating  results  for the  quarter  ending  March  31,  2001  are not
necessarily  indicative  of the results that may be expected for the year ending
December 31, 2001. For further information, refer to the consolidated statements
and  footnotes  included in our annual report on Form 10-KSB for the period from
March  21,  2000  (inception)  to  December  31,  2000.


                                Item 6. Exhibits
                  Exhibit Name and/or Identification of Exhibit
                                     Number

3    Articles  of  Incorporation  &  By-Laws

(a)Articles  of  Incorporation  of  the  Company  filed  September  24,  1998.
Incorporated  by  reference  to  the  exhibits to the Company's General Form For
Registration  Of  Securities Of Small Business Issuers on Form 10-SB, previously
filed  with  the  Commission.

(b)By-Laws  of the Company adopted September 25, 1998. Incorporated by reference
to  the exhibits to the Company's General Form For Registration Of Securities Of
Small  Business  Issuers  on  Form  10-SB, previously filed with the Commission.

13   Annual  or  Quarterly  Reports

(a)  Form 10-QSB for the Quarter ended March 31, 2000. Incorporated by reference
to  the  Company's  Quarterly  Report for Small Business Issuers on Form 10-QSB,
previously  filed  with  the  Commission.

23   Consent  of  Experts  and  Counsel

Consents  of  independent  public  accountants

27   Financial  Data  Schedule

Financial  Data  Schedule  of  ALD  Services,  Inc.  ending  March  31,  2001


<PAGE>
                                   SIGNATURES

Pursuant  to  the  requirements  of the Exchange Act of 1934, the Registrant has
duly caused this report to be signed on its behalf by the undersigned, thereunto
duly  authorized.

The  Cyber  Group  Network  Corporation
            (Registrant)


Date:  May  21,  2001

By:/s/  Gregory  D.  Evans
Chief  Executive  Officer


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