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

                                   Form 10-QSB

          [X]  Quarterly Report Pursuant to Section 13 or
               15(d) of the Securities Exchange Act of 1934.
               
                    For the Quarter Ended September 30, 1998

                                       OR

          [ ]  Transition Report Pursuant to Section 13 or 15(d) of the
               Securities Exchange Act of 1934

                        Commission file number 333-16031


                        Empire Communications Corporation
           (name of small business issuer as specified in its charter)


               Nevada                                 86-0793960
  (State of other jurisdiction of                  (I.R.S. employer
  incorporation or organization)                  identification No.)


                4001 West 104th Terrace, Overland Park, KS 66207
                    (Address of principal executive offices)

          Registrant's telephone no., including area code: 913-469-1662


                  -------------------------------------------
                     Former name, former address, and former
                   fiscal year, if changed since last report.


Securities registered pursuant to Section 12(b) of the Exchange Act:     None

Securities registered pursuant to Section 12(g) of the Exchange Act:     None


         Check whether the Issuer (1) has filed all reports required to be filed
by Section 13 or 15(d) of the  Exchange  Act 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 _____.

         Common Stock  outstanding  at November  12, 1998 - 3,200,000  shares of
$.001 par value Common Stock.


<PAGE>
<TABLE>
<CAPTION>


                          Part 1 Financial Information

Item 1  Financial Statements

         The Financial  Statements of the  Registrant  required to be filed with
this 10-QSB Quarterly  Report were prepared by management  together with Related
Notes. In the opinion of management, the financial statements fairly present the
financial condition of the Registrant.

                                    EMPIRE COMMUNICATIONS CORPORATION
                                   (Formerly Litigation Economics, Inc)
                                       [Development Stage Company]

                                         CONDENSED BALANCE SHEETS
                                               [Unaudited]

                                                  ASSETS

                                                            September 30, 1998      Dec. 31, 1997
                                                            ------------------      -------------
CURRENT ASSETS:
<S>                                                            <C>                     <C>    
     Cash                                                      $      3,001            $10,434
     Accounts Receivable                                                -                    8
     Notes Receivable                                                                        -
          Total Current Assets                                         3,001            10,442
                                                                ------------           -------

PROPERTY AND EQUIPMENT (NET)                                             -             24,680

OTHER ASSETS:
     Deposits                                                            -                125
                Total Other Assets                                       -                125
                                                                 ---------             ------

TOTAL ASSETS                                                   $      3,001            $35,247
                                                               ============            =======


                 LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
<CAPTION>

                                                               Sept.30, 1998        Dec. 31, 1997
                                                               -------------        -------------
CURRENT LIABILITIES:
<S>                                                            <C>                   <C>   
     Accounts payable                                             $16,210               $2,510
     Unearned Revenue                                                -                     388
          Total Current Liabilities                                16,210                2,898
                                                                ----------               -----

STOCKHOLDERS' EQUITY (DEFICIT):

     Common stock; authorized 50,000,000 shares at                  3,200                1,600
          $0.001 par value; 3,200,000 shares issued and
          outstanding
     Additional paid-in Capital                                    92,841              104,041
     Deficit accumulated during the development stage            (109,250)             (73,292)
          Total Stockholders' Equity                              (13,209)              32,349

TOTAL LIABILITIES & EQUITY                                      $   3,001              $35,247
                                                                =========              =======
</TABLE>

   The accompanying notes are an integral part of these financial statements.
         NOTE: The balance sheet at December 31, 1997 was taken from the
            audited financial statements at that date and condensed.

<PAGE>
<TABLE>
<CAPTION>


                                    EMPIRE COMMUNICATIONS CORPORATION
                                  (Formerly Litigation Economics, Inc.)
                                      [Development Stage Companies]

                                    CONDENSED STATEMENTS OF OPERATIONS
                                               [Unaudited]



                                                      For the Three     For the Three
                                                      Months Ended      Months Ended
                                                     Sept. 30, 1998    Sept. 30, 1997
                                                     --------------    --------------
<S>                                                    <C>              <C>   
REVENUE                                                   $0.00            $7,036
Cost of Goods Sold                                        $ -                -
     Total Revenue                                        $0.00             7,036
                                                          -----             -----

EXPENSES
General and Administrative Expenses                       15,994           $42,165
Depreciation                                                                  -
    Total Expenses                                       $15,994           $42,165
                                                         -------           -------

INCOME FROM OPERATION
                                                        ($15,994)         ($35,129)
OTHER INCOME:
     Loss on sale of asset                                ($0.00)             (858)
     Interest income                                         -                 -

TOTAL OTHER INCOME                                        ($0.00)             (858)

NET INCOME/LOSS                                         ($15,994)         ($35,987)

NET LOSS PER SHARE                                        ($.004)            ($.02)
</TABLE>

   The accompanying notes are an integral part of these financial statements.


<PAGE>
<TABLE>
<CAPTION>

                                     EMPIRE COMMUNICATIONS CORPORATION
                           (Formerly Litigation Economics, Inc. and Subsidiary)
                                      [Development Stage Companies]

                                    CONDENSED STATEMENTS OF OPERATIONS
                                               [Unaudited]


                                                      For the Nine      For the Nine
                                                      Months Ended      Months Ended
                                                     Sept. 30, 1998    Sept. 30, 1997
                                                     --------------    --------------
<S>                                                    <C>               <C>   
REVENUE                                                  $13,206            $7,036
Cost of Goods Sold                                        (1,200)             -
     Total Revenue                                       $12,006            $7,036
                                                         -------            ------

EXPENSES
General and Administrative Expenses                       33,616           $58,089
Depreciation                                               2,313              -
    Total Expenses                                       $35,929           $58,089
                                                         -------           -------

INCOME FROM OPERATION
                                                        ($23,923)         ($51,053)
OTHER INCOME:
     Loss on sale of asset                              ($12,035)             (858)
     Interest income                                        -                  -

TOTAL OTHER INCOME                                      ($12,035)             (858)
  
NET INCOME/LOSS                                         ($35,958)         ($51,911)

NET LOSS PER SHARE                                         (.011)             (.03)
</TABLE>

   The accompanying notes are an integral part of these financial statements.

<PAGE>
<TABLE>
<CAPTION>



                                      EMPIRE COMMUNICATIONS CORPORATION
                                     (Formerly Litigation Economics, Inc.)
                                         [A Development Stage Company]

                                Consolidated Statements of Stockholders' Equity

                                                                                             Capital In     Deficit Accumulated
                                               Common Stock            Preferred             Excess Of          During the
                                               Shares      Amount      Shares   Amount       Par Value       Development Stage
                                               ------      ------      ------   ------       ---------       -----------------
<S>                                        <C>           <C>           <C>      <C>         <C>              <C>
BALANCE,
     July 31, 1996                             --         $   --           --   $    --      $    --           $      --

Common stock issued for cash
     at $0.001 per share                    1,000,000       $1,000         --        --           --                  --
Recapitalization of GEC, Inc.                 500,000          500         --        --         4,141                 --

Net loss for the period ended
     December 31, 1996                         --             --           --        --                             (5,017)

BALANCE,
     December 31, 1996                      1,500,000        1,500         --        --         4,141               (5,017)

Common stock issued for cash
     at $1.00 per share                       100,000          100         --        --        99,900                 --

Net loss for the year ended
     December 31, 1997                           --           --           --        --          --                (68,275)

BALANCE,                                    1,600,000        1,600         --        --       104,041              (73,292)
     December 31, 1997

Common stock issued as 2:1
     forward split as 100% stock
     dividend                               1,600,000        1,600         --        --          --                   --

Common stock surrendered to
     treasury shares pursuant to sale
     agreement of GEC, Inc.                (1,200,000)      (1,200)        --        --          --                   --

Preferred stock issued for cash
     at $0.6382 per share                        --           --       2,350,000   2,350    1,497,650                 --

Preferred stock surrendered to
     treasury share pursuant to
     recission resolution                                             (2,350,000) (2,350)  (1,497,650)                --

</TABLE>


<PAGE>
<TABLE>
<CAPTION>



                                      EMPIRE COMMUNICATIONS CORPORATION
                                    (Formerly Litigation Economics, Inc.)
                                        [A Development Stage Company]

                              Consolidated Statements of Stockholders' Equity
                                                 (Continued)

                                                                                             Capital In      Deficit Accumulated
                                               Common Stock            Preferred             Excess Of          During the
                                               Shares      Amount      Shares   Amount       Par Value       Development Stage
                                               ------      ------      ------   ------       ---------       -----------------
<S>                                        <C>              <C>         <C>       <C>       <C>                <C>
Common stock reissued pursuant
     to recission resolution                 1,200,000        1,200        --       --        (11,200)              --

Net loss for the period ended
     September 30, 1998                          --            --          --       --           --               (35,958)

BALANCE,
     September 30, 1998                      3,200,000        3,200        --       --         92,841            (102,950)
</TABLE>


<PAGE>



                        EMPIRE COMMUNICATIONS CORPORATION
                      (Formerly Litigation Economics, Inc.)
                          [A Development Stage Company]

        NOTES TO UNAUDITED CONDENSED & CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Condensed Financial Statements - The accompanying financial statements have been
prepared  by the  Company  without  audit.  In the  opinion of  management,  all
adjustments  (which  include  only normal  recurring  adjustments)  necessary to
present fairly the financial position and results of operations at September 30,
1998 and for all the periods presented have been made.

Organization  and Operating  History - The Company was incorporated in the State
of Nevada on April 27, 1995 under the name of Landmark Leasing Corp. The Company
planned  on  engaging  in leasing  residential  property,  commercial  property,
vehicles, and related activities.  The Company has discontinued these activities
and  accordingly  remains a development  stage company.  The Company changed its
name to Litigation  Economics,  Inc. on August 22, 1996, when it acquired all of
the outstanding stock of GEC, Inc., for 1,000,000 shares of the Company's common
stock valued at $.001 per share or $1,000.  The  acquisition of GEC was recorded
as a  recapitalization  of GEC,  whereby GEC was treated as the surviving entity
for accounting purposes.  GEC was formed on July 31, 1996 in the State of Idaho.
Accordingly, GEC is also considered a development stage company.

On March 16, 1998,  Empire Financial  Investments LLC, a Texas limited liability
company  ("Empire"),  purchased  2,350,000  shares of the Company's new Series A
Convertible  Preferred  Stock. As of March 16, 1998, these shares and the common
share  votes  associated  with  these  Series  A  Preferred  shares  constituted
approximately 77.9% of total common share votes of the Company,  and constituted
approximately  54% of the total equity  securities  of the Company.  Empire is a
wholly-owned  subsidiary of Empire Financial  Corporation ("EFC"), a Texas-based
merchant  banking and investment firm  headquartered  in Dallas,  Texas.  Empire
introduced the Company to an opportunity to acquire two subsidiary businesses of
the Deluxe  Corporation  ("the Paper Direct  transaction").  In late May,  1998,
Empire  informed the Company that it no longer  wished to proceed with the Paper
Direct transaction through the Company,  and that it desired a rescission of its
investment in the Company. In connection with the Paper Direct transaction,  the
Company had sold all of the  outstanding  stock of GEC to  Cornelius  and Stacey
Hofman in return for  cancellation  of shares in the company and a certain  cash
consideration.  When the Paper Direct transaction was rescinded with Empire, GEC
was reaquired by the company by a return of all consideration by the Hofmans.

Accounting  Method - The Company's  financial  statements are prepared using the
accrual method of accounting. The Company has selected a December 31, year end.

Net Loss Per Share - The  computation of loss per share of common stock is based
on the  weighted  average  number  of  shares  outstanding  at the  date  of the
consolidated financial statements.

Provision for Taxes - At December 31, 1996,  the Company had net operating  loss
carry forwards of approximately $5,000 that may be offset against future taxable
income  through  2011.  No tax  benefit  has  been  reported  in  the  financial
statements,  because the Company  believes  there is a 50% or greater chance the
carry  forwards will expire unused.  Accordingly,  the potential tax benefits of
the loss carryforward are offset by a valuation allowance of the same amount.

Depreciation  Methods - The Company is depreciating  its property and equipment,
which consists of computer equipment, fax machines, filing cabinets, etc., using
the straight line method,  over the estimated useful lives of the related assets
ranging from 3 to 10 years.

Cash and Cash  Equivalents - For purposes of financial  statement  presentation,
the Company  considers  all highly liquid  investments  with a maturity of three
months or less to be cash equivalents.

Use of 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  and the  reported  amounts  of  revenues  and  expenses  during  the
reporting period. Actual results could differ from those estimates.

Principles of  Consolidation - The  consolidated  financial  statements  include
accounts of Empire Communications  Corporation and its wholly-owned  subsidiary,
GEC, Inc.  through March 13, 1998,  at which date the  subsidiary  was sold to a
company  controlled by Cornelius  Hofman.  Inter-company  transactions have been
eliminated.

Revenue  Recognition  -  Revenue  will be  recognized  upon  the  completion  of
consulting and advising services.



<PAGE>



NOTE 2 - GOING CONCERN

The Company's  consolidated  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 and has not had
significant  operations.  To date, the Company has been able to cover  operating
costs with existing financial resources. 

NOTE 3 - RELATED PARTY TRANSACTIONS

None.

NOTE 4 - COMMON STOCK

 In October of 1996, the Board of Directors  adopted the  Litigation  Economics,
Inc., 1996 Stock Option Plan (the "Plan"), allowing the Company to offer its key
employees,  officers,  directors,  consultants,  and sales  representatives  and
opportunity to acquire a proprietary  interest in the Company.  The total number
of shares  reserved  and  available  for  distribution  under the Plan  shall be
500,000  shares.  These shares will  underlie the Options  issued by the Company
pursuant to the Plan. The Option holders will not be protected  against dilution
if the Company  should  issue  additional  shares of common stock in the future.
Neither the  Options,  nor the shares  underlying  the Options  have  preemptive
rights. As of March 31, 1998, no options have been granted or exercised pursuant
to the Plan.

On March 12,  1998,  the Board of  Directors  of the Company  declared a 2 for 1
forward  split of the  outstanding  common  stock,  in the form of a 100%  stock
dividend  distributed  to  shareholders  of record on March 1, 1998,  payable on
March 13, 1998.

On March 13, 1998, in connection with the sale of GEC, Mr. and Mrs. Cornelius A.
Hofman II,  surrendered  1,200,000  shares of common  stock that are now held as
treasury shares.

On March 16, 1998,  Empire Financial  Investments LLC, a Texas limited liability
company purchased  2,350,000 shares of the Registrant's new Series A Convertible
Preferred  Stock for the purchase  price of  $1,500,000.  Payment  terms for the
transaction were $250,000 in cash with the remaining  balance of $1,250,000 as a
note receivable to the company.

On July 15,  1998,  pursuant  to the  rescission  resolution,  Empire  Financial
Investments,  LLC surrendered  2,350,000 shares of the Registrant's new Series A
Convertible Preferred Stock to the treasury in exchange for $250,000 in cash the
cancellation of $1,250,000 note receivable owed to the company.  Simultaneously,
1,200,000 shares of common stock were reiussed to Mr. and Mrs. Cornelius A.
Hofman II in return for all of the outstanding stock of GEC.

NOTE 5 - SUBSEQUENT EVENTS

None.
                                                                 
<PAGE>

Item 2.   Management's Discussion and Analysis

         Summary

         The  Company  was  incorporated  on April 27,  1995.  During  its first
approximately   three  years  of  operations,   the  Company  has  generated  no
significant  revenues and is thus  considered a development  stage company.  The
Company  raised  funds  initially  from its  founders,  and  then  from a public
offering in July, 1997. In 1997 and early 1998, the Company attempted to develop
an economic  consulting and expert witness  business based on the talents of its
then management and a proprietary  software program for the analysis of economic
damages in litigation  contexts.  During this time period,  the Company took the
name Litigation Economics, Inc. to reflect its new business plan.

         During  the first  quarter of 1998,  the  Company  changed  its name to
Empire  Communications  Corporation  and sold a controlling  equity  interest to
Empire  Financial  Corporation,  a Dallas,  Texas-based  merchant  bank,  all in
connection  with  the  Company's  proposed  acquisition  and  operation  of  two
businesses then being sold by DeLux Corporation:  PaperDirect,  Inc. and Current
Social Expressions.  The Company worked hard in February, March, April and early
May to complete due diligence on the PaperDirect and Current Social  Expressions
acquisitions  and to raise new  equity  funding  through  a  private  placement.
Several  corporate  actions took place in  contemplation  of the PaperDirect and
Current  Social  Expressions  acquisitions,  including the sale of the Company's
GEC, Inc.  subsidiary to the Company's then  controlling  shareholders,  Mr. and
Mrs.  Cornelius  Hofman for a surrender of 1.2 million  shares of the  Company's
Common Stock and some cash.

         Late in the  second  quarter  of  1998,  Empire  Financial  Corporation
indicated  its desire to rescind  its  investment  in the  Company,  and also to
rescind its assignment to the Company of the contract rights for the acquisition
of PaperDirect, Inc. and Current Social Expressions. The Company agreed, and the
Empire  Financial  investment was unwound,  the  PaperDirect  and Current Social
Expressions acquisition efforts ceased, the new private placement was abandoned,
and Mr. and Mrs.  Hofman  agreed to sell GEC back to the Company for a return of
the  consideration  they  paid--all  during the third  quarter of 1998.  Further
details concerning the rescission of the PaperDirect and GEC transactions can be
found in the Report on Form 8-K filed by the Company with the Commission in July
1998.

         The Company is now exploring various business opportunities, and in the
third quarter the Company moved its executive  offices to Overland Park,  Kansas
in  space  provided  by the  Company's  new  Chief  Executive  Officer  and sole
Director, Norman Petersen.


<PAGE>


Results of Operations

         The Company lost ($15,994) during the third quarter of 1998,  resulting
in a net loss per share of  $0.004.  This  compares  to a net loss of  ($35,987)
(($0.02)  per share)  during  the third  quarter  of 1997 when the  Company  was
engaged in the economic consulting business.  Although the Company earned $7,036
in revenues in the September  1997 third  quarter,  compared with no earnings in
the 1998 period, higher  administrative  expenses resulted in the higher loss in
the 1997 quarter.

         For the nine months  ended  September  30,  1998,  the  Company  earned
$12,000 in revenue,  compared with $7,036 for the some nine months in 1997. This
higher  revenue  was the  result  of the  growth  in GEC's  economic  consulting
business,  and  resulted  in a smaller  net loss during the first nine months of
1998 ($35,958) than in the same period in 1997 ($51,911).  On a per share basis,
the Company lost $0.01 per share for the 1998 period compared to a loss of $0.03
per share for the same period in 1997. A larger number of shares  outstanding on
September 30, 1998 accounted for some of the comparative difference.

         The  Company  continues  to suffer from the  expenses  of the  abortive
PaperDirect  transactions  and the  several  months in 1998  when the  Company's
economic  consulting  business  was  sold  away.  This is  evidenced  by the GEC
subsidiary  generating no revenues in the three months ended September 30, 1998.
Substantially  all  of the  expenses  booked  in the  third  quarter  1998  were
PaperDirect  transaction-related.  Management expects that it may take some time
for GEC to get back to earning  revenues  or for the Company to enter into a new
business enterprise.  As a result,  Management does not expect the Company to be
profitable in the fourth quarter of 1998.

Financial Condition and Liquidity

         Total  assets at quarter  end were  $3,001,  compared  with  $35,247 at
December  31,  1997.  This  decline in assets  reflects the sale of the economic
consulting  business  in  early  1998  and  the  expenditure  of cash on hand to
facilitate the abortive PaperDirect transactions. The increase in liabilities is
a direct  result of  PaperDirect-related  expenses  being  accrued  to  accounts
payable.

         As a result of assets lost in the sale and  repurchase  of the economic
consulting  business and cash expended in the PaperDirect  effort,  shareholders
equity in the Company declined to a negative net worth of ($13,209) at September
30, 1998 compared with a positive  shareholder equity of $35,247 at December 31,
1997.

         The  financial  condition  of the  Company is  tenuous,  and without an
infusion of new capital to pay existing  creditors  the Company is insolvent and
in danger of an involuntary bankruptcy  proceeding.  Management is looking for a
source of additional equity or long term debt funding,  but no sources have been
located as of the date of this  Report.  Management  intends to consult with the
Company's  largest  shareholders to determine their desires for the Company on a
going forward basis.

Year 2000 Issues

         The Company is aware of the issues  facing it and the rest of the world
resulting from the Year 2000 and related computer system  problems.  The Company
believes that its own information processing computers are new enough to be free
of these  problems,  but Management has not yet tested the Company's  systems to
ascertain the status. The Company is aware that several systems that it uses for
non-information  processing  may have  embedded  date-sensitive  chips that will
cause malfunction or non function during 1999 or on and after December 31, 1999.
The Company has not made any assessment of these embedded chips.  The Company is
also  aware  that  even if its own  computers  and other  systems  are Year 2000
compliant,  the failure of important third party suppliers of goods and services
to the Company would have a material adverse impact on the Company's  ability to
survive.  Some of these important third parties are electricity,  water, natural
gas and government  services to the Company and its surrounding  community.  The
Company has not made any  assessment of the readiness of these  important  third
party suppliers.

         The  Company  has  expended  no  funds  on  Year  2000  remediation  or
assessment,  and does  not  project  any  funds to be  available  for Year  2000
remediation or assessment during the rest of 1999.

         The Company has no contingency plans in the event itself or one or more
material suppliers experiences Year 2000 problems.

Forward Looking Statements

         Except for the historical  information  in this  document,  the matters
described  herein,   including  but  not  limited  to  Year  2000  issues,   are
forward-looking   statements  within  the  meaning  of  the  Private  Securities
Litigation  Reform Act of 1995. The Company  cautions readers not to place undue
reliance  on any  forward-looking  statements,  which  speak only as of the date
made. The Company  advises  readers that various risks and  uncertainties  could
affect the Company's financial  performance and could cause the Company's actual
results  for future  periods to differ  materially  from  those  anticipated  or
projected.  These risks and uncertainties include, but are not limited to, those
related to: the  economic  environment,  particularly  in the regions  where the
Company  operates;  competitive  products  and  pricing;  changes in  prevailing
interest rates;  fiscal and monetary policies of the U.S. and other governments;
regulations; acquisitions and the integration of acquired businesses; technology
and associated risks; and other risks and uncertainties  affecting the Company's
operations and personnel.

         The  Company  specifically  disclaims  any  obligation  to  update  any
forward-looking  statements to reflect  occurrences or  unanticipated  events or
circumstances after the date of such statements.

                            PART II OTHER INFORMATION

Item 1  Legal Proceedings

         None

Item 2  Changes in Securities

         None.

Item 3  Defaults on Senior Securities

         None

Item 4  Submission of Matters to a Vote of  Security Holders

         None.

Item 5  Other Information

         None

Item 6  Exhibits and Reports on Form 8-K

         None

                                   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, hereunto duly authorized.

                                         Empire Communications Corporation

Date: 11/12/98                           By /s/ Norman Peterson
                                           --------------------------
                                           President and Chief Executive Officer