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

                                   Form 10-QSB

                   [X] Quarterly Report Pursuant to Section1 3
                     or 15(d) of the Securities Exchange Act
                                    of 1934,
                       For the Quarter Ended June 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)


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

                    10670 North Central Expressway, Suite 235
                               Dallas, Texas 75231
              (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 June 30, 1998:  2,000,000 shares of $.001 par value
Common Stock

<PAGE>

                          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.
<TABLE>
<CAPTION>

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

                                             CONDENSED BALANCE SHEETS
                                                    [Unaudited]

                                                      ASSETS

                                                                        June 30, 1998              Dec. 31, 1997
                                                                        -------------              -------------
CURRENT ASSETS:
<S>                                                                         <C>                          <C>    
         Cash                                                               $  263,001                   $10,434
         Accounts Receivable                                                         -                         8
         Notes Receivable                                                    1,250,000                         -
                  Total Current Assets                                       1,513,001                    10,442
                                                                             ---------                    ------
PROPERTY AND EQUIPMENT (NET)                                                         -                    24,680
OTHER ASSETS:
         Deposits                                                                    -                       125
                  Total Other Assets                                                 -                       125
                                                                                     -                       ---

TOTAL ASSETS                                                                $1,513,001                   $35,247
                                                                            ==========                   =======

                                  LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

                                                                        June 30, 1998              Dec. 31, 1997
                                                                        -------------              -------------
CURRENT LIABILITIES:
         Accounts payable                                                $         216                    $ 2,510
         Unearned Revenue                                                            -                        388
                  Total Current Liabilities                                        216                      2,898
                                                                          ------------                     ------
STOCKHOLDERS' EQUITY (DEFICIT)
    Preferred stock; authorized 5,000,000 shares at $0.001
       par value; 2,350,000 shares issued and outstanding
                                                                                 2,350
    Common stock; authorized 50,000,000 shares at $0.001 par
       value; 2,000,000 shares issued and outstanding
                                                                                 2,000                      1,600
    Additional paid-in Capital                                               1,601,691                    104,041
    Deficit accumulated during the development stage
                                                                               (93,256)                   (73,292)
       Total Stockholders' Equity                                            1,512,785                     32,349
                                                                             ---------                     ------

TOTAL LIABILITIES & EQUITY                                                  $1,513,001                    $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.

                                       2
<PAGE>
<TABLE>
<CAPTION>


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

                                         CONDENSED STATEMENT OF OPERATIONS
                                                    [Unaudited]



                                                                        For the Three          For the Three Months
                                                                        Months Ended                   Ended
                                                                        June 30, 1998              June 30, 1997
                                                                        -------------              -------------

<S>                                                                       <C>                        <C>   
REVENUE                                                                   $   0.00                   $ 0.00
Cost of Goods Sold                                                        $    -                        -
         Total Revenue                                                    $   0.00                   $ 0.00
                                                                          --------                   ------


EXPENSES
General and Administrative Expenses                                           216                    $15,924
Depreciation
         Total Expenses                                                      $216                    $15,924
                                                                                                     -------


INCOME FROM OPERATION
                                                                            ($216)                  ($15,924)


OTHER INCOME
         Loss on sale of asset                                              ($0.00)                    -
         Interest income                                                      -                        -


TOTAL OTHER INCOME                                                          ($0.00)                   -


NET INCOME                                                                   ($216)                 ($15,924)

NET LOSS PER SHARE                                                          ($0.00009)              ($0.0067)

Weighted Average Number of Shares Outstanding 2,370,555
</TABLE>

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

                                       3
<PAGE>
<TABLE>
<CAPTION>


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

                                         CONDENSED STATEMENT OF OPERATIONS
                                                    [Unaudited]



                                                                         For the Six                For the Six
                                                                        Months Ended                Months Ended
                                                                        June 30, 1998              June 30, 1997
                                                                        -------------              -------------
<S>                                                                        <C>                       <C>   
REVENUE                                                                    $13,206                   $ 0.00
Cost of Goods Sold                                                          (1,200)                     -
         Total Revenue                                                     $12,006                   $ 0.00
                                                                           -------                   ------


EXPENSES
General and Administrative Expenses                                         17,622                   $15,924
Depreciation                                                                 2,313
         Total Expenses                                                    $19,935                   $15,924
                                                                           -------                   -------


INCOME FROM OPERATION
                                                                           ($7,929)                 ($15,924)


OTHER INCOME
         Loss on sale of asset                                            ($12,035)                    -
         Interest income                                                      -                        -


TOTAL OTHER INCOME                                                        ($12,035)                    -


NET INCOME                                                                ($19,964)                 ($15,924)


NET LOSS PER SHARE                                                         ($0.001)                 ($0.0067)


Weighted Average Number of Shares Outstanding 2,370,555
</TABLE>

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

                                       4
<PAGE>
<TABLE>
<CAPTION>


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

                 Consolidated Statements of Stockholders' Equity



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


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


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               --               --             99,000              --


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

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


Common stock issued as 2;1
     forward split as 100%
     stock dividend                 1,600,000         1,600              --               --            (1,600)              --


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


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


Net loss for the period ended
     June 30, 1998                      --             --                --               --               --             (19,964)


BALANCE,
     June 30, 1998                  2,000,000        (2,000)         2,350,000           2,350         1,600,091          (93,256)
</TABLE>

                                       5
<PAGE>


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

        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 June 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  operating  as a leasing  company of  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 which
represented the capital  contributed to GEC by its founders.  The acquisition of
GEC was recorded as a  recapitalization  of GEC, whereby the acquired company is
treated as the surviving entity for accounting purposes.  GEC was formed on July
31,  1996 in the  State of  Idaho,  and was  engaged  in the  field of  economic
advising and consulting and commenced  principal business  operations as of June
2, 1997.

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 was a
controlled  subsidiary of Empire Financial  Corporation  ("EFC"),  a Texas-based
merchant banking and investment firm headquartered in Dallas, Texas.

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 carry forward 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

                                       6
<PAGE>

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 GEC was sold to Mr. and Mrs.  Cornelius
Hofman. Inter-company transactions have been eliminated.

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

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.  Officers of the Company have committed
to make capital  contribution or advances to the Company should additional funds
be needed to pay operating expenses.

NOTE 4 - COMMON STOCK

In October of 1996,  the Board of  Directors  adopted the 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.  There are 500,000  shares  reserved  and
available  for  distribution  under the Plan.  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,  pursuant  to the sale  agreement  for  GEC,  Mr.  and Mrs.
Cornelius Hofman, surrendered 1,200,000 shares of common stock that are now held
as treasury shares.

On March 16, 1998,  Empire Financial  Investment 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.

NOTE 5 - SUBSEQUENT EVENTS

Effective on July 14, 1998, the Company,  Empire  Financial  Investment LLC, and
Mr. and Mrs.  Cornelius  Hofman all agreed to rescind the  transactions  whereby
Empire had invested in the Company and assigned to it valuable  contract rights,
and whereby Mr. and Mrs. Hofman had purchased the Company's GEC subsidiary.  All
consideration  given by any of the parties to each other was  returned and title
to all rights and property was returned to status quo ante.


Item 2 Management's Discussion and Analysis

         Summary

         The  Company  was   incorporated   on  April  27,   1995.   During  its
approximately   three  years  of  operations,   the  Company  has  generated  no
significant revenues and continues to be considered a development stage company.
The  Company  raised  funds at first from its  founders,  and then from a public

                                       7
<PAGE>

offering in July,  1997.  During 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. This effort proved unsuccessful.

         During the first  quarter of 1998,  a change in name and control of the
Company took place and was  announced,  together with several  related  material
corporate actions. During the second quarter, the Company received informal word
that Empire Financial Corporation desired to rescind its controlling  investment
in the  Company's  convertible  preferred  stock and also desired to rescind its
assignment  to the  Company  of the  contract  rights  for  the  acquisition  of
PaperDirect, Inc. and Current Social Expressions, businesses that are engaged in
the wholesale  distribution of specialty paper and related products and greeting
cards to the United States business  community.  The Company was amenable to the
rescissions  and they became  effective July 14, 1998. In that  connection,  the
Company also announced that it had reacquired its former  operating  subsidiary,
GEC and rescinded the transaction with Mr. and Mrs. Cory Hofman whereby they had
acquired GEC from the Company for stock and cash.

         The Company has moved its executive offices to Overland Park, Kansas in
space provided by the Company's new Chief  Executive  Officer and sole Director,
Norman  Petersen.  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 on July 20, 1998.

Results of Operations

         The Company had no  operations  in the second  quarter of 1998,  a time
when it was  concentrating  its efforts on the  PaperDirect  and Current  Social
Expressions  acquisitions,  including  an  abortive  private  placement  of  the
Company's  common  stock.  Modest  expenses  were  incurred  in the  quarter  in
accounting costs associated with the aborted private placement.  Legal and other
expenses  associated with the aborted PaperDirect and Current Social Expressions
acquisitions  are  expected  to be billed  during the third  quarter and will be
recorded as expenses at that time.

         With the  reacquisition of its GEC subsidiary,  which was the Company's
sole business  operation  during 1997 and the first quarter of 1998, the Company
expects to return to the general level of operations  experienced  at that time.
The Company has never experienced a profit from operations to date.

Financial Condition and Liquidity

         Total  assets  at June 30,  1998  were  $1.55  million,  made up almost
totally of the  $1,500,000  investment  made in the Company by Empire  Financial
Investment  LLC.,  together with the $10,000 cash paid to the Company by Mr. and
Mrs.   Hofman  for  their  purchase  of  GEC.   Otherwise,   total  assets  were
substantially the same as at the end of the first quarter. On July 14, 1998, the
Empire's  investment  in the  Company was  rescinded  and  refunded,  as was the
Hofmans' purchase of GEC.

                                       8
<PAGE>

         Liabilities  were cut in half between March 31, 1998 and June 30, 1998,
and  remain   insignificant.   With  the  reacquisition  of  its  GEC  operating
subsidiary, the Company expects to incur additional short-term liabilities.

         Stockholders  equity at June 30, 1998  remained  high,  reflecting  the
Empire Financial equity purchase.  With the rescission of the Empire  investment
on July 14, 1998,  shareholders  equity would be down from the same quarter last
year and from year end as a result of the accumulated losses from operations. As
of June 30, 1998, the Company had accumulated  losses of $93,256,  which will be
available to be applied  against some of the future  profits of the Company,  if
any, as a shelter against corporate income taxes.

         At June 30, 1998,  the  Company's  only asset of value,  other than its
cash, was its contract to acquire  PaperDirect  and Current Social  Expressions.
With the rescission of these planned  acquisitions  and the Company's prior sale
of its GEC subsidiary on July 14, 1998, the Company's only asset will be GEC and
the consulting business that can be done through that entity.

         The Company  does not have  sufficient  cash on hand to cover  expected
costs of operating  the Company  during the remainder of 1998. It is likely that
the Company will have to attempt to raise additional  equity through one or more
offerings  of its common stock  unless GEC is able to generate  sufficient  cash
from its operations to pay such expenses.

Forward Looking Statements

         Except for the historical  information  in this  document,  the matters
described  herein  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.

                                       9
<PAGE>


Part II Other Information

Item 1 Legal Proceedings

         None

Item 2 Changes in Securities

         During the first quarter, the Company effected a 2-for-1 stock split of
its common stock in the form of a 100% stock  dividend paid on March 13, 1998 to
common shareholders of record on March 1, 1998.

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

         No Exhibits
         A Form 8-K Report was filed on May 20, 1998

                                   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



                                                     /s/ Norman Petersen
Date: 8/12/98                                        --------------------------
                                                     By Norman Petersen
                                                     President and Chief 
                                                     Executive Officer