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 quarterly period ended June 30, 2002

                                       OR

              [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934
              For the transition period from ________ to ________


                    Consortium Service Management Group, Inc.
             ------------------------------------------------------
             (Exact name of registrant as specified in its charter)

     Texas                           0-27359                        74-2653437
--------------              ------------------------              -------------
  (state of                 (Commission File Number)              (IRS Employer
incorporation)                                                     I.D. Number)


                   500 North Shoreline Drive, Suite 701 North
                            Corpus Christi, TX 78471
                                  512-887-7546
            -------------------------------------------------------
            (Address and telephone number of registrant's principal
               executive offices and principal place of business)

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 twelve 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  [ ]

As  of  August  8,  2002, there were 6,143,974 shares of the Registrant's Common
Stock,  par  value  $0.001,  outstanding.

Transitional  Small Business Disclosure Format (check one):  Yes [ ]     No [X]




<PAGE>

<PAGE>

                         PART I - FINANCIAL INFORMATION



Item  1.          Financial  Statements





































                                        2
<PAGE>

           CONSORTIUM SERVICE MANAGEMENT GROUP, INC. AND SUBSIDIARIES
                          CONSOLIDATED BALANCE SHEETS




                                     ASSETS
                                     ------

<TABLE>
<CAPTION>
                                                     June  30,    December  31,
                                                       2002           2001
                                                    -----------   -------------
Current  Assets
---------------
<S>                                                 <C>             <C>
Cash                                                $      959      $    14,397



Fixed  Assets
-------------

Furniture  and  Fixtures                                61,409           61,409
Less:  Accumulated  Depreciation                       (47,316)         (43,461)
                                                    -----------     ------------
     Total  Fixed  Assets                           $    14,093     $     17,948



Other  Assets
-------------
Investment  -  United                                  264,842          371,336
Engineering  Co.

Investment  -  C02  Equipment                          603,250          607,250

Tissue  Bonding  Patent                                 31,364           28,979
Less:  Accumulated  Amortization                        (1,087)            (966)

Employee  Advance                                        8,995
                                                    ----------      -----------
     Total  Other  Assets                           $  907,364      $ 1,006,599
                                                    ----------      -----------

     Total  Assets                                  $  922,416      $ 1,038,944
                                                    ==========      ===========
</TABLE>


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

                                        3
<PAGE>
           CONSORTIUM SERVICE MANAGEMENT GROUP, INC. AND SUBSIDIARIES
                     CONSOLIDATED BALANCE SHEET (Continued)


                                  LIABILITIES
                                  -----------

<TABLE>
<CAPTION>
                                                     June  30,    December  31,
                                                       2002           2001
                                                    -----------   -------------
Current  Liabilities
<S>                                                 <C>             <C>
Accounts  Payable                                   $    84,169     $    84,169

Interest  Payable                                       272,148         179,538

Payroll  Taxes  Payable                                  22,659          22,659

Notes  Payable  To  Stockholders                      1,699,181       1,655,777
                                                    ----------      -----------

     Total  Current  Liabilities                    $ 2,078,157     $ 1,942,143

Minority  Interest  In
Consolidated  Subsidiary                                206,000         206,000


                        STOCKHOLDERS' AND MEMBERS' EQUITY
                        ---------------------------------

Common  Stock  $.001  par  value,
40,000,000  shares  authorized;
6,199,000  shares  issued  and
outstanding  at  June  30,  2002
and  December  31,  2001                            $     6,199     $     6,199

Additional  Paid  In  Capital                         3,748,807       3,748,807

Accumulated  Other
Comprehensive  (Loss)                                  (332,555)       (343,187)
Accumulated  (Deficit)                               (4,784,192)     (4,521,018)
                                                    ----------      -----------

Total  Stockholders'  Equity                         (1,361,741)     (1,109,199)
                                                    ----------      -----------

     Total  Liabilities  and
     Stockholders'  Equity                          $   922,416     $ 1,038,944
                                                    ===========     ===========
</TABLE>

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

                                        4
<PAGE>
           CONSORTIUM SERVICE MANAGEMENT GROUP, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
                          Apr. 1, 2002-  Apr. 1, 2001-  Jan. 1, 2002-  Jan. 1, 2001-
                          June 30, 2002  June 30, 2001  June 30,2002   June 30, 2001
                          -------------  -------------  -------------  -------------
<S>                        <C>            <C>            <C>            <C>
Revenues                   $              $              $              $       100

Cost of Goods Sold                                                            5,000

Gross Profit (Loss)                                                          (4,900)
                           ----------     ----------     ----------     -----------
General and Administrative
  Expenses                    51,441        173,867        157,254        1,210,755
  Funded  R&D
  Cost of Funded R&D                         19,304                          20,054
  Net R&D Cost                               19,304                          20,054
                           ---------     ----------     ----------      -----------

Operating  (Loss)            (51,441)      (193,171)      (157,254)      (1,235,709)

Interest  Income                                                 6

Interest in Income (Loss)
  Of Unconsolidated                              28                              91
  Companies                  (36,933)        (9,313)       (105,926)        (17,948)

Net  (Loss)                $ (88,374)     $(202,456)     $ (263,174)    $(1,253,566)

Basic  and  Diluted
  (Loss)  Per  Share            (.01)          (.04)           (.04)           (.24)

Common Shares
  Outstanding              6,199,000 Shs  5,138,370 Shs   6,199,000 Shs   5,138,370 Shs
</TABLE>

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

                                        5
<PAGE>
           CONSORTIUM SERVICE MANAGEMENT GROUP, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
                          Apr. 1, 2002-  Apr. 1, 2001-  Jan. 1, 2002-  Jan. 1, 2001-
                          June 30, 2002  June 30, 2001  June 30,2002   June 30, 2001
                          -------------  -------------  -------------  -------------
<S>                        <C>            <C>            <C>            <C>
Cash  Flows  From
Operating  Activities
---------------------
Net  (Loss)                $   (91,674)   $   (200,819)  $  (252,542)   $(1,251,296)
Dividends from Investees                         8,155        11,200          8,155
Depreciation and
  Amortization                   1,927           4,005         3,976          8,012
Increase (Decrease)
  Accounts  Payable
Increase (Decrease)
  Accrued  Interest             30,870          27,095        92,610         54,190
Increase (Decrease)
  Taxes  Payable                                 2,927                        5,854
Equity (Income) Loss
  from  Investees               36,933           9,313       105,926         17,948
Foreign Exchange Loss
  (Gain)                         3,300          (1,637)      (10,632)        (2,270)
Compensation for Common
  Stock                                                                     756,690
                           -----------    ------------   -----------   ------------
Cash Flows from Operating
  Activities               $   (18,644)   $   (150,961)  $   (49,462)  $  (402,717)

Cash  Flows  From
Investing  Activities
---------------------
Purchase  Equipment*             4,000                         1,615
Purchase  Securities                                                      (612,411)
Employee  Advance                 (745)        (23,986)       (8,995)      (46,434)
Investment in Subsidiary                                                      (320)
                           -----------    ------------   -----------   ------------
Cash Flows From
  Investing  Activities    $     3,255    $    (23,986)  $    (7,380)  $   (659,165)

Cash  Flows  From
Financing  Activities
---------------------
Increase  (Decrease)
  Notes  Payable                15,325         115,000        43,404        105,000
Sell  Stock                                                                 220,000
Increase (Decrease)
  Accounts  Payable**                         (151,881)                     360,726
Increase Paid In Capital                       178,528                      178,528
Increase Minority
  Interest  In
  Consolidated Subsidiary                       63,000                      226,000
                           -----------    ------------   -----------   ------------
Cash Flows From
  Financing  Activities    $    15,325    $    204,647   $    43,404   $  1,090,254

Net Increase (Decrease)
  Cash                             (64)         29,700       (13,438)        28,372
Cash Beginning of
  Period                         1,023             164        14,397          1,492
Cash End of Period         $       959    $     29,864   $       959   $     29,864
</TABLE>

  *   CO2 Equipment  overpayment  of  $4,000  refunded  in  second quarter 2002.
  **  Accounts  Payable  are   shown  as  part  of  financing  in  2001  because
      they  relate  to  purchasing  carbon  dioxide  equipment.

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

                                        6
<PAGE>
           CONSORTIUM SERVICE MANAGEMENT GROUP, INC. AND SUBSIDIARIES
                 CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
                         SIX MONTHS ENDED JUNE 30, 2002

<TABLE>
<CAPTION>
                                                         Accumulated
                                                             Other
                      No. Common    Par     Add'l  Paid  Comprehensive  Accumulated
                        Shares     Value    In Capital       Deficit      Deficit        Total
                      ----------  ------    -----------  -------------  ------------  ------------
Balance
<S>                   <C>         <C>        <C>           <C>          <C>           <C>
January 1, 2002       6,199,000   $6,199     $3,748,807    $(343,187)   $(4,521,018)  $(1,109,199)

Other Comprehensive
Income (Loss)
Foreign Exchange Gain                                         10,632                       10,632

Net  (Loss)                                                                (263,174)     (263,174)
                      ---------   ------     ----------    ----------   -----------   -----------

Balance
June 30, 2002         6,199,000   $6,199     $3,748,807     $(332,555)  $(4,784,192)   $(1,361,741)
                      =========   ======     ==========     =========   ===========    ===========
</TABLE>


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

                                        7
<PAGE>

           CONSORTIUM SERVICE MANAGEMENT GROUP, INC. AND SUBSIDIARIES
                          NOTES TO FINANCIAL STATEMENTS



                                     NOTE 1
                              BASIS OF PRESENTATION

The accompanying unaudited financial statements have been prepared in accordance
with generally accepted accounting principles for interim financial information.
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 considered necessary for a fair
presentation  have  been  included.  Operating  results for the six month period
ending  June  30, 2002 are not necessarily indicative of the results that may be
expected  for  the year ended December 31, 2002.  For further information, refer
to  the  annual  financial  statements  and footnotes thereto for the year ended
December  31,  2001.





                                     NOTE 2
                                  GOING CONCERN

The Company's financial statements have been presented on the basis that it is a
going concern, which contemplates the realization of assets and the satisfaction
of  liabilities  in  the  normal course of business.  The Company incurred a net
loss  of  $263,174 for the six months ended June 30, 2002 and when combined with
prior  year  net  losses raises substantial doubt as to the Company's ability to
obtain  debt  and/or  equity  financing  and  achieve  profitable  operations.

The  Company's  management  intends  to raise additional operating funds through
equity and/or debt offerings and the sale of technologies. However, there can be
no  assurance  management  will  be  successful  in  its endeavors. The possible
consequences  of not obtaining additional funds either through equity offerings,
debt  offerings,  or  sale  of technologies is that there will not be sufficient
money  to  fund the capital projects required to earn long term planned revenues
of  the  company.






                                        8
<PAGE>
Item  2.     Management's  Discussion  and  Analysis  of Financial Condition and
             Results  of     Operations

     The  following  discussion  and analysis should be read in conjunction with
the  financial statements and the accompanying notes thereto and is qualified in
its  entirety  by  the  foregoing  and  by  more  detailed financial information
appearing  elsewhere.  See  "Item  1.  Financial  Statements."

     Results  of  Operations - Second Quarter of 2002 Compared to Second Quarter
     ---------------------------------------------------------------------------
     of  2001
     --------

     We  had  no  revenues  either  for  Q2  2002  or  Q2  2001.

     Operating expenses decreased by $122,426 to $51,441 during Q2 2002 compared
to  $173,867  in  Q2  2001.  This decrease is attributed to expenses incurred in
2001  in the organization of CSMG Gastech LLC, our 89.7-percent-owned subsidiary
that  will  operate  some  of  our  CO2  separator  projects.

     We had a loss from operations of $51,441 for Q2 2002 compared to a net loss
of  $193,171  for  Q2  2001.  We  had  accrued  losses  in  Q2  2001  of $36,933
attributable   to  the  operations  of  our  Ukraine  joint  venture  in  United
Engineering  Company,  as  compared to an accrued loss in Q2 2001 of $9,313 from
the  joint  venture.

     Our  net loss for Q2 2002 was $88,374, or $0.01 a share, as compared with a
net  loss  in  Q2  2001  of  $202,456,  or  $0.04  a  share.

     Results  of  Operations - First Half of 2002 Compared to First Half of 2001
     ---------------------------------------------------------------------------

     We  had revenues of only $100 for the first half of FY 2001 and no revenues
in  the  first  half  of  FY 2002.  The 2001 revenues came from interest income.

     Operating  expenses  of  $157,254  in  the  first half of 2002 were only 13
percent  of  those  of  the  first  half  of 2001 - $1,210,755.  The decrease is
attributable  to  the exchange in 2001 of preferred stock by two officers of the
company for common stock with the increase in value of the common stock over the
preferred  stock  being  regarded  as  compensation  expense.

     We  had an operating loss of $157,254 in the first half of 2002 as compared
with  an  operating loss in the first half of 2001 of $1,235,709 - an 87 percent
decrease.

     We  recorded  accrued losses of $105,926 in the first half of 2002 from our
Ukraine  joint  venture operations in United Engineering Company, but an accrued
loss of only $17,948 in the first half of 2001.  The loss is attributable to the
higher  cost  of  products sold and higher administrative expenses for the first
half  of  2002.

     Taking  into  account our joint venture operations in Ukraine, we had a net
loss of $263,174, or $0.04 a share in the first half of 2002 compared with a net
loss  of $1,253,566, or $0.24 a share, in the first half of 2001.  Nevertheless,
we  feel that we are on the right course for the company, that our CO2 separator

                                        9
<PAGE>
project, our anaerobic animal waste project and our human tissue bonding project
all  hold  considerable  promise  for  our  company  in  2002.

     Outlook
     -------

     The  statements  made  in  this  Outlook  are  based  on  current plans and
expectations.  These statements are forward-looking, and actual results may vary
considerably  from  those  that  are  planned.

     We  are  optimistic  about  the  future.  As  stated above under Results of
Operations,  we  believe  that our three projects are all on the right track and
hold  considerable  promise  for  the  company.

     The  company's  future  results of operations and the other forward-looking
statements   contained  in   this  Outlook   involve  a   number  of  risks  and
uncertainties.  Among  the  factors  that  could  cause actual results to differ
materially  are  the  following:  inability  of  the  company  to  obtain needed
additional  capital,  loss  of  personnel - particularly Chief Executive Officer
Donald S. Robbins or Executive Vice President and Chief Financial Officer Gordon
W. Allison - as a result of accident or for health reasons, interruptions in the
supply  of  equipment  from  manufacturers  of the equipment, the development of
competing  products  by  well-capitalized competitors, and an accident involving
life  or  serious  bodily harm that fairly or unfairly would bring into question
the  safety  of  using  the  company's  products.


Item  6.          Exhibits  and  Reports  on  Form  8-K

(a)     Exhibits

     The following exhibits are filed, by incorporation by reference, as part of
this  Form  10-QSB:

     Exhibit  No.                    Description
     ------------                    -----------

           3         -     Amended  and  Restated   Articles of Incorporation of
                           Consortium  Service  Management  Group,  Inc.*

           3.1       -     Bylaws of Consortium Service Management Group, Inc.*

          10         -     Founders'  Agreement  of  United Engineering Company*

          10.1       -     Statutes  (Bylaws)  of United Engineering Company*

          10.2       -     Agreement  of  April   24,  1996  between  Consortium
                           Service Management  Group, Inc. and The L Group, Inc.
                           concerning tissue  bonding technology* (rescinded  in
                           January  2000)

          10.3       -     Agreement  of   July  9,  1996   between   Consortium
                           Service  Management  Group,  Inc.  and  International
                           Welding concerning tissue bonding  technology*

                                       10
<PAGE>

          10.4       -     Agreement   among   Consortium   Service   Management
                           Group, Inc.,   United Engineering Company and Ivan V.
                           Semenenko, the inventor of  the anaerobic farm  waste
                           technology*

          10.5       -     Agreement  of  June 9, 1998  among Consortium Service
                           Management  Group, Inc.,   The  Sumy  Frunze  Machine
                           Building  Science  and  Production  Association,  and
                           United Engineering  Company  concerning the anaerobic
                           farm waste technology*

          10.6       -     Agreement  between   Consortium   Service  Management
                           Group,  Inc.   and   Western  Waste Management,  Inc.
                           concerning the anaerobic farm waste  technology*

          10.7       -     Agreement  between   Consortium   Service  Management
                           Group,  Inc.   and   Aardema  Dairy   concerning  the
                           anaerobic farm waste technology*

          10.8       -     Agreement   between   Consortium  Service  Management
                           Group, Inc. and  John  and  Ruth  Beukers  concerning
                           the anaerobic farm waste technology*

          10.9       -     Agreement  of  December 1998  between   International
                           Welding Association of  Kiev,  Ukraine and Consortium
                           Service Management Group,  Inc. concerning the carbon
                           dioxide  separator  technology*

          10.10       -    Operating   Agreement   of   June  14,  2001  between
                           Consortium  Service   Management  Group,  Inc.    and
                           Resource Technology  Corporation***

          10.11       -    Contract   Agreement    Effective   August  14,  2000
                           between Consortium Service Management Group/Anaerobic
                           Farm Waste Co. and Rondeau Anaerobic***

          10.12        -   Contract     IAW-USA    002-PR-19.04.2000     between
                           International  Association  Welding,  Kiev  and  E.O.
                           Paton  Electric  Welding Institute  National  Academy
                           Science  Ukraine  and  Consortium  Service Management
                           Group,  Inc.***

          10.13        -   Contract    IAW-USA   003-PR-19.04.2000       between
                           International  Association  Welding,  Kiev  and  E.O.
                           Paton  Electric  Welding Institute  National  Academy
                           Science  Ukraine  and   Consortium Service Management
                           Group,  Inc.***

                                       11
<PAGE>

          10.14        -   Contract    IAW-USA    004-PR-19.04.2000      between
                           International  Association  Welding,  Kiev  and  E.O.
                           Paton  Electric  Welding Institute  National  Academy
                           Science  Ukraine  and  Consortium  Service Management
                           Group,  Inc.***

          10.15        -   Contract    IAW-USA    005-PR-19.04.2000      between
                           International  Association  Welding,  Kiev  and  E.O.
                           Paton  Electric  Welding Institute  National  Academy
                           Science  Ukraine and  Consortium  Service  Management
                           Group,  Inc.***

          10.16        -   Contract     IAW-USA    006-PR-19.04.2000     between
                           International  Association  Welding,  Kiev  and  E.O.
                           Paton  Electric  Welding Institute  National  Academy
                           Science   Ukraine and   Consortium Service Management
                           Group,  Inc.***

          10.17        -   Contract     IAW-USA    007-PR-19.04.2000     between
                           International  Association  Welding,  Kiev  and  E.O.
                           Paton  Electric  Welding Institute  National  Academy
                           Science  Ukraine  and   Consortium Service Management
                           Group,  Inc.***

          10.18        -   Contract    IAW-USA  008-PR    between  International
                           Association Welding,  Kiev,  Ukraine  and  Consortium
                           Service Management Group, Inc.***

          16          -     Letter dated January 29, 2000 from Jaak (Jack) Olesk
                            to Consortium Service  Management  Group,  Inc.  Re:
                            Termination as Auditor**

          99          -     Ukraine  Ministry  of   Health,  State   Department,
                            Certificate of State  Registration  No.  1105-193***


     *Previously filed with Form 10-SB; Commission File No. 0-27359 incorporated
      herein.

    **Previously  filed with  Amendment No. 1 to Form 10-SB; Commission File No.
      0-27359  incorporated  herein.

   ***Previously filed with  Amendment No. 2 to  Form 10-SB; Commission File No.
      0-27359  incorporated  herein.

(b)     Forms  8-K

     None


                                       12
<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
hereunto  duly  authorized.

Date:  August  16,  2002               Consortium Service Management Group, Inc.


                                       By:/s/  Gordon  W.  Allison
                                          --------------------------------------
                                          Gordon W. Allison,  Executive  Vice
                                            President  and  Chief  Financial
                                            Officer
















                                       13
<PAGE>
                            CERTIFICATION PURSUANT TO
                  SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
                            (18 U.S.C. SECTION 1350)


     In  connection with the accompanying Quarterly Report of Consortium Service
Management Group, Inc., (the "Company") on Form 10-QSB for the period ended June
30,  2002  (the  "Report"), I, Donald S. Robbins, Chief Executive Officer of the
Company,  hereby  certify  that  to  my  knowledge:

     (1)     The Report fully complies with the requirements of Section 13(a) or
15(d)  of  the  Securities Exchange Act of 1934 (15 U.S.C.  78m or  78o(d)); and

     (2)     The  information  contained  in  the Report fairly presents, in all
material  respects,  the  financial  condition  and results of operations of the
Company.


Dated:  August  16,  2002            /s/  Donald  S.  Robbins
                                     -------------------------------------------
                                     Donald  S.  Robbins
                                     Chairman  and  Chief  Executive  Officer


     The  above certification is furnished solely pursuant to Section 906 of the
Sarbanes-Oxley  Act  of 2002 (18 U.S.C.  1350) and is not being filed as part of
the  Form  10-Q  or  as  a  separate  disclosure  document.



















                                       14
<PAGE>
                            CERTIFICATION PURSUANT TO
                  SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
                            (18 U.S.C. SECTION 1350)


     In  connection with the accompanying Quarterly Report of Consortium Service
Management Group, Inc., (the "Company") on Form 10-QSB for the period ended June
30,  2002  (the  "Report"), I, Gordon W. Allison, Chief Financial Officer of the
Company,  hereby  certify  that  to  my  knowledge:

     (1)     The Report fully complies with the requirements of Section 13(a) or
15(d)  of  the  Securities Exchange Act of 1934 (15 U.S.C.  78m or  78o(d)); and

     (2)     The  information  contained  in  the Report fairly presents, in all
material  respects,  the  financial  condition  and results of operations of the
Company.



Dated:  August  16,  2002               /s/  Gordon  W.  Alliso
                                        ----------------------------------------
                                        Gordon  W.  Allison
                                        Chief  Financial  Officer


     The  above certification is furnished solely pursuant to Section 906 of the
Sarbanes-Oxley  Act  of 2002 (18 U.S.C.  1350) and is not being filed as part of
the  Form  10-Q  or  as  a  separate  disclosure  document.








                                       15