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      Litfunding Corp., S-8, 09/29/2006
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">AS
      FILED
      WITH THE SECURITIES AND EXCHANGE COMMISSION ON SEPTEMBER 29, 2006</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">REGISTRATION
      NO. _______________</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>SECURITIES
      AND EXCHANGE COMMISSION</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Washington,
      D.C. 20549</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Form
      S-8</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>REGISTRATION
      STATEMENT UNDER THE SECURITIES ACT OF 1933</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 18pt; FONT-FAMILY: Times New Roman"><strong><u>LITFUNDING
      CORP.</u></strong></font>&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Exact
      name of Registrant as specified in its charter)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Nevada</u></strong></font></div>
            </td>
            <td align="right" valign="top" width="40%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>93-1221399</u></strong></font>&#160;
                </div>
            </td>
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            <td align="justify" valign="top" width="40%">
              <div><font size="2">(State or other jurisdiction of </font>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">incorporation
                  or organization)</font></div>
              </div>
            </td>
            <td align="right" valign="top" width="40%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font size="2">(IRS
                Employer</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font size="2">Identification
                  No.)</font></div>
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            </td>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><u><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">6375
      S.
      Pecos Rd., Suite 217, </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Las
      Vegas, Nevada 89120</font></u>&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Address
      of Principal Executive Offices, including ZIP Code)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>2006-B
      Non-Qualified Stock Compensation Plan</u></font>&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Full
      title of the plan)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Name
      and
      address of agent for service)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Dennis
      H.
      Johnston, Esq.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">a
      Professional Law Corporation</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">9422
      Canfield</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">La
      Habra,
      California 90631</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>(562)
      694-5092</u></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Telephone
      number, including area code, of agent for service)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>CALCULATION
      OF REGISTRATION FEE</strong></font></div>
    <div align="left">
      <table border="0" cellpadding="0" cellspacing="0" width="100%">

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            <td valign="bottom" width="25%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Title
                of Securities</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>to
                be Registered</strong></font></div>
            </td>
            <td valign="bottom" width="14%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Amount
                of</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Shares</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>to
                be Registered</strong></font></div>
            </td>
            <td valign="bottom" width="14%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Proposed</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Maximum</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Offering</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Price
                Per Share</strong></font></div>
            </td>
            <td valign="bottom" width="14%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Proposed</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Maximum</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Aggregate</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Offering
                Price</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup><strong>(1)</strong></sup></font></div>
            </td>
            <td valign="bottom" width="14%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Amount
                of</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Registration</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Fee</strong></font></div>
            </td>
          </tr>
          <tr>
            <td valign="bottom" width="25%">&#160;</td>
            <td valign="bottom" width="14%">&#160;</td>
            <td valign="bottom" width="14%">&#160;</td>
            <td valign="bottom" width="14%">&#160;</td>
            <td valign="bottom" width="14%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="25%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$.001
                par value common stock</font></div>
            </td>
            <td valign="top" width="14%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4,000,000</font></div>
            </td>
            <td valign="top" width="14%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$.05(1)</font></div>
            </td>
            <td valign="top" width="14%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$200,000</font></div>
            </td>
            <td valign="top" width="14%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$25.34</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="25%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$.001
                par value common stock underlying stock options</font></div>
            </td>
            <td valign="top" width="14%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,000,000</font></div>
            </td>
            <td valign="top" width="14%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$.05(1)</font></div>
            </td>
            <td valign="top" width="14%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$100,000</font></div>
            </td>
            <td valign="top" width="14%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$12.67</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="25%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>TOTALS</strong></font></div>
            </td>
            <td valign="top" width="14%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">6,000,000</font></div>
            </td>
            <td valign="top" width="14%" style="border-bottom: black thin solid;">&#160;</td>
            <td valign="top" width="14%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$300,000</font></div>
            </td>
            <td valign="top" width="14%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$38.01</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: -36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 36pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1)</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">This
                calculation is made solely for the purposes of determining the
                registration fee pursuant to the provisions of Rule 457(c) under
                the
                Securities Act of 1933, as amended, and is calculated on the basis
                of the
                average of the high and low bid prices reported on the OTC Bulletin
                Board
                as of September 28, 2006.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
        </div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="1">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>PROSPECTUS</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">LitFunding
      Corp. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">6,000,000
      Shares of Common Stock</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">This
      prospectus relates to the offer and sale by LitFunding Corp., a Nevada
      corporation, of 6,000,000 shares of its $.001 par value per share common stock
      to employees, directors, officers, consultants, advisors and other persons
      associated with LitFunding Corp. pursuant to the 2006-B Non-Qualified Stock
      Compensation Plan (the &#8220;Stock Plan&#8221;). Pursuant to the Stock Plan, LitFunding
      Corp. is registering hereunder and then issuing, upon receipt of adequate
      consideration therefore, 4,000,000 shares of common stock and 2,000,000 options
      to purchase shares of common stock, for a total registration and issuance of
      6,000,000 shares of common stock. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      common stock is not subject to any restriction on transferability. Recipients
      of
      shares other than persons who are &#8220;affiliates&#8221; of LitFunding Corp. within the
      meaning of the Securities Act of 1933 (the &#8220;Act&#8221;) may sell all or part of the
      shares in any way permitted by law, including sales in the over-the-counter
      market at prices prevailing at the time of such sale. The common stock is traded
      on the OTC Bulletin Board under the symbol &#8220;LFDG.&#8221; </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br>&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 72pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>These
      Securities Have Not Been Approved Or Disapproved By The Securities And Exchange
      Commission Nor Has The Commission Passed Upon The Accuracy Or Adequacy Of This
      Prospectus. Any Representation To The Contrary Is A Criminal
      Offense.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      date
      of this prospectus is September 20, 2006</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">ii</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="1">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">This
      prospectus is part of a registration statement which was filed and became
      effective under the Securities Act of 1933, as amended (the &#8220;Securities Act&#8221;),
      and does not contain all of the information set forth in the registration
      statement, certain portions of which have been omitted pursuant to the rules
      and
      regulations promulgated by the U.S. Securities and Exchange Commission (the
      &#8220;Commission&#8221;) under the Securities Act. The statements in this prospectus as to
      the contents of any contract or other documents filed as an exhibit to either
      the registration statement or other filings by LitFunding Corp. with the
      Commission are qualified in their entirety by reference thereto.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">A
      copy of
      any document or part thereof incorporated by reference in this prospectus but
      not delivered herewith will be furnished without charge upon written or oral
      request. Requests should be addressed to: LitFunding Corp., 6375 S. Pecos Rd.,
      Suite 217, Las Vegas, Nevada 89120. LitFunding Corp.'s telephone number is:
      (702) 898-8388.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">LitFunding
      Corp. is subject to the reporting requirements of the Securities Exchange Act
      of
      1934 (the &#8220;Exchange Act&#8221;) and in accordance therewith files reports and other
      information with the Commission. These reports, as well as the proxy statements
      and other information filed by LitFunding Corp. under the Exchange Act may
      be
      inspected and copied at the public reference facilities maintained by the
      Commission at 100 F Street, N.W., Washington D.C. 20549-0405. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      addition, the Commission maintains a World Wide Website on the Internet at
      http://www.sec.gov that contains reports, proxy and information statements
      and
      other information regarding registrants that file electronically with the
      Commission</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">No
      person
      has been authorized to give any information or to make any representation,
      other
      than those contained in this prospectus, and, if given or made, such other
      information or representation must not be relied upon as having been authorized
      by LitFunding Corp. This prospectus does not constitute an offer or a
      solicitation by anyone in any state in which such is not authorized or in which
      the person making such is not qualified or to any person to whom it is unlawful
      to make an offer or solicitation.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Neither
      the delivery of this prospectus nor any sale made hereunder shall, under any
      circumstances, create any implication that there has not been a change in the
      affairs of LitFunding Corp. since the date hereof.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
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        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">iii</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="1">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>TABLE
      OF CONTENTS</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div align="center">
      <table bgcolor="white" cellpadding="0" cellspacing="0" width="100%">

          <tr bgcolor="white">
            <td colspan="2" valign="bottom" width="95%"><strong><font size="2">Information
              Required in the Section 10(a) Prospectus</font></strong><font id="TAB2" style="COLOR: black; LETTER-SPACING: 24.6pt">&#160;</font></td>
            <td valign="bottom" width="5%">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="10%"><font size="2">Item 1.</font></td>
            <td valign="bottom" width="85%"><font size="2">The Plan
              Information</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 24.6pt">&#160;</font></td>
            <td valign="bottom" width="5%">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font size="2">1</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td width="10%"><font size="2">Item 2.</font></td>
            <td valign="bottom" width="85%"><font size="2">Registrant Information
              and
              Employee Plan Annual Information</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 24.6pt">&#160;</font></td>
            <td valign="bottom" width="5%">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font size="2">2</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td colspan="2" valign="bottom" width="95%"><strong><font size="2">Information
              Required in the Registration Statement</font></strong><font id="TAB2" style="COLOR: black; LETTER-SPACING: 24.6pt">&#160;</font></td>
            <td valign="bottom" width="5%">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="10%"><font size="2">Item 3.</font></td>
            <td valign="bottom" width="85%"><font size="2">Incorporation of Documents
              by
              Reference</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 24.6pt">&#160;</font></td>
            <td valign="bottom" width="5%">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font size="2">3</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td width="10%">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font size="2">Item
                4.</font></div>
            </td>
            <td valign="bottom" width="85%"><font size="2">Description of
              Securities</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 24.6pt">&#160;</font></td>
            <td valign="bottom" width="5%">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="10%"><font size="2">Item 5.</font></td>
            <td valign="bottom" width="85%"><font size="2">Interests of Named Experts
              and
              Counsel</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 24.6pt">&#160;</font></td>
            <td valign="bottom" width="5%">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="10%"><font size="2">Item 6.</font></td>
            <td valign="bottom" width="85%"><font size="2">Indemnification of Officers,
              Directors, Employees and Agents</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 24.6pt">&#160;</font></td>
            <td valign="bottom" width="5%">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font size="2">4</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="10%"><font size="2">Item 7. </font></td>
            <td valign="bottom" width="85%"><font size="2">Exemption from Registration
              Claimed</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 24.6pt">&#160;</font></td>
            <td valign="bottom" width="5%">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">6</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="10%"><font size="2">Item 8.</font></td>
            <td valign="bottom" width="85%"><font size="2">Exhibits</font></td>
            <td valign="bottom" width="5%">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font size="2">6</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="10%"><font size="2">Item 9. </font></td>
            <td valign="bottom" width="85%"><font size="2">Undertakings</font></td>
            <td valign="bottom" width="5%">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">6</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="10%"><strong><font size="2">Signatures</font></strong></td>
            <td valign="bottom" width="85%">&#160;</td>
            <td valign="bottom" width="5%">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font size="2">8</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="10%"><font size="2"><strong>Exhibit
              Index</strong></font></td>
            <td valign="bottom" width="85%">&#160;</td>
            <td width="5%">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font size="2">9</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="bottom" width="10%">&#160;</td>
            <td valign="bottom" width="85%">&#160;</td>
            <td valign="bottom" width="5%">&#160;</td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">iv</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="1">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div>&#160;</div>
    <div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>PART
        1</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>INFORMATION
        REQUIRED IN THE SECTION 10(a)</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>PROSPECTUS</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
        1. The Plan Information. </strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>The
        Company</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">LitFunding
        Corp. has its principal executive offices at 6375 S. Pecos Rd., Suite 217,
        Las
        Vegas, Nevada 89120. LitFunding Corp.'s telephone number is: (702)
        898-8388.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Purpose</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">LitFunding
        Corp. will issue common stock and award options to employees, directors,
        officers, consultants, advisors and other persons associated with LitFunding
        Corp. pursuant to the Stock Plan, which has been approved by the Board of
        Directors of LitFunding Corp. The Stock Plan is intended to provide a method
        whereby LitFunding Corp. may be stimulated by the personal involvement of
        its
        employees, directors, officers, consultants, advisors and other persons in
        LitFunding Corp.&#8217;s business and future prosperity, thereby advancing the
        interests of LitFunding Corp. and all of its shareholders. A copy of the
        Stock
        Plan has been filed as an exhibit to this registration statement. Of the
        4,000,000 shares of the common stock referenced in this Prospectus, 1,175,000
        shares are being issued to the following individuals: Dennis H. Johnston
        -
        275,000 shares and, Hans Georg Huetter - 900,000 shares.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Common
        Stock and Options</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Board
        has authorized the issuance of 4,000,000 shares of the common stock and
        2,000,000 options to purchase the common stock at the fair market value thereof
        to certain of the above-mentioned persons upon effectiveness of this
        registration statement. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>No
        Restrictions on Transfer</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Recipients
        of shares of common stock will become the record and beneficial owner of
        the
        shares of common stock upon issuance and delivery and are entitled to all
        of the
        rights of ownership, including the right to vote any shares awarded and to
        receive ordinary cash dividends on the common stock. Recipients of options
        will
        become the record and beneficial owner of said options and have the right
        to
        exercise them at a price equal to the fair market value per share of the
        underlying shares of common stock and receive such shares of common
        stock.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
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          </div>
        </div>
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          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right">
          </div>
        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Tax
        Treatment to the Recipients</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        common stock and options are not qualified under Section 401(a) of the Internal
        Revenue Code. A recipient, therefore, will be required for federal income
        tax
        purposes to recognize compensation during the taxable year of issuance unless
        the shares and options are subject to a substantial risk of forfeiture.
        Accordingly, absent a specific contractual provision to the contrary, the
        recipient will receive compensation taxable at ordinary rates equal to the
        fair
        market value of the shares and the options on the date of receipt since there
        will be no substantial risk of forfeiture or other restrictions on transfer.
        Each recipient is urged to consult his tax advisors on this matter.
</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Tax
        Treatment to the Company</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        amount of income recognized by a recipient hereunder in accordance with the
        foregoing discussion will be a tax deductible expense by LitFunding Corp.
        for
        federal income tax purposes in the taxable year of LitFunding Corp. during
        which
        the recipient recognizes income.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Restrictions
        on Resale</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        the
        event that an affiliate of LitFunding Corp. acquires shares of common stock
        or
        options hereunder, the affiliate will be subject to Section 16(b) of the
        Exchange Act. Further, in the event that any affiliate acquiring shares
        hereunder has sold or sells any shares of common stock in the six months
        preceding or following the receipt of shares hereunder, any so called &#8220;profit&#8221;,
        as computed under Section 16(b) of the Exchange Act, would be required to
        be
        disgorged from the recipient to LitFunding Corp. Services rendered have been
        recognized as valid consideration for the &#8220;purchase&#8221; of shares in connection
        with the &#8220;profit&#8221; computation under Section 16(b) of the Exchange Act.
        LitFunding Corp. has agreed that for the purpose of any &#8220;profit&#8221; computation
        under Section 16(b), the price paid for the common stock issued to affiliates
        is
        equal to the value of services rendered. Shares of common stock acquired
        hereunder by persons other than affiliates are not subject to Section 16(b)
        of
        the Exchange Act. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
        2. Registrant Information and Employee Plan Annual
        Information</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">A
        copy of
        any document or part thereof incorporated by reference in this registration
        statement but not delivered with this prospectus or any document required
        to be
        delivered pursuant to Rule 428(b) under the Securities Act will be furnished
        without charge upon written or oral request. Requests should be addressed
        to:
        LitFunding Corp., 6375 S. Pecos Rd., Suite 217, Las Vegas, Nevada 89120.
        The
        telephone number is (702) 898-8388.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left">
          </div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right">
          </div>
        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>PART
        II</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>INFORMATION
        REQUIRED IN THE REGISTRATION STATEMENT</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
        3. Incorporation of Documents by Reference. </strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        following documents filed with the Securities and Exchange Commission (the
        "Commission") by LitFunding Corp., a Nevada corporation (the "Company"),
        are
        incorporated herein by reference: </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
        <div>
          <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

              <tr valign="top" style="line-height: 1.25;">
                <td style="width: 36pt;">&#160;</td>
                <td style="width: 36pt;">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">a.</font></div>
                </td>
                <td>
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
                      Company's latest Annual Report on Form 10-KSB for the year
                      ended December
                      31, 2005, filed with the Securities and Exchange Commission;
                      </font></div>
                  </div>
                </td>
              </tr>

          </table>
        </div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      </div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td style="width: 36pt;">&#160;</td>
              <td style="width: 36pt;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">b.</font></div>
              </td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
                  Company&#8217;s latest Quarterly Reports on Form 10QSB for the quarters ended
                  March 31, 2006 and June 30, 2006. </font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td style="width: 36pt;">&#160;</td>
              <td style="width: 36pt;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">c.</font></div>
              </td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
                  reports of the Company filed pursuant to Section 13(a) or 15(d)
                  of the
                  Securities Exchange Act of 1934, as amended (the "Exchange Act")
                  since the
                  fiscal year ended December 31, 2005;
                  and</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td style="width: 36pt;">&#160;</td>
              <td style="width: 36pt;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">d.</font></div>
              </td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">All
                  other documents filed by the Company after the date of this registration
                  statement pursuant to Sections 13(a), 13(c), 14 and 15(d) of the
                  Exchange
                  Act, prior to the filing of a post-effective amendment to this
                  registration statement which de-registers all securities then remaining
                  unsold, shall be deemed to be incorporated by reference in this
                  registration statement and to be a part hereof from the date of
                  filing
                  such documents. Any statement contained herein or in a document
                  incorporated or deemed to be incorporated by reference herein shall
                  be
                  deemed to be modified or superseded for purposes of this Registration
                  Statement to the extent that a statement contained herein or in
                  any
                  subsequently filed document which also is or is deemed to be incorporated
                  by reference herein modifies or supersedes such statement. Any
                  such
                  statement so modified or superseded shall not be deemed, except
                  as so
                  modified or superseded, to constitute a part of this Registration
                  Statement. </font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
        4. Description of Securities. </strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Class
        of
        Securities being registered pursuant to the Plan are registered securities
        under
        Section 12 of the Exchange Act. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left">
          </div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right">
          </div>
        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
        5. Interests of Named Experts and Counsel. </strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        financial statements of LitFunding Corp. are incorporated by reference in
        this
        prospectus as of and for the year ended December 31, 2005, and have been
        audited
        by Lawrence Scharfman &amp; Co., CPA, independent certified public accountants,
        as set forth in their report incorporated herein by reference, and are
        incorporated herein in reliance upon the authority of said firm as experts
        in
        auditing and accounting.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Dennis
        H.
        Johnston, a Professional Law Corporation has rendered an opinion on the validity
        of the securities being registered. Neither Mr. Johnston nor his professional
        law corporation is an affiliate of LitFunding Corp.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: -72pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
        6. Indemnification of Officers, Directors, Employees and Agents.
</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">LitFunding
        Corp&#8217;s Articles of Incorporation contains provisions for indemnification of its
        officers and directors; in addition, Section 78.751 of the Nevada General
        Corporation Laws provides as follows:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>78.751
        Indemnification of officers, directors, employees and agents; advance of
        expenses.</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1.</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">A
        corporation may indemnify any person who was or is a party or is threatened
        to
        be made a party to any threatened, pending or completed action, suit or
        proceeding, whether civil, criminal, administrative or investigative, except
        an
        action by or in the right of the corporation, by reason of the fact that
        he is
        or was a director, officer, employee or agent of the corporation, or is or
        was
        serving at the request of the corporation as a director, officer, employee
        or
        agent of another corporation, partnership, joint venture, trust or other
        enterprise, against expenses, including attorney&#8217;s fees, judgments, fines and
        amounts paid in settlement actually and reasonably incurred by him in connection
        with the action, suit or proceeding if he acted in good faith and in a manner
        which he reasonably believed to be in or not opposed to the best interests
        of
        the corporation, and, with respect to any criminal action or proceeding,
        had no
        reasonable cause to believe his conduct was unlawful. The termination of
        any
        action, suit or proceeding by judgment, order, settlement, conviction, or
        upon a
        plea of nolo contendere or its equivalent, does not, of itself, create a
        presumption that the person did not act in good faith and in a manner which
        he
        reasonably believed to be in or not opposed to the best interests of the
        corporation, and that, with respect to any criminal action or proceeding,
        he had
        reasonable cause to believe that his conduct was unlawful.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2.</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">A
        corporation may indemnify any person who was or is a party or is threatened
        to
        be made a party to any threatened, pending or completed action or suit by
        or in
        the right of the corporation to procure a judgment in its favor by reason
        of the
        fact that he is or was a director, officer, employee or agent of the
        corporation, or is or was serving at the request of the corporation as a
        director, officer, employee or agent of another corporation, partnership,
        joint
        venture, trust or other enterprise against expenses, including amounts paid
        in
        settlement and attorneys&#8217; fees actually and reasonably incurred by him in
        connection with the defense or settlement of the action or suit if he acted
        in
        good faith and in a manner which he reasonably believed to be in or not opposed
        to the best interests of the corporation. Indemnification may not be made
        for
        any claim, issue or matter as to which such a person has been adjudged by
        a
        court of competent jurisdiction, after exhaustion of all appeals therefrom,
        to
        be liable to the corporation or for amounts paid in settlement to the
        corporation, unless and only to the extent that the court in which the action
        or
        suit was brought or other court of competent jurisdiction determines upon
        application that in view of all the circumstances of the case, the person
        is
        fairly and reasonably entitled to indemnity for such expenses as the court
        deems
        proper.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left">
          </div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right">
          </div>
        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3.</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">To
        the
        extent that a director, officer, employee or agent of a corporation has been
        successful on the merits or otherwise in defense of any action, suit or
        proceeding referred to in subsections 1 and 2, or in defense of any claim,
        issue
        or matter therein, he must be indemnified by the corporation against expenses,
        including attorneys&#8217; fees, actually and reasonably incurred by him in connection
        with the defense.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4.</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Any
        indemnification under subsections 1 and 2, unless ordered by a court or advanced
        pursuant to subsection 5, must be made by the corporation only as authorized
        in
        the specific case upon a determination that indemnification of the director,
        officer, employee or agent is proper in the circumstances. The determination
        must be made:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 72pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(a)&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">By
                the stockholders;</font></div>
            </td>
          </tr>

      </table>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 72pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(b)&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">By
                the board of directors by majority vote of a quorum consisting of
                directors who were not parties to action, suit or
                proceeding;</font></div>
            </td>
          </tr>

      </table>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 72pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(c)&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">If
                a majority vote of a quorum consisting of directors who were not
                parties
                to the action, suit or proceeding so orders, by independent legal
                counsel
                in a written opinion; or</font></div>
            </td>
          </tr>

      </table>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 72pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(d)&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">If
                a quorum consisting of directors who were not parties to the action,
                suit
                or proceeding cannot to obtained, by independent legal counsel in
                a
                written opinion. </font></div>
            </td>
          </tr>

      </table>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5.</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        articles of incorporation, the bylaws or an agreement made by the corporation
        may provide that the expenses of officers and directors incurred in defending
        a
        civil or criminal, suit or proceeding must be paid by the corporation as
        they
        are incurred and in advance of the final disposition of the action, suit
        or
        proceeding, upon receipt of an undertaking by or on behalf of the director
        or
        officer to repay the amount if it is ultimately determined by a court of
        competent jurisdiction that he is not entitled to be indemnified by corporation.
        The provisions of this subsection do not affect any rights to advancement
        of
        expenses to which corporate personnel other than the directors or officers
        may
        be entitled under any contract or otherwise by law.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">6.</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        indemnification and advancement of expenses authorized in or ordered by a
        court
        pursuant to this section:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 72pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(a)&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Does
                not exclude any other rights to which a person seeking indemnification
                or
                advancement of expenses may be entitled under the articles of
                incorporation or any bylaw, agreement, vote of stockholders or
                disinterested directors or otherwise, for either an action in his
                official
                capacity or an action in another capacity while holding his office,
                except
                that indemnification, unless ordered by a court pursuant to subsection
                2
                or for the advancement of expenses made pursuant to subsection 5,
                may not
                be made to or on behalf of any director or officer if a final adjudication
                establishes that his act or omissions involved intentional misconduct,
                fraud or a knowing violation of the law and was material to the cause
                of
                action.</font></div>
            </td>
          </tr>

      </table>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left">
          </div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right">
          </div>
        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 72pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(b)&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Continues
                for a person who has ceased to be a director, officer, employee or
                agent
                and inures to the benefit of the heirs, executors and administrators
                of
                such a person.</font></div>
            </td>
          </tr>

      </table>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Insofar
        as indemnification for liabilities arising under the Securities Act may be
        permitted to directors, officers or persons controlling LitFunding Corp.
        pursuant to the foregoing provisions, LitFunding has been informed that in
        the
        opinion of the Securities and Exchange Commission such indemnification is
        against public policy as expressed in the Securities Act and is therefore
        unenforceable. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
        7. Exemption from Registration Claimed. </strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Not
        applicable.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>I</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">t</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>em
        8. Exhibits.</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
        <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 72pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(a)&#160;&#160;</font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
                    following exhibits are filed as part of this registration statement
                    pursuant to Item 601 of the Regulation S-K and are specifically
                    incorporated herein by reference:</font></div>
                </div>
              </td>
            </tr>

        </table>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      </div>
      <div align="left">
        <table border="0" bordercolor="#000000" cellpadding="0" cellspacing="0" width="100%">

            <tr>
              <td align="justify" valign="top" width="12%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Exhibit
                  No.</font></div>
              </td>
              <td align="justify" valign="top" width="68%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Title</font></div>
              </td>
            </tr>
            <tr>
              <td align="justify" valign="top" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="justify" valign="top" width="68%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="justify" valign="top" width="12%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5.1</font></div>
              </td>
              <td align="justify" valign="top" width="68%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Legal
                  opinion of Dennis H. Johnston, a Professional Law Corporation.
                  </font></div>
              </td>
            </tr>
            <tr>
              <td align="justify" valign="top" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="justify" valign="top" width="68%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="justify" valign="top" width="12%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.1</font></div>
              </td>
              <td align="justify" valign="top" width="68%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2006-B
                  Non-Qualified Stock Compensation Plan</font></div>
              </td>
            </tr>
            <tr>
              <td align="justify" valign="top" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="justify" valign="top" width="68%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="justify" valign="top" width="12%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">23.1</font></div>
              </td>
              <td align="justify" valign="top" width="68%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Consent
                  of Dennis H. Johnston, a Professional Law Corporation</font></div>
              </td>
            </tr>
            <tr>
              <td align="justify" valign="top" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="justify" valign="top" width="68%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="justify" valign="top" width="12%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">23.2</font></div>
              </td>
              <td align="justify" valign="top" width="68%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Consent
                  of Lawrence Scharfman &amp; Co., CPA,
                  P.C.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
        9. Undertakings</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
        The
        undersigned registrant hereby undertakes:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 72pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(1)&#160;&#160;</strong></font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">To
                file, during any period in which offers or sales are being made,
                a
                post-effective amendment to this registration statement to:
                </font></div>
            </td>
          </tr>

      </table>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left">
          </div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">6</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right">
          </div>
        </div>
        <div>&#160;</div>
      </div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 108pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(i)&#160;&#160;</strong></font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">include
                any prospectus required by Section 10(a)(3) of the Securities
                Act;</font></div>
            </td>
          </tr>

      </table>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 108pt;">&#160;</td>
            <td>&#160;</td>
          </tr>

      </table>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 108pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(ii)&#160;&#160;</strong></font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">reflect
                in the prospectus any facts or events arising after the effective
                date of
                the registration statement (or the most recent post-effective amendment
                thereof) which, individually or in the aggregate, represents a fundamental
                change in the information set forth in the registration
                statement;</font></div>
            </td>
          </tr>

      </table>
      <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 108pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(iii)&#160;&#160;</strong></font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">include
                any material information with respect to the plan of distribution
                not
                previously disclosed in this registration statement or any material
                change
                to such information in this registration
                statement.</font></div>
            </td>
          </tr>

      </table>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Provided,
        however, that paragraphs (1)(i) and (1)(ii) shall not apply if the information
        required to be included in a post-effective amendment by those paragraphs
        is
        contained in periodic reports filed by the registrant pursuant to section
        13 or
        section 15(d) of the Securities Exchange Act of 1934 that are incorporated
        by
        reference in the registration statement.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 72pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(2)&#160;&#160;</strong></font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">That,
                for the purpose of determining any liability pursuant to the Securities
                Act, each such post-effective amendment shall be deemed to be a new
                registration statement relating to the securities offered therein,
                and the
                offering of such securities offered at that time shall be deemed
                to be the
                initial bona fide offering thereof.</font></div>
            </td>
          </tr>

      </table>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 72pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(3)&#160;&#160;</strong></font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">To
                remove from registration by means of a post-effective amendment any
                of the
                securities being registered which remain unsold at the termination
                of the
                offering.</font></div>
            </td>
          </tr>

      </table>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 72pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(4)&#160;&#160;</strong></font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">To
                deliver or cause to be delivered with the prospectus, to each person
                to
                whom the prospectus is sent or given, the latest annual report to
                security
                holders that is incorporated by reference in the prospectus and furnished
                pursuant to and meeting the requirements of Rule 14a-3 or Rule 14c-3
                under
                the Securities Exchange Act of 1934; and, where interim financial
                information required to be presented by Article 3 of Regulation S-X
                is not
                set forth in the prospectus, to deliver, or cause to be delivered
                to each
                person to whom the prospectus is sent or given, the latest quarterly
                report that is specifically incorporated by reference in the prospectus
                to
                provide such interim financial
                information.</font></div>
            </td>
          </tr>

      </table>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 72pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(5)&#160;&#160;</strong></font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Insofar
                as indemnification for liabilities arising under the Securities Act
                may be
                permitted to directors, officers and controlling persons of registrant
                pursuant to the foregoing provisions, or otherwise, registrant has
                been
                advised that in the opinion of the Securities and Exchange Commission
                such
                indemnification is against public policy as expressed in the Securities
                Act and is therefore, unenforceable. In the event that a claim for
                indemnification against such liabilities (other than the payment
                by
                registrant of expenses incurred or paid by a director, officer or
                controlling person of registrant in the successful defense of any
                action,
                suit or proceeding) is asserted by such director, officer or controlling
                person in connection with the securities being registered, registrant
                will, unless in the opinion of its counsel the matter has been settled
                by
                controlling precedent, submit to a court of appropriate jurisdiction
                the
                question whether such indemnification is against public policy as
                expressed in the Act and will be governed by the final adjudication
                of
                such issue.</font></div>
            </td>
          </tr>

      </table>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        undersigned hereby undertakes that, for purposes of determining any liability
        under the Securities Act of 1933, each filing of registrant&#8217;s annual report
        pursuant to Section 13(a) of the Securities Exchange Act of 1934 (and, where
        applicable, each filing of an employee benefit plan&#8217;s annual report pursuant to
        Section 15(d) of the Securities Exchange Act of 1934) that is incorporated
        by
        reference in the registration statement shall be deemed to be a new registration
        statement relating to the securities offered therein, and the offering of
        such
        securities at that time shall be deemed to be the initial bona fide offering
        thereof.</font></div><br>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left">
          </div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">7</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right">
          </div>
        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>SIGNATURES</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
      to the requirements of the Securities Act of 1933, the Registrant certifies
      it
      has reasonable grounds to believe that it meets all of the requirements for
      filing on Form S-8 and has duly caused this registration statement to be signed
      on its behalf by the undersigned, thereunto duly authorized in the city of
      Las
      Vegas, Nevada, on September 20, 2006.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
      <table align="center" bgcolor="#ffffff" border="0" cellpadding="0" cellspacing="0" width="100%">

          <tr valign="top" bgcolor="#ffffff">
            <td width="50%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td width="49%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
          </tr>
          <tr valign="top" bgcolor="#ffffff">
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td colspan="2">
              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: "><strong>LitFunding
                Corp.</strong></font></div>
              <div><font size="2">(Registrant)</font></div>
            </td>
          </tr>
          <tr valign="top" bgcolor="#ffffff">
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;<br>&#160;</font></td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;<br>&#160;</font></td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;<br>&#160;</font></td>
          </tr>
          <tr valign="top" bgcolor="#ffffff">
            <td>&#160;</td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">By:&#160;&#160;</font></td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">/s/&#160;Morton
              Reed</font></td>
          </tr>
          <tr valign="top" bgcolor="#ffffff">
            <td colspan="2"><font style="FONT-FAMILY: " size="1">&#160;</font></td>
            <td align="left">
              <div>
                <hr style="COLOR: black" align="left" noshade size="2" width="80%">
              </div>
              <div><font size="2">Morton Reed</font></div>
              <div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">President
                  &amp; CEO</font></div>
              </div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>POWER
      OF ATTORNEY</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">KNOW
      ALL
      MEN BY THESE PRESENTS, that each person whose signature appears below
      constitutes and appoints Morton Reed as his or her true and lawful
      attorney-in-fact and agent, with full power of substitution and resubstitution,
      for him or her and in his or her name, place and stead, in any and all
      capacities, to sign any and all amendments, including post-effective amendments,
      to this registration statement, and to file the same, with exhibits thereto
      and
      other documents in connection herewith, with the Securities and Exchange
      Commission, granting unto said attorney-in-fact and agent, full power and
      authority to do and perform each and every act and thing requisite and necessary
      to be done, as fully to all intents and purposes as he or she might or could
      do
      in person, hereby ratifying and confirming all that said attorney-in-fact and
      agent, or her substitute or substitutes, may do or cause to be done by virtue
      hereof.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
      to the requirements of the Securities Act of 1933, this Registration Statement
      has been signed by the following persons in the capacities and on the dates
      indicated. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td align="left" valign="top" width="27%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Signature</strong></font></div>
            </td>
            <td width="2%" style="border-bottom: black thin solid;">&#160;</td>
            <td align="left" valign="top" width="37%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Title</strong></font></div>
            </td>
            <td width="2%" style="border-bottom: black thin solid;">&#160;</td>
            <td align="left" valign="top" width="17%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Date</strong></font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="27%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Principal
                Executive Officer:</font></div>
            </td>
            <td width="2%">&#160;</td>
            <td align="left" valign="top" width="37%">&#160;</td>
            <td width="2%">&#160;</td>
            <td align="left" valign="top" width="17%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="27%">&#160;</td>
            <td width="2%">&#160;</td>
            <td align="left" valign="top" width="37%">&#160;</td>
            <td width="2%">&#160;</td>
            <td align="left" valign="top" width="17%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="27%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">/s/Morton
                Reed</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font></div>
            </td>
            <td width="2%">&#160;</td>
            <td align="left" valign="bottom" width="37%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">President,
                Chief Executive Officer and Director</font></div>
            </td>
            <td width="2%">&#160;</td>
            <td align="left" valign="bottom" width="17%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">September
                20, 2006</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="27%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Morton
                Reed</font></div>
            </td>
            <td width="2%">&#160;</td>
            <td align="left" valign="top" width="37%">&#160;</td>
            <td width="2%">&#160;</td>
            <td align="left" valign="top" width="17%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="27%">&#160;</td>
            <td width="2%">&#160;</td>
            <td align="left" valign="top" width="37%">&#160;</td>
            <td width="2%">&#160;</td>
            <td align="left" valign="top" width="17%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="27%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Principal
                Financial Officer</font></div>
            </td>
            <td width="2%">&#160;</td>
            <td align="left" valign="top" width="37%">&#160;</td>
            <td width="2%">&#160;</td>
            <td align="left" valign="top" width="17%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="27%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">and
                Principal Accounting Officer:</font></div>
            </td>
            <td width="2%">&#160;</td>
            <td align="left" valign="top" width="37%">&#160;</td>
            <td width="2%">&#160;</td>
            <td align="left" valign="top" width="17%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="27%">&#160;</td>
            <td width="2%">&#160;</td>
            <td align="left" valign="top" width="37%">&#160;</td>
            <td width="2%">&#160;</td>
            <td align="left" valign="top" width="17%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="27%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">/s/Terry
                Gabby</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font></div>
            </td>
            <td width="2%">&#160;</td>
            <td align="left" valign="bottom" width="37%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Chief
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            </td>
            <td width="2%">&#160;</td>
            <td align="left" valign="bottom" width="17%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">September
                20, 2006</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="27%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Terry
                Gabby</font></div>
            </td>
            <td width="2%">&#160;</td>
            <td align="left" valign="top" width="37%">&#160;</td>
            <td width="2%">&#160;</td>
            <td align="left" valign="top" width="17%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="27%">&#160;</td>
            <td width="2%">&#160;</td>
            <td align="left" valign="top" width="37%">&#160;</td>
            <td width="2%">&#160;</td>
            <td align="left" valign="top" width="17%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="27%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Additional
                Directors:</font></div>
            </td>
            <td width="2%">&#160;</td>
            <td align="left" valign="top" width="37%">&#160;</td>
            <td width="2%">&#160;</td>
            <td align="left" valign="top" width="17%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="27%">&#160;</td>
            <td width="2%">&#160;</td>
            <td align="left" valign="top" width="37%">&#160;</td>
            <td width="2%">&#160;</td>
            <td align="left" valign="top" width="17%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="27%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">/s/Stanley
                Weiner</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font></div>
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            <td width="2%">&#160;</td>
            <td align="left" valign="bottom" width="37%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Senior
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            </td>
            <td width="2%">&#160;</td>
            <td align="left" valign="bottom" width="17%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">September
                20, 2006</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="27%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Stanley
                Weiner</font></div>
            </td>
            <td width="2%">&#160;</td>
            <td align="left" valign="top" width="37%">&#160;</td>
            <td width="2%">&#160;</td>
            <td align="left" valign="top" width="17%">&#160;</td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">8</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="1">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>The
      Plan</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      Pursuant to the requirements of the Securities Act of 1933, the board of
      directors have duly caused this registration statement to be signed on its
      behalf by the undersigned, thereunto duly authorized, in the City of Las Vegas,
      State of Nevada, on September 20, 2006.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">LITFUNDING
      CORP.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Consultant
      and Employee Stock Compensation Plan</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
      <table align="center" bgcolor="#ffffff" border="0" cellpadding="0" cellspacing="0" width="100%">

          <tr valign="top" bgcolor="#ffffff">
            <td width="40%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td width="40%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
          </tr>
          <tr valign="top" bgcolor="#ffffff">
            <td valign="bottom" width="40%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">By:
              /s/&#160;Morton Reed</font></td>
            <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td width="40%">&#160;</td>
          </tr>
          <tr valign="top" bgcolor="#ffffff">
            <td align="left" width="40%">
              <hr style="COLOR: black" align="left" noshade size="2" width="80%"><font size="2">Morton
              Reed, President</font></td>
            <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td align="left" width="40%">
            </td>
          </tr>

      </table><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">INDEX
      TO
      EXHIBITS</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td align="justify" valign="top" width="12%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Exhibit
                No.</font></div>
            </td>
            <td align="justify" valign="bottom" width="68%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Title</font></div>
            </td>
          </tr>
          <tr>
            <td align="justify" valign="top" width="12%">&#160;</td>
            <td align="justify" valign="top" width="68%">&#160;</td>
          </tr>
          <tr>
            <td align="justify" valign="top" width="12%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5.1</font></div>
            </td>
            <td align="justify" valign="top" width="68%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Legal
                opinion of Dennis H. Johnston, a Professional Law Corporation.
                </font></div>
            </td>
          </tr>
          <tr>
            <td align="justify" valign="top" width="12%">&#160;</td>
            <td align="justify" valign="top" width="68%">&#160;</td>
          </tr>
          <tr>
            <td align="justify" valign="top" width="12%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.1</font></div>
            </td>
            <td align="justify" valign="top" width="68%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2006-B
                Non-Qualified Stock Compensation Plan</font></div>
            </td>
          </tr>
          <tr>
            <td align="justify" valign="top" width="12%">&#160;</td>
            <td align="justify" valign="top" width="68%">&#160;</td>
          </tr>
          <tr>
            <td align="justify" valign="top" width="12%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">23.1</font></div>
            </td>
            <td align="justify" valign="top" width="68%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Consent
                of Dennis H. Johnston, a Professional Law Corporation</font></div>
            </td>
          </tr>
          <tr>
            <td align="justify" valign="top" width="12%">&#160;</td>
            <td align="justify" valign="top" width="68%">&#160;</td>
          </tr>
          <tr>
            <td align="justify" valign="top" width="12%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">23.2</font></div>
            </td>
            <td align="justify" valign="top" width="68%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Consent
                of Lawrence Scharfman &amp; Co., CPA,
                P.C.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">9</font></div>
  </body>
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[{"type": "S-8", "sequence": "1", "filename": "litfunding_s8-092006.htm", "description": "LITFUNDING CORP., S-8, 09/29/2006", "secsgml_size_bytes": 131791}]
{"company-data": {"conformed-name": "LITFUNDING CORP", "cik": "0001142488", "assigned-sic": "6153", "irs-number": "931221399", "state-of-incorporation": "NV", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "S-8", "act": "33", "file-number": "333-137721", "film-number": "061118290"}, "business-address": {"street1": "6375 S. PECOS ROAD", "city": "LAS VEGAS", "state": "NV", "zip": "89120", "phone": "(702)898-8388"}, "mail-address": {"street1": "6375 S. PECOS ROAD", "city": "LAS VEGAS", "state": "NV", "zip": "89120"}, "former-company": {"former-conformed-name": "RP ENTERTAINMENT INC", "date-changed": "20010613"}}
Litfunding Corp., S-8, 09/29/2006
AS
      FILED
      WITH THE SECURITIES AND EXCHANGE COMMISSION ON SEPTEMBER 29, 2006
REGISTRATION
      NO. _______________
SECURITIES
      AND EXCHANGE COMMISSION
Washington,
      D.C. 20549
Form
      S-8
REGISTRATION
      STATEMENT UNDER THE SECURITIES ACT OF 1933
LITFUNDING
      CORP.
(Exact
      name of Registrant as specified in its charter)
Nevada
93-1221399
(State or other jurisdiction of
incorporation
                  or organization)
(IRS
                Employer
Identification
                  No.)
6375
      S.
      Pecos Rd., Suite 217,
Las
      Vegas, Nevada 89120
(Address
      of Principal Executive Offices, including ZIP Code)
2006-B
      Non-Qualified Stock Compensation Plan
(Full
      title of the plan)
(Name
      and
      address of agent for service)
Dennis
      H.
      Johnston, Esq.
a
      Professional Law Corporation
9422
      Canfield
La
      Habra,
      California 90631
(562)
      694-5092
(Telephone
      number, including area code, of agent for service)
CALCULATION
      OF REGISTRATION FEE
Title
                of Securities
to
                be Registered
Amount
                of
Shares
to
                be Registered
Proposed
Maximum
Offering
Price
                Per Share
Proposed
Maximum
Aggregate
Offering
                Price
(1)
Amount
                of
Registration
Fee
$.001
                par value common stock
4,000,000
$.05(1)
$200,000
$25.34
$.001
                par value common stock underlying stock options
2,000,000
$.05(1)
$100,000
$12.67
TOTALS
6,000,000
$300,000
$38.01
(1)
This
                calculation is made solely for the purposes of determining the
                registration fee pursuant to the provisions of Rule 457(c) under
                the
                Securities Act of 1933, as amended, and is calculated on the basis
                of the
                average of the high and low bid prices reported on the OTC Bulletin
                Board
                as of September 28, 2006.
PROSPECTUS
LitFunding
      Corp.
6,000,000
      Shares of Common Stock
This
      prospectus relates to the offer and sale by LitFunding Corp., a Nevada
      corporation, of 6,000,000 shares of its $.001 par value per share common stock
      to employees, directors, officers, consultants, advisors and other persons
      associated with LitFunding Corp. pursuant to the 2006-B Non-Qualified Stock
      Compensation Plan (the "Stock Plan"). Pursuant to the Stock Plan, LitFunding
      Corp. is registering hereunder and then issuing, upon receipt of adequate
      consideration therefore, 4,000,000 shares of common stock and 2,000,000 options
      to purchase shares of common stock, for a total registration and issuance of
      6,000,000 shares of common stock.
The
      common stock is not subject to any restriction on transferability. Recipients
      of
      shares other than persons who are "affiliates" of LitFunding Corp. within the
      meaning of the Securities Act of 1933 (the "Act") may sell all or part of the
      shares in any way permitted by law, including sales in the over-the-counter
      market at prices prevailing at the time of such sale. The common stock is traded
      on the OTC Bulletin Board under the symbol "LFDG."
These
      Securities Have Not Been Approved Or Disapproved By The Securities And Exchange
      Commission Nor Has The Commission Passed Upon The Accuracy Or Adequacy Of This
      Prospectus. Any Representation To The Contrary Is A Criminal
      Offense.
The
      date
      of this prospectus is September 20, 2006
ii
This
      prospectus is part of a registration statement which was filed and became
      effective under the Securities Act of 1933, as amended (the "Securities Act"),
      and does not contain all of the information set forth in the registration
      statement, certain portions of which have been omitted pursuant to the rules
      and
      regulations promulgated by the U.S. Securities and Exchange Commission (the
      "Commission") under the Securities Act. The statements in this prospectus as to
      the contents of any contract or other documents filed as an exhibit to either
      the registration statement or other filings by LitFunding Corp. with the
      Commission are qualified in their entirety by reference thereto.
A
      copy of
      any document or part thereof incorporated by reference in this prospectus but
      not delivered herewith will be furnished without charge upon written or oral
      request. Requests should be addressed to: LitFunding Corp., 6375 S. Pecos Rd.,
      Suite 217, Las Vegas, Nevada 89120. LitFunding Corp.'s telephone number is:
      (702) 898-8388.
LitFunding
      Corp. is subject to the reporting requirements of the Securities Exchange Act
      of
      1934 (the "Exchange Act") and in accordance therewith files reports and other
      information with the Commission. These reports, as well as the proxy statements
      and other information filed by LitFunding Corp. under the Exchange Act may
      be
      inspected and copied at the public reference facilities maintained by the
      Commission at 100 F Street, N.W., Washington D.C. 20549-0405.
In
      addition, the Commission maintains a World Wide Website on the Internet at
      http://www.sec.gov that contains reports, proxy and information statements
      and
      other information regarding registrants that file electronically with the
      Commission
No
      person
      has been authorized to give any information or to make any representation,
      other
      than those contained in this prospectus, and, if given or made, such other
      information or representation must not be relied upon as having been authorized
      by LitFunding Corp. This prospectus does not constitute an offer or a
      solicitation by anyone in any state in which such is not authorized or in which
      the person making such is not qualified or to any person to whom it is unlawful
      to make an offer or solicitation.
Neither
      the delivery of this prospectus nor any sale made hereunder shall, under any
      circumstances, create any implication that there has not been a change in the
      affairs of LitFunding Corp. since the date hereof.
iii
TABLE
      OF CONTENTS
Information
              Required in the Section 10(a) Prospectus
1
Item 1.
The Plan
              Information
1
Item 2.
Registrant Information
              and
              Employee Plan Annual Information
2
Information
              Required in the Registration Statement
3
Item 3.
Incorporation of Documents
              by
              Reference
3
Item
                4.
Description of
              Securities
3
Item 5.
Interests of Named Experts
              and
              Counsel
4
Item 6.
Indemnification of Officers,
              Directors, Employees and Agents
4
Item 7.
Exemption from Registration
              Claimed
6
Item 8.
Exhibits
6
Item 9.
Undertakings
6
Signatures
8
Exhibit
              Index
9
iv
PART
        1
INFORMATION
        REQUIRED IN THE SECTION 10(a)
PROSPECTUS
Item
        1. The Plan Information.
The
        Company
LitFunding
        Corp. has its principal executive offices at 6375 S. Pecos Rd., Suite 217,
        Las
        Vegas, Nevada 89120. LitFunding Corp.'s telephone number is: (702)
        898-8388.
Purpose
LitFunding
        Corp. will issue common stock and award options to employees, directors,
        officers, consultants, advisors and other persons associated with LitFunding
        Corp. pursuant to the Stock Plan, which has been approved by the Board of
        Directors of LitFunding Corp. The Stock Plan is intended to provide a method
        whereby LitFunding Corp. may be stimulated by the personal involvement of
        its
        employees, directors, officers, consultants, advisors and other persons in
        LitFunding Corp.'s business and future prosperity, thereby advancing the
        interests of LitFunding Corp. and all of its shareholders. A copy of the
        Stock
        Plan has been filed as an exhibit to this registration statement. Of the
        4,000,000 shares of the common stock referenced in this Prospectus, 1,175,000
        shares are being issued to the following individuals: Dennis H. Johnston
        -
        275,000 shares and, Hans Georg Huetter - 900,000 shares.
Common
        Stock and Options
The
        Board
        has authorized the issuance of 4,000,000 shares of the common stock and
        2,000,000 options to purchase the common stock at the fair market value thereof
        to certain of the above-mentioned persons upon effectiveness of this
        registration statement.
No
        Restrictions on Transfer
Recipients
        of shares of common stock will become the record and beneficial owner of
        the
        shares of common stock upon issuance and delivery and are entitled to all
        of the
        rights of ownership, including the right to vote any shares awarded and to
        receive ordinary cash dividends on the common stock. Recipients of options
        will
        become the record and beneficial owner of said options and have the right
        to
        exercise them at a price equal to the fair market value per share of the
        underlying shares of common stock and receive such shares of common
        stock.
1
Tax
        Treatment to the Recipients
The
        common stock and options are not qualified under Section 401(a) of the Internal
        Revenue Code. A recipient, therefore, will be required for federal income
        tax
        purposes to recognize compensation during the taxable year of issuance unless
        the shares and options are subject to a substantial risk of forfeiture.
        Accordingly, absent a specific contractual provision to the contrary, the
        recipient will receive compensation taxable at ordinary rates equal to the
        fair
        market value of the shares and the options on the date of receipt since there
        will be no substantial risk of forfeiture or other restrictions on transfer.
        Each recipient is urged to consult his tax advisors on this matter.
Tax
        Treatment to the Company
The
        amount of income recognized by a recipient hereunder in accordance with the
        foregoing discussion will be a tax deductible expense by LitFunding Corp.
        for
        federal income tax purposes in the taxable year of LitFunding Corp. during
        which
        the recipient recognizes income.
Restrictions
        on Resale
In
        the
        event that an affiliate of LitFunding Corp. acquires shares of common stock
        or
        options hereunder, the affiliate will be subject to Section 16(b) of the
        Exchange Act. Further, in the event that any affiliate acquiring shares
        hereunder has sold or sells any shares of common stock in the six months
        preceding or following the receipt of shares hereunder, any so called "profit",
        as computed under Section 16(b) of the Exchange Act, would be required to
        be
        disgorged from the recipient to LitFunding Corp. Services rendered have been
        recognized as valid consideration for the "purchase" of shares in connection
        with the "profit" computation under Section 16(b) of the Exchange Act.
        LitFunding Corp. has agreed that for the purpose of any "profit" computation
        under Section 16(b), the price paid for the common stock issued to affiliates
        is
        equal to the value of services rendered. Shares of common stock acquired
        hereunder by persons other than affiliates are not subject to Section 16(b)
        of
        the Exchange Act.
Item
        2. Registrant Information and Employee Plan Annual
        Information
A
        copy of
        any document or part thereof incorporated by reference in this registration
        statement but not delivered with this prospectus or any document required
        to be
        delivered pursuant to Rule 428(b) under the Securities Act will be furnished
        without charge upon written or oral request. Requests should be addressed
        to:
        LitFunding Corp., 6375 S. Pecos Rd., Suite 217, Las Vegas, Nevada 89120.
        The
        telephone number is (702) 898-8388.
2
PART
        II
INFORMATION
        REQUIRED IN THE REGISTRATION STATEMENT
Item
        3. Incorporation of Documents by Reference.
The
        following documents filed with the Securities and Exchange Commission (the
        "Commission") by LitFunding Corp., a Nevada corporation (the "Company"),
        are
        incorporated herein by reference:
a.
The
                      Company's latest Annual Report on Form 10-KSB for the year
                      ended December
                      31, 2005, filed with the Securities and Exchange Commission;
b.
The
                  Company's latest Quarterly Reports on Form 10QSB for the quarters ended
                  March 31, 2006 and June 30, 2006.
c.
The
                  reports of the Company filed pursuant to Section 13(a) or 15(d)
                  of the
                  Securities Exchange Act of 1934, as amended (the "Exchange Act")
                  since the
                  fiscal year ended December 31, 2005;
                  and
d.
All
                  other documents filed by the Company after the date of this registration
                  statement pursuant to Sections 13(a), 13(c), 14 and 15(d) of the
                  Exchange
                  Act, prior to the filing of a post-effective amendment to this
                  registration statement which de-registers all securities then remaining
                  unsold, shall be deemed to be incorporated by reference in this
                  registration statement and to be a part hereof from the date of
                  filing
                  such documents. Any statement contained herein or in a document
                  incorporated or deemed to be incorporated by reference herein shall
                  be
                  deemed to be modified or superseded for purposes of this Registration
                  Statement to the extent that a statement contained herein or in
                  any
                  subsequently filed document which also is or is deemed to be incorporated
                  by reference herein modifies or supersedes such statement. Any
                  such
                  statement so modified or superseded shall not be deemed, except
                  as so
                  modified or superseded, to constitute a part of this Registration
                  Statement.
Item
        4. Description of Securities.
Class
        of
        Securities being registered pursuant to the Plan are registered securities
        under
        Section 12 of the Exchange Act.
3
Item
        5. Interests of Named Experts and Counsel.
The
        financial statements of LitFunding Corp. are incorporated by reference in
        this
        prospectus as of and for the year ended December 31, 2005, and have been
        audited
        by Lawrence Scharfman & Co., CPA, independent certified public accountants,
        as set forth in their report incorporated herein by reference, and are
        incorporated herein in reliance upon the authority of said firm as experts
        in
        auditing and accounting.
Dennis
        H.
        Johnston, a Professional Law Corporation has rendered an opinion on the validity
        of the securities being registered. Neither Mr. Johnston nor his professional
        law corporation is an affiliate of LitFunding Corp.
Item
        6. Indemnification of Officers, Directors, Employees and Agents.
LitFunding
        Corp's Articles of Incorporation contains provisions for indemnification of its
        officers and directors; in addition, Section 78.751 of the Nevada General
        Corporation Laws provides as follows:
78.751
        Indemnification of officers, directors, employees and agents; advance of
        expenses.
1.
A
        corporation may indemnify any person who was or is a party or is threatened
        to
        be made a party to any threatened, pending or completed action, suit or
        proceeding, whether civil, criminal, administrative or investigative, except
        an
        action by or in the right of the corporation, by reason of the fact that
        he is
        or was a director, officer, employee or agent of the corporation, or is or
        was
        serving at the request of the corporation as a director, officer, employee
        or
        agent of another corporation, partnership, joint venture, trust or other
        enterprise, against expenses, including attorney's fees, judgments, fines and
        amounts paid in settlement actually and reasonably incurred by him in connection
        with the action, suit or proceeding if he acted in good faith and in a manner
        which he reasonably believed to be in or not opposed to the best interests
        of
        the corporation, and, with respect to any criminal action or proceeding,
        had no
        reasonable cause to believe his conduct was unlawful. The termination of
        any
        action, suit or proceeding by judgment, order, settlement, conviction, or
        upon a
        plea of nolo contendere or its equivalent, does not, of itself, create a
        presumption that the person did not act in good faith and in a manner which
        he
        reasonably believed to be in or not opposed to the best interests of the
        corporation, and that, with respect to any criminal action or proceeding,
        he had
        reasonable cause to believe that his conduct was unlawful.
2.
A
        corporation may indemnify any person who was or is a party or is threatened
        to
        be made a party to any threatened, pending or completed action or suit by
        or in
        the right of the corporation to procure a judgment in its favor by reason
        of the
        fact that he is or was a director, officer, employee or agent of the
        corporation, or is or was serving at the request of the corporation as a
        director, officer, employee or agent of another corporation, partnership,
        joint
        venture, trust or other enterprise against expenses, including amounts paid
        in
        settlement and attorneys' fees actually and reasonably incurred by him in
        connection with the defense or settlement of the action or suit if he acted
        in
        good faith and in a manner which he reasonably believed to be in or not opposed
        to the best interests of the corporation. Indemnification may not be made
        for
        any claim, issue or matter as to which such a person has been adjudged by
        a
        court of competent jurisdiction, after exhaustion of all appeals therefrom,
        to
        be liable to the corporation or for amounts paid in settlement to the
        corporation, unless and only to the extent that the court in which the action
        or
        suit was brought or other court of competent jurisdiction determines upon
        application that in view of all the circumstances of the case, the person
        is
        fairly and reasonably entitled to indemnity for such expenses as the court
        deems
        proper.
4
3.
To
        the
        extent that a director, officer, employee or agent of a corporation has been
        successful on the merits or otherwise in defense of any action, suit or
        proceeding referred to in subsections 1 and 2, or in defense of any claim,
        issue
        or matter therein, he must be indemnified by the corporation against expenses,
        including attorneys' fees, actually and reasonably incurred by him in connection
        with the defense.
4.
Any
        indemnification under subsections 1 and 2, unless ordered by a court or advanced
        pursuant to subsection 5, must be made by the corporation only as authorized
        in
        the specific case upon a determination that indemnification of the director,
        officer, employee or agent is proper in the circumstances. The determination
        must be made:
(a)
By
                the stockholders;
(b)
By
                the board of directors by majority vote of a quorum consisting of
                directors who were not parties to action, suit or
                proceeding;
(c)
If
                a majority vote of a quorum consisting of directors who were not
                parties
                to the action, suit or proceeding so orders, by independent legal
                counsel
                in a written opinion; or
(d)
If
                a quorum consisting of directors who were not parties to the action,
                suit
                or proceeding cannot to obtained, by independent legal counsel in
                a
                written opinion.
5.
The
        articles of incorporation, the bylaws or an agreement made by the corporation
        may provide that the expenses of officers and directors incurred in defending
        a
        civil or criminal, suit or proceeding must be paid by the corporation as
        they
        are incurred and in advance of the final disposition of the action, suit
        or
        proceeding, upon receipt of an undertaking by or on behalf of the director
        or
        officer to repay the amount if it is ultimately determined by a court of
        competent jurisdiction that he is not entitled to be indemnified by corporation.
        The provisions of this subsection do not affect any rights to advancement
        of
        expenses to which corporate personnel other than the directors or officers
        may
        be entitled under any contract or otherwise by law.
6.
The
        indemnification and advancement of expenses authorized in or ordered by a
        court
        pursuant to this section:
(a)
Does
                not exclude any other rights to which a person seeking indemnification
                or
                advancement of expenses may be entitled under the articles of
                incorporation or any bylaw, agreement, vote of stockholders or
                disinterested directors or otherwise, for either an action in his
                official
                capacity or an action in another capacity while holding his office,
                except
                that indemnification, unless ordered by a court pursuant to subsection
                2
                or for the advancement of expenses made pursuant to subsection 5,
                may not
                be made to or on behalf of any director or officer if a final adjudication
                establishes that his act or omissions involved intentional misconduct,
                fraud or a knowing violation of the law and was material to the cause
                of
                action.
5
(b)
Continues
                for a person who has ceased to be a director, officer, employee or
                agent
                and inures to the benefit of the heirs, executors and administrators
                of
                such a person.
Insofar
        as indemnification for liabilities arising under the Securities Act may be
        permitted to directors, officers or persons controlling LitFunding Corp.
        pursuant to the foregoing provisions, LitFunding has been informed that in
        the
        opinion of the Securities and Exchange Commission such indemnification is
        against public policy as expressed in the Securities Act and is therefore
        unenforceable.
Item
        7. Exemption from Registration Claimed.
Not
        applicable.
I
t
em
        8. Exhibits.
(a)
The
                    following exhibits are filed as part of this registration statement
                    pursuant to Item 601 of the Regulation S-K and are specifically
                    incorporated herein by reference:
Exhibit
                  No.
Title
5.1
Legal
                  opinion of Dennis H. Johnston, a Professional Law Corporation.
10.1
2006-B
                  Non-Qualified Stock Compensation Plan
23.1
Consent
                  of Dennis H. Johnston, a Professional Law Corporation
23.2
Consent
                  of Lawrence Scharfman & Co., CPA,
                  P.C.
Item
        9. Undertakings
.
        The
        undersigned registrant hereby undertakes:
(1)
To
                file, during any period in which offers or sales are being made,
                a
                post-effective amendment to this registration statement to:
6
(i)
include
                any prospectus required by Section 10(a)(3) of the Securities
                Act;
(ii)
reflect
                in the prospectus any facts or events arising after the effective
                date of
                the registration statement (or the most recent post-effective amendment
                thereof) which, individually or in the aggregate, represents a fundamental
                change in the information set forth in the registration
                statement;
(iii)
include
                any material information with respect to the plan of distribution
                not
                previously disclosed in this registration statement or any material
                change
                to such information in this registration
                statement.
Provided,
        however, that paragraphs (1)(i) and (1)(ii) shall not apply if the information
        required to be included in a post-effective amendment by those paragraphs
        is
        contained in periodic reports filed by the registrant pursuant to section
        13 or
        section 15(d) of the Securities Exchange Act of 1934 that are incorporated
        by
        reference in the registration statement.
(2)
That,
                for the purpose of determining any liability pursuant to the Securities
                Act, each such post-effective amendment shall be deemed to be a new
                registration statement relating to the securities offered therein,
                and the
                offering of such securities offered at that time shall be deemed
                to be the
                initial bona fide offering thereof.
(3)
To
                remove from registration by means of a post-effective amendment any
                of the
                securities being registered which remain unsold at the termination
                of the
                offering.
(4)
To
                deliver or cause to be delivered with the prospectus, to each person
                to
                whom the prospectus is sent or given, the latest annual report to
                security
                holders that is incorporated by reference in the prospectus and furnished
                pursuant to and meeting the requirements of Rule 14a-3 or Rule 14c-3
                under
                the Securities Exchange Act of 1934; and, where interim financial
                information required to be presented by Article 3 of Regulation S-X
                is not
                set forth in the prospectus, to deliver, or cause to be delivered
                to each
                person to whom the prospectus is sent or given, the latest quarterly
                report that is specifically incorporated by reference in the prospectus
                to
                provide such interim financial
                information.
(5)
Insofar
                as indemnification for liabilities arising under the Securities Act
                may be
                permitted to directors, officers and controlling persons of registrant
                pursuant to the foregoing provisions, or otherwise, registrant has
                been
                advised that in the opinion of the Securities and Exchange Commission
                such
                indemnification is against public policy as expressed in the Securities
                Act and is therefore, unenforceable. In the event that a claim for
                indemnification against such liabilities (other than the payment
                by
                registrant of expenses incurred or paid by a director, officer or
                controlling person of registrant in the successful defense of any
                action,
                suit or proceeding) is asserted by such director, officer or controlling
                person in connection with the securities being registered, registrant
                will, unless in the opinion of its counsel the matter has been settled
                by
                controlling precedent, submit to a court of appropriate jurisdiction
                the
                question whether such indemnification is against public policy as
                expressed in the Act and will be governed by the final adjudication
                of
                such issue.
The
        undersigned hereby undertakes that, for purposes of determining any liability
        under the Securities Act of 1933, each filing of registrant's annual report
        pursuant to Section 13(a) of the Securities Exchange Act of 1934 (and, where
        applicable, each filing of an employee benefit plan's annual report pursuant to
        Section 15(d) of the Securities Exchange Act of 1934) that is incorporated
        by
        reference in the registration statement shall be deemed to be a new registration
        statement relating to the securities offered therein, and the offering of
        such
        securities at that time shall be deemed to be the initial bona fide offering
        thereof.
7
SIGNATURES
Pursuant
      to the requirements of the Securities Act of 1933, the Registrant certifies
      it
      has reasonable grounds to believe that it meets all of the requirements for
      filing on Form S-8 and has duly caused this registration statement to be signed
      on its behalf by the undersigned, thereunto duly authorized in the city of
      Las
      Vegas, Nevada, on September 20, 2006.
LitFunding
                Corp.
(Registrant)
By:
/s/ Morton
              Reed
Morton Reed
President
                  & CEO
POWER
      OF ATTORNEY
KNOW
      ALL
      MEN BY THESE PRESENTS, that each person whose signature appears below
      constitutes and appoints Morton Reed as his or her true and lawful
      attorney-in-fact and agent, with full power of substitution and resubstitution,
      for him or her and in his or her name, place and stead, in any and all
      capacities, to sign any and all amendments, including post-effective amendments,
      to this registration statement, and to file the same, with exhibits thereto
      and
      other documents in connection herewith, with the Securities and Exchange
      Commission, granting unto said attorney-in-fact and agent, full power and
      authority to do and perform each and every act and thing requisite and necessary
      to be done, as fully to all intents and purposes as he or she might or could
      do
      in person, hereby ratifying and confirming all that said attorney-in-fact and
      agent, or her substitute or substitutes, may do or cause to be done by virtue
      hereof.
Pursuant
      to the requirements of the Securities Act of 1933, this Registration Statement
      has been signed by the following persons in the capacities and on the dates
      indicated.
Signature
Title
Date
Principal
                Executive Officer:
/s/Morton
                Reed
President,
                Chief Executive Officer and Director
September
                20, 2006
Morton
                Reed
Principal
                Financial Officer
and
                Principal Accounting Officer:
/s/Terry
                Gabby
Chief
                Financial Officer
September
                20, 2006
Terry
                Gabby
Additional
                Directors:
/s/Stanley
                Weiner
Senior
                Vice President, Director
September
                20, 2006
Stanley
                Weiner
8
The
      Plan
.
      Pursuant to the requirements of the Securities Act of 1933, the board of
      directors have duly caused this registration statement to be signed on its
      behalf by the undersigned, thereunto duly authorized, in the City of Las Vegas,
      State of Nevada, on September 20, 2006.
LITFUNDING
      CORP.
Consultant
      and Employee Stock Compensation Plan
By:
              /s/ Morton Reed
Morton
              Reed, President
INDEX
      TO
      EXHIBITS
Exhibit
                No.
Title
5.1
Legal
                opinion of Dennis H. Johnston, a Professional Law Corporation.
10.1
2006-B
                Non-Qualified Stock Compensation Plan
23.1
Consent
                of Dennis H. Johnston, a Professional Law Corporation
23.2
Consent
                of Lawrence Scharfman & Co., CPA,
                P.C.
9