SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                                    FORM 8-K

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

        Date of Report (Date of earliest event reported): March 23, 2001

                              ePHONE Telecom, Inc.
             (Exact name of registrant as specified in its charter)

                                     Florida
                 (State or other jurisdiction of incorporation)


             000-27699                              98-020-4749
      (Commission File Number)           (IRS Employer Identification Number)

                              1145 Herndon Parkway
                                    Suite 100
                          Herndon, Virginia 20170-5535

                    (Address of Principal Executive Offices)

                                 (703) 787-7000
                     (Telephone Number, Including Area Code)

                                (Not Applicable)

          (Former name or former address, if changed since last report)



<PAGE>



Item 5.  Other Events.

         On March 23, 2001, ePHONE Telecom,  Inc. (the "Company") entered into a
Settlement  Agreement and Mutual General  Release (the  "Settlement  Agreement")
with Charles Yang, a former President of the Company,  to resolve all claims and
disputes between the Company and Mr. Yang,  including all claims relating to Mr.
Yang's  employment by and separation from the Company.  Pursuant to the terms of
the Settlement Agreement, the Company agreed to pay Mr. Yang $400,000 in cash in
installments  by July 23,  2001,  and  issue  Mr.  Yang  400,000  shares  of the
Company's common stock.. A copy of the Settlement  Agreement is attached to this
Current Report as Exhibit 99.1.

Item 7.  Financial Statements, Pro Forma Financial Information and Exhibits.

                  (c)      Exhibits.
                           --------

                  The exhibits listed in the Exhibit Index are filed herewith.


<PAGE>



                                   SIGNATURES

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

                                         ePHONE TELECOM, INC.

                                         By   /s/  Charlie Rodriguez
                                              ---------------------
                                              Charlie Rodriguez
                                              Chief Financial Officer and
                                              Vice President - Corporate Affairs

                                         Date: April 13, 2001





<PAGE>



                                EXHIBIT INDEX

Exhibit No.                      Description

99.1     Settlement  Agreement and Mutual General  Release  between Charlie Yang
         and ePHONE Telecom, Inc., dated March 23, 2001
[{"type": "8-K", "sequence": "1", "filename": "0001.txt", "description": "FORM 8K FOR EPHONE", "secsgml_size_bytes": 3091}]
{"company-data": {"conformed-name": "EPHONE TELECOM INC", "cik": "0001085082", "assigned-sic": "7389", "irs-number": "980204749", "state-of-incorporation": "FL", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-27669", "film-number": "1602901"}, "business-address": {"street1": "SUITE 1000", "street2": "355 BURRARD ST", "city": "VANCOUVER BC CANADA", "state": "A6", "phone": "5406619898"}, "mail-address": {"street1": "SUITE 1000", "street2": "355 BURRARD ST", "city": "VANCOUVER BC CANADA", "state": "A6"}}
SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                                    FORM 8-K

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

        Date of Report (Date of earliest event reported): March 23, 2001

                              ePHONE Telecom, Inc.
             (Exact name of registrant as specified in its charter)

                                     Florida
                 (State or other jurisdiction of incorporation)

             000-27699                              98-020-4749
      (Commission File Number)           (IRS Employer Identification Number)

                              1145 Herndon Parkway
                                    Suite 100
                          Herndon, Virginia 20170-5535

                    (Address of Principal Executive Offices)

                                 (703) 787-7000
                     (Telephone Number, Including Area Code)

                                (Not Applicable)

          (Former name or former address, if changed since last report)
Item 5.  Other Events.

         On March 23, 2001, ePHONE Telecom,  Inc. (the "Company") entered into a
Settlement  Agreement and Mutual General  Release (the  "Settlement  Agreement")
with Charles Yang, a former President of the Company,  to resolve all claims and
disputes between the Company and Mr. Yang,  including all claims relating to Mr.
Yang's  employment by and separation from the Company.  Pursuant to the terms of
the Settlement Agreement, the Company agreed to pay Mr. Yang $400,000 in cash in
installments  by July 23,  2001,  and  issue  Mr.  Yang  400,000  shares  of the
Company's common stock.. A copy of the Settlement  Agreement is attached to this
Current Report as Exhibit 99.1.

Item 7.  Financial Statements, Pro Forma Financial Information and Exhibits.

                  (c)      Exhibits.
                           --------

                  The exhibits listed in the Exhibit Index are filed herewith.
SIGNATURES

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

                                         ePHONE TELECOM, INC.

                                         By   /s/  Charlie Rodriguez
                                              ---------------------
                                              Charlie Rodriguez
                                              Chief Financial Officer and
                                              Vice President - Corporate Affairs

                                         Date: April 13, 2001
EXHIBIT INDEX

Exhibit No.                      Description

99.1     Settlement  Agreement and Mutual General  Release  between Charlie Yang
         and ePHONE Telecom, Inc., dated March 23, 2001