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        D.C. 20549</font></div>
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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"><strong>FORM
        8-K</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>CURRENT
        REPORT</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"><strong>PURSUANT
        TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF
        1934</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">August
        4,
        2005</font></div>
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        <div>
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        </div>
      </div>
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        of
        Report (Date of earliest event reported)</font></div>
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        WATLEY GROUP INC.</strong></font></div>
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        </div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Exact
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    Broad Street, Suite 1411</font></div>
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        292-2960</font><br></div>
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        Park
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        </div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Former
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        the
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        satisfy the filing obligation of the registrant under any of the following
        provisions (see General Instruction A.2. below):</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">&#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="justify"><a name="id_4"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
        8.01 Other Events</strong></font></a></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">On
    August 4, 2005, A.B. Watley Group Inc. (the &#8220;Company&#8221;) and A.B.
    Watley Inc. (&#8220;ABWI&#8221;), a former operating subsidiary of the Company,
    received a &#8220;Wells Letter&#8221; from the staff of the Securities and
    Exchange Commission (&#8220;SEC&#8221;). The Wells Letter stated that the
    staff of the SEC is considering recommending that the SEC authorize the institution
    of civil actions against the Company and ABWI. The civil actions which may
    be brought against ABWI would be based on alleged violations of Section 17(a)
    of the Securities Act of 1933, as amended (&#8220;Securities Act&#8221;);
    Section 10(b) of the Securities Exchange Act of 1934, as amended (&#8220;Exchange
    Act&#8221;); Rule 10(b)(5) of the Exchange Act; Section 15(c) of the Exchange
    Act; Rule 10(b)(3) of the Exchange Act; and Section 15(f) of the Exchange
    Act. The civil actions which may be brought against the Company would be based
    on alleged violations of Section 17(a) of the Securities Act; Section 10(b)
    of the Exchange Act; Rule 10(b)(5) of the Exchange Act; Section 13(a) of the
    Exchange Act and Rule 12b-20, 13a-1, and 13a-13 thereunder; and as a control
    person pursuant to Section 20(a) of the Exchange Act for violations by ABWI
    as set forth above. In connection with the civil actions under consideration,
    the staff may recommend that the SEC seek permanent injunctive relief, disgorgement
    and pre-judgment interest thereon, and civil penalties among other remedies.
    Under the Wells procedure, the Company and ABWI have an opportunity to respond
    to the SEC before any actions are brought against them. The Company and ABWI
    intend to respond promptly and in all events no later than the August 19,
    2005 response deadline. The Company will seek a resolution of this matter
    although there can be no assurance given that such resolution can or will
    be reached or that the ultimate impact on the Company will not be material.
    </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">&#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>SIGNATURES</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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        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.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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            <tr valign="top" bgcolor="#ffffff">
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              <td width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td width="49%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>&#160;</strong></font></td>
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                <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">A.B.
                  WATLEY GROUP INC.</font></div>
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            <tr valign="top" bgcolor="#ffffff">
              <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;<br>&#160;</font></td>
              <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;<br>&#160;</font></td>
              <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;<br>&#160;</font></td>
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              <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Date:&#160;
                August 8, 2005 </font></td>
              <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">By:&#160;&#160;</font></td>
              <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">/s/&#160;Robert
                Malin</font></td>
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              <td>
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Name:&#160;
                  Robert Malin</font></div>
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Title:&#160;&#160;&#160;
                  President</font></div>
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{"company-data": {"conformed-name": "AB WATLEY GROUP INC", "cik": "0001035632", "assigned-sic": "6211", "irs-number": "133911867", "state-of-incorporation": "DE", "fiscal-year-end": "0930"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-14897", "film-number": "051010463"}, "business-address": {"street1": "40 WALL STREET", "city": "NEW YORK", "state": "NY", "zip": "10005", "phone": "2127537500"}, "mail-address": {"street1": "40 WALL STREET", "city": "NEW YORK", "state": "NY", "zip": "10005"}, "former-company": [{"former-conformed-name": "WATLEY A B GROUP INC", "date-changed": "20000215"}, {"former-conformed-name": "INTERNET FINANCIAL SERVICES INC", "date-changed": "19990120"}]}
UNITED
        STATES
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
August
        4,
        2005
Date
        of
        Report (Date of earliest event reported)
A.B.
        WATLEY GROUP INC.
(Exact
        name of registrant as specified in its charter)
Delaware
1-14897
13-3911867
(State
                  or other jurisdiction of incorporation)
(Commission
                  File Number)
(IRS
                  Employer Identification No.)
50
    Broad Street, Suite 1411
New
        York,
        New York 10004
(Address
        of principal executive offices, including zip code)
(646)
        292-2960
(Registrant's
        telephone number, including area code)
90
        Park
        Avenue, New York, New York 10016
(Former
        name or former address, if changed since last report)
Check
        the
        appropriate box below if the Form 8-K filing is intended to simultaneously
        satisfy the filing obligation of the registrant under any of the following
        provisions (see General Instruction A.2. below):
o
Written
                  communications pursuant to Rule 425 under the Securities Act (17
                  CFR
                  230.425)
o
Soliciting
                  material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
                  240.14a-12)
o
Pre-commencement
                  communications pursuant to Rule 14d-2(b) under the Exchange Act
                  (17 CFR
                  240.14d-2(b))
o
Pre-commencement
                  communications pursuant to Rule 13e-4(c) under the Exchange Act
                  (17 CFR
                  240.13e-4(c))
Item
        8.01 Other Events
On
    August 4, 2005, A.B. Watley Group Inc. (the "Company") and A.B.
    Watley Inc. ("ABWI"), a former operating subsidiary of the Company,
    received a "Wells Letter" from the staff of the Securities and
    Exchange Commission ("SEC"). The Wells Letter stated that the
    staff of the SEC is considering recommending that the SEC authorize the institution
    of civil actions against the Company and ABWI. The civil actions which may
    be brought against ABWI would be based on alleged violations of Section 17(a)
    of the Securities Act of 1933, as amended ("Securities Act");
    Section 10(b) of the Securities Exchange Act of 1934, as amended ("Exchange
    Act"); Rule 10(b)(5) of the Exchange Act; Section 15(c) of the Exchange
    Act; Rule 10(b)(3) of the Exchange Act; and Section 15(f) of the Exchange
    Act. The civil actions which may be brought against the Company would be based
    on alleged violations of Section 17(a) of the Securities Act; Section 10(b)
    of the Exchange Act; Rule 10(b)(5) of the Exchange Act; Section 13(a) of the
    Exchange Act and Rule 12b-20, 13a-1, and 13a-13 thereunder; and as a control
    person pursuant to Section 20(a) of the Exchange Act for violations by ABWI
    as set forth above. In connection with the civil actions under consideration,
    the staff may recommend that the SEC seek permanent injunctive relief, disgorgement
    and pre-judgment interest thereon, and civil penalties among other remedies.
    Under the Wells procedure, the Company and ABWI have an opportunity to respond
    to the SEC before any actions are brought against them. The Company and ABWI
    intend to respond promptly and in all events no later than the August 19,
    2005 response deadline. The Company will seek a resolution of this matter
    although there can be no assurance given that such resolution can or will
    be reached or that the ultimate impact on the Company will not be material.
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.
A.B.
                  WATLEY GROUP INC.
Date: 
                August 8, 2005
By:
/s/ Robert
                Malin
Name: 
                  Robert Malin
Title:   
                  President