sec document
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
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SCHEDULE 13D
INFORMATION TO BE INCLUDED IN STATEMENTS FILED
PURSUANT TO RULE 13d-1(a) AND AMENDMENTS
THERETO FILED PURSUANT TO RULE 13d-2(a)
(Amendment No. 1)1
HALLMARK FINANCIAL SERVICES, INC.
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(Name of issuer)
SHARES OF COMMON STOCK, PAR VALUE $0.03 PER SHARE
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(Title of class of securities)
40624Q104
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(CUSIP number)
STEVEN WOLOSKY, ESQ.
OLSHAN GRUNDMAN FROME ROSENZWEIG & WOLOSKY LLP
505 Park Avenue
New York, New York 10022
(212) 753-7200
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(Name, address and telephone number of person
authorized to receive notices and communications)
November 16, 2001
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(Date of event which requires filing of this statement)
If the filing person has previously filed a statement on Schedule
13G to report the acquisition which is the subject of this Schedule 13D, and is
filing this schedule because of Rule 13d-1(e), 13d-1(f) or 13d-1(g), check the
following box / /
Note. Schedules filed in paper format shall include a signed
original and five copies of the schedule, including all exhibits. SEE Rule 13d-7
for other parties to whom copies are to be sent.
(Continued on following pages)
(Page 1 of 6 Pages)
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1 The remainder of this cover page shall be filled out for a reporting
person's initial filing on this form with respect to the subject class of
securities, and for any subsequent amendment containing information which would
alter disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall
not be deemed to be "filed" for the purpose of Section 18 of the Securities
Exchange Act of 1934 or otherwise subject to the liabilities of that section of
the Act but shall be subject to all other provisions of the Act (however, SEE
the NOTES).
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CUSIP No. 40624Q104 13D Page 2 of 6 pages
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1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
NEWCASTLE PARTNERS, L.P.
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) / /
(b) / /
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3 SEC USE ONLY
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4 SOURCE OF FUNDS*
WC
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e) / /
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6 CITIZENSHIP OR PLACE OR ORGANIZATION
TEXAS
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NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 5,284,001
OWNED BY EACH
REPORTING
PERSON WITH -----------------------------------------------------------------
8 SHARED VOTING POWER
0
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9 SOLE DISPOSITIVE POWER
5,284,001
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10 SHARED DISPOSITIVE POWER
0
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
5,284,001
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* / /
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
47.8%
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14 TYPE OF REPORTING PERSON*
PN
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*SEE INSTRUCTIONS BEFORE FILLING OUT!
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CUSIP No. 40624Q104 13D Page 3 of 6 pages
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1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
MARK E. SCHWARZ
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) / /
(b) / /
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3 SEC USE ONLY
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4 SOURCE OF FUNDS*
WC
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e) / /
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6 CITIZENSHIP OR PLACE OR ORGANIZATION
USA
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NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 5,284,001
OWNED BY EACH
REPORTING
PERSON WITH -----------------------------------------------------------------
8 SHARED VOTING POWER
0
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9 SOLE DISPOSITIVE POWER
5,284,001
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
0
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
5,284,001
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* / /
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
47.8%
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14 TYPE OF REPORTING PERSON*
IN
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*SEE INSTRUCTIONS BEFORE FILLING OUT!
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CUSIP No. 40624Q104 13D Page 4 of 6 pages
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The following constitutes Amendment No. 1 ("Amendment No. 1") to the
Schedule 13D filed by the undersigned. This Amendment No. 1 amends the Schedule
13D as specifically set forth.
Item 2 is hereby amended and restated as follows:
Item 2. Identity and Background.
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Newcastle Partners, L.P., a Texas limited partnership
("Newcastle"), is an investment partnership and is located at 200 Crescent
Court, Suite 670, Dallas, Texas 75201. Mark E. Schwarz is the general partner of
Newcastle. The principal occupation of Mr. Schwarz is investment management and
he is a United States citizen. Mr. Schwarz's business address is 200 Crescent
Court, Suite 670, Dallas, Texas 75201. Neither Newcastle nor Mr. Schwarz has
been convicted in a criminal proceeding during the last five years. Neither
Newcastle nor Mr. Schwarz is and during the past five years was a party to a
civil proceeding of a judicial or administrative body of competent jurisdiction
and, as a result thereof, subject to any judgment, decree or final order
enjoining future violations of, or prohibiting or mandating activities subject
to, federal or state securities laws or finding any violation with respect to
such laws.
Item 3 is hereby amended and restated as follows:
Item 3. Source and Amount of Funds or Other Consideration.
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As of November 16, 2001, Newcastle had invested $2,063,134.48
in shares of Common Stock. The above amount includes any brokerage commissions
incurred in the investments. The source of these funds was the working capital
of Newcastle.
Item 4 is hereby amended to add the following:
Mark Schwarz was appointed Chairman of the Board of Directors
of the Issuer in September 2001. In addition to the actions previously set forth
in this Item 4, Mr. Schwarz may take or recommend to the Board of Directors of
the Issuer and its stockholders any actions he deems necessary and in the best
interests of the Issuer and its stockholders in his capacity as Chairman of the
Board of Directors with respect to the Issuer's affairs and operations. Such
actions may include recommendations for any of the items set forth in Item 4 of
Schedule 13D.
Item 5 is hereby amended and restated as follows:
Item 5. Interest in Securities of the Issuer.
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(a) As of November 16, 2001, Newcastle and Mr. Schwarz
beneficially owned 5,284,001 shares of Common Stock of the Issuer, which
represents 47.8% of the Issuer's outstanding shares of Common Stock, which such
percentage was calculated by dividing (i) the 5,284,001 shares of Common Stock
owned by Newcastle by (ii) 11,049,133 shares of Common Stock outstanding as of
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CUSIP No. 40624Q104 13D Page 5 of 6 pages
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November 10, 2001 based upon the Issuer's Quarterly Report on Form 10-QSB for
the fiscal quarter ended September 30, 2001.
(b) Newcastle and Mr. Schwarz, its general partner, have the
sole power to vote and dispose of the shares of Common Stock held by Newcastle.
The filing of this statement on Schedule 13D shall not be
construed as an admission that Mr. Schwarz is for the purposes of Section 13(d)
or 13(g) of the Securities Exchange Act of 1934, as amended, the beneficial
owner of any of the 5,284,001 shares of Common Stock owned by Newcastle.
Pursuant to Rule 13d-4, Mr. Schwarz disclaims all such beneficial ownership.
(c) The transactions in the Issuer's securities by Newcastle
during the last sixty days are as follows:
Transaction Date Buy/Sell Quantity (Shares) Price per Share ($)
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08/16/01 Buy 38,100 .4917
11/16/01 Buy 3,537,000 .3506
(d) Not applicable.
(e) Not applicable.
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CUSIP No. 40624Q104 13D Page 6 of 6 pages
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SIGNATURES
After reasonable inquiry and to the best of my knowledge and belief,
the undersigned certifies that the information set forth in this statement is
true, complete and correct.
Dated: November 16, 2001 NEWCASTLE PARTNERS, L.P.
By: /s/ Mark E. Schwarz
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Mark E. Schwarz, General Partner
/s/ Mark E. Schwarz
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Mark E. Schwarz