<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. 3)*
Riverside Group, Inc.
(Name of Issuer)
Common Stock, par value $.01 per share
(Title of Class of Securities)
769 135 104
(CUSIP Number)
Gary M. Goltz
Imagine Investments, Inc.
8150 North Central Expressway, Suite 1901
Dallas, Texas 75206
(Name, Address and Telephone Number of Person Authorized to Receive Notices and
Communications)
October 15, 1999
(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(v)(3) or (4), check the following box [_].
Note: Six copies of this statement, including all exhibits, should be filed
with the Commission. See Rule 13d-1(a) for other parties to whom copies are to
be sent.
* 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 ("Act") 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. 769 135 104
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NAME OF REPORTING PERSON'S
1 I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
JAMES M. FAIL
- ------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
2 (a) [_]
(b) [_]
- ------------------------------------------------------------------------------
SEC USE ONLY
3
- ------------------------------------------------------------------------------
SOURCE OF FUNDS (SEE INSTRUCTIONS)
4
WC
- ------------------------------------------------------------------------------
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) or 2(e) [_]
5
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CITIZENSHIP OR PLACE OF ORGANIZATION
6
TEXAS
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SOLE VOTING POWER
7
NUMBER OF
--
SHARES -----------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 8
OWNED BY 785,173
-----------------------------------------------------------
EACH SOLE DISPOSITIVE POWER
9
REPORTING
--
PERSON -----------------------------------------------------------
SHARED DISPOSITIVE POWER
WITH 10
785,173
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AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
0
- ------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
12 (SEE INSTRUCTIONS)
[_]
- ------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13
0%
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TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
14
IN
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<PAGE>
CUSIP NO. 769 135 104
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NAME OF REPORTING PERSON'S
1 I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
JAMES M. FAIL LIVING TRUST
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CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
2 (a) [_]
(b) [_]
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SEC USE ONLY
3
- ------------------------------------------------------------------------------
SOURCE OF FUNDS (SEE INSTRUCTIONS)
4
WC
- ------------------------------------------------------------------------------
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) or 2(e) [_]
5
- ------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
ALASKA
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SOLE VOTING POWER
7
NUMBER OF
--
SHARES -----------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 8
OWNED BY 785,173
-----------------------------------------------------------
EACH SOLE DISPOSITIVE POWER
9
REPORTING
--
PERSON -----------------------------------------------------------
SHARED DISPOSITIVE POWER
WITH 10
785,173
- ------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
0
- ------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
12 (SEE INSTRUCTIONS)
[_]
- ------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13
0%
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TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
14
00
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<PAGE>
CUSIP NO. 769 135 104
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NAMES OF REPORTING PERSON'S
1) I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Stone Holdings, Inc. 75-2681508
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CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
2) (a) [_]
(b) [_]
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SEC USE ONLY
3)
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SOURCE OF FUNDS (SEE INSTRUCTIONS)
4)
WC
- ------------------------------------------------------------------------------
CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) or 2(e) [_]
5)
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CITIZENSHIP OR PLACE OF ORGANIZATION
6)
Delaware
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SOLE VOTING POWER
(7)
NUMBER OF
--
SHARES -----------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY (8)
785,173
OWNED BY
-----------------------------------------------------------
EACH SOLE DISPOSITIVE POWER
(9)
REPORTING
--
PERSON -----------------------------------------------------------
SHARED DISPOSITIVE POWER
WITH (10)
785,173
- ------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11)
0
- ------------------------------------------------------------------------------
CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
12) (SEE INSTRUCTIONS)
[_]
- ------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13)
0%
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TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
14)
HC
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<PAGE>
CUSIP NO. 769 135 104
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NAMES OF REPORTING PERSON'S
1) I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Imagine Investments, Inc. 75-2709444
- ------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
2) (a) [_]
(b) [_]
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SEC USE ONLY
3)
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SOURCE OF FUNDS (SEE INSTRUCTIONS)
4)
WC
- ------------------------------------------------------------------------------
CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) or 2(e) [_]
5)
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CITIZENSHIP OR PLACE OF ORGANIZATION
6)
Delaware
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SOLE VOTING POWER
(7)
NUMBER OF
--
SHARES -----------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY (8)
OWNED BY 785,173
-----------------------------------------------------------
EACH SOLE DISPOSITIVE POWER
(9)
REPORTING
--
PERSON -----------------------------------------------------------
SHARED DISPOSITIVE POWER
WITH (10)
785,173
- ------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11)
0
- ------------------------------------------------------------------------------
CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
12) (SEE INSTRUCTIONS)
[_]
- ------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13)
0%
- ------------------------------------------------------------------------------
TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
14)
CO
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<PAGE>
SCHEDULE 13D
Item 1. Security and Issuer
This statement relates to the common stock, par value $ .01 per share (the
"Shares"), of Riverside Group, Inc. (the "Corporation"), which is located at
7800 Belfort Parkway, Jacksonville, Florida 32256.
Item 2. Identity and Background
This statement is filed by Imagine Investments, Inc., a Delaware
corporation ("Imagine"), which is located at 8150 North Central Expressway,
Suite 1901, Dallas, Texas 75206. Imagine is a wholly-owned subsidiary of Stone
Investments, Inc., a wholly-owned subsidiary of Stone Capital, Inc., a wholly-
owned subsidiary of Stone Holdings, Inc., which is wholly owned by the James M.
Fail Living Trust dated December 18, 1996, which is exclusively controlled by
James M. Fail. All of these parties (the "Reporting Persons") share the above
address. The corporations do not engage in any business activity other than
holding the common stock of their subsidiaries. During the last five years,
none of these parties have been convicted in a criminal proceeding. During the
last five years, none of these parties have been a party to a civil proceeding
of a judicial or administrative body of competent jurisdiction or been subject
to a judgment, decree or final order enjoining future violations of, or
prohibiting or mandating activities subject to, federal or state securities laws
or finding a violation with respect to such laws.
Item 3. Source and Amount of Funds or Other Consideration:
The working capital of Imagine was used in making the purchase.
Item 4. Purpose of Transaction:
The transaction is solely for investment purposes.
Item 5. Interest in Securities of the Issuer:
(a) Imagine is the direct beneficial owner of an immediately exercisable
option to purchase 785,173 Shares (the "Option"), or approximately
14.9% of the Shares outstanding on September 30, 1999. By virtue of the
relationships described under Item 2 of this statement, each of the
other Reporting Persons may be deemed to share indirect beneficial
ownership of the Shares directly beneficially owned by Imagine.
(b) Imagine has the direct power to vote and direct the disposition of the
Option, but J. Steven Wilson and Wilson Financial Corporation retain
the direct power to vote and direct the disposition of the Shares
underlying the Option. By virtue of the relationships described in Item
2, each of the Reporting Persons may be deemed to share the indirect
power to vote and direct the disposition of the Shares.
<PAGE>
(c) On October 15, 1999, Cybermax, Inc. ("Cybermax"), a wholly-owned
subsidiary of the Corporation, exchanged 630,933 shares of common
stock of Buildscape, Inc. owned by Cybermax for 520,000 Shares held by
Imagine.
(d) Imagine has the power to receive and the right to direct the proceeds
from the sale of the Option held by it.
(e) Not applicable.
Item 6. Contracts, Arrangements, Understanding or Relationships With Respect to
Securities of the Issuer:
See Section A on page 1 of Exhibit A and Sections B.3 and B.4 on Page
4 of Exhibit A.
Item 7. Material to be Filed as Exhibits:
A Letter Agreement of Imagine Investments, Inc.*
B Term Promissory Note*
C Unconditional Guarantee Agreement*
D Stock Pledge Agreement*
E Stock Option Agreement*
*Pursuant to Item 101(a)(2)(ii) of Regulation S-T, such exhibits are not
required to be refiled with this filing.
-2-
<PAGE>
SIGNATURE
After reasonable inquiry, and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.
/s/ James M. Fail
------------------------------
James M. Fail
Date: December 2, 1999
James M. Fail Living Trust
By: /s/ James M. Fail
----------------------------
Its: Trustee
----------------------------
Date: December 2, 1999
Stone Holdings, Inc.
By: /s/ Harry T. Carneal
----------------------------
Its: President
----------------------------
Date: December 2, 1999
Imagine Investments, Inc.
By: /s/ Harry T. Carneal
----------------------------
Its: Executive Vice President
----------------------------
Date: December 2, 1999
