UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
SCHEDULE 13G
Under the Securities Exchange Act of 1934
Tel-Save Holdings, Inc.
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(Name of Issuer)
Common Stock, par value $.01 per share
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(Title of Class of Securities)
879176105
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(CUSIP Number)
August 18, 1998
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(Date of Even Which Requires Filing of This Statement)
Check the appropriate box to designate the rule pursuant to which this Schedule
is filed:
( ) Rule 13d-1(b)
(x) Rule 13d-1(c)
( ) Rule 13d-1(d)
(Page 1 of 7 Pages)
<PAGE>
CUSIP No. 879176105 13G Page 2 of 7 Pages
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1) NAME OF REPORTING PERSON Seth Tobias
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2) CHECK THE APPROPRIATE BOX IF MEMBER OF A GROUP
(a) [ ]
(b) [ ]
- --------------------------------------------------------------------------------
3) SEC USE ONLY
- --------------------------------------------------------------------------------
4) CITIZENSHIP OR PLACE OF ORGANIZATION U.S.
- --------------------------------------------------------------------------------
NUMBER OF 5) SOLE VOTING POWER 4,000,000
SHARES ------------------------------------------------------------------
BENEFICIALLY 6) SHARED VOTING POWER 0
OWNED BY ------------------------------------------------------------------
EACH 7) SOLE DISPOSITIVE POWER 4,000,000
REPORTING ------------------------------------------------------------------
PERSON WITH 8) SHARED DISPOSITIVE POWER 0
- --------------------------------------------------------------------------------
9) AGGREGATE AMOUNT BENEFICIALLY OWNED 4,000,000
BY EACH REPORTING PERSON
- --------------------------------------------------------------------------------
10) CHECK IF THE AGGREGATE AMOUNT IN ROW 11 EXCLUDES
CERTAIN SHARES [ ]
- --------------------------------------------------------------------------------
11) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11 7.0%
- --------------------------------------------------------------------------------
12) TYPE OF REPORTING PERSON: IN
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<PAGE>
CUSIP No. 879176105 13D Page 3 of 7 Pages
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1) NAME OF REPORTING PERSON The D& K Grantor Retained
Annuity Trust II
- --------------------------------------------------------------------------------
2) CHECK THE APPROPRIATE BOX IF MEMBER OF A GROUP
(a) [ ]
(b) [ ]
- --------------------------------------------------------------------------------
3) SEC USE ONLY
- --------------------------------------------------------------------------------
4) CITIZENSHIP OR PLACE OF ORGANIZATION Pennsylvania
- --------------------------------------------------------------------------------
NUMBER OF 5) SOLE VOTING POWER 4,000,000
SHARES ------------------------------------------------------------------
BENEFICIALLY 6) SHARED VOTING POWER 0
OWNED BY ------------------------------------------------------------------
EACH 7) SOLE DISPOSITIVE POWER 4,000,000
REPORTING ------------------------------------------------------------------
PERSON WITH 8) SHARED DISPOSITIVE POWER 0
- --------------------------------------------------------------------------------
9) AGGREGATE AMOUNT BENEFICIALLY OWNED 4,000,000
BY EACH REPORTING PERSON
- --------------------------------------------------------------------------------
10) CHECK IF THE AGGREGATE AMOUNT IN ROW 11 EXCLUDES
CERTAIN SHARES [ ]
- --------------------------------------------------------------------------------
11) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11 7.0%
- --------------------------------------------------------------------------------
12) TYPE OF REPORTING PERSON: OO
- --------------------------------------------------------------------------------
<PAGE>
Item 1(a). Name of Issuer:
Tel-Save Holdings, Inc.
Item 1(b). Address of Issuer's Principal Executive Offices:
6805 Route 202, New Hope, PA 18938
Item 2(a). Name of Person Filing:
Seth Tobias
The D& K Grantor Retained Annuity Trust II
Item 2(b). Address of Principal Business Office:
27 North Sunnycrest Drive
Little Silver, NJ 07739
Item 2(c). Citizenship:
United States
Item 2(d). Title of Class of Securities:
Common Stock
Item 2(d). CUSIP Number:
879176105
Page 4 of 7 Pages
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If this statement is filed pursuant to Rule 13d-1(b) or 13d-2(b) or
(c),
Item 3. check whether the person filing is a:
(a) [ ] Broker or dealer registered under Section 15 of the Exchange Act.
(b) [ ] Bank as defined in Section 3(a)(6) of the Exchange Act.
(c) [ ] Insurance company as defined in Section 3(a)(19) of the Exchange Act.
(d) [ ] Investment company registered under Section 8 of the Investment
Company Act.
(e) [ ] An investment advisor in accordance with Rule 13d-1(b)(1)(ii)(E);
(f) [ ] An employee benefit plan or endowment fund in accordance with Rule
13d-1(b)(1)(ii)(F);
(g) [ ] A parent holding company or control person in accordance with Rule
13d-1(b)(1)(ii)(G);
(h) [ ] A savings association as defined in Section 3(b) of the Federal
Deposit Insurance Act;
(i) [ ] A church plan that is excluded form the definition of an investment
company under section 3(c)(14) of the Investment Company Act;
(j) [ ] Group, in accordance with Rule 13d-1(b)1)(ii)(J).
Item 4. Ownership.
(a) Amount Beneficially Owned: 4,000,000
(b) Percent of Class: 7.0%
(c) Number of Shares to which such person has:
(i) Sole power to vote or direct the vote: 4,000,000
(ii) Shared power to vote or direct the vote: 0
(iii) Sole power to dispose or to direct the deposition of: 4,000,000
(iv) Shared power to dispose or to direct the disposition of: 0
Page 5 of 7 Pages
<PAGE>
Item 5. Ownership of Five Percent or Less of a Class.
If this statement is being filed to report the fact that as of the date of
the reporting person has ceased to be the beneficial owner of more than five
percent of the class of securities, check the following [ ].
Item 6. Ownership of More than Five Percent on Behalf of Another Person
On August 18, 1998, solely for estate tax planning purposes, Daniel
Borislow (the "Grantor") transferred 4,000,000 shares of Common Stock to a trust
(the "Trust"), the sole trustee of which is the Reporting Person. The Trust is
required to make payments over a three year period to the Grantor and then
distribute any remaining Trust assets to the Grantor's children. The Reporting
Person has sole power to vote and dispose of the shares of Common Stock that the
Grantor transferred to the Trust. The Grantor has no beneficial ownership of the
shares held by the Trust.
Item 7. Identification and Classification of the Subsidiary Which acquired the
Security Being Reported on By the Parent Holding Company
Not Applicable.
Item 8. Identification and Classification of Members of the Group.
Not Applicable.
Item 9. Notice of Dissolution of the Group.
Not Applicable.
Page 6 of 7 Pages
<PAGE>
Item 10. Certification.
By signing below I certify that, to the best of my knowledge and belief,
the securities referred to above were not acquired and are not held for the
purpose of or with the effect of changing or influencing the control of the
issuer of the securities and were not acquired and are not held in connection
with or as a participant in any transaction having that purpose or effect.
SIGNATURE
After reasonably 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.
August 28, 1998
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Date
/s/ Seth Tobias
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Signature
Seth Tobias
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Name/Title
Page 7 of 7 Pages
