1
   
   As filed with the Securities and Exchange Commission on November 3, 1995
    

   
                                                   REGISTRATION NO. 33-63119
    

================================================================================
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                          ---------------------------

   
                                AMENDMENT NO. 1
                                       TO
    
                                    FORM S-3
                             REGISTRATION STATEMENT
                                     UNDER
                           THE SECURITIES ACT OF 1933

                          ---------------------------

                               BROOKE GROUP LTD.

             (Exact name of registrant as specified in its charter)


                                                                       
          DELAWARE                   100 S.E. SECOND STREET                   51-0255124
(State or other jurisdiction          MIAMI, FLORIDA 33131                 (I.R.S. Employer
     of incorporation or                 (305) 579-8000                 Identification Number)
       organization)              (Address, including zip code,
                                  and telephone number, including
                                   area code, of Registrant's
                                  principal executive offices)


                          ---------------------------

                                  MARC N. BELL
                                GENERAL COUNSEL
                               BROOKE GROUP LTD.
                             100 S.E. SECOND STREET
                             MIAMI, FLORIDA  33131
                                 (305) 579-8000

           (Name, address, including zip code, and telephone number,
                   including area code, of agent for service)

                                    COPY TO:

                                MARK L. WEISSLER
                        MILBANK, TWEED, HADLEY & McCLOY
                            1 CHASE MANHATTAN PLAZA
                           NEW YORK, NEW YORK  10005
                                 (212) 530-5000

                          ---------------------------
   2
         APPROXIMATE DATE OF COMMENCEMENT OF PROPOSED SALE TO THE PUBLIC:  From
time to time after the effective date of this Registration Statement.

         If any of the securities being registered on this form are to be
offered pursuant to dividend or reinvestment plans, please check the following
box. / /

         If any of the securities being registered on this form are to be
offered on a delayed or continuous basis pursuant to Rule 415 under the
Securities Act of 1933, other than securities offered only in connection with
dividend or interest reinvestment plans, check the following box. /x/

         If this Form is filed to register additional securities for an
offering pursuant to Rule 462(b) under the Securities Act, please check the
following box and list Securities Act registration statement number of the
earlier effective registration statement for the same offering.  / /
                                                                     -----------

         If this Form is a post-effective amendment filed pursuant to Rule
462(c) under the Securities Act, check the following box and list the
Securities Act registration statement number of the earlier effective
registration statement for the same offering.  / /
                                                   -----------

         If delivery of the prospectus is expected to be made pursuant to Rule
434, please check the following box.  / /

   
    
                     -------------------------------------
   
    

   3




INFORMATION CONTAINED HEREIN IS SUBJECT TO COMPLETION OR AMENDMENT.  A
REGISTRATION STATEMENT RELATING TO THESE SECURITIES HAS BEEN FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION.  THESE SECURITIES MAY NOT BE SOLD NOR MAY
OFFERS TO BUY BE ACCEPTED PRIOR TO THE TIME THE REGISTRATION STATEMENT BECOMES
EFFECTIVE.  THIS PROSPECTUS SHALL NOT CONSTITUTE AN OFFER TO SELL OR THE
SOLICITATION OF AN OFFER TO BUY NOR SHALL THERE BE ANY SALE OF THESE SECURITIES
IN ANY STATE IN WHICH SUCH OFFER, SOLICITATION OR SALE WOULD BE UNLAWFUL PRIOR
TO REGISTRATION OR QUALIFICATION UNDER THE SECURITIES LAWS OF ANY SUCH STATE.


   
                                NOVEMBER 3, 1995
                             SUBJECT TO COMPLETION
    

PROSPECTUS


                                1,000,000 SHARES

                               BROOKE GROUP LTD.

                                  COMMON STOCK

                                (PAR VALUE $.10)


                          ----------------------------

                 This Prospectus relates to 1,000,000 shares of Common Stock,
         par value $.10 per share (the "Shares"), of Brooke Group Ltd. (the
         "Company") which may be offered for sale from time to time by the
         Selling Stockholder named herein, or by such Selling Stockholder's
         pledgees, donees, transferees or other successors in interest, to or
         through underwriters or directly to other purchasers or through agents
         in one or more transactions at varying prices determined at the time
         of sale or at negotiated prices.  The Company will not receive any of
         the proceeds from any such sales.  See "Selling Stockholder" and "Plan
         of Distribution".

   
                 The Company's common stock is listed on the New York Stock
         Exchange under the symbol "BGL".  The last reported sale price of the 
         Common Stock on the New York Stock Exchange on November __, 1995 was 
         $     per share.
    


                          ----------------------------

   
        SEE "RISK FACTORS" (LOCATED ON PAGES 3-8 OF THIS PROSPECTUS)
         FOR A DISCUSSION OF CERTAIN RISKS THAT SHOULD BE CONSIDERED
                   BY POTENTIAL PURCHASERS OF THE SHARES.
    

    THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES
         AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR
            HAS THE SECURITIES AND EXCHANGE COMMISSION OR ANY STATE
               SECURITIES COMMISSION PASSED UPON THE ACCURACY OR
                ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION
                     TO THE CONTRARY IS A CRIMINAL OFFENSE.

                          ----------------------------

   
                THE DATE OF THIS PROSPECTUS IS NOVEMBER __, 1995
    



   4


                             AVAILABLE INFORMATION

         The Company is subject to the informational requirements of the
Securities Exchange Act of 1934, as amended (the "Exchange Act"), and in
accordance therewith, files reports, proxy statements and other information
with the Securities and Exchange Commission (the "SEC").  Reports, proxy
statements and other information filed by the Company can be inspected and
copied at the public reference facilities maintained by the SEC in Washington,
D.C., and at the SEC's Regional Offices at 7 World Trade Center, New York, New
York and 500 West Madison Street, Chicago, Illinois.  Copies of such
information can be obtained from the Public Reference Section of the SEC,
Washington, D.C. 20549 at prescribed rates.  In addition, reports, proxy
statements and other information concerning the Company may be inspected and
copied at the offices of The New York Stock Exchange, 20 Broad Street, New
York, New York.  Any interested parties may inspect the Registration Statement,
without charge, at the public reference facilities at the SEC, 450 Fifth
Street, N.W., Judiciary Plaza, Washington, D.C. 20549-1004, and may obtain
copies of all or any part of it from the Public Reference Section of the SEC at
the above address upon payment of the fees prescribed by the SEC.

         The Company has filed with the SEC a registration statement on Form
S-3 under the Securities Act (together with any amendments thereto, the
"Registration Statement") with respect to the Shares being offered pursuant to
this Prospectus.  This Prospectus does not contain all the information set
forth in the Registration Statement, certain parts of which are omitted in
accordance with the rules and regulations of the SEC.  For further information,
reference is hereby made to the Registration Statement and the documents
incorporated herein by reference.

         No dealer, salesperson or other person has been authorized to give any
information or to make any representations other than those contained in this
Prospectus in connection with the offer contained herein, and, if given or
made, such information or representations must not be relied upon as having
been authorized by the Company, the Selling Stockholder or any underwriter.
This Prospectus does not constitute an offer to sell, or a solicitation of an
offer to buy, any securities other than the Shares or an offer to sell, or a
solicitation of an offer to buy, Shares in any jurisdiction in which, or to any
person to whom, such offer or solicitation would be unlawful.  Neither the
delivery of this Prospectus nor any sale made hereunder shall, under any
circumstances, create an implication that there has been no change in the
affairs of the Company since the date hereof or that the information herein is
correct as of any time subsequent to its date.

                INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE

   
        The following Company documents filed with the SEC (File No. 1-5759)
are incorporated herein by reference:  (1) Annual Report on Form 10-K for the
fiscal year ended December 31, 1994; (2) Quarterly Reports on Form 10-Q for the
quarters ended March 31, 1995 and June 30, 1995, respectively; (3) Current
Report on Form 8-K dated January 13, 1995; (4) Current Report on Form 8-K dated
January 25, 1995; (5) Current Report on Form 8-K dated October 2, 1995; (6) the
description of the Common Stock contained in a registration statement filed
under the Exchange Act, including any amendment or reports filed for the
purpose of updating such description; and (7) all other documents filed by the
Company pursuant to Section 13(a), 13(c), 14 or 15(d) of the Exchange Act
subsequent to the date of this Prospectus and prior to the termination of the
offering of the Shares.
    

         Any statement incorporated by reference herein shall be deemed to be
modified or superseded for purposes of this Prospectus to the extent that a
statement contained herein or in any other subsequently filed document which
also is or is deemed to be incorporated by reference herein modifies or
supersedes such statement.  Any statement so modified or superseded shall not
be deemed, except as so modified or superseded, to constitute a part of this
Prospectus.

         The Company will provide without charge to each person including a
beneficial owner to whom a copy of this Prospectus is delivered, upon the
written or oral request of such person, a copy of any or all of the documents 
which are incorporated by reference herein, other than exhibits to such 
documents (unless such exhibits are specifically incorporated by reference 
into such documents).  Written or telephone requests should be directed to 
Marc N. Bell, Brooke Group Ltd., 100 S.E. Second Street, Miami, Florida 33131, 
telephone (305) 579-8000.



                                     -2-

   5



   
                                  RISK FACTORS

        Before purchasing the Shares offered hereby, a prospective investor 
should consider, among other things, the following factors set forth below, as 
well as the other information set forth elsewhere in the Prospectus, in 
evaluating the Company, its business prospects and the Shares.

HIGH DEGREE OF LEVERAGE; NET WORTH DEFICIENCY; RECENT LOSSES

        At June 30, 1995 the Company had total outstanding indebtedness of
$409,043,000 and a net worth deficiency of $336,039,000. The Company has
substantial near-term debt service requirements, with required principal
payments of $26,491,000, $7,985,000, $129,814,000 and $163,990,000 in the years
1995 through 1998, which principal payment include, as to 1995 only, the 13.75%
Series 1 Senior Secured Notes 1995 (the "Series 1 Notes"), which such Series 1
Notes are no longer outstanding. The Company has experienced losses from
continuing operations since 1991 and earnings have been insufficient to cover
fixed charges for the last 2 years and the first six months of the current year.
In addition, Liggett Group Inc. ("Liggett"), the Company's principal operating
subsidiary, had a net worth deficit at June 30, 1995 and for the period ended
December 31, 1993 experienced a net loss and a deficiency in earnings available
to cover fixed charges. See "Certain Risk Regarding Liggett and the Cigarette
Industry - Net Worth Deficit; Recent Losses and Interest Coverage Deficiency".

HOLDING COMPANY STRUCTURE; DEPENDENCE ON CASH FROM SUBSIDIARIES
AND CERTAIN INVESTMENTS; STRUCTURAL SUBORDINATION

        The Company is a holding company and has no operations of its own.
Accordingly, the ability of the Company to pay dividends on the Shares is
substantially dependent on the ability of New Valley Corporation ("New Valley")
(in which the Company indirectly holds an approximate 42% voting interest) and
of Liggett and the Company's other subsidiaries to generate cash and the
availability of that cash to the Company. Certain covenants in Liggett's debt
instruments impose restrictions on, among other things, Liggett's ability to
declare and pay dividends or make other advances, payments or distributions to
the Company and its subsidiaries. As a result, Liggett has not paid dividends
since November 1992 and is not expected to pay dividends in the foreseeable
future. Additionally, certain covenants in an Indenture, dated as of September
30, 1994 between BGLS Inc., a wholly-owned subsidiary of the Company ("BGLS"),
and Shawmut Bank, N.A., as Trustee (the "Indenture") relating to the BGLS's
ability to pay or make dividends, distributions and other Restricted Payments
(as defined in the Indenture) restrict the ability of BGLS to distribute the
stock of Liggett held by it, but such covenants are subject to important
qualifications and limitations.

        New Valley's First Amended Joint Chapter 11 Plan of Reorganization, as 
amended (the "Joint Plan"), and the Indenture impose certain restrictions on 
transactions with the Company and certain of its subsidiaries or affiliates, 
including restrictions relating to payments and distributions to the Company 
and certain of its subsidiaries and affiliates from New Valley and New Valley 
Holdings, Inc., a wholly-owned subsidiary of BGLS ("NV Holdings"). Moreover, as 
a controlling shareholder (through BGLS and NV Holdings) of New Valley, the 
Company is under a legal obligation to deal fairly with New Valley, which may 
limit its ability to enter into transactions with New Valley that result in the 
receipt of cash from New Valley and to influence New Valley's dividend policy 
in certain respects.

    



                                     -3-

   6


   
        In addition, the Company does not hold (directly or indirectly) a 
majority of New Valley's voting power and may not be able to control New 
Valley's dividend policy. Since the Company indirectly owns (through NV 
Holdings and BGLS) less than an absolute majority of each class of New Valley 
capital stock held by NV Holdings and BGLS (other than, due to recent share 
repurchases by New Valley, the Class A Preferred Shares of New Valley), a 
majority of any cash and other assets distributed by New Valley with respect 
to any such class (other than such Class A Preferred Shares) will be 
distributed to persons other than the Company and its subsidiaries.

        The Company's receipt of income from its principal subsidiaries and 
investments is an important source of its liquidity and capital resources, and, 
as described above, its ability to receive such income is subject to a number 
of risks and uncertainties. If the Company does not generate sufficient cash 
flow from continuing operations to satisfy its debt service obligations, it 
will be required to secure additional funds from other sources. There can be no 
assurance that the Company will be able to secure such additional funds at all 
or on terms acceptable to the Company.

        Moreover, holders of the Shares are in effect in a subordinate position 
with respect to claims of creditors against the Company's subsidiaries. Liggett 
had outstanding approximately $183,692,000 of secured indebtedness for borrowed 
money at June 30, 1995, and is also subject to substantial contingent 
litigation liabilities.

CERTAIN RISKS REGARDING LIGGETT AND THE CIGARETTE INDUSTRY

        Net Worth Deficit; Recent Losses and Interest Coverage Deficiency. At 
June 30, 1995, Liggett had a net worth deficiency of $156,020,000. During the 
year ended December 31, 1993, Liggett incurred a net loss of $31,400,000, and 
experienced deficiencies in earnings available to cover its own fixed charges 
of $18,900,000. The Company's management believes that Liggett's 1993 loss 
resulted primarily from dramatic pricing, volume and other changes affecting 
the tobacco industry in general, although no assurance can be given that such 
losses will not recur. Although Liggett had net income of $15,400,000 for the 
year ended December 31, 1994, it showed a net loss of $759,000 for the first 
six months of 1995, and earnings were inadequate to cover fixed charges by 
$1,038,000 for this period. Liggett's leverage could impair its ability to 
withstand competitive pressures or adverse economic conditions and to take 
advantage of business opportunities. At June 30, 1995, Liggett had outstanding 
approximately $126,337,000 of 11.5% Series B Senior Secured Notes due 1999 and 
$32,350,000 of 19.75% Series C Senior Secured Notes due 1999. In addition, 
Liggett has a $40,000,000 revolving credit facility (the "Liggett Facility"), 
under which $22,600,000 was outstanding at June 30, 1995. The Liggett Facility 
expires on March 8, 1997. While Liggett currently is in compliance with all 
financial covenants (based on working capital and net worth ratios) under the 
Liggett Facility, failure to remain in compliance, or having borrowings 
outstanding in excess of the amount permitted based on the amount of eligible 
receivables and inventory, could result in the inability to borrow further and 
in the acceleration of outstanding indebtedness under the Liggett Facility. If 
Liggett is unable to meet its earnings requirements due to additional changes 
in industry conditions or otherwise, then Liggett could be in violation of 
certain debt covenants, and, if the lenders were to exercise acceleration 
rights or refuse to advance under the Liggett Facility, Liggett may not be able 
to satisfy such demands. Liggett's ability to satisfy its debt service 
obligations will depend on its operating performance and liquidity, as well as 
on prevailing economic 
    



                                     -4-


   7


   
conditions and on financial, business, industry and other factors which may be 
largely beyond Liggett's control.

        Tobacco Industry Problems; Liggett's Competitive Position in Industry.  
Liggett has suffered substantial losses and liquidity problems as a result of   
severe adverse developments in the tobacco industry, including substantial 
price reductions in full-price brands and certain leveraged trade programs  of
its largest rivals.  Liggett is substantially smaller and has fewer resources
than all its major competitors and has a correspondingly limited ability to
respond to market developments. The U.S. cigarette market is highly
concentrated and has extremely high barriers to entry. After the acquisition
by B.A.T. Industries plc of American Tobacco Company, three firms control
approximately 90% of the  U.S. market. Philip Morris Companies Inc. ("Philip
Morris") is the largest and  most profitable manufacturer in the market, and
its profits derive principally from its sale of lucrative premium cigarettes.
Philip Morris has in excess of 50% of the premium segment. Philip Morris and
RJR Nabisco Inc., the two largest cigarette manufacturers, have historically,
because of their dominant market share, been able to determine cigarette
prices for the various pricing tiers within the industry. The other cigarette
manufacturers have historically brought their prices into line with the levels 
established by the two major manufacturers. Since at least 1993, management
believes that Philip Morris's market strategy has been to minimize the actual
price spread between discount and premium products and to curtail the sales
made by the makers of discount products. In part, Philip Morris sought to
minimize that spread by dropping its premium prices in early 1993. In
addition, that strategy has also been carried  out through wholesale and retail
trade programs.

        Liggett's overall market share for the 12 months ended June 30, 1995 
was 2.2%, down from 2.4% for the prior 12 months ended June 30, 1994. Liggett's 
share of the premium segment for the 12 months ended June 30, 1995 was .5%, 
down from .6% for the prior 12-month period. Liggett's share of the discount 
segment for the 12 months ended June 30, 1995 was 1.7%, down from 1.8% for the 
prior 12-month period. Management believes that but for the above described 
trade programs, the Company's performance, both as to profitability and volume, 
would have been better.

        Industry-wide shipments of cigarettes in the United States have been 
steadily declining for several years. Even though The Maxwell Consumer Report, 
a recognized industry publication estimates that domestic industry-wide 
shipments actually increased by 6.2% in 1994, the Company does not believe this 
trend will continue. Liggett's management believes that future shipments will 
return to historical decline rates as a result of numerous factors, including 
health considerations, diminishing social acceptance of smoking, legislative 
limitations on smoking in public places and federal and state excise tax 
increases which have augmented cigarette price increases. Unlike its major 
competitors, Liggett does not have significant operations overseas, where 
cigarette consumption is still growing, and there can be no assurance that 
Liggett will be in a position to compete overseas.

        Certain Litigation.  Since 1954, Liggett and other United States 
cigarette manufacturers have been named as defendants in a number of direct and 
third-party actions predicated on the theory that they should be liable for 
damages from cancer and other adverse health effects alleged to have been 
caused by cigarette smoking or by exposures to so-called secondary smoke from 
cigarettes. These cases are reported hereinafter as though having been 
commenced against Liggett (without regard to  
    



                                     -5-

   8


   
whether such actually were commenced against the Company in its former name or 
in its present name or against Liggett), since all involve the tobacco 
manufacturing and marketing activities currently performed by Liggett. The 
number of such cases pending against Liggett and the other cigarette 
manufacturers had decreased generally since early 1987, after several years of 
increases, but new cases continue to be brought against Liggett and other 
cigarette manufacturers, with the number of such cases now pending against 
Liggett being significantly greater than in 1993. As new cases are initiated, 
the costs associated with defending such cases and the risks attendant on the 
inherent unpredictability of litigation continue. In 1994, four class action 
lawsuits were brought against Liggett and other cigarette manufacturers, 
representing the first time class actions were brought against the cigarette 
industry. In the three of these cases which remain pending, plaintiffs' motions 
for class certification were granted in whole or in part, and the defendants 
have appealed each of these rulings. Four states have actions against Liggett 
and the other named cigarette manufacturers seeking restitution and indemnity 
for certain Medicaid costs allegedly incurred as a result of tobacco-related 
illnesses. In one of these actions (Florida), the case was commenced pursuant 
to an enabling statute. Currently, approximately 56 product liability lawsuits,
which have been filed in various jurisdictions, are pending and active in which
Liggett is a defendant.  Of these, 34 are pending in the State of Florida, with
32 of these 34 having been commenced during 1995.  In most of these lawsuits,
plaintiffs seek punitive as well as compensatory damages. The Company is 
unable to make a meaningful estimate of the amount or range of loss that could 
result from an unfavorable outcome of the cases pending against Liggett. It is 
possible that Liggett's financial position, results of operations or cash
flows could be materially affected by an ultimate unfavorable outcome of any of
this certain pending litigation.

        Recent Regulatory and Legislative Developments. The State of Florida
enacted legislation, effective July 1, 1994, allowing certain state authorities
or entities to commence litigation to seek recovery of Medicaid payments made
on behalf of Medicaid recipients as a result of disease allegedly caused
by liable third parties. Though not limited to the tobacco industry, the
statutory scheme would impose, if ultimate liability of the cigarette industry
was established in litigation, a liability based upon market share for such
payments made for diseases allegedly caused by the smoking of or exposure to
cigarettes. The statute abrogates comparative negligence, assumption of risk
and other defenses typically available for liable third parties and, by its
stated language, permits the use of statistical evidence to prove causation. In
addition, the State of Massachusetts has recently enacted legislation
authorizing lawsuits by the attorney general of Massachusetts to recover
certain medical assistance payments paid by such state to medical assistance
payment recipients as a result of diseases allegedly caused by liable third
parties. On May 6, 1995, the Florida legislature voted favorably on a bill to
repeal the legislation referred to herein. The governor of Florida has vetoed
the repealing legislation and it is uncertain at this time if and when the
Florida legislature may override this veto. The Florida legislature is not in
session at this time. Recent federal legislation imposing domestic tobacco
content requirements on cigarette manufacturers was repealed retroactively
(as of December 31, 1994) coincident in time with the recent issuance of a
Presidential  proclamation imposing tariffs on imported tobacco in excess of
certain quotas. In March 1994, the Food and Drug Administration (the "FDA")
began an investigation of whether cigarettes should be regulated by that
agency.  An FDA advisory panel has stated that it believes nicotine is
addictive. On August 10, 1995, the FDA filed in the Federal Register a Notice
of Proposed Rule-Making which would classify tobacco as a drug, assert
jurisdiction by the FDA over the manufacture and marketing of tobacco products
and impose restrictions on the sale, advertising and promotion of tobacco
products. The FDA's stated objective and focus for its initiative is to limit
access to cigarettes by minors by measures beyond the restrictions either
mandated by existing federal, state and local laws or voluntarily implemented
by major manufacturers in the industry. Liggett and the other four major
cigarette manufacturers responded by filing a civil action in the United States
District Court for the Middle District of North Carolina on that day  
    



                                     -6-

   9



   
challenging the legal authority of the FDA to assert such jurisdiction. 
Management is unable to predict the outcome of this litigation. Management is 
also unable to predict the effects of such a classification or of such 
regulations, if implemented, on Liggett, but such actions could have an 
unfavorable impact thereon.

        Potential Increases in Excise Tax.  The sale of cigarettes is subject to
substantial federal excise taxes as well as various state and local government
excise taxes. The price of cigarettes includes federal excise taxes at the rate
of $12.00 per 1,000 cigarettes. This tax, which was levied as of January 1,
1993, increased the previous federal excise tax which had been at the rate of
$10.00 per 1,000 cigarettes. In the prior session of Congress, health care
legislation was introduced which would have substantially increased excise taxes
currently on cigarettes. While that legislation was not enacted, proposals to
increase federal excise taxes are pending before Congress and there remains a
possibility that additional proposals to increase excise taxes may be put
forward. A substantial excise tax increase could accelerate the trend away from
smoking and could have an unfavorable effect on Liggett's sales. Excise and
similar taxes on cigarettes, which are levied upon and typically paid by the
distributors, are also in effect in the 50 states, the District of Columbia and
many municipalities. These state and local taxes range from approximately $1.25
to $37.50 per 1,000 cigarettes. 

CERTAIN AFFILIATE TRANSACTIONS

        Certain affiliates of the Company have entered into various transactions
with the Company and with other affiliates of the Company. Existing contracts 
with such companies include services agreements under which Liggett and 
COM Products Inc. (a direct subsidiary of BGLS) receive financial and 
administrative services from the Company, a tax-sharing agreement between 
Liggett and the Company, expense sharing arrangements between BGLS and the 
Company and the provision of certain services by Liggett to a Russian joint 
stock company, a majority of whose equity is indirectly owned by BGLS. In 
addition, the Company has entered into certain arrangements with individuals 
who serve as officers or directors of companies affiliated with the Company, 
certain portions of the cost of which have been charged by the Company to such 
affiliated companies.

        The Indenture, the Liggett Indenture and certain other indentures to
which BGLS is a party contain restrictions on the ability of BGLS and Liggett to
enter into additional transactions with their respective affiliates, including
the Company. In addition, the Joint Plan imposes certain restrictions on the
ability of New Valley to enter into transactions with affiliates, and the
Company, as the indirect controlling shareholder of New Valley, is under a legal
obligation to deal fairly with New Valley, which obligation may limit the
Company's ability to enter into certain transactions with New Valley or to
influence New Valley's dividend policy. The restrictions described in this
paragraph are subject to important limitations and qualifications.

UNCERTAINTY OF OTHER POTENTIAL ACQUISITIONS

        New Valley currently holds a substantial amount of cash and marketable 
securities. This subjects investors to increased risk and uncertainty, because 
they are unable to evaluate the manner in which this cash will be invested and 
the economic merits of particular investments. There may be substantial delay 
in locating suitable investment opportunities. In addition, New Valley may not 
have relevant management experience in the areas in which New 
    



                                     -7-

   10


   
Valley may become involved. No assurance can be given that New Valley will be 
successful in targeting, consummating or managing any of these investments.

UNCERTAINTIES RELATING TO OPERATIONS IN RUSSIA

        The Company and certain of its subsidiaries have significant 
investments in cigarette manufacturing and real estate development operations 
in Russia and are considering additional investment in Russia. To date, such 
operations in Russia have not been profitable. Business operations in Russia 
are subject to a high level of risk. Since the breakup of the Soviet Union at 
the end of 1991, Russia has experienced dramatic political, social and economic 
change, including severe inflation. The political system in Russia is emerging 
from a long history of extensive state involvement in economic affairs and is 
undergoing a rapid transition from a centrally controlled command system to a 
more market-oriented model. The Company may be affected unfavorably by 
political or diplomatic developments, regional tensions, currency repatriation 
restrictions, foreign exchange fluctuations and other political or diplomatic 
developments in the law or regulations in Russia and, in particular, the risks 
of expropriation, nationalization and confiscation of assets and changes in 
legislation relating to foreign ownership. In addition, an undeveloped system 
of commercial laws (including the enforcement of laws) and markets adds to the 
risk of investments in Russia. No assurance can be given as to the potential 
profitability (if any) and effect on liquidity and cash flow that investments 
in Russia may have on the Company.

POSSIBLE REGULATION UNDER THE INVESTMENT COMPANY ACT OF 1940

         As a result of recent asset dispositions pursuant to the Joint Plan,
New Valley has accumulated a significant amount of cash which it may be required
to reinvest in operating companies in the near future in order to avoid
potentially burdensome regulation under the Investment Company Act of 1940, as
amended (the "Investment Company Act"). The Investment Company Act and the rules
and regulations thereunder require the registration of, and impose various
substantive restrictions on, companies that engage primarily in the business of
investing, reinvesting or trading in securities or engage in the business of
investing, reinvesting, owning, holding or trading in securities and own or
propose to acquire "investment securities" having a value in excess of 40% of a
company's "total assets". New Valley, which is now above this threshold as a
result of dispositions of its operating businesses pursuant to the Joint Plan,
is relying on the temporary exemption from registration under the Investment
Company Act provided by Rule 3a-2 thereunder. New Valley will attempt to be
engaged, within the one-year period prescribed by Rule 3a-2, primarily in a
business or businesses other than that of investing, reinvesting, owning,
holding or trading in securities, or in the alternative, if New Valley is unable
to accomplish this, it will seek to obtain an extension of such date or an
exemption from the SEC or no-action position from the SEC staff with respect to
registration under the Investment Company Act. However, no assurance can be
given that New Valley will be successful in becoming engaged in such business or
in obtaining an extension of such one-year period, and accordingly, there may be
a risk that New Valley will become subject to the Investment Company Act. If
either New Valley or the Company were required to register under the Investment
Company Act, such company would be subject to a number of severe substantive
restrictions on its operations, capital structure and management, including
without limitation entering into transactions with affiliates. If New Valley
were required to register under the Investment Company Act, the Company (as
well as BGLS) would also have to register and, therefore, would be subject to 
the same substantive restrictions described above. In addition, registration 
under the Investment Company Act by BGLS would constitute a violation of the 
Indenture and certain other indentures to which BGLS is a party.

DEPENDENCE ON CERTAIN MANAGEMENT

        The Company is dependent upon the services of Bennett S. LeBow 
(the "Chairman"), Chairman of the Board, President and Chief Executive Officer 
of the Company and BGLS. The loss to the Company of the Chairman could have a 
material adverse effect on the Company's operations.
    


                                     -8-
   11



                                  THE COMPANY

         The Company, a Delaware corporation founded in 1980, is principally
engaged in the manufacture and sale of cigarettes and the acquisition of
operating companies through a controlled subsidiary.  The Company also has
investments in a number of additional companies engaged in a diverse group of
businesses.  The Company's principal executive offices are located at 100 S.E.
Second Street, Miami, Florida 33131, and its telephone number is (305)
579-8000.  The Company is a publicly held corporation with its common stock
listed on The New York Stock Exchange under the symbol "BGL".

   
         The Company's tobacco business is conducted principally through its
wholly owned subsidiary, Liggett Group Inc..  Liggett is the fifth
largest manufacturer of cigarettes in the United States in terms of unit sales.
Liggett produces both full-price branded cigarettes (L&M, Chesterfield, Lark
and Eve) as well as price/value cigarettes in over 300 combinations of lengths,
styles and packaging.
    

   
         Additionally, the Company holds indirectly (through its subsidiaries,
BGLS and NV Holdings) an approximately 42% voting interest in New Valley.  New
Valley emerged from bankruptcy reorganization  proceedings in January 1995 and
currently holds primarily cash and marketable  securities which it is seeking
to apply towards the acquisition of operating  companies.  See "RISK FACTORS"
generally.  The Company also has interests in such diverse businesses as 
computer output microfiche products and various businesses located in the 
Russian Republic ("Russia"), including cigarette manufacturing and real estate 
development.  The Company is contemplating further investment in Russia and 
other countries that were part of the former USSR.
    

                              RECENT DEVELOPMENTS

   
         On August 28, 1995, New Valley received approval from the Federal
Trade Commission to purchase up to fifteen percent (15%) of the voting
securities of RJR Nabisco Holdings Corp. ("RJR).  On October 30, 1995, the
Company announced its intention to solicit consents from stockholders of RJR in
support of, among other things, an advisory resolution approving an immediate
spinoff of the Nabisco food business to RJR stockholders (the "Spinoff").  In
connection therewith, the Company also indicated that it would propose a new
slate of directors to replace the incumbent RJR board at RJR's 1996 Annual
Meeting of Stockholders if such board does not commit prior to November 20,
1995, the deadline for proposing new directors, to effect the Spinoff.
    


                                USE OF PROCEEDS

         The net proceeds from the sale of the Shares will be received by the
Selling Stockholder.  None of the proceeds from any sales by the Selling
Stockholder will be received by the Company.


                            SELLING SECURITY HOLDER

         The Shares registered pursuant to the Registration Statement are being
offered for the account of Howard M. Lorber (the "Selling Stockholder").  The
Selling Stockholder acts as a consultant to the Company and also serves as a
member of the Board of Directors and President and Chief Operating Officer of
New Valley.  Pursuant to the two agreements described in the following
paragraph, the Selling Stockholder owns or has the right to acquire 1,000,000
shares of the Company's common stock and the Shares offered hereby and by any
applicable prospectus supplement represent all of such Company common stock.
The Selling Stockholder will own no shares of the Company's common stock after
completion of the offering.


                                      -9-


   12




         The Selling Stockholder acquired beneficial ownership of 500,000 of
the Shares pursuant to an agreement dated as of January 1, 1994, as amended
(the "Consulting Agreement"), between the Selling Stockholder and the Company. 
The Selling Stockholder acquired beneficial ownership of the remaining Shares
pursuant to an agreement dated January 25, 1995 (the "Stock Option Agreement"). 
The Stock Option Agreement granted the Selling Stockholder options to purchase
500,000 Shares at $2.00 per share.  The options granted to the Selling
Stockholder under the Stock Option Agreement are exercisable over a ten year
period, with the Selling Stockholder having the right to purchase up to 20% on
the grant date and up to an additional 20% on each of the four anniversaries of
the grant date.    


                              PLAN OF DISTRIBUTION

         Any distribution of the Shares by the Selling Stockholder, or by
pledgees, donees, transferees or other successors in interest, may be effected
from time to time in one or more of the following transactions:  (a) to
underwriters who will acquire the Shares for their own account and resell them
in one or more transactions, including negotiated transactions, at a fixed
public offering price or at varying prices determined at the time of sale (any
public offering price and any discount or concessions allowed or reallowed or
paid to dealers may be changed from time to time); (b) through brokers, acting
as principal or agent, in transactions (which may involve block transactions)
on The New York Stock Exchange, in special offerings, exchange distributions
pursuant to the rules of the applicable exchanges or in the over-the-counter
market, or otherwise, at market prices prevailing at the time of sale, at
prices related to such prevailing market prices, at negotiated prices or at
fixed prices; or (c) directly or through brokers or agents in private sales at
negotiated prices, or by any other legally available means.  Unless otherwise
set forth in any prospectus supplement, (i) the obligations of any underwriter
to purchase any of the Shares will be subject to certain conditions precedent
and the underwriters will be obligated to purchase all of such Shares, if any
are purchased and (ii) any such agent will be acting on a best efforts basis
for the period of its appointment.

         The Selling Stockholder and such underwriters, brokers, dealers or
agents, upon effecting the sale of the Shares, may be considered "underwriters"
as that term is defined by the Securities Act.

         Underwriters participating in any offering made pursuant to this
Prospectus (as amended or supplemented from time to time) may receive
underwriting discounts and commissions, and discounts or concessions may be
allowed or reallowed or paid to dealers, and brokers or agents participating in
such transactions may receive brokerage or agent's commissions or fees.

         At the time a particular offering of Shares is made, to the extent
required, a Prospectus Supplement will be distributed which will set forth the
amount of Shares being offered and the terms of the offering, including the
purchase price or public offering price, the name or names of any underwriters,
dealers or agents, the purchase price paid by any underwriter for Shares
purchased from the Selling Stockholder, any discounts, commissions and other
items constituting compensation


                                      -10-

   13


from the Selling Stockholder and any discounts, commissions or concessions
allowed or reallowed or paid to dealers.

         In order to comply with the securities laws of certain states, if
applicable, the Shares will be sold in such jurisdictions only through
registered or licensed brokers or dealers.  In addition, in certain states the
Shares may not be sold unless the Shares have been registered or qualified for
sale in such state or an exemption from registration or qualification is
available and complied with.

         All costs, expenses and fees in connection with the registration of
the Shares will be borne by the Company.  Commissions and discounts, if any,
attributable to the sale of the Shares will be borne by the Selling
Stockholder.  The Selling Stockholder may agree to indemnify any agent, dealer
or broker-dealer that participates in transactions involving sales of the
Shares against certain liabilities, including liabilities arising under the
Securities Act.  The Company and the Selling Stockholder have agreed to
indemnify each other and certain other persons against certain liabilities in
connection with the offering of the Shares, including liabilities arising under
the Securities Act.


                                    EXPERTS

         The consolidated financial statements included in the Company's Annual
Report on Form 10-K as of December 31, 1994 and 1993 and the related
consolidated statements of operations, stockholder's equity (deficit) and cash
flows of the Company for each of the three years in the period ended December
31, 1994 incorporated by reference herein in reliance on the report, which
includes explanatory paragraphs relating to uncertainty as to the ultimate
outcome of certain pending legislation against the Company and the Company's
change in accounting in 1993 for post-retirement benefits other than pensions
to conform with Statement of Financial Accounting Standards No. 106, of Coopers
& Lybrand L.L.P., independent accountants, given on the authority of said firm
as experts in accounting and auditing.  The consolidated financial statements
of New Valley included in the Company's Annual Report on Form 10-K as of 
December 31, 1993 and 1994 and for each of the three years in the period then 
ended incorporated by reference herein have been so included in reliance on the
report of Price Waterhouse LLP given on the authority of said firm as experts
in auditing and accounting.             


                               VALIDITY OF SHARES

         The validity of the Shares offered hereby is being passed upon
for the Company by Marc N. Bell, Esq., General Counsel of the Company.


                                      -11-


   14

                                   SIGNATURES


   
         Pursuant to the requirements of the Securities Act of 1933, the
undersigned registrant certifies that it has reasonable grounds to believe that
it meets all of the requirements for filing on Form S-3 and has duly caused this
Amendment No. 1 to the Registration Statement to be signed on its behalf by the
undersigned, thereunto duly authorized, in the City of Miami, and State of
Florida, on the 3rd day of November 1995. 
    

   
                                              BROOKE GROUP LTD.
    


   
                                              By:    /s/ BENNETT S. LeBOW
                                                  ----------------------------
                                                     Bennett S. LeBow
                                                       Chairman of the board of
                                                       Directors, President and
                                                       Chief Executive Officer
    


   
         Pursuant to the requirements of the Securities Act of 1933, this
Amendment No. 1 to the Registration Statement has been signed below by the
following persons in the capacities indicated on November 3, 1995. 
    
                                 

   
         *   /s/ BENNETT S. LEBOW            Chairman of the Board of
         -----------------------------       Directors, President and
                Bennett S. LeBow             Chief Executive Officer
                                             (Principal Executive Officer)


                                             
         *    /s/ GERALD E. SAUTER           Vice President, Chief Financial
         -----------------------------       Officer and Treasurer (Principal 
               Gerald E. Sauter              Financial Officer and Principal
                                             Accounting Officer)

                                             
         *    /s/ ROBERT J. EIDE             Director
         -----------------------------
                Robert J. Eide


         *   /s/ JEFFREY S. PODELL           Director
         -----------------------------
               Jeffrey S. Podell


* Marc N. Bell, by signing his name hereto, does sign this document on behalf
  of the persons indicated above pursuant to a power of attorney duly executed 
  by such persons and filed with the Securities and Exchange Commission.


                                       By: /s/ MARC N. BELL
                                           -----------------------------------
                                           Marc N. Bell
                                           Attorney-In-Fact
 
    
                                      -12-