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**UNITED        STATES**

**SECURITIES        AND EXCHANGE COMMISSION**

**FORM        10-KSB**

**SFG        FINANCIAL CORPORATION**

**F/K/A   SFG        CORPORATION**

| **Delaware**                                       | **13-320894**                           |
|----------------------------------------------------|-----------------------------------------|
| (State                  or other jurisdiction      | (IRS                  Employer          |
| of                  incorporation or organization) | Identification                  Number) |

**255        Executive Drive, Suite 408**

**Plainview,        NY 11803**

**(516)        349-9100**

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**TABLE        OF CONTENTS**

| **PART                  I**   |                                                                                                                                                                    |   |
|-------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                          |                                                                                                                                                                    |   |
| ITEM                  1.      | DESCRIPTION                  OF BUSINESS                                                                                                                                | 3      |
| ITEM                  2.      | DESCRIPTION                  OF PROPERTY                                                                                                                                | 3      |
| ITEM                  3.      | LEGAL                  PROCEEDINGS                                                                                                                                      | 3      |
| ITEM                  4.      | SUBMISSION                  OF MATTERS TO A VOTE OF SECURITY HOLDERS                                                                                                    | 3      |
|                          |                                                                                                                                                                    |   |
| **PART                  II**  |                                                                                                                                                                    |   |
|                          |                                                                                                                                                                    |   |
| ITEM                  5.      | MARKET                  FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS                                                                                               | 4      |
| ITEM                  6.      | MANAGEMENT’S                  DISCUSSION AND ANALYSIS OR PLAN OF OPERATION                                                                                        | 4      |
| ITEM                  7.      | FINANCIAL                  STATEMENTS                                                                                                                                   | 5      |
| ITEM                  8.      | CHANGES                  IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL                  DISCLOSURE                                                  | 5      |
| ITEM                  8A      | CONTROLS                  AND PROCEDURES                                                                                                                                | 5      |
| ITEM                  8B      | OTHER                  INFORMATION                                                                                                                                      | 6      |
|                          |                                                                                                                                                                    |   |
| **PART                  III** |                                                                                                                                                                    |   |
|                          |                                                                                                                                                                    |   |
| ITEM                  9.      | DIRECTORS,                  EXECUTIVE OFFICERS, PROMOTERS, CONTROL PERSONS AND CORPORATE GOVERNANCE;                  COMPLIANCE WITH SECTION 16(a) OF THE EXCHANGE ACT | 6      |
| ITEM                  10.     | EXECUTIVE                  COMPENSATION                                                                                                                                 | 7      |
| ITEM                  11.     | SECURITY                  OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED                  STOCKHOLDER MATTERS                                        | 7      |
| ITEM                  12.     | CERTAIN                  RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR                  INDEPENDENCE                                                             | 8      |
| ITEM                  13.     | EXHIBITS                                                                                                                                                                | 8      |
| ITEM                  14.     | PRINCIPAL                  ACCOUNTANT FEES AND SERVICES                                                                                                                 | 9      |
|                          |                                                                                                                                                                    |   |
| **SIGNATURES**           | 10                                                                                                                                                                      |

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**PART        I**

| Item                  1. | Description                  of Business |
|--------------------------|------------------------------------------|

| Item                  2. | Description                  of Property |
|--------------------------|------------------------------------------|

| Item                  3. | Legal                  Proceedings |
|--------------------------|------------------------------------|

| Item                  4. | Submission                  of Matters to a Vote of Security                  Holders |
|--------------------------|---------------------------------------------------------------------------------------|

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**PART   II**

| Item                  5. | Market                  for Common Equity and Related Stockholder                  Matters |
|--------------------------|--------------------------------------------------------------------------------------------|

|                           |   | Fiscal  2001 |   | Fiscal                  2002 |
|--------------------------------|--------|------------------------|--------|------------------------------|
| Quarter                  ended |   | High                   |   | Low                          |   | High |   | Low |
| April                  30      |   | 0.06                   |   | 0.06                         |   | 0.94 |   | 0.51 |
| July                  31       |   | 1.03                   |   | 0.50                         |   | 0.51 |   | 0.15 |
| October                  31    |   | 0.50                   |   | 0.50                         |   | 1.40 |   | 0.15 |
| January                  31    |   | 1.25                   |   | 0.50                         |   | 0.55 |   | 0.10 |

| Item                6. | Management’s                Discussion and Analysis or Plan of                Operation |
|------------------------|-----------------------------------------------------------------------------------------------|

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| Item                7. | Financial                Statements |
|------------------------|-------------------------------------|

| Item                8. | Changes                In and Disagreements with Accountants and Financial                Disclosure |
|------------------------|------------------------------------------------------------------------------------------------------|

| Item                8A. | Controls                and Procedures |
|-------------------------|----------------------------------------|

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| Item                8B. | Other                Information |
|-------------------------|----------------------------------|

**Part      III**

| Item                9. | Directors,  Executive                Officers, Promoters and Control Persons;Compliance with16(a)                of the Exchange Act |
|------------------------|------------------------------------------------------------------------------------------------------------------------------------------------|

| **Name**                      | **Age** | **Position**                                         |
|-------------------------------|---------|------------------------------------------------------|
| Bruce                Stephens | 58      | Chief                Executive Officer and Secretary |
| Michael                Frey   | 55      | Director                                             |
| John                A. Dugan  | 68      | Director                                             |

**Bruce        Stephens**

**Michael        Frey**

**John        A. Dugan**

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| (b)                    Significant Employees | None |
|----------------------------------------------|------|

| (c)                    Family Relationships | None |
|---------------------------------------------|------|

| (d)                    Involvement in certain legal proceedings | None |
|-----------------------------------------------------------------|------|

| (e)                    Audit committee financial expert | None |
|---------------------------------------------------------|------|

| Item                  10. | Executive                  Compensation |
|---------------------------|-----------------------------------------|

**Summary        Compensation Table**

**SUMMARY        COMPENSATION TABLE**

| Name                  and principal position | Year   | Salary                                             | Bonus  | Stock                  Awards | Option                  Awards | Non-Equity                  Incentive Plan | Non-qualified                  Deferred Compensation Earnings | All                  other compensation | **Total**                                                            |
|----------------------------------------------|--------|----------------------------------------------------|--------|-------------------------------|--------------------------------|--------------------------------------------|---------------------------------------------------------------|-----------------------------------------|----------------------------------------------------------------------|
|                                         |   | ($)                                                | ($)    | ($)                           | ($)                            | ($)                                        | ($)                                                           | ($)                                     | ($)                                                                  |
|                                         |   |                                               |   |                          |                           |                                       |                                                          |                                    |                                                                 |
| **Bruce                  Stephens**          | 2002   | $        0 |   |                          |                           |                                       |                                                          | NA                                      | $                          0 |
| CEO                                          | 2001   | $13,100                                            |   |                          |                           |                                       |                                                          | NA                                      | $13,100                                                              |
|                                              | 2000   | $53,621                                            |   |                          |                           |                                       |                                                          | NA                                      | $53,621                                                              |

| Item                  11. | Security                  Ownership of Certain Beneficial Owners and                  Management |
|---------------------------|--------------------------------------------------------------------------------------------------|

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| Name                  and Address of          | Shares  | Percentage                  ofOwnership                  (1) |
|-----------------------------------------------|---------|--------------------------------------------------------------|
|                                          |    |                                                         |
| Sol                  Dorfberger               | 270,000 | 6.32%                                                        |
| 2323                  Quentin Road            |    |                                                         |
| Brooklyn,                  New York 11220     |    |                                                         |
|                                          |    |                                                         |
| Bruce                  Stephens               | 253,500 | 5.94%                                                        |
| 85                  Amherst Street            |    |                                                         |
| Garden                  City, New York 11530  |    |                                                         |
|                                          |    |                                                         |
| Anthony                  S. Pintauro          | 477,125 | 11.17%                                                       |
| 18                  Maunekea Street           |    |                                                         |
| Sag                  Harbor, New York 11963   |    |                                                         |
|                                          |    |                                                         |
| Laurence                  D. Levin            | 253,500 | 5.94%                                                        |
| 1621                  Covington Road          |    |                                                         |
| Yardley,                  PA 19067-0962       |    |                                                         |
|                                          |    |                                                         |
| Nicholas                  Gugliuzza           | 500,000 | 11.71%                                                       |
| 527                  Meadow Drive             |    |                                                         |
| Buffalo,                  New York 14224-1517 |    |                                                         |
|                                          |    |                                                         |
|                                          |    |                                                         |
| All                  Directors and Officers   | 730,625 | 17.12%                                                       |

| Item                  12. | Certain                  Relationships and Related                  Transactions |
|---------------------------|----------------------------------------------------------------------------------|

| Item                  13. | Exhibits |
|---------------------------|----------|

| Number | Description |
|--------|-------------|

| 31.1 | Certification                  by Chief Executive Officer and Principal Accounting Officer, required                  by                  Rule 13a-14(a) nor Rule 15d-14(a) of the Exchange                  Act* |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 32.1 | Certification                  by Chief Executive Officer and Principal Accounting Officer, required                  by                  Rule 13a-14(b) of the Exchange Act and Section 1350 of Chapter                  63 of Title                  18 of the United States Code * |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Item                  14. | Principal                  Accountant Fees and Services |
|---------------------------|---------------------------------------------------------|

|                                   |   | Fiscal                  Year 2000 |   | Fiscal                  Year 2001 |   | Fiscal                  Year 2002 |
|----------------------------------------|--------|-----------------------------------|--------|-----------------------------------|--------|-----------------------------------|
|                                   |   |                              |   |                              |   |                              |
| 1.                  Audit Fees         |   | $3,750                            |   | $3,750                            |   | $3,750                            |
| 2.                  Audit Related Fees |   | None                              |   | None                              |   | None                              |
| 3.                  Tax Fees           |   | None                              |   | None                              |   | None                              |
| 4.                  All Other Fees     |   | None                              |   | None                              |   | None                              |
| 5.                  No audit committee |   |                              |   |                              |   |                              |
| 6.                  None               |   |                              |   |                              |   |                              |

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**SIGNATURES**

|   | SFG                  FINANCIAL CORPORATION |
|--------|--------------------------------------------|
|   |                                       |   |
|   | By:                                        | /s/                  Bruce Stephens |
|   | Name:                                      | Bruce                  Stephens |
|   | Title:                                     | Chairman                  and Chief Executive Officerand                  Principal Accounting Officer |

|   | By:    | /s/                  Bruce Stephens                    |
|--------|--------|--------------------------------------------------------|
|   | Name:  | Bruce                  Stephens                        |
|   | Title: | Chief                  Executive Officer and Secretary |
|   |   |                                                   |
|   |   |                                                   |
|   | By:    | /s/                  Michael Frey                      |
|   | Name:  | Michael                  Frey                          |
|   | Title: | Director                                               |
|   |   |                                                   |
|   | By:    | /s/                  Ralph Balzano                     |
|   | Name:  | Ralph                  Balzano                         |
|   | Title: | Director                                               |

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**SFG        FINANCIAL CORPORATION AND SUBSIDIARIES**

**GARDEN        CITY, NEW YORK**

**CONSOLIDATED        FINANCIAL STATEMENTS**

**JANUARY        31, 2002 AND 2001**

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**SFG        FINANCIAL CORPORATION AND SUBSIDIARIES**

|                                                                                | Page                             |
|-------------------------------------------------------------------------------------|----------------------------------|
|                                                                                |                             |
| Independent                  auditor’s report                                 | F-2                  – F-3 |
|                                                                                |                             |
| Financial                  statements:                                              |                             |
|                                                                                |                             |
| Consolidated                  balance sheets                                        | F-4                              |
|                                                                                |                             |
| Consolidated                  statements of operations                              | F-5                              |
|                                                                                |                             |
| Consolidated                  statements of shareholders’ equity (deficiency) | F-6                              |
|                                                                                |                             |
| Notes                  to consolidated financial statements                         | F-7                  – F-8 |

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| ACCOUNTING                      SERVICES | TAX                      CONSULTANTS |
|------------------------------------------|--------------------------------------|

*Michael            Masters & Co.*

| MICHAEL                      MASTERS, C.P.A.   |  ASSOCIATE                         |
|------------------------------------------------|-----------------------------------------|
| KENNETH                      PALMASANO, C.P.A. | MARK                      RINGEL, C.P.A |

**INDEPENDENT          AUDITOR’S REPORT**

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| ACCOUNTING                    SERVICES | TAX                    CONSULTANTS |
|----------------------------------------|------------------------------------|

*Michael          Masters & Co.*

| MICHAEL                    MASTERS, C.P.A.   |  ASSOCIATE                       |
|----------------------------------------------|---------------------------------------|
| KENNETH                    PALMASANO, C.P.A. | MARK                    RINGEL, C.P.A |

*/s/          Michael Masters & Co.*

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**SFG        FINANCIAL CORPORATION AND SUBSIDIARIES**

**CONSOLIDATED        BALANCE SHEETS**

**AS        OF JANUARY 31,**

|                                                                                                                                                                                                                                               |   | **2002** |       |   | **2001** |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------|------------|--------|----------|--------|
| **ASSETS**                                                                                                                                                                                                                                         |   |
| **Current                  Assets**                                                                                                                                                                                                                |   |     |       |   |     |   |
| Cash                  on hand                                                                                                                                                                                                                      |   | $        | -          |   |     | $      | - |   |
| Accounts                  receivable                                                                                                                                                                                                               |   |     | 20         |   |     |   |   |   |
| Due                  from subsidiary                                                                                                                                                                                                               |   |     | -          |   |     |   | 97,217 |   |
| Investment                  in subsidiaries                                                                                                                                                                                                        |   |     | -          |   |     |   | 414,851 |   |
| **Total                  Current Assets**                                                                                                                                                                                                          |   |     | 20         |   |     |   | 512,068 |   |
|                                                                                                                                                                                                                                               |   |     |       |   |     |   |   |   |
|                                                                                                                                                                                                                                               |   |     |       |   |     |   |   |   |
| **Total                  Assets**                                                                                                                                                                                                                  |   |     | 20         |   |     |   | 512,068 |   |
|                                                                                                                                                                                                                                               |   |     |       |   |     |   |   |   |
| **LIABILITIES                  AND STOCKHOLDERS' EQUITY (DEFICIENCY)**                                                                                                                                                                             |   |
| **Liabilities**                                                                                                                                                                                                                                    |   |     |       |   |     |   |   |   |
| Accounts                  payable and accrued expenses                                                                                                                                                                                             |   |     | 80,748     |   |     |   | 93,842 |   |
| Due                  to subsidiary                                                                                                                                                                                                                 |   |     |       |   |     |   | 618,661 |   |
| **Total                  Liabilities**                                                                                                                                                                                                             |   |     | 80,748     |   |     |   | 712,503 |   |
|                                                                                                                                                                                                                                               |   |     |       |   |     |   |   |   |
| **STOCKHOLDERS'                  EQUITY (DEFICIENCY)**                                                                                                                                                                                             |   |     |       |   |     |   |   |   |
| Common                  stock; $.001 par value 100,000,000 shares authorized; 4,026,856                  and                  3,226,856 shares issued and outstanding at January 31, 2001 and                  2000,                  respectively |   |     | 4,269      |   |     |   | 4,027 |   |
| Additional                  paid in capital                                                                                                                                                                                                        |   |     | 2,402,408  |   |     |   | 2,281,650 |   |
| Retained                  earnings                                                                                                                                                                                                                 |   |     | (2,487,405 | )      |     |   | (2,486,112 | ) |
| **Total                  Stockholders' Equity (Deficiency)**                                                                                                                                                                                       |   |     | (80,728    | )      |     |   | (200,435 | ) |
|                                                                                                                                                                                                                                               |   |     |       |   |     |   |   |   |
|                                                                                                                                                                                                                                               |   |     |       |   |     |   |   |   |
| **Total                  Liabilities and Stockholders' Equity (Deficiency)**                                                                                                                                                                       |   | $        | 20         |   |     | $      | 512,068 |   |

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**SFG        FINANCIAL CORPORATION AND        SUBSIDIARIES**

**CONSOLIDATED        STATEMENTS OF OPERATIONS**

**FOR        YEARS ENDED JANUARY 31,**

|                                                                         |   | **2002** |      |   | **2001** |   |
|------------------------------------------------------------------------------|--------|----------|-----------|--------|----------|--------|
| **Revenue:**                                                                 |   |     |      |   |     |   |
| Gain                  on sale of subsidiaries                                |   | $        | 118,138   |   |     | $      | - |   |
| Loss                  on investment                                          |   |     | -         |   |     |   | (500 | ) |
|                                                                         |   |     |      |   |     |   |   |   |
| **Total                  Revenues**                                          |   |     | 118,138   |   |     |   | (500 | ) |
|                                                                         |   |     |      |   |     |   |   |   |
| **Operating                  Expenses**                                      |   |     |      |   |     |   |   |   |
| Professional                  fees                                           |   |     | 14,276    |   |     |   | 35,900 |   |
| Consulting                  fees                                             |   |     | 105,000   |   |     |   | 72,000 |   |
|                                                                         |   |     |      |   |     |   |   |   |
| **Total                  Operating Expenses**                                |   |     | 119,276   |   |     |   | 107,900 |   |
|                                                                         |   |     |      |   |     |   |   |   |
| **Income                  (Loss) From Operations**                           |   |     | (1,138    | )      |     |   | (108,400 | ) |
|                                                                         |   |     |      |   |     |   |   |   |
| **Provision                  for Taxes**                                     |   |     |      |   |     |   |   |   |
| New                  York State corporate taxes                              |   |     | 155       |   |     |   | 155 |   |
|                                                                         |   |     |      |   |     |   |   |   |
| **Net                  Income (Loss)**                                       |   | $        | (1,293    | )      |     | $      | (108,555 | ) |
|                                                                         |   |     |      |   |     |   |   |   |
| **Earnings                  Per Share**                                      |   | $        | (0.00     | )      |     | $      | (0.03 | ) |
|                                                                         |   |     |      |   |     |   |   |   |
| **Weighted                  Average of Number of Common Shares Outstanding** |   |     | 4,208,356 |   |     |   | 3,411,856 |   |

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**SFG        FINANCIAL CORPORATION AND SUBSIDIARIES**

**CONSOLIDATED        STATEMENTS OF SHAREHOLDERS' EQUITY (DEFICIENCY)**

**FOR        THE YEARS ENDED JANUARY 31, 2002 AND 2001**

|                                                               |   |                          |      |   |                       |   |   | CAPITAL                 |   |   |      |   |
|--------------------------------------------------------------------|--------|-------------------------------|-----------|--------|----------------------------|--------|--------|-------------------------|--------|--------|-----------|--------|
|                                                               |   | COMMON                  STOCK |      |   | IN                  EXCESS |   |   | RETAINED                |   |
|                                                               |   | SHARES                        |      |   | AMOUNT                     |   |   | OF                  PAR |   |   | EARNINGS  |   |
| **Balance                  at February 1. 2000**                   |   |                          | 3,226,856 |   |                       | $      | 3,227  |                    |   | $      | 2,062,167 |   |   | $ | (2,377,557 | ) |
| Shares                  issued for services                        |   |                          | 85,000    |   |                       |   | 85     |                    |   |   | 29,698    |   |   |   | - |   |
| Prior                  Period Adjustment                           |   |                          | 150,000   |   |                       |   | 150    |                    |   |   | 124,850   |   |   |   | - |   |
| Shares                  issued as return on investment             |   |                          | 65,000    |   |                       |   | 65     |                    |   |   | 64,935    |   |   |   | - |   |
| Shares                  issued for investment                      |   |                          | 500,000   |   |                       |   | 500    |                    |   |   | -         |   |   |   | - |   |
| Net                  Income (Loss) for year ended January 31, 2000 |   |                          |      |   |                       |   | -      |                    |   |   | -         |   |   |   | (108,555 | ) |
|                                                               |   |                          |      |   |                       |   |   |                    |   |   |      |   |   |   |   |   |
| **Balance                  at January 31, 2001**                   |   |                          | 4,026,856 |   |                       |   | 4,027  |                    |   |   | 2,281,650 |   |   |   | (2,486,112 | ) |
|                                                               |   |                          |      |   |                       |   |   |                    |   |   |      |   |   |   |   |   |
| Shares                  issued for services                        |   |                          | 242,000   |   |                       |   | 242    |                    |   |   | 120,758   |   |   |   | - |   |
| Net                  Income (Loss) for year ended January 31, 2001 |   |                          | -         |   |                       |   | -      |                    |   |   | -         |   |   |   | (1,293 | ) |
|                                                               |   |                          |      |   |                       |   |   |                    |   |   |      |   |   |   |   |   |
| **Balance                  at January 31, 2002**                   |   |                          | 4,268,856 |   |                       | $      | 4,269  |                    |   | $      | 2,402,408 |   |   | $ | (2,487,405 | ) |

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| **1.** | **Organization                  and significant accounting                  policies:** |
|--------|-----------------------------------------------------------------------------------------|

**Summary        of accounting policies**

**Prior        years’ financial statements**

**Business        operations**

**Cash**

**Net        income (loss) per common share**

**Income        taxes**

**Use        of estimates**

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| **2.** | **Related                  party transactions** |
|--------|-------------------------------------------------|

**Lease**

**Consulting        Agreements**

| **3.** | **Stock                  based compensation** |
|--------|-----------------------------------------------|

| **4.** | **Loss                  on investment** |
|--------|-----------------------------------------|

| **5.** | **Going                  concern** |
|--------|------------------------------------|

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