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**UNITED        STATES**

**SECURITIES        AND EXCHANGE COMMISSION**

**FORM        10-QSB**

**SFG        FINANCIAL CORPORATION**

| **Delaware**                                                                    | **13-320894**                                      |
|---------------------------------------------------------------------------------|----------------------------------------------------|
| (State                  or other jurisdiction of incorporation or organization) | (IRS                  Employer Identification No.) |

**255        Executive Drive, Suite 408**

**Plainview,        NY 11803**

**(516-349-9100)**

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**SFG        FINANCIAL CORPORATION**

**FORM        10-QSB**

**QUARTERLY        PERIOD ENDED APRIL 30, 2001**

**TABLE        OF CONTENTS**

| PART                  1  | FINANCIAL                  INFORMATION                                           |   |
|--------------------------|----------------------------------------------------------------------------------|--------|
|                     |                                                                             |   |
| Item                  1. | Financial                  Statements                                            | 3      |
|                     |                                                                             |   |
|                     | Balance                  Sheets                                                  | 3      |
|                     |                                                                             |   |
|                     | Statements                  of Operations                                        | 4      |
|                     |                                                                             |   |
|                     | Statements                  of Cash Flows                                        | 5      |
|                     |                                                                             |   |
|                     | Statements                  of Stockholders' Equity (Deficiency)                 | 6      |
|                     |                                                                             |   |
|                     | Notes                  to Financial Statements                                   | 7      |
|                     |                                                                             |   |
| Item                  2. | Management’s                  Discussion and Analysis or Plan of Operation | 10     |
|                     |                                                                             |   |
| Item                  3. | Controls                  and Procedures                                         | 10     |
|                     |                                                                             |   |
| PART                  II | OTHER                  INFORMATION                                               |   |
|                     |                                                                             |   |
| Item                  1. | Legal                  Proceedings                                               | 11     |
|                     |                                                                             |   |
| Item                  2. | Unregistered                  Sales of Equity Securities and Use of Proceeds     | 11     |
|                     |                                                                             |   |
| Item                  3. | Defaults                  Upon Senior Securities                                 | 11     |
|                     |                                                                             |   |
| Item                  4. | Submission                  of Matters to a Vote of Security Holders             | 11     |
|                     |                                                                             |   |
| Item                  5. | Other                  Information                                               | 11     |
|                     |                                                                             |   |
| Item                  6. | Exhibits                                                                         | 11     |
|                     |                                                                             |   |
| SIGNATURES               | 12                                                                               |

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**PART        1 - FINANCIAL INFORMATION**

**ITEM        1 - FINANCIAL STATEMENTS**

**SFG        FINANCIAL CORPORATION AND SUBSIDIARIES**

**CONSOLIDATED        BALANCE SHEETS**

**AS        OF APRIL 30,**

|                                                                                                                                                                                                                            |   | **2001** |       |   | **2000** |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------|------------|--------|----------|--------|
| **ASSETS**                                                                                                                                                                                                                      |   |
| **Current                  Assets**                                                                                                                                                                                             |   |     |       |   |     |   |
| Cash                  on hand                                                                                                                                                                                                   |   | $        | 10,202     |   |     | $      | 13,582 |   |
| **Total                  Current Assets**                                                                                                                                                                                       |   |     | 10,202     |   |     |   | 13,582 |   |
|                                                                                                                                                                                                                            |   |     |       |   |     |   |   |   |
|                                                                                                                                                                                                                            |   |     |       |   |     |   |   |   |
| **Total                  Assets**                                                                                                                                                                                               |   |     | 10,202     |   |     |   | 13,582 |   |
|                                                                                                                                                                                                                            |   |     |       |   |     |   |   |   |
| **LIABILITIES                  AND STOCKHOLDERS' EQUITY (DEFICIENCY)**                                                                                                                                                          |   |
| **Liabilities**                                                                                                                                                                                                                 |   |     |       |   |     |   |   |   |
| Accounts                  payable and accrued expenses                                                                                                                                                                          |   |     | 115,829    |   |     |   | 120,030 |   |
| Due                  to officers                                                                                                                                                                                                |   |     | 845        |   |     |   | 2,049 |   |
| Sales                  tax payable                                                                                                                                                                                              |   |     | 221,692    |   |     |   | 221,942 |   |
| **Total                  Liabilities**                                                                                                                                                                                          |   |     | 338,366    |   |     |   | 344,021 |   |
|                                                                                                                                                                                                                            |   |     |       |   |     |   |   |   |
| **STOCKHOLDERS'                  EQUITY (DEFICIENCY)**                                                                                                                                                                          |   |     |       |   |     |   |   |   |
| Common                  stock; $.001 par value 100,000,000 shares authorized; 4,079,356                  and                  3,226,856 shares issued and outstanding at April 30, 2001 and 2000,                  respectively |   |     | 4,080      |   |     |   | 3,227 |   |
| Additional                  paid in capital                                                                                                                                                                                     |   |     | 2,307,847  |   |     |   | 2,062,167 |   |
| Retained                  earnings                                                                                                                                                                                              |   |     | (2,640,091 | )      |     |   | (2,395,833 | ) |
| **Total                  Stockholders' Equity (Deficiency)**                                                                                                                                                                    |   |     | (328,164   | )      |     |   | (330,439 | ) |
|                                                                                                                                                                                                                            |   |     |       |   |     |   |   |   |
|                                                                                                                                                                                                                            |   |     |       |   |     |   |   |   |
| **Total                  Liabilities and Stockholders' Equity (Deficiency)**                                                                                                                                                    |   | $        | 10,202     |   |     | $      | 13,582 |   |

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**SFG        FINANCIAL CORPORATION AND        SUBSIDIARIES**

**CONSOLIDATED        STATEMENTS OF OPERATIONS**

**FOR        THE THREE MONTHS ENDED APRIL 30,**

|                                                                         |   | **2001** |      |   | **2000** |   |
|------------------------------------------------------------------------------|--------|----------|-----------|--------|----------|--------|
| **Revenue:**                                                                 |   |     |      |   |     |   |
| Rental                  income                                               |   | $        | -         |   |     | $      | 2,766 |   |
|                                                                         |   |     |      |   |     |   |   |   |
| **Total                  Revenues**                                          |   |     | -         |   |     |   | 2,766 |   |
|                                                                         |   |     |      |   |     |   |   |   |
| **Operating                  Expenses**                                      |   |     |      |   |     |   |   |   |
| Professional                  fees                                           |   |     | 3,569     |   |     |   | 26,660 |   |
| Administrative                  expenses                                     |   |     | 26,250    |   |     |   | 5,273 |   |
| Salaries                                                                     |   |     | -         |   |     |   | 6,000 |   |
| **Total                  Operating Expenses**                                |   |     | 29,819    |   |     |   | 37,933 |   |
|                                                                         |   |     |      |   |     |   |   |   |
| **Income                  (Loss) From Operations**                           |   |     | (29,819   | )      |     |   | (35,167 | ) |
|                                                                         |   |     |      |   |     |   |   |   |
| **Provision                  for Taxes**                                     |   |     |      |   |     |   |   |   |
| New                  York State corporate taxes                              |   |     | 155       |   |     |   | - |   |
|                                                                         |   |     |      |   |     |   |   |   |
| **Net                  Income (Loss)**                                       |   | $        | (29,974   | )      |     | $      | (35,167 | ) |
|                                                                         |   |     |      |   |     |   |   |   |
| **Earnings                  Per Share**                                      |   | $        | (0.01     | )      |     | $      | (0.01 | ) |
|                                                                         |   |     |      |   |     |   |   |   |
| **Weighted                  Average of Number of Common Shares Outstanding** |   |     | 4,053,106 |   |     |   | 3,226,856 |   |

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**SFG        FINANCIAL CORPORATION AND SUBSIDIARIES**

**CONSOLIDATED        STATEMENTS OF CASH FLOWS**

**FOR        THE THREE MONTHS ENDED APRIL 30,**

|                                                                                                                              |   | **2001** |    |   | **2000** |   |
|-----------------------------------------------------------------------------------------------------------------------------------|--------|----------|---------|--------|----------|--------|
| **Cash                  flow from operating activities:**                                                                         |   |     |    |   |     |   |
| **Net                  income (loss)**                                                                                            |   | $        | (29,974 | )      |     | $      | (35,167 | ) |
| **Adjustments                  to reconcile net income to net cash provided by (used in) operating                  activities:** |   |     |    |   |     |   |   |   |
| Common                  stock issued fro services                                                                                 |   |     | 26,250  |   |     |   |   |   |
|                                                                                                                              |   |     |    |   |     |   |   |   |
| **Changes                  in assets and liabilities:**                                                                           |   |     |    |   |     |   |   |   |
| Increase                  (decrease) in Assets:                                                                                   |   |     |    |   |     |   |   |   |
| (Increase)                  decrease in Liabilities:                                                                              |   |     |    |   |     |   |   |   |
| Accounts                  payable and accrued expenses                                                                            |   |     | 3,734   |   |     |   | 8,238 |   |
| Due                  to officers                                                                                                  |   |     | -       |   |     |   | (662 | ) |
| **Net                  cash provided by operations**                                                                              |   |     | 10      |   |     |   | (27,591 | ) |
|                                                                                                                              |   |     |    |   |     |   |   |   |
| **Cash                  flow from investing activities:**                                                                         |   |     |    |   |     |   |   |   |
| Proceeds                  from sale of fixed assets                                                                               |   |     | -       |   |     |   | - |   |
| **Cash                  provided from (for) investing activities**                                                                |   |     | -       |   |     |   | - |   |
|                                                                                                                              |   |     |    |   |     |   |   |   |
| **Cash                  flow from financing activities:**                                                                         |   |     |    |   |     |   |   |   |
| **Cash                  flow provided from (for) financing activities**                                                           |   |     | -       |   |     |   | - |   |
|                                                                                                                              |   |     |    |   |     |   |   |   |
| **Net                  increase in cash and cash equivalent**                                                                     |   |     | 10      |   |     |   | (27,591 | ) |
|                                                                                                                              |   |     |    |   |     |   |   |   |
| **Cash                  and cash equivalents at beginning of year**                                                               |   |     | 10,192  |   |     |   | 41,173 |   |
|                                                                                                                              |   |     |    |   |     |   |   |   |
| **Cash                  and cash equivalents at end of year**                                                                     |   | $        | 10,202  |   |     | $      | 13,582 |   |

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**SFG        FINANCIAL CORPORATION AND SUBSIDIARIES**

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

**FOR        THE THREE MONTHS ENDED APRIL 30, 2001 AND 2000**

|                                                                          |   | COMMON                  STOCK |      |   | CAPITAL IN                  EXCESS |   |   | RETAINED                |   |
|-------------------------------------------------------------------------------|--------|-------------------------------|-----------|--------|-----------------------------------------|--------|--------|-------------------------|--------|
|                                                                          |   | SHARES                        |      |   | AMOUNT                                  |   |   | OF                  PAR |   |   | EARNINGS |   |
| **Balance                  at January 31, 2000**                              |   |                          | 3,226,856 |   |                                    | $      | 3,227  |                    |   | $ | 2,062,167 |   |   | $ | (2,360,666 | ) |
|                                                                          |   |                          |      |   |                                    |   |   |                    |   |   |   |   |   |   |   |   |
| Net                  Income (Loss) for the three months ended April 30, 2000  |   |                          |      |   |                                    |   | -      |                    |   |   | - |   |   |   | (35,167 | ) |
|                                                                          |   |                          |      |   |                                    |   |   |                    |   |   |   |   |   |   |   |   |
| **Balance                  at April 30, 2000**                                |   |                          | 3,226,856 |   |                                    |   | 3,227  |                    |   |   | 2,062,167 |   |   |   | (2,395,833 | ) |
|                                                                          |   |                          |      |   |                                    |   |   |                    |   |   |   |   |   |   |   |   |
| 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 the nine months ended January 31, 2001 |   |                          |      |   |                                    |   |   |                    |   |   |   |   |   |   | (214,284 | ) |
|                                                                          |   |                          |      |   |                                    |   |   |                    |   |   |   |   |   |   |   |   |
| **Balance                  at January 31, 2001**                              |   |                          | 4,026,856 |   |                                    |   | 4,027  |                    |   |   | 2,281,650 |   |   |   | (2,610,117 | ) |
|                                                                          |   |                          |      |   |                                    |   |   |                    |   |   |   |   |   |   |   |   |
| Shares                  issued for services                                   |   |                          | 52,500    |   |                                    |   | 53     |                    |   |   | 26,197 |   |   |   | - |   |
| Net                  Income (Loss) for the three months ended April 30, 2001  |   |                          |      |   |                                    |   | -      |                    |   |   | - |   |   |   | (29,974 | ) |
|                                                                          |   |                          |      |   |                                    |   |   |                    |   |   |   |   |   |   |   |   |
| **Balance                  at April 30, 2001**                                |   |                          | 4,079,356 |   |                                    | $      | 4,080  |                    |   | $ | 2,307,847 |   |   | $ | (2,640,091 | ) |

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**SFG        FINANCIAL CORPORATION AND SUBSIDIARIES**

**NOTES        TO CONSOLIDATED FINANCIAL STATEMENTS**

**April        30, 2001 and 2000 **

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

**Summary        of accounting policies**

**Basis        of consolidation**

**Leasing        arrangements**

**Equipment        under operating leases and furniture and equipment**

|                                              |   | April                  30, |    |
|---------------------------------------------------|--------|----------------------------|---------|
|                                              |   | 2001                       |    |   | 2000 |   |
| Equipment                  under operating leases |   | $                          | 335,907 |   |   | $ | 335,907 |   |
| Furniture                  and equipment          |   |                       | 1,655   |   |   |   | 1,655 |   |
|                                              |   |                       | 337,562 |   |   |   | 337,562 |   |
| Accumulated                  depreciation         |   |                       | 337,562 |   |   |   | 337,562 |   |
| Net                                               |   | $                          | 0       |   |   | $ | 0 |   |

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

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**Cash        and cash equivalents**

**Earnings        per share**

**Income        taxes**

**Use        of estimates**

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

**Lease**

**Due        from/to officers**

| **3.** | **Income                  taxes** |
|--------|-----------------------------------|

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| **4.** | **Stock                  based compensation** |
|--------|-----------------------------------------------|

| **5.** | **Common                  stock transactions** |
|--------|------------------------------------------------|

| **6.** | **Loss                  on investment** |
|--------|-----------------------------------------|

| **7.** | **Going                  concern** |
|--------|------------------------------------|

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**ITEM        2 - MANAGEMENT’S DISCUSSION AND ANALYSIS**

**Plan        of Operation**

**Forward        Looking Statements**

** **

**ITEM        3 - CONTROLS AND PROCEDURES**

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**PART        II - OTHER INFORMATION**

**ITEM        1 - LEGAL PROCEEDINGS**

**ITEM        2 - UNREGISTERED SALES OF EQUITY SECURITIES AND USE        OF**
**PROCEEDS**

**ITEM        3 - DEFAULTS ON SENIOR SECURITIES**

**ITEM        4 - SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS**

**ITEM        5 - OTHER INFORMATION**

**ITEM        6 - EXHIBITS**

|   | 31.1 | Certification                  of CEO, CFO Pursuant to 13a-14(a) or 15d-14(a) under the Exchange                  Act. |
|--------|------|------------------------------------------------------------------------------------------------------------------------|

|   | 32.1 | Certification                  of the CEO, CFO pursuant to 18 U.S.C Section                  1350 |
|--------|------|---------------------------------------------------------------------------------------------------|

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**SIGNATURES**

|                                                  | **SFG                  FINANCIAL CORPORATION** |
|-------------------------------------------------------|------------------------------------------------|
|                                                  |                                           |   |
|                                                  |                                           |   |
|                                                  |                                           |   |
| Dated:  September                  28, 2007 | By:                                            | /s/                  Bruce                  Stephens                                                           |
|                                                  |                                           | Bruce                  Stephens |
|                                                  |                                           | Chief                  Executive Officer and Principal                  Accounting Officer |

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