EXHIBIT
      31





CERTIFICATION


SECTION
      1350 AS ADOPTED PURSUANT TO


SECTION
      302 OF THE SARBANES - OXLEY


ACT
      OF
      2002








I,
      John
      A. Dugan, CEO, certify that:





1.
      I have
      reviewed this Quarterly Report on Form 10-QSB of SFG Financial Corporation
      (the "Registrant");





2.
      Based
      on my knowledge, this Quarterly Report does not contain any untrue statement
      of a material fact or omit to state a material fact necessary to make the
      statements made, in light of the circumstances under which such statements were
      made, not misleading with respect to the period covered by this quarterly report;





3.
      Based
      on my knowledge, the financial statements and other financial information
      included in this Quarterly Report fairly present in all material respects
      the financial condition, and results of operations of the Registrant as of,
      and
      for, the periods presented in this Quarterly Report.





4.
      I am
      are responsible for establishing
      and maintaining disclosure controls and procedures (as defined in Exchange
      Act Rules 13a-14 and 15d-14) for the Registrant and have:





a)
      Designed
      such disclosure controls and procedures to insure that material
      information relating to the Registrant is made known to us, particularly
      during the period in which this Quarterly Report is being prepared;





b)
      Evaluated
      the effectiveness of the Registrant's disclosure controls and
      procedures as of a date within 90 days prior to the filing date of this
      Quarterly Report the (the "Evaluation Date"); and





c)
      Presented
      in this Quarterly Report our conclusions about the effectiveness
      of the disclosure controls and procedures based on our evaluation
      as of the Evaluation Date;





5.
      I have
      disclosed, based upon our most recent evaluation, to the Registrant's auditors
      and the Registrant's board of directors:





a)
      All
      significant deficiencies in the design or operation of
      internal controls
      which could adversely affect the Registrant's ability to record,
      process, summarize and report financial data and have identified
      for the auditor's any material weaknesses in internal controls;
      and





b)
      Any fraud,
      whether or not material, that involves management or others who
      have a significant role in the Registrant's internal controls; and





6.
      The
      Registrant's other director and I have indicated in this Quarterly Report
      w hether
      or
      not there were significant changes in internal controls or in other factors
      that could significantly affect changes in internal controls subsequent to
      the
      date of our most recent evaluation, including any corrective actions with regard
      to
      significant deficiencies and material weaknesses.




**SFG
              FINANCIAL CORPORATION**Date: January
              23, 2007
            By:
            /s/ John
              A.
              DuganJohn
              A. DuganChairman/CEO,
              Director