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**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      D.C. 20549**

**FORM      10-QSB**

|  | [X] | QUARTERLY                REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF                1934 |
|--|-----|-----------------------------------------------------------------------------------------------------------------|

**For      the quarterly period ended July 31, 2007**

|  | [  ] | TRANSITION                REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE                ACT |
|--|----------------|-----------------------------------------------------------------------------------------------|

*000-13635*

**SFG      FINANCIAL CORPORATION**

| **Delaware**                                                                                | **13-3208094**                                                 |
|---------------------------------------------------------------------------------------------|----------------------------------------------------------------|
| (State                or other jurisdictionof                incorporation or organization) | (IRS                EmployerIdentification                No.) |

**300      Park Avenue, Suite 1756**

**New      York, NY 10022**

**(212)      705-4201**

    Yes [   ]   No [X]

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**SFG      FINANCIAL CORPORATION**

**INDEX**

| PART                1  | FINANCIAL                INFORMATION                                                                                                              |   |
|------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                   |                                                                                                                                              |   |
| Item                1. | Financial                Statements                                                                                                               |   |
|                   |                                                                                                                                              |   |
|                   | Condensed                Consolidated Balance Sheet (unaudited)                                                                                   | 3      |
|                   |                                                                                                                                              |   |
|                   | Condensed                Consolidated Statements of Operations – Three Months and Six Months Ended                July 31, 2007 (unaudited) | 4      |
|                   |                                                                                                                                              |   |
|                   | Condensed                Consolidated Statement of Cash Flows – Six Months Ended July 31, 2007                (unaudited)                   | 5      |
|                   |                                                                                                                                              |   |
|                   | Notes                to Condensed Consolidated Interim Financial Statements                                                                       | 6-8    |
|                   |                                                                                                                                              |   |
| Item                2. | Management’s                Discussion and Analysis or Plan of Operation                                                                    | 9      |
|                   |                                                                                                                                              |   |
| Item                3. | Controls                and Procedures                                                                                                            | 12     |
|                   |                                                                                                                                              |   |
| PART                II | OTHER                INFORMATION                                                                                                                  |   |
|                   |                                                                                                                                              |   |
| Item                1. | Legal                Proceedings                                                                                                                  | 13     |
|                   |                                                                                                                                              |   |
| Item                2. | Unregistered                Sales of Equity Securities and Use of Proceeds                                                                        | 13     |
|                   |                                                                                                                                              |   |
| Item                3. | Defaults                Upon Senior Securities                                                                                                    | 13     |
|                   |                                                                                                                                              |   |
| Item                4. | Submission                of Matters to a Vote of Security Holders                                                                                | 13     |
|                   |                                                                                                                                              |   |
| Item                5. | Other                Information                                                                                                                  | 13     |
|                   |                                                                                                                                              |   |
| Item                6. | Exhibits                                                                                                                                          | 13     |
|                   |                                                                                                                                              |   |
| SIGNATURES             | 14                                                                                                                                                |

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**PART      I – FINANCIAL INFORMATION**

**ITEM      1 – FINANCIAL STATEMENTS**

**SFG      FINANCIAL CORPORATION AND SUBSIDIARIES**

**CONDENSED      CONSOLIDATED BALANCE SHEET**

**JULY      31, 2007**

**(UNAUDITED)**

| **ASSETS**                                                                                                                                    |   |   |       |
|-----------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|------------|
| **Current                Assets**                                                                                                             |   |   |       |
| Cash                                                                                                                                          |   | $      | 17,616     |   |
| Other                receivables                                                                                                              |   |   | 100,092    |   |
| **Total                Current Assets**                                                                                                       |   |   | 117,708    |   |
|                                                                                                                                          |   |   |       |   |
| **Fixed                Assets**                                                                                                               |   |   |       |   |
| Property                and equipment (net of accumulated depreciation)                                                                       |   |   | 9,040      |   |
| Trading                platform (net of accumulated amortization)                                                                             |   |   | 862,167    |   |
| **Total                Fixed Assets**                                                                                                         |   |   | 871,207    |   |
|                                                                                                                                          |   |   |       |   |
| **Other                Assets**                                                                                                               |   |   |       |   |
| Lease                security deposit                                                                                                         |   |   | 22,685     |   |
| **Total                Other Assets**                                                                                                         |   |   | 22,685     |   |
| **Total                Assets**                                                                                                               |   | $      | 1,011,600  |   |
|                                                                                                                                          |   |   |       |   |
| **LIABILITIES                AND STOCKHOLDERS' EQUITY**                                                                                       |   |   |       |   |
| **LIABILITIES**                                                                                                                               |   |   |       |   |
| Accounts                payable and accrued expenses                                                                                          |   |   | 520,106    |   |
| Loans                payable                                                                                                                  |   |   | 217,630    |   |
| **Total                Liabilities**                                                                                                          |   |   | 737,736    |   |
|                                                                                                                                          |   |   |       |   |
| **STOCKHOLDERS'                EQUITY**                                                                                                       |   |   |       |   |
| Preferred                Stock; $.0001 par value 2,000 shares authorized 770 shares issued                and                outstanding      |   |   | -          |   |
| Common                stock; $.001 par value 100,000,000 shares authorized                99,998,860  shares issued and outstanding |   |   | 99,999     |   |
| Additional                paid in capital                                                                                                     |   |   | 7,110,872  |   |
| Accumulated                deficit                                                                                                            |   |   | (6,937,007 | ) |
| **Total                Stockholders' Equity**                                                                                                 |   |   | 273,864    |   |
|                                                                                                                                          |   |   |       |   |
| **Total                Liabilities and Stockholders' Equity**                                                                                 |   | $      | 1,011,600  |   |

See      accompanying notes to condensed consolidated interim      financial statements.

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**SFG      FINANCIAL CORPORATION AND SUBSIDIARIES**

**CONDENSED      CONSOLIDATED STATEMENTS OF OPERATIONS**

**(UNAUDITED)**

|                                                                       |   | **For                the Three****Months                ended****July                31, 2007** |       |   | **For                the Six****Months                ended****July                31, 2007** |   |
|----------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------|------------|--------|----------------------------------------------------------------------------------------------------|--------|
|                                                                       |   |                                                                                            |       |   |                                                                                               |   |
| **Revenue:**                                                               |   |                                                                                            |       |   |                                                                                               |   |
| Revenues                                                                   |   | $                                                                                               | -          |   |                                                                                               | $      | - |   |
| **Total                Revenue**                                           |   |                                                                                            | -          |   |                                                                                               |   | - |   |
|                                                                       |   |                                                                                            |       |   |                                                                                               |   |   |   |
| **Expenses**                                                               |   |                                                                                            |       |   |                                                                                               |   |   |   |
| Selling,                general and administrative expenses                |   |                                                                                            | 388,834    |   |                                                                                               |   | 713,331 |   |
| Depreciation                and amortization                               |   |                                                                                            | 92,079     |   |                                                                                               |   | 184,158 |   |
| **Total                Expenses**                                          |   |                                                                                            | 480,913    |   |                                                                                               |   | 897,489 |   |
|                                                                       |   |                                                                                            |       |   |                                                                                               |   |   |   |
| **Net                Loss Available to Common Shareholders**               |   | $                                                                                               | (480,913   | )      |                                                                                               | $      | (897,489 | ) |
|                                                                       |   |                                                                                            |       |   |                                                                                               |   |   |   |
| **Primary                and Fully Diluted Earnings Per Share**            |   | $                                                                                               | (0.0253    | )      |                                                                                               | $      | (0.0739 | ) |
|                                                                       |   |                                                                                            |       |   |                                                                                               |   |   |   |
| **Weighted                Average of Number of Common Shares Outstanding** |   |                                                                                            | 18,990,579 |   |                                                                                               |   | 12,152,217 |   |

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**SFG      FINANCIAL CORPORATION AND SUBSIDIARIES**

**CONDENSED      CONSOLIDATED STATEMENT OF CASH FLOW**

**SIX      MONTHS ENDED JULY 31, 2007**

**(UNAUDITED)**

| **Net                cash provided by operations**                      |   | $      | (551,998 | )      |
|-------------------------------------------------------------------------|--------|--------|----------|--------|
|                                                                    |   |   |     |   |
| **Cash                flow from investing activities:**                 |   |   |     |   |
| Purchase                of  fixed assets                      |   |   | (8,000   | )      |
| Liabilities                acquired (reverse merger transaction)        |   |   | (61,369  | )      |
| **Cash                used in investing activities**                    |   |   | (69,369  | )      |
|                                                                    |   |   |     |   |
| **Cash                flow from financing activities:**                 |   |   |     |   |
| Proceeds                from sale of preferred stock                    |   |   | 599,908  |   |
| **Cash                flow provided by financing activities**           |   |   | 599,908  |   |
|                                                                    |   |   |     |   |
| **Net                decrease in cash and cash equivalent**             |   |   | (21,459  | )      |
| **Cash                and cash equivalents at beginning of the period** |   |   | 39,075   |   |
|                                                                    |   |   |     |   |
| **Cash                and cash equivalents at end of the period**       |   | $      | 17,616   |   |

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**SFG      FINANCIAL CORPORATION AND SUBSIDIARIES**

**NOTES      TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS**

**(Unaudited)**

| **1.** | **Unaudited                Statements** |
|--------|-----------------------------------------|

| **2.** | **Background,                Basis of Presentation and Reverse Acquisition                Transaction** |
|--------|---------------------------------------------------------------------------------------------------------|

|   | **a.** | **Merger** |
|--------|--------|------------|

|   | **b.** | **Cash                and cash equivalents** |
|--------|--------|----------------------------------------------|

|   | **c.** | **Use                of estimates** |
|--------|--------|-------------------------------------|

|   | **d.** | **Earnings                per share** |
|--------|--------|---------------------------------------|

|   | **e.** | **Income                taxes** |
|--------|--------|---------------------------------|

| **3.** | **Going                Concern** |
|--------|----------------------------------|

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| **4.** | **Other                Receivables** |
|--------|--------------------------------------|

| **5.** | **Fixed                Assets** |
|--------|---------------------------------|

| **Description**                               |   | **Cost** |    |
|-----------------------------------------------|--------|----------|---------|
| Furniture                & Fixtures       |   | $        | 14,270  |   |
| Computer                equipment             |   |     | 221,078 |   |
| Leasehold                Improvements         |   |     | 18,500  |   |
| Telephone                system               |   |     | 15,642  |   |
| Total                cost                     |   |     | 269,490 |   |
|                                          |   |     |    |   |
| Less:                accumulated depreciation |   |     | 260,297 |   |
| et                property and equipment      |   | $        | 9,193   |   |

| **Year                ended January 31,**    |   | **Cost** |       |
|----------------------------------------------|--------|----------|------------|
| 2003                                         |   | $        | 445,730    |   |
| 2004                                         |   |     | 520,261    |   |
| 2005                                         |   |     | 342,374    |   |
| 2006                                         |   |     | 355,965    |   |
| 2007                                         |   |     | 454,920    |   |
| 2008                                         |   |     | 8,000      |   |
| Total                cost                    |   |     | 2,127,250  |   |
|                                         |   |     |       |   |
| Less                accumulated amortization |   |     | (1,265,236 | ) |
|                                         |   |     |       |   |
| Net                trading platform          |   | $        | 862,014    |   |

| **6.** | **Accounts                Payable and Accrued                Expenses** |
|--------|-------------------------------------------------------------------------|

| **7.** | **Loans                Payable** |
|--------|----------------------------------|

| **8.** | **Income                Taxes** |
|--------|---------------------------------|

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| **9.** | **Lease                Obligation:** |
|--------|--------------------------------------|

| **YEAR                ENDING JANUARY 31,** |   | **AMOUNT                OF LEASE PAYMENTS** |                                |
|--------------------------------------------|--------|---------------------------------------------|-------------------------------------|
| 2008                                       |   | $                                           | 453,407                             |   |
| 2009                                       |   |                                        | 44,233                              |   |
| 2009                                       |   |                                        | -                0                - |   |
| 2010                                       |   |                                        | -                0                - |   |
| 2011                                       |   |                                        | -                0                - |   |

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

**Plan      of Operation and Merger Summary**

**Three      Month Period Ended July 31, 2007**

| For                the three months ended July 31,          |   | 2007   |     | %                ofRevenues |
|-------------------------------------------------------------|--------|--------|----------|-----------------------------|
|                                                        |   |   |     |                        |
| **Revenues**                                                |   | $      | 0        |                        | NM |
|                                                        |   |   |     |                        |   |
| **Operating                expenses:**                      |   |   |     |                        |   |
| Selling,                general and administrative expenses |   |   | 388,834  |                        | NM |
| Depreciation                and amortization                |   |   | 92,079   |                        | NM |
|                                                        |   |   |     |                        |   |
|                                                        |   |   | 480,913  |                        | NM |
|                                                        |   |   |     |                        |   |
| Net                (Loss)                                   |   | $      | (480,913 | )                           | NM |
|                                                        |   |   |     |                        |   |
| NM                - Not meaningful                          |   |   |     |                        |   |

**Six      Month Period Ended July 31, 2007**

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| For                the six months ended July 31,            |   | 2007   |     | %                of Revenues |   |
|-------------------------------------------------------------|--------|--------|----------|------------------------------|--------|
|                                                        |   |   |     |                         |   |
| **Revenues**                                                |   | $      | 0        |                         | NM     |   |
|                                                        |   |   |     |                         |   |   |
| **Operating                expenses:**                      |   |   |     |                         |   |   |
| Selling,                general and administrative expenses |   |   | 713,331  |                         | NM     |   |
| Depreciation                and amortization                |   |   | 184,158  |                         | NM     |   |
|                                                        |   |   |     |                         |   |   |
|                                                        |   |   | 897,489  |                         | NM     |   |
|                                                        |   |   |     |                         |   |   |
| Net                (Loss)                                   |   | $      | (897,489 | )                            | NM     |   |
|                                                        |   |   |     |                         |   |   |
| NM                - Not meaningful                          |   |   |     |                         |   |   |

**Liquidity      and Capital Resources**

| Cash                                      |   | $ | 17,616  |   |
|-------------------------------------------|--------|---|---------|--------|
| Working                Capital Deficit    |   | $ | 620,028 |   |
| Stockholders’                Equity |   | $ | 273,864 |   |

| **Net                cash provided by operations**               |   | $      | (551,998 | )      |
|------------------------------------------------------------------|--------|--------|----------|--------|
|                                                             |   |   |     |   |
| **Cash                flow from investing activities:**          |   |   |     |   |
| Purchase                of  fixed assets               |   |   | (8,000   | )      |
| Liabilities                acquired (reverse merger transaction) |   |   | (61,369  | )      |
| **Cash                used in investing activities**             |   |   | (69,369  | )      |
|                                                             |   |   |     |   |
| **Cash                flow from financing activities:**          |   |   |     |   |
| Proceeds                from sale of preferred stock             |   |   | 599,908  |   |
| **Cash                flow provided by financing activities**    |   |   | 599,908  |   |
|                                                             |   |   |     |   |
| **Net                decrease in cash**                          |   | $      | (21,459  | )      |

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**Future      Contractual Obligations**

|                                     |   | Payments                due by                period |    |
|------------------------------------------|--------|------------------------------------------------------|---------|
|                                     |   | Total                                                |    |   | Less                than 1 year |   |   | 1                -                2 years |   |
| Contractual                  obligations |   | $                                                    | 497,640 |   |   | $ | 453,407 |   |   | $ | 44,233 |   |

**Critical      Accounting Policies and Estimates**

**Revenue      Recognition**

**Management's      Estimates**

**Inflation**

**Forward      Looking Statements**

** **

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**ITEM      3 – CONTROLS AND PROCEDURES**

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**PART      II – OTHER INFORMATION**

**ITEM      1 – LEGAL PROCEEDINGS**

**ITEM      2 – UNREGISTER SALES OF EQUITY SECURITIES AND USE OF      PROCEEDS**

**ITEM      3 – DEFAULTS UPON 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:  December                6, 2007 | By:                                          | /s/                LEONARD                NEUHAUS            |
|                                              |                                         | Leonard                Neuhaus |
|                                              |                                         | Chief                Executive Officer and |
|                                              |                                         | Chief                Financial Officer |

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