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**UNITED        STATES**

**SECURITIES        AND EXCHANGE COMMISSION**

**FORM        10-QSB**

**SFG        FINANCIAL CORPORATION**

| **Delaware**                                                                                    | **13-320894**                                                      |
|-------------------------------------------------------------------------------------------------|--------------------------------------------------------------------|
| (State                  or other jurisdictionof                  incorporation or organization) | (IRS                  EmployerIdentification                  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, 2004**

**TABLE        OF CONTENTS**

| PART                  1  | FINANCIAL                  INFORMATION                                           |    |
|--------------------------|----------------------------------------------------------------------------------|---------|
|                     |                                                                             |    |
| Item                  1. | Financial                  Statements                                            |  3 |
|                     |                                                                             |    |
|                     | Balance                  Sheets                                                  | 3       |
|                     |                                                                             |    |
|                     | Statements                  of Operations                                        | 4       |
|                     |                                                                             |    |
|                     | Statements                  of Stockholders' Equity (Deficiency)                 | 5       |
|                     |                                                                             |    |
|                     | Statements                  of Cash Flows                                        |  6 |
|                     |                                                                             |    |
|                     | Notes                  to Financial Statements                                   | 7       |
|                     |                                                                             |    |
| Item                  2. | Management’s                  Discussion and Analysis or Plan of Operation | 9       |
|                     |                                                                             |    |
| Item                  3. | Controls                  and Procedures                                         | 9       |
|                     |                                                                             |    |
| PART                  II | OTHER                  INFORMATION                                               |    |
|                     |                                                                             |    |
| Item                  1. | Legal                  Proceedings                                               | 10      |
|                     |                                                                             |    |
| Item                  2. | Unregistered                  Sales of Equity Securities and Use of Proceeds     | 10      |
|                     |                                                                             |    |
| Item                  3. | Defaults                  Upon Senior Securities                                 | 10      |
|                     |                                                                             |    |
| Item                  4. | Submission                  of Matters to a Vote of Security Holders             | 10      |
|                     |                                                                             |    |
| Item                  5. | Other                  Information                                               | 10      |
|                     |                                                                             |    |
| Item                  6. | Exhibits                                                                         | 10      |
|                     |                                                                             |    |
| SIGNATURES               | 11                                                                               |

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**PART        1 - FINANCIAL INFORMATION**

**ITEM        1 – FINANCIAL STATEMENTS**

**SFG        FINANCIAL CORPORATION AND SUBSIDIARIES**

**CONSOLIDATED        BALANCE SHEETS**

**AS        OF APRIL 30,**

|                                                                                                                                                                                                                            |   | **2004** |       |   | **2003** |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------|------------|--------|----------|--------|
| **ASSETS**                                                                                                                                                                                                                      |   |
| **Current                  Assets**                                                                                                                                                                                             |   |     |       |   |     |   |
| Cash                                                                                                                                                                                                                            |   | $        | 20         |   |     | $      | - |   |
| Accounts                  receivable                                                                                                                                                                                            |   |     | -          |   |     |   | 20 |   |
| **Total                  Current Assets**                                                                                                                                                                                       |   |     | 20         |   |     |   | 20 |   |
|                                                                                                                                                                                                                            |   |     |       |   |     |   |   |   |
|                                                                                                                                                                                                                            |   |     |       |   |     |   |   |   |
| **Total                  Assets**                                                                                                                                                                                               |   |     | 20         |   |     |   | 20 |   |
|                                                                                                                                                                                                                            |   |     |       |   |     |   |   |   |
| **LIABILITIES                  AND STOCKHOLDERS' EQUITY (DEFICIENCY)**                                                                                                                                                          |   |
| **Liabilities**                                                                                                                                                                                                                 |   |     |       |   |     |   |   |   |
| Accounts                  payable and accrued expenses                                                                                                                                                                          |   |     | 70,280     |   |     |   | 62,071 |   |
| Due                  to related parties                                                                                                                                                                                         |   |     | 7,019      |   |     |   | - |   |
| **Total                  Liabilities**                                                                                                                                                                                          |   |     | 77,299     |   |     |   | 62,071 |   |
|                                                                                                                                                                                                                            |   |     |       |   |     |   |   |   |
| **STOCKHOLDERS'                  EQUITY (DEFICIENCY)**                                                                                                                                                                          |   |     |       |   |     |   |   |   |
| Common                  stock; $.001 par value 100,000,000 shares authorized; 4,293,856                  and                  4,293,856 shares issued and outstanding at April 30, 2004 and 2003,                  respectively |   |     | 4,294      |   |     |   | 4,294 |   |
| Additional                  paid in capital                                                                                                                                                                                     |   |     | 2,423,321  |   |     |   | 2,423,321 |   |
| Retained                  earnings                                                                                                                                                                                              |   |     | (2,504,894 | )      |     |   | (2,489,666 | ) |
| **Total                  Stockholders' Equity (Deficiency)**                                                                                                                                                                    |   |     | (77,279    | )      |     |   | (62,051 | ) |
|                                                                                                                                                                                                                            |   |     |       |   |     |   |   |   |
|                                                                                                                                                                                                                            |   |     |       |   |     |   |   |   |
| **Total                  Liabilities and Stockholders' Equity (Deficiency)**                                                                                                                                                    |   | $        | 20         |   |     | $      | 20 |   |

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**SFG        FINANCIAL CORPORATION AND SUBSIDIARIES**

**CONSOLIDATED        STATEMENTS OF OPERATIONS**

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

|                                                                         |   | **2004** |      |   | **2003** |   |
|------------------------------------------------------------------------------|--------|----------|-----------|--------|----------|--------|
| **Revenue:**                                                                 |   |     |      |   |     |   |
| Rental                  income                                               |   | $        | -         |   |     | $      | - |   |
|                                                                         |   |     |      |   |     |   |   |   |
| **Total                  Revenues**                                          |   |     | -         |   |     |   | - |   |
|                                                                         |   |     |      |   |     |   |   |   |
| **Operating                  Expenses**                                      |   |     |      |   |     |   |   |   |
| Professional                  fees                                           |   |     | -         |   |     |   | - |   |
| Office                  expense                                              |   |     | 565       |   |     |   | - |   |
| **Total                  Operating Expenses**                                |   |     | 565       |   |     |   | - |   |
|                                                                         |   |     |      |   |     |   |   |   |
| **Income                  (Loss) From Operations**                           |   |     | (565      | )      |     |   | - |   |
|                                                                         |   |     |      |   |     |   |   |   |
| **Provision                  for Taxes**                                     |   |     |      |   |     |   |   |   |
| New                  York State corporate taxes                              |   |     | -         |   |     |   | - |   |
|                                                                         |   |     |      |   |     |   |   |   |
| **Net                  Income (Loss)**                                       |   | $        | (565      | )      |     | $      | - |   |
|                                                                         |   |     |      |   |     |   |   |   |
| **Earnings                  Per Share**                                      |   | $        | (0.00     | )      |     | $      | - |   |
|                                                                         |   |     |      |   |     |   |   |   |
| **Weighted                  Average of Number of Common Shares Outstanding** |   |     | 4,293,856 |   |     |   | 4,293,856 |   |

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**SFG        FINANCIAL CORPORATION AND SUBSIDIARIES**

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

**FOR        THE THREE MONTHS ENDED APRIL 30, 2004 AND 2003**

|                                                                          |   | COMMON                  STOCK |      |   | CAPITALIN                  EXCESS |   |   | RETAINED                |   |
|-------------------------------------------------------------------------------|--------|-------------------------------|-----------|--------|-----------------------------------|--------|--------|-------------------------|--------|
|                                                                          |   | SHARES                        |      |   | AMOUNT                            |   |   | OF                  PAR |   |   | EARNINGS |   |
| **Balance                  at January 31, 2003**                              |   |                          | 4,293,856 |   |                              | $      | 4,294  |                    |   | $ | 2,423,321 |   |   | $ | (2,489,666 | ) |
|                                                                          |   |                          |      |   |                              |   |   |                    |   |   |   |   |   |   |   |   |
| Net                  Income (Loss) for the three months ended April 30, 2003  |   |                          |      |   |                              |   | -      |                    |   |   | - |   |   |   | - |   |
|                                                                          |   |                          |      |   |                              |   |   |                    |   |   |   |   |   |   |   |   |
| **Balance                  at April 30, 2003**                                |   |                          | 4,293,856 |   |                              |   | 4,294  |                    |   |   | 2,423,321 |   |   |   | (2,489,666 | ) |
|                                                                          |   |                          |      |   |                              |   |   |                    |   |   |   |   |   |   |   |   |
| Net                  Income (Loss) for the nine months ended January 31, 2004 |   |                          |      |   |                              |   |   |                    |   |   |   |   |   |   | (14,663 | ) |
|                                                                          |   |                          |      |   |                              |   |   |                    |   |   |   |   |   |   |   |   |
| **Balance                  at January 31, 2004**                              |   |                          | 4,293,856 |   |                              |   | 4,294  |                    |   |   | 2,423,321 |   |   |   | (2,504,329 | ) |
|                                                                          |   |                          |      |   |                              |   |   |                    |   |   |   |   |   |   |   |   |
| Net                  Income (Loss) for the three months ended April 30, 2004  |   |                          | -         |   |                              |   | -      |                    |   |   | - |   |   |   | (565 | ) |
|                                                                          |   |                          |      |   |                              |   |   |                    |   |   |   |   |   |   |   |   |
| **Balance                  at April 30, 2004**                                |   |                          | 4,293,856 |   |                              | $      | 4,294  |                    |   | $ | 2,423,321 |   |   | $ | (2,504,894 | ) |

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**SFG        FINANCIAL CORPORATION**

**STATEMENTS        OF CASH FLOWS**

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

|                                                                                                                   |   | **2004** |   |   | **2003** |   |
|------------------------------------------------------------------------------------------------------------------------|--------|----------|--------|--------|----------|--------|
| **Cash                  flow from operating activities:**                                                              |   |     |   |   |     |   |
| **Net                  income (loss)**                                                                                 |   | $        | (565   | )      |     | $      | - |   |
| **Adjustments                  to reconcile net income to net cash provided by operating                  activities** |   |     |   |   |     |   |   |   |
| **Changes                  in assets and liabilities:**                                                                |   |     |   |   |     |   |   |   |
| Increase                  (decrease) in accounts payable                                                               |   |     | 565    |   |     |   |   |   |
| **Net                  cash provided by operations**                                                                   |   |     | -      |   |     |   | - |   |
|                                                                                                                   |   |     |   |   |     |   |   |   |
| **Cash                  flow from investing activities:**                                                              |   |     |   |   |     |   |   |   |
| Purchase                  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**                                                          |   |     | -      |   |     |   | - |   |
|                                                                                                                   |   |     |   |   |     |   |   |   |
| **Cash                  and cash equivalents at beginning of year**                                                    |   |     | 20     |   |     |   | - |   |
|                                                                                                                   |   |     |   |   |     |   |   |   |
| **Cash                  and cash equivalents at end of year**                                                          |   | $        | 20     |   |     | $      | - |   |
|                                                                                                                   |   |     |   |   |     |   |   |   |
| **Cash                  paid for interest and income taxes as follows:**                                               |   |     |   |   |     |   |   |   |
| Interest                                                                                                               |   | $        | -      |   |     | $      | - |   |
| Corporate                  income taxes paid                                                                           |   | $        | -      |   |     | $      | - |   |

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**SFG        FINANCIAL CORPORATION AND SUBSIDIARIES**

**NOTES          TO CONSOLIDATED FINANCIAL STATEMENTS**

**April          30, 2004 and 2003 **

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

**Summary        of accounting policies**

**Business        operations**

**Cash**

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

**Income        taxes**

**Use        of estimates**

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

**Lease**

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**Due        to related parties**

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

| **4.** | **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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