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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 OCTOBER 31, 2001**

**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 | 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 OCTOBER 31,**

|                                                                                                                                                                                                       |   | **2001** |       |   | **2000** |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------|------------|--------|----------|--------|
| **ASSETS**                                                                                                                                                                                                 |   |
| **Current                Assets**                                                                                                                                                                          |   |     |       |   |     |   |
| Cash                on hand                                                                                                                                                                                |   | $        | 10,192     |   |     | $      | 16,810 |   |
| Loans                receivable                                                                                                                                                                            |   |     |       |   |     |   | 11,500 |   |
| **Total                Current Assets**                                                                                                                                                                    |   |     | 10,192     |   |     |   | 28,310 |   |
|                                                                                                                                                                                                       |   |     |       |   |     |   |   |   |
| **Total                Assets**                                                                                                                                                                            |   |     | 10,192     |   |     |   | 28,310 |   |
|                                                                                                                                                                                                       |   |     |       |   |     |   |   |   |
| **LIABILITIES                AND STOCKHOLDERS' EQUITY (DEFICIENCY)**                                                                                                                                       |   |
| **Liabilities**                                                                                                                                                                                            |   |     |       |   |     |   |   |   |
| Accounts                payable and accrued expenses                                                                                                                                                       |   |     | 122,957    |   |     |   | 114,538 |   |
| Due                to officers                                                                                                                                                                             |   |     | 845        |   |     |   | 2,095 |   |
| Sales                tax payable                                                                                                                                                                           |   |     | 221,692    |   |     |   | 221,695 |   |
| **Total                Liabilities**                                                                                                                                                                       |   |     | 345,494    |   |     |   | 338,328 |   |
|                                                                                                                                                                                                       |   |     |       |   |     |   |   |   |
| **STOCKHOLDERS'                EQUITY (DEFICIENCY)**                                                                                                                                                       |   |     |       |   |     |   |   |   |
| Common                stock; $.001 par value 100,000,000 shares authorized; 4,184,356 and                3,406,856 shares issued and outstanding at October 31, 2001 and 2000,                respectively |   |     | 4,185      |   |     |   | 3,407 |   |
| Additional                paid in capital                                                                                                                                                                  |   |     | 2,360,242  |   |     |   | 2,209,769 |   |
| Retained                earnings                                                                                                                                                                           |   |     | (2,699,729 | )      |     |   | (2,523,194 | ) |
| **Total                Stockholders' Equity (Deficiency)**                                                                                                                                                 |   |     | (335,302   | )      |     |   | (310,018 | ) |
|                                                                                                                                                                                                       |   |     |       |   |     |   |   |   |
|                                                                                                                                                                                                       |   |     |       |   |     |   |   |   |
| **Total                Liabilities and Stockholders' Equity (Deficiency)**                                                                                                                                 |   | $        | 10,192     |   |     | $      | 28,310 |   |

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**SFG      FINANCIAL CORPORATION AND SUBSIDIARIES**

**CONSOLIDATED      STATEMENTS OF OPERATIONS**

**FOR      THE NINE MONTHS ENDED OCTOBER 31,**

|                                                                       |   | **2001** |      |   | **2000** |   |
|----------------------------------------------------------------------------|--------|----------|-----------|--------|----------|--------|
| **Revenue:**                                                               |   |     |      |   |     |   |
| Rental                income                                               |   | $        | -         |   |     | $      | 9,620 |   |
|                                                                       |   |     |      |   |     |   | - |   |
| **Total                Revenues**                                          |   |     | -         |   |     |   | 9,620 |   |
|                                                                       |   |     |      |   |     |   |   |   |
| **Operating                Expenses**                                      |   |     |      |   |     |   |   |   |
| Professional                fees                                           |   |     | 10,707    |   |     |   | 110,475 |   |
| Administrative                expenses                                     |   |     | 78,750    |   |     |   | 48,573 |   |
| Salaries                                                                   |   |     | -         |   |     |   | 13,100 |   |
| **Total                Operating Expenses**                                |   |     | 89,457    |   |     |   | 172,148 |   |
|                                                                       |   |     |      |   |     |   |   |   |
| **Income                (Loss) From Operations**                           |   |     | (89,457   | )      |     |   | (162,528 | ) |
|                                                                       |   |     |      |   |     |   |   |   |
| **Provision                for Taxes**                                     |   |     |      |   |     |   |   |   |
| New                York State corporate taxes                              |   |     | 155       |   |     |   | - |   |
|                                                                       |   |     |      |   |     |   |   |   |
| **Net                Income (Loss)**                                       |   | $        | (89,612   | )      |     | $      | (162,528 | ) |
|                                                                       |   |     |      |   |     |   |   |   |
| **Earnings                Per Share**                                      |   | $        | (0.02     | )      |     | $      | (0.05 | ) |
|                                                                       |   |     |      |   |     |   |   |   |
| **Weighted                Average of Number of Common Shares Outstanding** |   |     | 4,105,606 |   |     |   | 3,306,856 |   |

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**SFG      FINANCIAL CORPORATION AND SUBSIDIARIES**

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

**FOR      THE NINE MONTHS ENDED OCTOBER 31,**

|                                                                         |   | COMMON                STOCK |      |   | CAPITALIN                EXCESS |   |   | RETAINED              |   |
|------------------------------------------------------------------------------|--------|-----------------------------|-----------|--------|---------------------------------|--------|--------|-----------------------|--------|
|                                                                         |   | SHARES                      |      |   | AMOUNT                          |   |   | OF                PAR |   |   | EARNINGS |   |
| **Balance                at January 31, 2000**                               |   |                        | 3,226,856 |   |                            | $      | 3,227  |                  |   | $ | 2,062,167 |   |   | $ | (2,360,666 | ) |
|                                                                         |   |                        |      |   |                            |   |   |                  |   |   |   |   |   |   |   |   |
| Shares                issued for services                                    |   |                        | 85,000    |   |                            |   | 85     |                  |   |   | 29,698 |   |   |   |   |   |
| Sharers                sold                                                  |   |                        | 95,000    |   |                            |   | 95     |                  |   |   | 117,904 |   |   |   |   |   |
| Net                Income (Loss) for the nine months ended October 31, 2000  |   |                        |      |   |                            |   | -      |                  |   |   | - |   |   |   | (162,528 | ) |
|                                                                         |   |                        |      |   |                            |   |   |                  |   |   |   |   |   |   |   |   |
| **Balance                at October 31, 2000**                               |   |                        | 3,406,856 |   |                            |   | 3,407  |                  |   |   | 2,209,769 |   |   |   | (2,523,194 | ) |
|                                                                         |   |                        |      |   |                            |   |   |                  |   |   |   |   |   |   |   |   |
| Sharers                sold                                                  |   |                        | 55,000    |   |                            |   | 55     |                  |   |   | 6,946 |   |   |   | - |   |
| Shares                issued as return on investment                         |   |                        | 65,000    |   |                            |   | 65     |                  |   |   | 64,935 |   |   |   | - |   |
| Shares                issued for investment                                  |   |                        | 500,000   |   |                            |   | 500    |                  |   |   | - |   |   |   | - |   |
| Net                Income (Loss) for the three months ended January 31, 2001 |   |                        |      |   |                            |   |   |                  |   |   |   |   |   |   | (86,923 | ) |
|                                                                         |   |                        |      |   |                            |   |   |                  |   |   |   |   |   |   |   |   |
| **Balance                at January 31, 2001**                               |   |                        | 4,026,856 |   |                            |   | 4,027  |                  |   |   | 2,281,650 |   |   |   | (2,610,117 | ) |
|                                                                         |   |                        |      |   |                            |   |   |                  |   |   |   |   |   |   |   |   |
| Shares                issued for services                                    |   |                        | 157,500   |   |                            |   | 158    |                  |   |   | 78,592 |   |   |   | - |   |
| Net                Income (Loss) for the nine months ended October 31, 2001  |   |                        | -         |   |                            |   | -      |                  |   |   | - |   |   |   | (89,612 | ) |
|                                                                         |   |                        |      |   |                            |   |   |                  |   |   |   |   |   |   |   |   |
| **Balance                at October 31, 2001**                               |   |                        | 4,184,356 |   |                            | $      | 4,185  |                  |   | $ | 2,360,242 |   |   | $ | (2,699,729 | ) |

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**SFG      FINANCIAL CORPORATION AND SUBSIDIARIES**

**CONSOLIDATED      STATEMENTS OF CASH FLOWS**

**FOR      THE NINE MONTHS OCTOBER 31,**

|                                                                                                                          |   | **2001** |    |   | **2000** |   |
|-------------------------------------------------------------------------------------------------------------------------------|--------|----------|---------|--------|----------|--------|
| **Cash                flow from operating activities:**                                                                       |   |     |    |   |     |   |
| **Net                income (loss)**                                                                                          |   | $        | (89,612 | )      |     | $      | (162,528 | ) |
| **Adjustments                to reconcile net income to net cash provided by (used in) operating                activities:** |   |     |    |   |     |   |   |   |
| Common                stock issued fro services                                                                               |   |     | 78,750  |   |     |   | 22,783 |   |
|                                                                                                                          |   |     |    |   |     |   |   |   |
| **Changes                in assets and liabilities:**                                                                         |   |     |    |   |     |   |   |   |
| (Increase)                decrease in Assets:                                                                                 |   |     |    |   |     |   |   |   |
| Loans                receivable                                                                                               |   |     |    |   |     |   | (11,500 | ) |
| Increase                (decrease) in Liabilities:                                                                            |   |     |    |   |     |   |   |   |
| Accounts                payable and accrued expenses                                                                          |   |     | 10,862  |   |     |   | 2,746 |   |
| Due                to officers                                                                                                |   |     | -       |   |     |   | (616 | ) |
| Sales                tax payable                                                                                              |   |     |    |   |     |   | (248 | ) |
| **Net                cash provided by operations**                                                                            |   |     | -       |   |     |   | (149,363 | ) |
|                                                                                                                          |   |     |    |   |     |   |   |   |
| **Cash                flow from investing activities:**                                                                       |   |     |    |   |     |   |   |   |
| Proceeds                from sale of fixed assets                                                                             |   |     | -       |   |     |   | 125,000 |   |
| **Cash                provided from (for) investing activities**                                                              |   |     | -       |   |     |   | 125,000 |   |
|                                                                                                                          |   |     |    |   |     |   |   |   |
| **Cash                flow from financing activities:**                                                                       |   |     |    |   |     |   |   |   |
| **Cash                flow provided from (for) financing activities**                                                         |   |     | -       |   |     |   | - |   |
|                                                                                                                          |   |     |    |   |     |   |   |   |
| **Net                increase in cash and cash equivalent**                                                                   |   |     | -       |   |     |   | (24,363 | ) |
|                                                                                                                          |   |     |    |   |     |   |   |   |
| **Cash                and cash equivalents at beginning of year**                                                             |   |     | 10,192  |   |     |   | 41,173 |   |
|                                                                                                                          |   |     |    |   |     |   |   |   |
| **Cash                and cash equivalents at end of year**                                                                   |   | $        | 10,192  |   |     | $      | 16,810 |   |

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**SFG      FINANCIAL CORPORATION AND SUBSIDIARIES**

**NOTES        TO CONSOLIDATED FINANCIAL STATEMENTS**

**October        31, 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**

|                                            |   | October                31, |    |
|-------------------------------------------------|--------|----------------------------|---------|
|                                            |   | 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**

**Cash      and cash equivalents**

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**SFG      FINANCIAL CORPORATION AND SUBSIDIARIES**

**NOTES        TO CONSOLIDATED FINANCIAL STATEMENTS**

**October        31, 2001 and 2000 **

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**Earnings      per share**

**Income      taxes**

**Use      of estimates**

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

**Lease**

**Due      from/to officers**

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

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

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**SFG      FINANCIAL CORPORATION AND SUBSIDIARIES**

**NOTES        TO CONSOLIDATED FINANCIAL STATEMENTS**

**October        31, 2001 and 2000 **

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| **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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