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**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**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 JULY 31, 2002**

**TABLE      OF CONTENTS**

| PART                1  | FINANCIAL                INFORMATION                                           |   |
|------------------------|--------------------------------------------------------------------------------|--------|
|                   |                                                                           |   |
| Item                1. | Financial                Statements                                            |   |
|                   |                                                                           |   |
|                   | Balance                Sheets                                                  | 3      |
|                   |                                                                           |   |
|                   | Statements                of Operations                                        | 4      |
|                   |                                                                           |   |
|                   | Statements                of Stockholders' Equity (Deficiency)                 | 5      |
|                   |                                                                           |   |
|                   | Notes                to Financial Statements                                   | 6      |
|                   |                                                                           |   |
| Item                2. | Management’s                Discussion and Analysis or Plan of Operation | 8      |
|                   |                                                                           |   |
| Item                3. | Controls                and Procedures                                         | 8      |
|                   |                                                                           |   |
| PART                II | OTHER                INFORMATION                                               |   |
|                   |                                                                           |   |
| Item                1. | Legal                Proceedings                                               | 9      |
|                   |                                                                           |   |
| Item                2. | Unregistered                Sales of Equity Securities and Use of Proceeds     | 9      |
|                   |                                                                           |   |
| Item                3. | Defaults                Upon Senior Securities                                 | 9      |
|                   |                                                                           |   |
| Item                4. | Submission                of Matters to a Vote of Security Holders             | 9      |
|                   |                                                                           |   |
| Item                5. | Other                Information                                               | 9      |
|                   |                                                                           |   |
| Item                6. | Exhibits                                                                       | 9      |
|                   |                                                                           |   |
| SIGNATURES             | 10                                                                             |

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**PART      1 - FINANCIAL STATEMENTS**

**SFG      FINANCIAL CORPORATION AND SUBSIDIARIES**

**CONSOLIDATED      BALANCE SHEETS**

**AS      OF JULY 31,**

|                                                                                                                                                                                                    |   | **2002** |       |   | **2001** |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------|------------|--------|----------|--------|
| **ASSETS**                                                                                                                                                                                              |   |
| **Current                Assets**                                                                                                                                                                       |   |     |       |   |     |   |
| Accounts                receivable                                                                                                                                                                      |   | $        | 20         |   |     | $      | - |   |
| Due                from subsidiary                                                                                                                                                                      |   |     | -          |   |     |   | 97,217 |   |
| Investment                in subsidiaries                                                                                                                                                               |   |     | -          |   |     |   | 414,851 |   |
| **Total                Current Assets**                                                                                                                                                                 |   |     | 20         |   |     |   | 512,068 |   |
|                                                                                                                                                                                                    |   |     |       |   |     |   |   |   |
|                                                                                                                                                                                                    |   |     |       |   |     |   |   |   |
| **Total                Assets**                                                                                                                                                                         |   |     | 20         |   |     |   | 512,068 |   |
|                                                                                                                                                                                                    |   |     |       |   |     |   |   |   |
| **LIABILITIES                AND STOCKHOLDERS' EQUITY (DEFICIENCY)**                                                                                                                                    |   |
| **Liabilities**                                                                                                                                                                                         |   |     |       |   |     |   |   |   |
| Accounts                payable and accrued expenses                                                                                                                                                    |   |     | 72,435     |   |     |   | 93,135 |   |
| Due                to subsidiary                                                                                                                                                                        |   |     | -          |   |     |   | 618,661 |   |
| **Total                Liabilities**                                                                                                                                                                    |   |     | 72,435     |   |     |   | 711,796 |   |
|                                                                                                                                                                                                    |   |     |       |   |     |   |   |   |
| **STOCKHOLDERS'                EQUITY (DEFICIENCY)**                                                                                                                                                    |   |     |       |   |     |   |   |   |
| Common                stock; $.001 par value 100,000,000 shares authorized; 4,281,356 and                4,147,856 shares issued and outstanding at July 31, 2002 and 2001,                respectively |   |     | 4,281      |   |     |   | 4,148 |   |
| Additional                paid in capital                                                                                                                                                               |   |     | 2,412,864  |   |     |   | 2,342,029 |   |
| Retained                earnings                                                                                                                                                                        |   |     | (2,489,560 | )      |     |   | (2,545,905 | ) |
| **Total                Stockholders' Equity (Deficiency)**                                                                                                                                              |   |     | (72,415    | )      |     |   | (199,728 | ) |
|                                                                                                                                                                                                    |   |     |       |   |     |   |   |   |
|                                                                                                                                                                                                    |   |     |       |   |     |   |   |   |
| **Total                Liabilities and Stockholders' Equity (Deficiency)**                                                                                                                              |   | $        | 20         |   |     | $      | 512,068 |   |

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**SFG      FINANCIAL CORPORATION AND      SUBSIDIARIES**

**CONSOLIDATED      STATEMENTS OF OPERATIONS**

**FOR      THE SIX MONTHS ENDED JULY 31,**

|                                                                         |   | **2002** |      |   | **2001** |       |
|------------------------------------------------------------------------------|--------|----------|-----------|--------|----------|------------|
| **Revenue:**                                                                 |   |     |      |   |     |       |
| Rental                  income                                               |   | $        | -         |   |     | $          | - |   |
|                                                                         |   |     |      |   |     |       |   |   |
| **Total                  Revenues**                                          |   |     | -         |   |     |       | - |   |
|                                                                         |   |     |      |   |     |       |   |   |
| **Operating                  Expenses**                                      |   |     |      |   |     |       |   |   |
| Professional                  fees                                           |   |     | 2,000     |   |     |       | 7,138 |   |
| Administrative                  expenses                                     |   |     | -         |   |     |       | 52,500 |   |
| **Total                  Operating Expenses**                                |   |     | 2,000     |   |     |       | 59,638 |   |
|                                                                         |   |     |      |   |     |       |   |   |
| **Income                  (Loss) From Operations**                           |   |     | (2,000    | )      |     |       | (59,638 | ) |
|                                                                         |   |     |      |   |     |       |   |   |
| **Provision                  for Taxes**                                     |   |     |      |   |     |       |   |   |
| New                  York State corporate taxes                              |   |     | 155       |   |     |       | 155 |   |
|                                                                         |   |     |      |   |     |       |   |   |
| **Net                  Income (Loss)**                                       |   | $        | (2,155    | )      |     | $          | (59,793 | ) |
|                                                                         |   |     |      |   |     |       |   |   |
| **Earnings                  Per Share**                                      |   | $        | (0.00     | )      |     | $          | (0.01 | ) |
|                                                                         |   |     |      |   |     |       |   |   |
| **Weighted                  Average of Number of Common Shares Outstanding** |   |     | 4,275,106 |   |     | ** ** | 4,087,356 |   |

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**SFG      FINANCIAL CORPORATION AND SUBSIDIARIES**

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

**FOR      THE SIX MONTHS ENDED JULY 31, 2002 AND 2001**

|                                                                       |   | COMMON                STOCK |      |   | CAPITAL                IN EXCESS |   |   | RETAINED              |   |
|----------------------------------------------------------------------------|--------|-----------------------------|-----------|--------|----------------------------------|--------|--------|-----------------------|--------|
|                                                                       |   | SHARES                      |      |   | AMOUNT                           |   |   | OF                PAR |   |   | EARNINGS |   |
| **Balance                at January 31, 2001**                             |   |                        | 4,026,856 |   |                             | $      | 4,027  |                  |   | $ | 2,281,650 |   |   | $ | (2,486,112 | ) |
|                                                                       |   |                        |      |   |                             |   |   |                  |   |   |   |   |   |   |   |   |
| Shares                issued for services                                  |   |                        | 121,000   |   |                             |   | 121    |                  |   |   | 60,379 |   |   |   | - |   |
| Net                Income (Loss) for the six months ended July 31, 2001    |   |                        |      |   |                             |   | -      |                  |   |   | - |   |   |   | (59,793 | ) |
|                                                                       |   |                        |      |   |                             |   |   |                  |   |   |   |   |   |   |   |   |
| **Balance                at July 31, 2001**                                |   |                        | 4,147,856 |   |                             |   | 4,148  |                  |   |   | 2,342,029 |   |   |   | (2,545,905 | ) |
|                                                                       |   |                        |      |   |                             |   |   |                  |   |   |   |   |   |   |   |   |
| Shares                issued for services                                  |   |                        | 121,000   |   |                             |   | 121    |                  |   |   | 60,379 |   |   |   | - |   |
| Net                Income (Loss) for the six months ended January 31, 2002 |   |                        |      |   |                             |   |   |                  |   |   |   |   |   |   | 58,500 |   |
|                                                                       |   |                        |      |   |                             |   |   |                  |   |   |   |   |   |   |   |   |
| **Balance                at January 31, 2002**                             |   |                        | 4,268,856 |   |                             |   | 4,269  |                  |   |   | 2,402,408 |   |   |   | (2,487,405 | ) |
|                                                                       |   |                        |      |   |                             |   |   |                  |   |   |   |   |   |   |   |   |
| Shares                issued for services                                  |   |                        | 12,500    |   |                             |   | 12     |                  |   |   | 10,456 |   |   |   | - |   |
| Net                Income (Loss) for the six months ended July 31, 2002    |   |                        |      |   |                             |   | -      |                  |   |   | - |   |   |   | (2,155 | ) |
|                                                                       |   |                        |      |   |                             |   |   |                  |   |   |   |   |   |   |   |   |
| **Balance                at July 31. 2002**                                |   |                        | 4,281,356 |   |                             | $      | 4,281  |                  |   | $ | 2,412,864 |   |   | $ | (2,489,560 | ) |

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**SFG      FINANCIAL CORPORATION AND SUBSIDIARIES**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

**July      31, 2002 and 2001 **

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

**Summary      of accounting policies**

**Prior      years’ financial statements**

**Business      operations**

**Cash**

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

**Income      taxes**

**Use      of estimates**

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

**Lease**

**Consulting      Agreements**

| **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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