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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 April 30, 2007**

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

*000-13635*

**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, 2006**

**TABLE        OF CONTENTS**

| PART                  1  | FINANCIAL                  INFORMATION                                           |    |
|--------------------------|----------------------------------------------------------------------------------|---------|
|                     |                                                                             |    |
| Item                  1. | Financial                  Statements                                            |    |
|                     |                                                                             |    |
|                     | Balance                  Sheets                                                  | 3       |
|                     |                                                                             |    |
|                     | Statements                  of Operations                                        | 4       |
|                     |                                                                             |    |
|                     | Statements                  of Stockholders' Equity (Deficiency)                 | 5       |
|                     |                                                                             |    |
|                     | Statements                  of Cash Flows                                        |  6 |
|                     |                                                                             |    |
|                     | Notes                  to Financial Statements                                   | 7-8     |
|                     |                                                                             |    |
| 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        I – FINANCIAL INFORMATION**

**ITEM        1 – FINANCIAL STATEMENTS**

**SFG          FINANCIAL CORPORATION**

**BALANCE          SHEETS**

**AS          OF APRIL 30,**

|                                                                                                                                                                                                                                                                                                                |   | **2007** |       |   | **2006** |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------|------------|--------|----------|--------|
| **ASSETS**                                                                                                                                                                                                                                                                                                          |   |
| **Current                    Assets**                                                                                                                                                                                                                                                                               |   |     |       |   |     |   |
| Cash                    on hand                                                                                                                                                                                                                                                                                     |   | $        | 20         |   |     | $      | 20 |   |
| **Total                    Current Assets**                                                                                                                                                                                                                                                                         |   |     | 20         |   |     |   | 20 |   |
|                                                                                                                                                                                                                                                                                                                |   |     |       |   |     |   |   |   |
|                                                                                                                                                                                                                                                                                                                |   |     |       |   |     |   |   |   |
| **Total                    Assets**                                                                                                                                                                                                                                                                                 |   |     | 20         |   |     |   | 20 |   |
|                                                                                                                                                                                                                                                                                                                |   |     |       |   |     |   |   |   |
| **LIABILITIES                    AND STOCKHOLDERS' EQUITY (DEFICIENCY)**                                                                                                                                                                                                                                            |   |
| **Liabilities**                                                                                                                                                                                                                                                                                                     |   |     |       |   |     |   |   |   |
| Accounts                    payable and accrued expenses                                                                                                                                                                                                                                                            |   |     | 79,796     |   |     |   | 93,935 |   |
| Loan                    payable                                                                                                                                                                                                                                                                                     |   |     | 76,665     |   |     |   | - |   |
| Due                    to related parties                                                                                                                                                                                                                                                                           |   |     | 23,185     |   |     |   | 21,094 |   |
| **Total                    Liabilities**                                                                                                                                                                                                                                                                            |   |     | 179,646    |   |     |   | 115,029 |   |
|                                                                                                                                                                                                                                                                                                                |   |     |       |   |     |   |   |   |
| **STOCKHOLDERS'                    EQUITY (DEFICIENCY)**                                                                                                                                                                                                                                                            |   |     |       |   |     |   |   |   |
| Common                    stock; $.001 par value 100,000,000                    shares  authorized;  5,413,856 and 4,313,856 shares                    issued; 5,413,856 shares and 4,313,856 shares outstanding at                    April 30,                    2007 and 2006, respectively |   |     | 5,514      |   |     |   | 4,314 |   |
| Additional                    paid in capital                                                                                                                                                                                                                                                                       |   |     | 2,502,351  |   |     |   | 2,425,701 |   |
| Retained                    earnings                                                                                                                                                                                                                                                                                |   |     | (2,687,491 | )      |     |   | (2,545,024 | ) |
| **Total                    Stockholders' Equity (Deficiency)**                                                                                                                                                                                                                                                      |   |     | (179,626   | )      |     |   | (115,009 | ) |
|                                                                                                                                                                                                                                                                                                                |   |     |       |   |     |   |   |   |
|                                                                                                                                                                                                                                                                                                                |   |     |       |   |     |   |   |   |
| **Total                    Liabilities and Stockholders' Equity (Deficiency)**                                                                                                                                                                                                                                      |   | $        | 20         |   |     | $      | 20 |   |

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**SFG          FINANCIAL CORPORATION**

**STATEMENTS          OF INCOME AND EXPENSES**

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

|                                                                           |   | **2007** |      |   | **2006** |   |
|--------------------------------------------------------------------------------|--------|----------|-----------|--------|----------|--------|
| **Revenue:**                                                                   |   |     |      |   |     |   |
| Sales                                                                          |   | $        | -         |   |     | $      | - |   |
|                                                                           |   |     |      |   |     |   |   |   |
| **Operating                    Expenses**                                      |   |     |      |   |     |   |   |   |
| Filing                    fees                                                 |   |     | 1,900     |   |     |   | - |   |
| Office                    expenses                                             |   |     | 317       |   |     |   | 202 |   |
| Professional                    fees                                           |   |     | 11,000    |   |     |   | 3,500 |   |
| Stock  transfer                    fees                              |   |     | -         |   |     |   | - |   |
| Travel                                                                         |   |     | -         |   |     |   | - |   |
| **Total                    Operating Expenses**                                |   |     | 13,217    |   |     |   | 3,702 |   |
|                                                                           |   |     |      |   |     |   |   |   |
| **Income                    (Loss) From Operations**                           |   |     | (13,217   | )      |     |   | (3,702 | ) |
|                                                                           |   |     |      |   |     |   |   |   |
| **Provision                    for Taxes**                                     |   |     |      |   |     |   |   |   |
| New                    York State corporate taxes                              |   |     | -         |   |     |   | 155 |   |
|                                                                           |   |     |      |   |     |   |   |   |
| **Net                    Income (Loss)**                                       |   | $        | (13,217   | )      |     | $      | (3,857 | ) |
|                                                                           |   |     |      |   |     |   |   |   |
| **Earnings                    Per Share**                                      |   | $        | (0.002    | )      |     | $      | (0.001 | ) |
|                                                                           |   |     |      |   |     |   |   |   |
| **Weighted                    Average of Number of Common Shares Outstanding** |   |     | 5,513,856 |   |     |   | 4,313,856 |   |

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**SFG          FINANCIAL CORPORATION**

**STATEMENTS          OF STOCKHOLDERS'  EQUITY (DEFICIENCY)**

|                                                                            |   | COMMON                    STOCK |      |   | CAPITAL                    IN EXCESS |   |   | RETAINED                  |   |
|---------------------------------------------------------------------------------|--------|---------------------------------|-----------|--------|--------------------------------------|--------|--------|---------------------------|--------|
|                                                                            |   | SHARES                          |      |   | AMOUNT                               |   |   | OF                    PAR |   |   | EARNINGS |   |
| **Balance                    at January 31, 2005**                              |   |                            | 4,313,856 |   |                                 | $      | 4,314  |                      |   | $ | 2,425,701 |   |   | $ | (2,527,529 | ) |
|                                                                            |   |                            |      |   |                                 |   |   |                      |   |   |   |   |   |   |   |   |
| Net                    Income (Loss) for the three months ended April 30, 2005  |   |                            |      |   |                                 |   |   |                      |   |   |   |   |   |   | (429 | ) |
|                                                                            |   |                            |      |   |                                 |   |   |                      |   |   |   |   |   |   |   |   |
| **Balance                    at April 30, 2005**                                |   |                            | 4,313,856 |   |                                 |   | 4,314  |                      |   |   | 2,425,701 |   |   |   | (2,527,958 | ) |
|                                                                            |   |                            |      |   |                                 |   |   |                      |   |   |   |   |   |   |   |   |
| Net                    Income (Loss) for the nine months ended January 31, 2006 |   |                            |      |   |                                 |   |   |                      |   |   |   |   |   |   | (13,209 | ) |
|                                                                            |   |                            |      |   |                                 |   |   |                      |   |   |   |   |   |   |   |   |
| **Balance                    at January 31, 2006**                              |   |                            | 4,313,856 |   |                                 |   | 4,314  |                      |   |   | 2,425,701 |   |   |   | (2,541,167 | ) |
|                                                                            |   |                            |      |   |                                 |   |   |                      |   |   |   |   |   |   |   |   |
| Net                    Income (Loss) for the three months ended April 30, 2006  |   |                            |      |   |                                 |   |   |                      |   |   |   |   |   |   | (3,857 | ) |
|                                                                            |   |                            |      |   |                                 |   |   |                      |   |   |   |   |   |   |   |   |
|                                                                            |   |                            |      |   |                                 |   |   |                      |   |   |   |   |   |   |   |   |
| **Balance                    at April 30, 2006**                                |   |                            | 4,313,856 |   |                                 | $      | 4,314  |                      |   | $ | 2,425,701 |   |   | $ | (2,545,024 | ) |
|                                                                            |   |                            |      |   |                                 |   |   |                      |   |   |   |   |   |   |   |   |
| Net                    Income (Loss) for the nine months ended January 31, 2007 |   |                            |      |   |                                 |   |   |                      |   |   |   |   |   |   | (129,250 | ) |
| Restricted                    stock issued for services                         |   |                            | 1,200,000 |   |                                 |   | 1,200  |                      |   |   | 76,650 |   |   |   | - |   |
|                                                                            |   |                            |      |   |                                 |   |   |                      |   |   |   |   |   |   |   |   |
| **Balance                    at January 31, 2007**                              |   |                            | 5,513,856 |   |                                 |   | 5,514  |                      |   |   | 2,502,351 |   |   |   | (2,674,274 | ) |
|                                                                            |   |                            |      |   |                                 |   |   |                      |   |   |   |   |   |   |   |   |
| Net                    Income (Loss) for the three months ended April 30, 2007  |   |                            |      |   |                                 |   |   |                      |   |   |   |   |   |   | (13,217 | ) |
|                                                                            |   |                            |      |   |                                 |   |   |                      |   |   |   |   |   |   |   |   |
| **Balance                    at April 30, 2007**                                |   |                            | 5,513,856 |   |                                 | $      | 5,514  |                      |   | $ | 2,502,351 |   |   | $ | (2,687,491 | ) |

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**SFG          FINANCIAL CORPORATION**

**STATEMENTS          OF CASH FLOWS**

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

|                                                                                                                        |   | **2007** |    |   | **2006** |   |
|-----------------------------------------------------------------------------------------------------------------------------|--------|----------|---------|--------|----------|--------|
| **Cash                    flow from operating activities:**                                                                 |   |     |    |   |     |   |
| **Net                    income (loss)**                                                                                    |   | $        | (13,217 | )      |     | $      | (3,857 | ) |
| **Adjustments                    to reconcile net income to net cash provided by operating                    activities:** |   |     |    |   |     |   |   |   |
| **Changes                    in assets and liabilities:**                                                                   |   |     |    |   |     |   |   |   |
| Increase                    (decrease) accounts payable                                                                     |   |     | 12,452  |   |     |   | 3,655 |   |
| Increase                    (decrease) loan payable                                                                         |   |     | 449     |   |     |   |   |   |
| Increase                    (decrease) due to related parties                                                               |   |     | 316     |   |     |   | 202 |   |
| **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:**                                                                 |   |     |    |   |     |   |   |   |
| Increase                    (decrease) in Common stock                                                                      |   |     |    |   |     |   | - |   |
| Increase                    (decrease) in additional paid in capital                                                        |   |     | -       |   |     |   | - |   |
| **Cash                    flow provided from (for) financing activities**                                                   |   |     | -       |   |     |   | - |   |
|                                                                                                                        |   |     |    |   |     |   |   |   |
| **Net                    increase in cash and cash equivalent**                                                             |   |     | -       |   |     |   | - |   |
|                                                                                                                        |   |     |    |   |     |   |   |   |
| **Cash                    and cash equivalents at beginning of year**                                                       |   |     | 20      |   |     |   | 20 |   |
|                                                                                                                        |   |     |    |   |     |   |   |   |
| **Cash                    and cash equivalents at end of year**                                                             |   | $        | 20      |   |     | $      | 20 |   |
|                                                                                                                        |   |     |    |   |     |   |   |   |
| **Cash                    paid for interest and income taxes as follows:**                                                  |   |     |    |   |     |   |   |   |
| Interest                                                                                                                    |   | $        | -       |   |     | $      | - |   |
| Corporate                    income taxes paid                                                                              |   | $        | -       |   |     | $      | - |   |

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**SFG            FINANCIAL CORPORATION**

**NOTES            TO THE COMPARATIVE FINANCIAL STATEMENTS**

**1.            Significant accounting policies:**

|  | **a.** | **Organization                    and Business Operations** |
|--|--------|-------------------------------------------------------------|

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

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

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

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

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*SFG Financial Corporation*

*SFG Financial Corporation*

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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 – 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:  August                  3, 2007 | By:                                            | /s/                  BRUCE                  STEPHENS                 |
|                                              |                                           | Bruce                  Stephens |
|                                              |                                           | Chief                  Executive Officer |
|                                              |                                           | and                  Chief Financial Officer |

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