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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 October 31, 2007**

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

*000-13635*

**SFG      FINANCIAL CORPORATION**

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

**300      Park Avenue, Suite 1756**

**New      York, NY 10022**

**(212)      705-4201**

    Yes [   ]   No [X]

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**SFG      FINANCIAL CORPORATION**

**INDEX**

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

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**PART      I – FINANCIAL INFORMATION**

**ITEM      1 – FINANCIAL STATEMENTS**

**SFG      FINANCIAL CORPORATION AND SUBSIDIARIES**

**CONDENSED      CONSOLIDATED BALANCE SHEET**

**October      31, 2007**

**(UNAUDITED)**

| **ASSETS**                                                                                                                                                                                                                                                                        |   |   |       |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|------------|
| **Current                Assets**                                                                                                                                                                                                                                                 |   |   |       |
| Cash                                                                                                                                                                                                                                                                              |   | $      | 12,421     |   |
| **Total                Current Assets**                                                                                                                                                                                                                                           |   |   | 12,421     |   |
|                                                                                                                                                                                                                                                                              |   |   |       |   |
| **Fixed                Assets**                                                                                                                                                                                                                                                   |   |   |       |   |
| Property                and equipment (net of accumulated depreciation)                                                                                                                                                                                                           |   |   | 7,450      |   |
| Trading                platform (net of accumulated amortization)                                                                                                                                                                                                                 |   |   | 809,242    |   |
| **Total                Fixed Assets**                                                                                                                                                                                                                                             |   |   | 816,692    |   |
|                                                                                                                                                                                                                                                                              |   |   |       |   |
| **Other                Assets**                                                                                                                                                                                                                                                   |   |   |       |   |
| Lease                security deposit                                                                                                                                                                                                                                             |   |   | 24,485     |   |
| **Total                Other Assets**                                                                                                                                                                                                                                             |   |   | 24,485     |   |
|                                                                                                                                                                                                                                                                              |   |   |       |   |
| **Total                Assets**                                                                                                                                                                                                                                                   |   | $      | 853,598    |   |
|                                                                                                                                                                                                                                                                              |   |   |       |   |
| **LIABILITIES                AND STOCKHOLDERS' EQUITY**                                                                                                                                                                                                                           |   |   |       |   |
| **LIABILITIES**                                                                                                                                                                                                                                                                   |   |   |       |   |
| Accounts                payable and accrued expenses                                                                                                                                                                                                                              |   | $      | 586,658    |   |
| Loans                payable                                                                                                                                                                                                                                                      |   |   | 229,749    |   |
| **Total                Liabilities**                                                                                                                                                                                                                                              |   |   | 816,407    |   |
|                                                                                                                                                                                                                                                                              |   |   |       |   |
| **STOCKHOLDERS'                EQUITY**                                                                                                                                                                                                                                           |   |   |       |   |
| Preferred                Stock; $.0001 par value 2,000 shares authorized 770 shares issued                and                outstanding as of October 31, 2007 and 0 shares issued and outstanding                on                January 31, 2007                             |   |   | -          |   |
| Common                stock; $.001 par value 100,000,000 shares authorized                99,998,860  shares issued and outstanding as October 31,                2007  5,313,856  shares issued and outstanding on                January 31, 2007 |   |   | 99,999     |   |
| Additional                paid in capital                                                                                                                                                                                                                                         |   |   | 7,360,875  |   |
| Accumulated                deficit                                                                                                                                                                                                                                                |   |   | (7,423,683 | ) |
| **Total                Stockholders Equity**                                                                                                                                                                                                                                      |   |   | 37,191     |   |
|                                                                                                                                                                                                                                                                              |   |   |       |   |
| **Total                Liabilities and Equity**                                                                                                                                                                                                                                   |   | $      | 853,598    |   |

See      accompanying notes to condensed consolidated interim      financial statements.

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**SFG      FINANCIAL      CORPORATION**

**CONDENSED      CONSOLIDATED STATEMENTS OF OPERATIONS**

**(UNAUDITED)**

|                                                                       |   | **For                the Three Months ended October 31, 2007** |       |   | **For                the Nine Months ended October 31, 2007** |   |
|----------------------------------------------------------------------------|--------|----------------------------------------------------------------|------------|--------|---------------------------------------------------------------|--------|
| **Revenue:**                                                               |   |                                                           |       |   |                                                          |   |
| Revenues                                                                   |   | $                                                              | -          |   |                                                          | $      | - |   |
| **Total                Revenue**                                           |   |                                                           | -          |   |                                                          |   | - |   |
|                                                                       |   |                                                           |       |   |                                                          |   |   |   |
| **Expenses**                                                               |   |                                                           |       |   |                                                          |   |   |   |
| Selling,                general and administrative expenses                |   |                                                           | 412,161    |   |                                                          |   | 1,125,492 |   |
| Depreciation                and amortization                               |   |                                                           | 74,515     |   |                                                          |   | 258,673 |   |
| **Total                Expenses**                                          |   |                                                           | 486,676    |   |                                                          |   | 1,384,165 |   |
|                                                                       |   |                                                           |       |   |                                                          |   |   |   |
| **Net                Loss Available to Common Shareholders**               |   | $                                                              | (486,676   | )      |                                                          | $      | (1,384,165 | ) |
|                                                                       |   |                                                           |       |   |                                                          |   |   |   |
| **Earnings                Per Share**                                      |   | $                                                              | (0.0049    | )      |                                                          | $      | (0.0331 | ) |
|                                                                       |   |                                                           |       |   |                                                          |   |   |   |
| **Weighted                Average of Number of Common Shares Outstanding** |   |                                                           | 99,998,860 |   |                                                          |   | 41,865,052 |   |

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**SFG      FINANCIAL CORPORATION**

**CONDENSED      CONSOLIDATED STATEMENT OF CASH FLOWS**

**NINE      MONTHS ENDED OCTOBER 31, 2007**

**(UNAUDITED)**

| **Net                cash (used by) operations**                        |   | $      | (890,916 | )      |
|-------------------------------------------------------------------------|--------|--------|----------|--------|
|                                                                    |   |   |     |   |
| **Cash                flow from investing activities:**                 |   |   |     |   |
| Purchase                of  fixed assets                      |   |   | (28,000  | )      |
| Liabilities                acquired (reverse merger transaction)        |   |   | (57,741  | )      |
| **Cash                provided (used for) investing activities**        |   |   | (85,741  | )      |
|                                                                    |   |   |     |   |
| **Cash                flow from financing activities:**                 |   |   |     |   |
| Proceeds                from sale of preferred stock                    |   |   | 700,000  |   |
| Proceeds                from exercise of warrants                       |   |   | 3        |   |
| Proceeds                from sale of common stock                       |   |   | 250,000  |   |
| **Cash                flow provided by financing activities**           |   |   | 950,003  |   |
|                                                                    |   |   |     |   |
| **Net                increase in cash and cash equivalent**             |   |   | (26,654  | )      |
| **Cash                and cash equivalents at beginning of the period** |   |   | 39,075   |   |
|                                                                    |   |   |     |   |
| **Cash                and cash equivalents at end of the period**       |   | $      | 12,421   |   |

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**SFG      FINANCIAL CORPORATION AND SUBSIDIARIES**

**NOTES      TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS**

**(Unaudited)**

**1.  Unaudited      Statements**

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

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

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

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

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

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

**3.  Going      Concern**

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**4.  Fixed      Assets**

| **Description**                               |   | **Cost** |    |
|-----------------------------------------------|--------|----------|---------|
| Furniture                & Fixtures       |   | $        | 14,270  |   |
| Computer                equipment             |   |     | 221,078 |   |
| Leasehold                Improvements         |   |     | 18,500  |   |
| Telephone                system               |   |     | 15,642  |   |
| Total                cost                     |   |     | 269,490 |   |
|                                          |   |     |    |   |
| Less:                accumulated depreciation |   |     | 262,040 |   |
| et                property and equipment      |   | $        | 7,450   |   |

| **Year                ended January 31,**    |   | **Cost** |       |
|----------------------------------------------|--------|----------|------------|
| 2003                                         |   | $        | 445,730    |   |
| 2004                                         |   |     | 520,261    |   |
| 2005                                         |   |     | 342,374    |   |
| 2006                                         |   |     | 355,965    |   |
| 2007                                         |   |     | 454,920    |   |
| 2008                                         |   |     | 8,000      |   |
| Total                cost                    |   |     | 2,127,250  |   |
|                                         |   |     |       |   |
| Less                accumulated amortization |   |     | (1,338,008 | ) |
|                                         |   |     |       |   |
| Net                trading platform          |   | $        | 809,242    |   |

**5.  Accounts      Payable and Accrued Expenses**

**6.  Loans      Payable**

**7.  Income      Taxes**

**8.  Lease      Obligation:**

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| **YEAR                ENDING JANUARY 31,** |   | **AMOUNT                OF LEASE PAYMENTS** |                                |
|--------------------------------------------|--------|---------------------------------------------|-------------------------------------|
| 2008                                       |   | $                                           | 55,879                              |   |
| 2009                                       |   | $                                           | 44,606                              |   |
| 2009                                       |   |                                        | -                0                - |   |
| 2010                                       |   |                                        | -                0                - |   |
| 2011                                       |   |                                        | -                0                - |   |

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

**Plan      of Operation and Merger Summary**

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

| For                the three months ended October 31,       |   | 2007   |     | %                ofRevenues |
|-------------------------------------------------------------|--------|--------|----------|-----------------------------|
|                                                        |   |   |     |                        |
| **Revenues**                                                |   | $      | 0        |                        | NM |
|                                                        |   |   |     |                        |   |
| **Operating                expenses:**                      |   |   |     |                        |   |
| Selling,                general and administrative expenses |   |   | 412,161  |                        | NM |
| Depreciation                and amortization                |   |   | 74,515   |                        | NM |
|                                                        |   |   |     |                        |   |
|                                                        |   |   | 486,676  |                        | NM |
|                                                        |   |   |     |                        |   |
| Net                (Loss)                                   |   | $      | (486,676 | )                           | NM |
|                                                        |   |   |     |                        |   |
| NM                - Not meaningful                          |   |   |     |                        |   |

**Nine      Month Period Ended October 31, 2007**

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| For                the nine months ended October 31,        |   | 2007   |       | %                ofRevenues |
|-------------------------------------------------------------|--------|--------|------------|-----------------------------|
|                                                        |   |   |       |                        |
| **Revenues**                                                |   | $      | 0          |                        | NM |
|                                                        |   |   |       |                        |   |
| **Operating                expenses:**                      |   |   |       |                        |   |
| Selling,                general and administrative expenses |   |   | 1,125,492  |                        | NM |
| Depreciation                and amortization                |   |   | 258,673    |                        | NM |
|                                                        |   |   |       |                        |   |
|                                                        |   |   | 1,384,165  |                        | NM |
|                                                        |   |   |       |                        |   |
| Net                (Loss)                                   |   | $      | (1,384,165 | )                           | NM |
|                                                        |   |   |       |                        |   |
| NM                - Not meaningful                          |   |   |       |                        |   |

**Liquidity      and Capital Resources**

| Cash                                      |   | $ | 12,421  |   |
|-------------------------------------------|--------|---|---------|--------|
| Working                Capital Deficit    |   | $ | 803,986 |   |
| Stockholders’                Equity |   | $ | 37,191  |   |

| **Net                cash (used by) operations**                 |   | $      | (890,916 | )      |
|------------------------------------------------------------------|--------|--------|----------|--------|
|                                                             |   |   |     |   |
| **Cash                flow from investing activities:**          |   |   |     |   |
| Purchase                of  fixed assets               |   |   | (28,000  | )      |
| Liabilities                acquired (reverse merger transaction) |   |   | (57,741  | )      |
| **Cash                used in investing activities**             |   |   | (85,741  | )      |
|                                                             |   |   |     |   |
| **Cash                flow from financing activities:**          |   |   |     |   |
| Proceeds                from sale of preferred and common stock  |   |   | 950,003  |   |
| **Cash                flow provided by financing activities**    |   |   | 950,003  |   |
|                                                             |   |   |     |   |
| **Net                decrease in cash**                          |   | $      | (26,654  | )      |

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**Future      Contractual Obligations**

|                                   |   | Payments                due by period |    |
|----------------------------------------|--------|---------------------------------------|---------|
|                                        |   | Total                                 |    |   | Less                than 1 year |   |   | 1                -                2 years |   |
| Contractual                obligations |   | $                                     | 100,486 |   |   | $ | 100,486 |   |   | $ | -- |   |

**Critical      Accounting Policies and Estimates**

**Revenue      Recognition**

**Management's      Estimates**

**Inflation**

**Forward      Looking Statements**

** **

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**ITEM      3 – CONTROLS AND PROCEDURES**

 There      were no changes (including corrective actions with regard      to significant deficiencies or material weaknesses) in our internal controls      over financial reporting that occurred during the second quarter of fiscal      2007      that has materially affected, or is reasonably likely to materially affect,      our      internal control over financial reporting.

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**PART      II – OTHER INFORMATION**

**ITEM      1 – LEGAL PROCEEDINGS**

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

In      October 2007, the Company sold 5,252,292 shares      of common stock at a purchase price of $.04760733686 for aggregate proceeds      of      $250,000.

**ITEM      3 – DEFAULTS UPON SENIOR SECURITIES**

**ITEM      4 – SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS**

**ITEM      5 – OTHER INFORMATION**

**ITEM      6 – EXHIBITS**

|   | 31.1 | Certification                of CEO, CFO Pursuant to 13a-14(a) or 15d-14(a) under the Exchange                Act. |
|--------|------|--------------------------------------------------------------------------------------------------------------------|

|   | 32.1 | Certification                of the CEO, CFO pursuant to 18 U.S.C Section                1350 |
|--------|------|-----------------------------------------------------------------------------------------------|

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**SIGNATURES**

|                                               | **SFG                FINANCIAL CORPORATION** |
|----------------------------------------------------|----------------------------------------------|
|                                               |                                         |   |
|                                               |                                         |   |
|                                               |                                         |   |
| Dated:  December                17, 2007 | By:                                          | /s/                LEONARD                NEUHAUS            |
|                                               |                                         | Leonard                Neuhaus |
|                                               |                                         | Chief                Executive Officer and |
|                                               |                                         | Chief                Financial Officer |

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