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**FORM      10-QSB**

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**April      30, 2006**

**SFG      FINANCIAL CORPORATION**

| Delaware                                       | 13-3208094                            |
|------------------------------------------------|---------------------------------------|
| (State                or other jurisdiction of | (IRS                Employer          |
| incorporation                or organization)  | Identification                Number) |

**85      Amherst Street, Garden City, New York 11530**

**(516)-327-0843**

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**TABLE      OF CONTENTS**

| PART                1 FINANCIAL                INFORMATION                       |
|----------------------------------------------------------------------------------|
|                                                                             |   |
|                                                                             |   |
|                                                                             |   |
| Item                1.                                                           | FINANCIAL                STATEMENTS |
|                                                                             |   |
| Item                2.                                                           | MANAGEMENT'S                DISCUSSION AND ANALYSIS OR PLAN OF                OPERATION |
|                                                                             |   |
| Item                3.                                                           | CONTROLS                AND PROCEDURES |
|                                                                             |   |
|                                                                             |   |
|                                                                             |   |
| 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 |
|                                                                             |   |
|                                                                             |   |
| SIGNATURES                                                                       |   |
|                                                                             |   |
|                                                                             |   |
| EX-31                (Certifications, Sarbanes-Oxley Act of                2002) |
| EX-32                (Certifications, Sarbanes-Oxley Act of                2002) |

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**SFG      FINANCIAL CORPORATION**

**COMPARATIVE      FINANCIAL STATEMENTS**

**FOR      THE THREE MONTHS ENDING APRIL 30, 2006 and 2005**

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**SFG      FINANCIAL CORPORTATION**

|                                                                          | Page   |
|-------------------------------------------------------------------------------|--------|
| Independent              accountant's report                                  | 5      |
|                                                                          |   |
| Financial                statements:                                          |   |
|                                                                          |   |
| Balance                Sheets                                                 | 6      |
|                                                                          |   |
| Statements                of Income and Expenses                              | 7      |
|                                                                          |   |
| Statements                of Stockholders' Equity                (Deficiency) | 8      |
|                                                                          |   |
| Statements                of Cash Flows                                       | 9      |
|                                                                          |   |
| Notes                to the Comparative Financial                Statements   | 10     |

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**THOMAS      BAUMAN **

**CERTIFIED      PUBLIC ACCOUNTANT**

**4      SCHAEFFER STREET**

**HUNTINGTON      STATION, NY 11746**

**Telephone      (631) 427-4789 Fax (631) 424-3649**

ACCOUNTANT’S      REVIEW REPORT

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| **SFG                FINANCIAL CORPORATION**                               |   |
|----------------------------------------------------------------------------|--------|
| **BALANCE                SHEETS**                                          |   |
| **AS                OF APRIL 30**                                          |   |
|                                                                       |   |   |   |   |   |
|                                                                       |   | **2006** |   | **2005** |   |
| **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                       |   |   | 93,935 |   |   | 86,280 |   |
| Due                to related parties                                      |   |   | 21,094 |   |   | 11,683 |   |
| **Total                Liabilities**                                       |   |   | 115,029 |   |   | 97,963 |   |
|                                                                       |   |   |  |   |   |  |   |
| **Stockholders'                Equity (Deficiency)**                       |   |   |  |   |   |  |   |
| Common                stock; $.001 par value 100,000,000 shares            |   |   | 4,314 |   |   | 4,314 |   |
| authorized;                4,313,856 shares issued; 4,313,856 shares       |   |   |  |   |   |  |   |
| outstanding                at April 30, 2006 and 2005, respectively        |   |   |  |   |   |  |   |
| Additional                paid in capital                                  |   |   | 2,425,701 |   |   | 2,425,701 |   |
| Retained                earnings                                           |   |   | (2,545,024 | ) |   | (2,527,958 | ) |
| **Total                Stockholders' Equity (Deficiency)**                 |   |   | (115,009 | ) |   | (97,943 | ) |
|                                                                       |   |   |  |   |   |  |   |
|                                                                       |   |   |  |   |   |  |   |
| **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**                     |
|                                                                       |   |   |   |   |   |
|                                                                       |   | **2006** |   | **2005** |   |
| **Revenue:**                                                               |   |   |   |   |   |   |   |
| Sales                                                                      |   | $ | - |   | $ | - |   |
|                                                                       |   |   |   |   |   |   |   |
| **Operating                Expenses**                                      |   |   |   |   |   |   |   |
| Filing                fees                                                 |   |   | - |   |   | - |   |
| Office                expenses                                             |   |   | 202 |   |   | 274 |   |
| Professional                fees                                           |   |   | 3,500 |   |   | - |   |
| Stock                transfer fees                                         |   |   | - |   |   | - |   |
| Travel                                                                     |   |   | - |   |   | - |   |
| **Total                Operating Expenses**                                |   |   | 3,702 |   |   | 274 |   |
|                                                                       |   |   |   |   |   |   |   |
| **Income                (Loss) From Operations**                           |   |   | (3,702 | ) |   | (274 | ) |
|                                                                       |   |   |   |   |   |   |   |
| **Provision                for Taxes**                                     |   |   |   |   |   |   |   |
| New                York State corporate taxes                              |   |   | 155 |   |   | 155 |   |
|                                                                       |   |   |   |   |   |   |   |
| **Net                Income (Loss)**                                       |   | $ | (3,857 | ) | $ | (429 | ) |
|                                                                       |   |   |   |   |   |   |   |
| **Earnings                Per Share**                                      |   | $ | (0.001 | ) | $ | (0.000 | ) |
|                                                                       |   |   |   |   |   |   |   |
| **Weighted                Average of Number of Common Shares Outstanding** |   |   | 4,313,856 |   |   | 4,313,856 |   |

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| **SFG                FINANCIAL CORPORATION**                                |
|-----------------------------------------------------------------------------|
| **STATEMENTS                OF STOCKHOLDERS' EQUITY (DEFICIENCY)**          |
|                                                                        |   |   |   |   |   |   |   |   |   |
|                                                                        |   |   |   |   |   | **CAPITAL** |   |   |   |
|                                                                        |   | **COMMON                STOCK** |   | **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 | ) |

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| **SFG                  FINANCIAL CORPORATION**                                |
|-------------------------------------------------------------------------------|
| **STATEMENTS                  OF CASH FLOWS**                                 |
| **FOR                  THE THREE MONTHS ENDED APRIL 30**                      |
|                                                                          |   |   |   |   |   |
|                                                                          |   | **2006** |   | **2005** |   |
| **Cash                  flow from operating activities:**                     |   |   |   |   |   |
| **Net                  income (loss)**                                        |   | $ | (3,857 | ) | $ | (429 | ) |
| **Adjustments                  to reconcile net income to net cash provided** |   |   |   |   |   |   |   |
| **by                  operating activities:**                                 |   |   |   |   |   |   |   |
| **Changes                  in assets and liabilities:**                       |   |   |   |   |   |   |   |
| Increase                  (decrease) accounts payable                         |   |   | 3,655 |   |   | - |   |
| Increase                  (decrease) due to related parties                   |   |   | 202 |   |   | 429 |   |
| **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                                  |   | $ | - |   | $ | 155 |   |

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**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** |
|--------|--------|---------------------------------|

**2.      Accounts payable and accrued expenses**

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| **3.** | **Related                party transactions** |
|--------|-----------------------------------------------|

| **4.** | **Going                concern** |
|--------|----------------------------------|

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ent

Forward      Looking Statements

ontrols 

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OTHER INFORMATION

EX-31      (Certifications, Sarbanes-Oxley Act of      2002)

EX-32      (Certifications, Sarbanes-Oxley Act of      2002)

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|                                |                                                |                                             |
|-------------------------------------|-----------------------------------------------------|--------------------------------------------------|
|                                | SFG              FINANCIAL              CORPORATION |
|                           |                                           |                                        |
| Date:              January 23, 2007 | By:                                       | /s/ John              A.              Dugan |
|                                | John              A. Dugan                          |
|                                | Chairman/CEO                                        |

|                                  |                                                                                          |                                                 |
|---------------------------------------|-----------------------------------------------------------------------------------------------|------------------------------------------------------|
|                                  | SFG                FINANCIAL                CORPORATION                                       |
|                             |                                                                                     |                                            |
| Date:                January 23, 2007 | By:                                                                                 | /s/ John                A.                Dugan |
|                                  | John                A. Dugan                                                                  |
|                                  | Chairman/CEO(principal                    executive and financial                    officer) |

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