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**UNITED        STATES**

**SECURITIES        AND EXCHANGE COMMISSION**

**FORM        10-QSB**

**SFG        FINANCIAL CORPORATION**

| **Delaware**                                                                                    | **13-320894**                                                      |
|-------------------------------------------------------------------------------------------------|--------------------------------------------------------------------|
| (State                  or other jurisdictionof                  incorporation or organization) | (IRS                  EmployerIdentification                  No.) |

**255        Executive Drive, Suite 408**

**Plainview,        NY 11803**

**(516-349-9100)**

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**SFG        FINANCIAL CORPORATION**

**FORM        10-QSB**

**QUARTERLY        PERIOD ENDED OCTOBER 31, 2002**

**TABLE        OF CONTENTS**

| PART                  1  | FINANCIAL                  INFORMATION                                           |    |
|--------------------------|----------------------------------------------------------------------------------|---------|
|                     |                                                                             |    |
| Item                  1. | Financial                  Statements                                            |  3 |
|                     |                                                                             |    |
|                     | Balance                  Sheets                                                  | 3       |
|                     |                                                                             |    |
|                     | Statements                  of Operations                                        | 4       |
|                     |                                                                             |    |
|                     | Statements                  of Stockholders' Equity (Deficiency)                 | 5       |
|                     |                                                                             |    |
|                     | 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 INFORMATION**

**ITEM        1 – FINANCIAL STATEMENTS**

**SFG        FINANCIAL CORPORATION AND SUBSIDIARIES**

**CONSOLIDATED        BALANCE SHEETS**

**AS        OF OCTOBER 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                                                                                                                                                                                       |   |     | 68,197     |   |     |   | 104,704 |   |
| Due                  to subsidiary                                                                                                                                                                                                           |   |     | -          |   |     |   | 618,661 |   |
| **Total                  Liabilities**                                                                                                                                                                                                       |   |     | 68,197     |   |     |   | 723,365 |   |
|                                                                                                                                                                                                                                         |   |     |       |   |     |   |   |   |
| **STOCKHOLDERS'                  EQUITY (DEFICIENCY)**                                                                                                                                                                                       |   |     |       |   |     |   |   |   |
| Common                  stock; $.001 par value 100,000,000 shares authorized; 4,287,606                  and                  4,208,356 shares issued and  outstanding at October 31, 2002 and                  2001, respectively |   |     | 4,288      |   |     |   | 4,208 |   |
| Additional                  paid in capital                                                                                                                                                                                                  |   |     | 2,418,095  |   |     |   | 2,372,219 |   |
| Retained                  earnings                                                                                                                                                                                                           |   |     | (2,490,560 | )      |     |   | (2,587,724 | ) |
| **Total                  Stockholders' Equity (Deficiency)**                                                                                                                                                                                 |   |     | (68,177    | )      |     |   | (211,297 | ) |
|                                                                                                                                                                                                                                         |   |     |       |   |     |   |   |   |
|                                                                                                                                                                                                                                         |   |     |       |   |     |   |   |   |
| **Total                  Liabilities and Stockholders' Equity (Deficiency)**                                                                                                                                                                 |   | $        | 20         |   |     | $      | 512,068 |   |

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**SFG        FINANCIAL CORPORATION AND SUBSIDIARIES**

**CONSOLIDATED        STATEMENTS OF OPERATIONS**

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

|                                                                         |   | **2002** |      |   | **2001** |   |
|------------------------------------------------------------------------------|--------|----------|-----------|--------|----------|--------|
| **Revenue:**                                                                 |   |     |      |   |     |   |
| Rental                  income                                               |   | $        | -         |   |     | $      | - |   |
|                                                                         |   |     |      |   |     |   |   |   |
| **Total                  Revenues**                                          |   |     | -         |   |     |   | - |   |
|                                                                         |   |     |      |   |     |   |   |   |
| **Operating                  Expenses**                                      |   |     |      |   |     |   |   |   |
| Professional                  fees                                           |   |     | 3,000     |   |     |   | 10,707 |   |
| Administrative                  expenses                                     |   |     | -         |   |     |   | 90,750 |   |
| **Total                  Operating Expenses**                                |   |     | 3,000     |   |     |   | 101,457 |   |
|                                                                         |   |     |      |   |     |   |   |   |
| **Income                  (Loss) From Operations**                           |   |     | (3,000    | )      |     |   | (101,457 | ) |
|                                                                         |   |     |      |   |     |   |   |   |
| **Provision                  for Taxes**                                     |   |     |      |   |     |   |   |   |
| New                  York State corporate taxes                              |   |     | 155       |   |     |   | 155 |   |
|                                                                         |   |     |      |   |     |   |   |   |
| **Net                  Income (Loss)**                                       |   | $        | (3,155    | )      |     | $      | (101,612 | ) |
|                                                                         |   |     |      |   |     |   |   |   |
| **Earnings                  Per Share**                                      |   | $        | (0.00     | )      |     | $      | (0.02 | ) |
|                                                                         |   |     |      |   |     |   |   |   |
| **Weighted                  Average of Number of Common Shares Outstanding** |   |     | 4,278,231 |   |     |   | 4,117,606 |   |

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**SFG        FINANCIAL CORPORATION AND SUBSIDIARIES**

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

**FOR        THE NINE MONTHS ENDED OCTOBER 31, 2002 AND 2001**

|                                                                           |   | COMMON                  STOCK |      |   | CAPITALIN                  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                                    |   |                          | 181,500   |   |                              |   | 181    |                    |   |   | 90,569 |   |   |   | - |   |
| Net                  Income (Loss) for the nine months ended October 31, 2001  |   |                          |      |   |                              |   | -      |                    |   |   | - |   |   |   | (101,612 | ) |
|                                                                           |   |                          |      |   |                              |   |   |                    |   |   |   |   |   |   |   |   |
| **Balance                  at October 31, 2001**                               |   |                          | 4,208,356 |   |                              |   | 4,208  |                    |   |   | 2,372,219 |   |   |   | (2,587,724 | ) |
|                                                                           |   |                          |      |   |                              |   |   |                    |   |   |   |   |   |   |   |   |
| Shares                  issued for services                                    |   |                          | 60,500    |   |                              |   | 61     |                    |   |   | 30,189 |   |   |   | - |   |
| Net                  Income (Loss) for the three months ended January 31, 2002 |   |                          |      |   |                              |   |   |                    |   |   |   |   |   |   | 100,319 |   |
|                                                                           |   |                          |      |   |                              |   |   |                    |   |   |   |   |   |   |   |   |
| **Balance                  at January 31, 2002**                               |   |                          | 4,268,856 |   |                              |   | 4,269  |                    |   |   | 2,402,408 |   |   |   | (2,487,405 | ) |
|                                                                           |   |                          |      |   |                              |   |   |                    |   |   |   |   |   |   |   |   |
| Shares                  issued for services                                    |   |                          | 18,750    |   |                              |   | 19     |                    |   |   | 15,687 |   |   |   | - |   |
| Net                  Income (Loss) for the nine months ended October 31, 2002  |   |                          |      |   |                              |   | -      |                    |   |   | - |   |   |   | (3,155 | ) |
|                                                                           |   |                          |      |   |                              |   |   |                    |   |   |   |   |   |   |   |   |
| **Balance                  at October 31. 2002**                               |   |                          | 4,287,606 |   |                              | $      | 4,288  |                    |   | $ | 2,418,095 |   |   | $ | (2,490,560 | ) |

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**SFG        FINANCIAL CORPORATION AND SUBSIDIARIES**

**NOTES          TO CONSOLIDATED FINANCIAL STATEMENTS**

**October          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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