**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**WASHINGTON,      D.C. 20549**

**FORM      10-QSB**

**FREEDOM      FINANCIAL GROUP, INC.**

| Delaware                                                                      | 43-1647559                                          |
|-------------------------------------------------------------------------------|-----------------------------------------------------|
| (State                or other jurisdiction of incorporation or organization) | (I.R.S.                Employer Identification No.) |

**APPLICABLE      ONLY TO ISSUERS INVOLVED IN BANKRUPTCY**

**PROCEEDINGS      DURING THE PRECEDING FIVE YEARS**

**APPLICABLE      ONLY TO CORPORATE ISSUERS**

----

**TABLE      OF CONTENTS**

| **PART                I. - FINANCIAL INFORMATION** |                                                                                                                          | **3**  |
|----------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------|--------|
|                                               |                                                                                                                          |   |   |
| **ITEM                1.**                         | **Financial                Statements**                                                                                       |   | **3** |
|                                               |                                                                                                                          |   |   |
| **ITEM                2.**                         | **Management’s                Discussion and Analysis of Financial Condition and Results of                Operations** |   | **14** |
|                                               |                                                                                                                          |   |   |
| **ITEM                3.**                         | **Controls                and Procedures**                                                                                    |   | **26** |
|                                               |                                                                                                                          |   |
| **PART                II. - OTHER INFORMATION**    |                                                                                                                          | **27** |
|                                               |                                                                                                                          |   |   |
| **ITEM                1.**                         | **Legal                Proceedings**                                                                                          |   | **27** |
|                                               |                                                                                                                          |   |   |
| **ITEM                2.**                         | **Unregistered                Sales of Equity Securities and Use of Proceeds**                                                |   | **27** |
|                                               |                                                                                                                          |   |   |
| **ITEM                3.**                         | **Defaults                Upon Senior Securities**                                                                            |   | **27** |
|                                               |                                                                                                                          |   |   |
| **ITEM                4.**                         | **Submission                of Matters to a Vote of Security Holders**                                                        |   | **27** |
|                                               |                                                                                                                          |   |   |
| **ITEM                5.**                         | **Other                Information**                                                                                          |   | **27** |
|                                               |                                                                                                                          |   |   |
| **ITEM                6.**                         | **Exhibits                and Reports on Form 8-K**                                                                           |   | **28** |
|                                               |                                                                                                                          |   |
| **INDEX                TO EXHIBITS**               |                                                                                                                          | **28** |

----

**PART      I.**
** **
**FINANCIAL      INFORMATION**

| **ITEM              1.** | **Financial                Statements** |
|--------------------------|-----------------------------------------|

**Report      of Independent Registered Public Accounting Firm**

|   |   |                               |
|--------|--------|------------------------------------|
|        |        | **/s/                BKD,****LLP** |

----

**FREEDOM      FINANCIAL GROUP, INC.**

**Consolidated      Balance Sheets**

|                                                                                                                                                                                                        |   | **Unaudited**                |       |                            |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------|------------|---------------------------------|--------|
|                                                                                                                                                                                                        |   | **March                31,** |       | **December                31,** |   |
|                                                                                                                                                                                                        |   | **2007**                     |       | **2006**                        |   |
| **Assets**                                                                                                                                                                                                  |   |                         |       |                            |   |
| Cash                and cash equivalents                                                                                                                                                                    |   | $                            | 1,491,591  |                            | $      | 1,276,994 |   |
| Finance                receivables, net                                                                                                                                                                     |   |                         | 10,044,845 |                            |   | 9,676,164 |   |
| Repossessed                assets                                                                                                                                                                           |   |                         | 222,806    |                            |   | 326,185 |   |
| Accrued                interest receivable                                                                                                                                                                  |   |                         | 118,641    |                            |   | 131,428 |   |
| Property                and equipment, net                                                                                                                                                                  |   |                         | 268,246    |                            |   | 277,181 |   |
| Deferred                financing costs                                                                                                                                                                     |   |                         | 67,374     |                            |   | 112,290 |   |
| Other                assets                                                                                                                                                                                 |   |                         | 46,635     |                            |   | 21,753 |   |
|                                                                                                                                                                                                        |   |                         |       |                            |   |   |   |
| Total                assets                                                                                                                                                                                 |   | $                            | 12,260,138 |                            | $      | 11,821,995 |   |
|                                                                                                                                                                                                        |   |                         |       |                            |   |   |   |
| **Liabilities                and Stockholders’ Equity**                                                                                                                                               |   |                         |       |                            |   |   |   |
| **Liabilities**                                                                                                                                                                                             |   |                         |       |                            |   |   |   |
| Bank                line of credit                                                                                                                                                                          |   | $                            | 1,182,019  |                            | $      | 419,309 |   |
| Accounts                payable                                                                                                                                                                             |   |                         | 42,877     |                            |   | 15,867 |   |
| Accrued                expenses                                                                                                                                                                             |   |                         | 113,012    |                            |   | 107,147 |   |
| Accrued                compensation costs                                                                                                                                                                   |   |                         | 38,716     |                            |   | 53,903 |   |
| Dealer                holdbacks                                                                                                                                                                             |   |                         | 39,023     |                            |   | 48,895 |   |
| Dealer                reserves                                                                                                                                                                              |   |                         | 34,210     |                            |   | 37,873 |   |
|                                                                                                                                                                                                        |   |                         |       |                            |   |   |   |
| Total                liabilities                                                                                                                                                                            |   |                         | 1,449,857  |                            |   | 682,994 |   |
|                                                                                                                                                                                                        |   |                         |       |                            |   |   |   |
| **Stockholders’                Equity**                                                                                                                                                               |   |                         |       |                            |   |   |   |
| Common                stock, $0.0001 par value; 36,000,000 shares authorized; 19,927,001                shares                issued and outstanding at March 31, 2007 and December 31,                2006 |   |                         | 1,993      |                            |   | 1,993 |   |
| Additional                paid-in-capital                                                                                                                                                                   |   |                         | 13,802,633 |                            |   | 13,802,633 |   |
| Retained                earnings (deficit)                                                                                                                                                                  |   |                         | (3,959,644 | )                               |   | (3,596,479 | ) |
| Accumulated                other comprehensive income                                                                                                                                                       |   |                         | 965,299    |                            |   | 930,854 |   |
|                                                                                                                                                                                                        |   |                         |       |                            |   |   |   |
| Total                stockholders’ equity                                                                                                                                                             |   |                         | 10,810,281 |                            |   | 11,139,001 |   |
|                                                                                                                                                                                                        |   |                         |       |                            |   |   |   |
| Total                liabilities and stockholders’ equity                                                                                                                                             |   | $                            | 12,260,138 |                            | $      | 11,821,995 |   |

*See      Notes to Consolidated Financial Statements.*

----

**FREEDOM      FINANCIAL GROUP, INC.**

**Consolidated      Statements of Operations**

**Unaudited**

|                                                              |   | **Three                Months Ended** |     |
|-------------------------------------------------------------------|--------|---------------------------------------|----------|
|                                                              |   | **March                31,**          |     | **March                31,** |   |
|                                                              |   | **2007**                              |     | **2006** |   |
| **Revenues**                                                      |   |                                  |     |   |   |
| Interest                income                                    |   | $                                     | 651,170  |   | $ | 656,221 |   |
| Other                                                             |   |                                  | 48,611   |   |   | 38,855 |   |
|                                                              |   |                                  |     |   |   |   |   |
| Total                revenues                                     |   |                                  | 699,781  |   |   | 695,076 |   |
|                                                              |   |                                  |     |   |   |   |   |
| **Interest                Expense**                               |   |                                  | 66,466   |   |   | — |   |
|                                                              |   |                                  |     |   |   |   |   |
| **Revenues                After Interest Expense**                |   |                                  | 633,315  |   |   | 695,076 |   |
|                                                              |   |                                  |     |   |   |   |   |
| **Provision                for Credit Losses**                    |   |                                  | 364,323  |   |   | 297,488 |   |
|                                                              |   |                                  |     |   |   |   |   |
| **Net                Revenues After Provision for Credit Losses** |   |                                  | 268,992  |   |   | 397,588 |   |
|                                                              |   |                                  |     |   |   |   |   |
| **Operating                Expenses**                             |   |                                  | 632,157  |   |   | 778,293 |   |
|                                                              |   |                                  |     |   |   |   |   |
| **Operating                Loss**                                 |   |                                  | (363,165 | ) |   | (380,705 | ) |
|                                                              |   |                                  |          |   |   |  |   |
| **Provision                for Income Taxes**                     |   |                                  | —  |   |   | — |   |
|                                                              |   |                                  |     |   |   |   |   |
| **Net                Loss**                                       |   | $                                     | (363,165 | ) | $ | (380,705 | ) |
|                                                              |   |                                  |     |   |   |   |   |
| **Basic                and Diluted Loss Per Share**               |   | $                                     | (0.02    | ) | $ | (0.04 | ) |

*See      Notes to Consolidated Financial Statements.*

----

**FREEDOM      FINANCIAL GROUP, INC.**

**Consolidated      Statements of Stockholders’ Equity**

**Unaudited**

|                                                   |   | **Redeemable****Convertible****Preferred** |       | **Common                Stock** |   | **Additional****Paid-in** |   | **Retained** |    | **Accumulated****Other****Comprehensive** |   |       |   |
|--------------------------------------------------------|--------|--------------------------------------------|------------|---------------------------------|--------|---------------------------|--------|--------------|---------|-------------------------------------------|--------|------------|--------|
|                                                   |   | **Stock**                                  |       | **Shares**                      |   | **Amount**                |   | **Capital**  |    | **Earnings**                              |   | **Income** |   | **Total** |   |
| **Balance,                December 31, 2006**          |   | $                                          | 0          |                            |   | 19,927,001                |   | $            | 1,993   |                                      | $      | 13,802,633 |   | $ | (3,596,479 | ) | $ | 930,854 |   | $ | 11,139,001 |   |
|                                                   |   |                                       |       |                            |   |                      |   |         |    |                                      |   |       |   |   |   |   |   |   |   |   |   |   |
| Net                loss                                |   |                                       | —    |                            |   | —                   |   |         | — |                                      |   | —    |   |   | (363,165 | ) |   | — |   |   | (363,165 | ) |
|                                                   |   |                                       |       |                            |   |                      |   |         |    |                                      |   |       |   |   |   |   |   |   |   |   |   |   |
| Foreign                currency translation adjustment |   |                                       | —    |                            |   | —                   |   |         | — |                                      |   | —    |   |   | — |   |   | 34,445 |   |   | 34,445 |   |
|                                                   |   |                                       |       |                            |   |                      |   |         |    |                                      |   |       |   |   |   |   |   |   |   |   |   |   |
| Comprehensive                loss                      |   |                                       | —    |                            |   | —                   |   |         | — |                                      |   | —    |   |   | — |   |   | — |   |   | (328,720 | ) |
|                                                   |   |                                       |       |                            |   |                      |   |         |    |                                      |   |       |   |   |   |   |   |   |   |   |   |   |
| **Balance,                March 31, 2007**             |   | $                                          | 0          |                            |   | 19,927,001                |   | $            | 1,993   |                                      | $      | 13,802,633 |   | $ | (3,959,644 | ) | $ | 965,299 |   | $ | 10,810,281 |   |
|                                                   |   |                                       |       |                            |   |                      |   |         |    |                                      |   |       |   |   |   |   |   |   |   |   |   |   |
| **Balance,                December 31, 2005**          |   | $                                          | 13,798,817 |                            |   | 9,965,759                 |   | $            | 997     |                                      | $      | 0          |   | $ | (2,446,970 | ) | $ | 947,188 |   | $ | 12,300,032 |   |
|                                                   |   |                                       |       |                            |   |                      |   |         |    |                                      |   |       |   |   |   |   |   |   |   |   |   |   |
| Net                loss                                |   |                                       | —    |                            |   | —                   |   |         | — |                                      |   | —    |   |   | (380,705 | ) |   | — |   |   | (380,705 | ) |
|                                                   |   |                                       |       |                            |   |                      |   |         |    |                                      |   |       |   |   |   |   |   |   |   |   |   |   |
| Foreign                currency translation adjustment |   |                                       | —    |                            |   | —                   |   |         | — |                                      |   | —    |   |   | — |   |   | (19,532 | ) |   | (19,532 | ) |
|                                                   |   |                                       |       |                            |   |                      |   |         |    |                                      |   |       |   |   |   |   |   |   |   |   |   |   |
| Comprehensive                loss                      |   |                                       | —    |                            |   | —                   |   |         | — |                                      |   | —    |   |   | — |   |   | — |   |   | (400,237 | ) |
|                                                   |   |                                       |       |                            |   |                      |   |         |    |                                      |   |       |   |   |   |   |   |   |   |   |   |   |
| Stock                Grant                             |   |                                       | —    |                            |   | 962,493                   |   |         | 96      |                                      |   | 4,716      |   |   | — |   |   | — |   |   | 4,812 |   |
|                                                   |   |                                       |       |                            |   |                      |   |         |    |                                      |   |       |   |   |   |   |   |   |   |   |   |   |
| **Balance,                March 31, 2006**             |   | $                                          | 13,798,817 |                            |   | 10,928,252                |   | $            | 1,093   |                                      | $      | 4,716      |   | $ | (2,827,675 | ) | $ | 927,656 |   | $ | 11,904,607 |   |

*See      Notes to Consolidated Financial Statements.*

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**FREEDOM      FINANCIAL GROUP, INC.**

**Consolidated      Statements of Cash Flows**

**Unaudited**

|                                                                                                         |   | **Three                Months Ended March 31,** |       |
|--------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------|------------|
|                                                                                                         |   | **2007**                                        |       | **2006** |   |
| **Operating                Activities**                                                                      |   |                                            |       |   |   |
| Net                loss                                                                                      |   | $                                               | (363,165   | ) | $ | (380,705 | ) |
| Adjustments                to reconcile net loss to net cash provided by operating                activities |   |                                            |       |   |   |   |   |
| Depreciation                                                                                                 |   |                                            | 12,598     |   |   | 10,144 |   |
| Provision                for credit losses                                                                   |   |                                            | 364,323    |   |   | 297,488 |   |
| Deferred                discount income                                                                      |   |                                            | (97,285    | ) |   | (151,313 | ) |
| Recovery                of charged-off finance receivables                                                   |   |                                            | 161,124    |   |   | 136,281 |   |
| Stock                grant expense                                                                           |   |                                            | —    |   |   | 4,812 |   |
| Amortization                of deferred financing fees                                                       |   |                                            | 44,916     |   |   | — |   |
| Changes                in                                                                                    |   |                                            |       |   |   |   |   |
| Other                assets                                                                                  |   |                                            | (8,627     | ) |   | (5,698 | ) |
| Accounts                payable and accrued expenses                                                         |   |                                            | 17,475     |   |   | 105,045 |   |
| Net                cash provided by operating activities                                                     |   |                                            | 131,359    |   |   | 16,054 |   |
|                                                                                                         |   |                                            |       |   |   |   |   |
| **Investing                Activities**                                                                      |   |                                            |       |   |   |   |   |
| Purchase                of finance receivables                                                               |   |                                            | (2,159,349 | ) |   | (2,121,332 | ) |
| Principal                collected on finance receivables                                                    |   |                                            | 1,496,916  |   |   | 1,595,865 |   |
| Payments                of dealer reserves                                                                   |   |                                            | (5,453     | ) |   | (4,618 | ) |
| Payments                of dealer holdbacks                                                                  |   |                                            | (21,882    | ) |   | (45,906 | ) |
| Purchase                of property and equipment                                                            |   |                                            | (1,770     | ) |   | (1,308 | ) |
| Net                cash used in investing activities                                                         |   |                                            | (691,538   | ) |   | (577,299 | ) |
|                                                                                                         |   |                                            |       |   |   |   |   |
| **Financing                Activities**                                                                      |   |                                            |       |   |   |   |   |
| Payment                of deferred financing fees                                                            |   |                                            | —    |   |   | (25,532 | ) |
| Line                of credit advances, net                                                                  |   |                                            | 762,710    |   |   | — |   |
| Net                cash provided by (used in) financing activities                                           |   |                                            | 769,646    |   |   | (25,532 | ) |
|                                                                                                         |   |                                            |       |   |   |   |   |
|                                                                                                         |   |                                            |       |   |   |   |   |
| **Effect                of Exchange Rate Changes on Cash and Cash                Equivalents**               |   |                                            | 12,066     |   |   | (3,049 | ) |
|                                                                                                         |   |                                            |       |   |   |   |   |
| **Net                Increase (Decrease) in Cash and Cash Equivalents**                                      |   |                                            | 214,597    |   |   | (589,826 | ) |
|                                                                                                         |   |                                            |       |   |   |   |   |
| **Cash                and Cash Equivalents, Beginning of Period**                                            |   |                                            | 1,276,994  |   |   | 2,192,075 |   |
|                                                                                                         |   |                                            |       |   |   |   |   |
| **Cash                and Cash Equivalents, End of Period**                                                  |   | $                                               | 1,491,591  |   | $ | 1,602,249 |   |

*See      Notes to Consolidated Financial Statements.*

----

**FREEDOM      FINANCIAL GROUP, INC.**

**Notes      to Consolidated Financial Statements**

**Unaudited**

**Note      1:  **
**General**

**Note      2:  **
**Basis      of Presentation**

*Financial      Reporting by Entities in Reorganization Under the Bankruptcy      Code*

**Note      3:  **
**Finance      Receivables and Allowance for Credit Losses**

|                                       |   | **2007** |       | **2006** |   |
|--------------------------------------------|--------|----------|------------|----------|--------|
|                                       |   |     |       |     |   |
| Automobiles                                |   | $        | 9,639,656  |     | $      | 9,110,368 |   |
| Bulk                food                   |   |     | 387,235    |     |   | 420,208 |   |
| Equipment                leases            |   |     | 306,682    |     |   | 379,003 |   |
| Other                                      |   |     | 840,375    |     |   | 875,745 |   |
| Total                finance receivables   |   |     | 11,173,948 |     |   | 10,785,324 |   |
|                                       |   |     |       |     |   |   |   |
| Less                                       |   |     |       |     |   |   |   |
| Unearned                discount           |   |     | 410,087    |     |   | 388,193 |   |
| Allowance                for credit losses |   |     | 719,016    |     |   | 720,967 |   |
|                                       |   |     | 1,129,103  |     |   | 1,109,160 |   |
| Net                finance receivables     |   | $        | 10,044,845 |     | $      | 9,676,164 |   |

----

| 2007  |   | $      | 4,652,214  |   |
|-------|--------|--------|------------|--------|
| 2008  |   |   | 4,914,466  |   |
| 2009  |   |   | 3,302,688  |   |
| 2010  |   |   | 1,660,196  |   |
| 2011  |   |   | 327,490    |   |
| 2012  |   |   | 7,497      |   |
| Total |   | $      | 14,864,551 |   |

|                                                        |   | **2007** |     | **2006** |   |
|-------------------------------------------------------------|--------|----------|----------|----------|--------|
|                                                        |   |     |     |     |   |
| Balance,                beginning of period                 |   | $        | 720,967  |     | $      | 412,228 |   |
| Provision                charged to expense                 |   |     | 364,323  |     |   | 297,488 |   |
| Losses                charged off                           |   |     | (426,636 | )        |   | (362,817 | ) |
| Recoveries                of previously charged off amounts |   |     | 57,745   |     |   | 86,685 |   |
| Effect                of foreign currency translation       |   |     | 2,617    |     |   | (2,215 | ) |
| Balance,                end of period                       |   | $        | 719,016  |     | $      | 431,369 |   |

**Note      4:  **
**Bank      Line of Credit**

----

**Note      5:  **
**Income      Taxes**

**Note      6:  **
**Commitments      and Contingencies**

| 2007  |   | $      | 38,727 |   |
|-------|--------|--------|--------|--------|
| 2008  |   |   | 34,095 |   |
| 2009  |   |   | 8,698  |   |
| 2010  |   |   | 2,900  |   |
| Total |   | $      | 84,420 |   |

----

**Note      7:  **
**Loss      Per Share**

|                                            |   |     |     | **Weighted** |   |                         |   |
|-------------------------------------------------|--------|----------|----------|--------------|--------|------------------------------|--------|
|                                            |   |     |     | **Average**  |   | **Per                Share** |   |
|                                            |   | **Loss** |     | **Shares**   |   | **Amount**                   |   |
|                                            |   |     |     |         |   |                         |   |
| Net                loss                         |   | $        | (363,165 | )            |   | 19,927,001                   |   |   |   |   |
| Basic                and diluted loss per share |   |     |     |         |   |                         |   | $ | (0.02 | ) |

|                                            |   |     |     | **Weighted** |   |                         |   |
|-------------------------------------------------|--------|----------|----------|--------------|--------|------------------------------|--------|
|                                            |   |     |     | **Average**  |   | **Per                Share** |   |
|                                            |   | **Loss** |     | **Shares**   |   | **Amount**                   |   |
|                                            |   |     |     |         |   |                         |   |
| Net                loss                         |   | $        | (380,705 | )            |   | 10,823,003                   |   |   |   |   |
| Basic                and diluted loss per share |   |     |     |         |   |                         |   | $ | (0.04 | ) |

----

**Note      8:  **
**Operating      Expenses**

|                                 |   | **2007** |    | **2006** |   |
|--------------------------------------|--------|----------|---------|----------|--------|
|                                 |   |     |    |     |   |
| Salaries                and benefits |   | $        | 375,750 |     | $      | 411,576 |   |
| Professional                fees     |   |     | 102,896 |     |   | 214,951 |   |
| Insurance                            |   |     | 41,113  |     |   | 35,847 |   |
| Other                                |   |     | 112,398 |     |   | 115,919 |   |
|                                 |   |     |    |     |   |   |   |
|                                 |   | $        | 632,157 |     | $      | 778,293 |   |

**Note      9:  **
**Stock      Based Compensation**

*(see      Note 6, Commitments and Contingencies)*

| 1.                    | The                Grant Shares are subject to forfeiture if the Company does not raise                at                least $10,000,000 in debt and/or equity financing before January                9, 2009.                Additionally, each officer must forfeit their Grant Shares if their                employment with the Company is terminated for any reason prior to                the                Company raising at least $10,000,000 in debt and/or equity                financing. |
|------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.                    | The                officers relinquish any rights to receive dividends or proceeds from                the                liquidation of the Company until the Company has raised debt and/or                equity                financing of not less than                $10,000,000. |
|------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.                    | The                officers may not sell any Existing Shares or Grant Shares until the                Company has raised debt and/or equity financing of at least $10,000,000.                No sooner than six months after raising debt and/or equity financing                of at                least $10,000,000 the officers may sell all of their Existing Shares                and                up to half of their Grant Shares. The officers may sell the remainder                of                their Grant Shares only if the Company has raised debt and/or equity                financing of at least $15,000,000. |
|------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.                    | Notwithstanding                the above restrictions, the officers’ Existing Shares and Grant Shares may                be sold upon their death or permanent disability, or if there is                a change                in control of the Company. |
|------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**Note      10:  **
**Foreign      Operations**

|                                    |   | **2007** |    | **2006** |   |
|-----------------------------------------|--------|----------|---------|----------|--------|
|                                    |   |     |    |     |   |
| Total                revenues           |   | $        | 214,348 |     | $      | 282,466 |   |
|                                    |   |     |    |     |   |   |   |
| Loss                before income taxes |   |     | (93,287 | )        |   | (36,457 | ) |
|                                    |   |     |    |     |   |   |   |
| Net                Loss                 |   |     | (93,287 | )        |   | (36,457 | ) |

**Note      11:  **
**Additional      Cash Flow Information**

**Note      12:  **
**Recently      Issued Accounting Pronouncements**

----

| **ITEM              2.** | **Management’s                Discussion and Analysis of                Financial Condition and Results of Operations ** |
|--------------------------|------------------------------------------------------------------------------------------------------------------------------------------|

**FORWARD-LOOKING      STATEMENTS**

*This      Quarterly Report on Form 10-QSB contains forward-looking statements within      the      meaning of the Private Securities Litigation Reform Act of 1995. Words such      as“intend,” “anticipate,” “believe,” “estimate,” “plan,” and “expect,” and      variations of these words and similar expressions are intended to identify      these      forward-looking statements. All statements other than statements of historical      facts contained in this report, including statements regarding our future      financial position, business strategy, budgets, projected costs and plans and      objectives of management for future operations, are considered to be      forward-looking statements. We express our expectations, beliefs or projections      in good faith and believe our expectations reflected in these forward-looking      statements are based on reasonable assumptions; however, we cannot assure you      that these expectations, beliefs or projections will prove to have been correct.      Risks, uncertainties and assumptions that could cause actual results to differ      materially from the expectations reflected in the forward-looking statements      include, among other things: (i) the risks associated with business expansion;      (ii) the ability to obtain sufficient outside debt and/or equity financing      on      terms acceptable to us in order to meet our cash requirements over the coming      12      months; (iii) our ability to compete successfully against competitors with      significantly greater financial, marketing and advertising resources than the      Company; and (iv) the risk of adverse economic conditions lessening demand      for      our products.*

*Readers      are referred to the caption “Risk Factors” appearing at the end of*
***ITEM      1, Description of Business***
*      in      our annual report on Form 10-KSB, filed on March 27, 2007, for additional      factors that may affect our forward-looking statements. In light of these risks,      uncertainties and assumptions, the forward-looking events discussed in this      Form      10-QSB might not occur. We undertake no obligation to update or revise our      forward-looking statements, whether as a result of new information, future      events or otherwise.*

***Overview***

***Reorganization      of Predecessor Under Chapter 11***

----

| December                31, 2003 |   |   | 17 | % |
|----------------------------------|--------|--------|----|---|
| December                31, 2004 |   |   | 45 | % |
| December                31, 2005 |   |   | 79 | % |
| December                31, 2006 |   |   | 84 | % |
| March                31, 2007    |   |   | 86 | % |

| (1)     | Consistently                acquiring an increasing volume of sub-prime automobile-secured Installment                Contracts, through our point-of-sale programs, that meet the Company’s                underwriting guidelines; |
|-----------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)     | Obtaining                additional outside debt and/or equity financing to meet the Company’s                future cash requirements; |
|-----------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------|

| (3)     | Minimizing                the credit losses in the Installment Contracts portfolio;                and |
|-----------------------------|--------------------------------------------------------------------------------------------------------|

| (4)     | Monitoring                key performance measures, including cost per loan acquired, book-to-look                ratio (computed as the number of contracts acquired compared to the                number                of credit applications received/reviewed), turnaround time for responding                to credit applications submitted by dealers, and turnaround time                for                funding a loan package submitted by a                dealer. |
|-----------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

***Critical      Accounting Policies, Judgments and Estimates***

----

***Selected      Financial Data***

|                                                                                                    |   | **Three                Months Ended March 31,** |      |
|---------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------|-----------|
|                                                                                                    |   | **2007**                                        |      | **2006** |   |
|                                                                                                    |   |                                            |      |   |   |
| Installment                Contracts acquired during the period (total principal                amount) |   | $                                               | 2,296,334 |   | $ | 2,292,972 |   |
| Purchase                price of Installment Contracts acquired                                         |   | $                                               | 2,166,948 |   | $ | 2,159,201 |   |
| Percentage                of dollar amount paid to principal balance acquired                           |   |                                            | 94.4      | % |   | 94.2 | % |
| Number                of Installment Contracts acquired during the period                               |   |                                            | 303       |   |   | 387 |   |
| Average                principal balance acquired                                                       |   | $                                               | 7,579     |   | $ | 5,925 |   |
| Acquisition                cost per acquired Installment Contract (including                overhead)   |   | $                                               | 632       |   | $ | 804 |   |
| Monthly                servicing cost per Installment Contract (including                overhead)      |   | $                                               | 21.79     |   | $ | 22.15 |   |

----

***Results      of Operations***

**Interest      Income**

|                                         |   | **For                the Three Months Ended March 31, 2007 and 2006** |       |
|----------------------------------------------|--------|-----------------------------------------------------------------------|------------|
|                                         |   | **2007**                                                              |       | **2006** |   |
|                                         |   | **Average**                                                           |       | **Interest** |   |   |   | **Average** |   | **Interest** |   |   |   |
|                                         |   | **Balance**                                                           |       | **Income** |   | **Yield** |   | **Balance** |   | **Income** |   | **Yield** |   |
|                                         |   |                                                                  |       |   |   |   |   |   |   |   |   |   |   |
| **Installment                Contracts**     |   | $                                                                     | 10,542,936 |   | $ | 639,762 |   |   | 24.27% |   | $ | 10,350,998 |   | $ | 637,877 |   |   | 24.65% |   |
| **Cash                and cash equivalents** |   |                                                                  | 1,354,427  |   |   | 11,216 |   |   | 3.31% |   |   | 1,899,416 |   |   | 17,982 |   |   | 3.79% |   |
| **Notes                receivable**          |   |                                                                  | 6,212      |   |   | 192 |   |   | 12.36% |   |   | 11,725 |   |   | 362 |   |   | 12.35% |   |
|                                         |   |                                                                  |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Total**                                    |   | $                                                                     | 11,903,575 |   | $ | 651,170 |   |   | 21.88% |   | $ | 12,262,139 |   | $ | 656,221 |   |   | 21.41% |   |

----

|                                                   |   | **For                the Three Months Ended March 31, 2007 Compared to the Three Months                Ended                March 31, 2006** |   |
|--------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                   |   | **Volume**                                                                                                                                   |   | **Rate** |   | **Total** |   |
| Increase                (decrease) in interest income: |   |                                                                                                                                         |   |   |   |   |   |
| Installment                Contracts                   |   | $                                                                                                                                            | 10,793 |   | $ | (8,907 | ) | $ | 1,886 |   |
| Cash                and cash equivalents               |   |                                                                                                                                         | (4,710 | ) |   | (2,056 | ) |   | (6,766 | ) |
| Notes                receivable                        |   |                                                                                                                                         | (171   | ) |   | - |   |   | (171 | ) |
|                                                   |   |                                                                                                                                         |   |   |   |   |   |   |   |   |
| Total                Interest Income                   |   | $                                                                                                                                            | 5,912  |   | $ | (10,963 | ) | $ | (5,051 | ) |

**Interest      Expense**

**Provision      for Credit Losses**

**Operating      Expenses**

|                                 |   | **Three                Months Ended March 31,** |    |
|--------------------------------------|--------|-------------------------------------------------|---------|
|                                 |   | **2007**                                        |    | **2006** |   | **Percent                Change** |   |
|                                 |   |                                            |    |   |   |   |   |
| Salaries                and benefits |   | $                                               | 375,750 |   | $ | 411,576 |   |   | -8.70% |   |
| Professional                fees     |   |                                            | 102,896 |   |   | 214,951 |   |   | -52.13% |   |
| Insurance                            |   |                                            | 41,113  |   |   | 35,847 |   |   | 14.69% |   |
| Other                                |   |                                            | 112,398 |   |   | 115,919 |   |   | -3.04% |   |
| Total                                |   | $                                               | 632,157 |   | $ | 778,293 |   |   | -18.78% |   |

----

***Financial      Condition***

**Installment      Contracts Portfolio**

----

|                                       |   | **March                31, 2007** |      | **December                31, 2006** |   |
|--------------------------------------------|--------|-----------------------------------|-----------|--------------------------------------|--------|
|                                       |   | **United                States**  |      | **Canada**                           |   | **Total** |   | **United                States** |   | **Canada** |   | **Total** |   |
| Automobiles                                |   | $                                 | 8,294,235 |                                 | $      | 1,345,421 |   | $ | 9,639,656 |   | $ | 7,692,121 |   | $ | 1,418,247 |   | $ | 9,110,368 |   |
| Equipment                leases            |   |                              | -         |                                 |   | 306,682 |   |   | 306,682 |   |   | - |   |   | 379,003 |   |   | 379,003 |   |
| Bulk                food                   |   |                              | -         |                                 |   | 387,235 |   |   | 387,235 |   |   | - |   |   | 420,208 |   |   | 420,208 |   |
| Other                                      |   |                              | -         |                                 |   | 840,375 |   |   | 840,375 |   |   | - |   |   | 875,745 |   |   | 875,745 |   |
| Total                                      |   |                              | 8,294,235 |                                 |   | 2,879,713 |   |   | 11,173,948 |   |   | 7,692,121 |   |   | 3,093,203 |   |   | 10,785,324 |   |
|                                       |   |                              |      |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Less                                       |   |                              |      |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Unearned                discount           |   |                              | 310,727   |                                 |   | 99,360 |   |   | 410,087 |   |   | 273,457 |   |   | 114,736 |   |   | 388,193 |   |
| Allowance                for credit losses |   |                              | 560,536   |                                 |   | 158,480 |   |   | 719,016 |   |   | 551,192 |   |   | 169,775 |   |   | 720,967 |   |
| Net                                        |   | $                                 | 7,422,972 |                                 | $      | 2,621,873 |   | $ | 10,044,845 |   | $ | 6,867,472 |   | $ | 2,808,692 |   | $ | 9,676,164 |   |

**Asset      Quality**

----

|                                  |   | **March                31, 2007** |      |
|---------------------------------------|--------|-----------------------------------|-----------|
|                                  |   | **United                States**  |      | **Canada** |   | **Total** |   |
|                                  |   | **Amount**                        |      | **Pct.** |   | **Amount** |   | **Pct.** |   | **Amount** |   | **Pct.** |   |
|                                  |   |                              |      |   |   |   |   |   |   |   |   |   |   |
| Installment                Contracts  |   | $                                 | 8,294,235 |   |   | 100% |   | $ | 2,879,713 |   |   | 100% |   | $ | 11,173,948 |   |   | 100% |   |
|                                  |   |                              |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Period                of delinquency: |   |                              |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 30                - 59 days           |   | $                                 | 692,046   |   |   | 8.34% |   | $ | 30,773 |   |   | 1.07% |   | $ | 722,819 |   |   | 6.47% |   |
| 60                - 89 days           |   |                              | 309,212   |   |   | 3.73% |   |   | 53,501 |   |   | 1.86% |   |   | 362,713 |   |   | 3.25% |   |
| 90                - 119 days          |   |                              | 207,120   |   |   | 2.50% |   |   | 7,615 |   |   | 0.26% |   |   | 214,735 |   |   | 1.92% |   |
|                                  |   |                              |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                                 |   | $                                 | 1,208,378 |   |   | 14.57% |   | $ | 91,889 |   |   | 3.19% |   | $ | 1,300,267 |   |   | 11.64% |   |
|                                  |   |                              |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

|                                  |   | **December                31, 2006** |      |
|---------------------------------------|--------|--------------------------------------|-----------|
|                                  |   | **United                States**     |      | **Canada** |   | **Total** |   |
|                                  |   | **Amount**                           |      | **Pct.** |   | **Amount** |   | **Pct.** |   | **Amount** |   | **Pct.** |   |
|                                  |   |                                 |      |   |   |   |   |   |   |   |   |   |   |
| Installment                Contracts  |   | $                                    | 7,692,121 |   |   | 100% |   | $ | 3,093,203 |   |   | 100% |   | $ | 10,785,324 |   |   | 100% |   |
|                                  |   |                                 |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Period                of delinquency: |   |                                 |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 30                - 59 days           |   | $                                    | 748,375   |   |   | 9.73% |   | $ | 109,720 |   |   | 3.55% |   | $ | 858,095 |   |   | 7.96% |   |
| 60                - 89 days           |   |                                 | 462,508   |   |   | 6.01% |   |   | 76,418 |   |   | 2.47% |   |   | 538,926 |   |   | 5.00% |   |
| 90                - 119 days          |   |                                 | 266,282   |   |   | 3.46% |   |   | 61,657 |   |   | 1.99% |   |   | 327,939 |   |   | 3.04% |   |
|                                  |   |                                 |      |   |   |   |  |   |   |   |   |   |  |   |   |   |   |   |   |
| Total                                 |   | $                                    | 1,477,165 |   |   | 19.20% |   | $ | 247,795 |   |   | 8.01% |   | $ | 1,724,960 |   |   | 15.99% |   |

----

|                                                                                                          |   | **Three                Months Ended****March                31, 2007** |      | **Three                Months Ended****March                31, 2006** |   |
|---------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------|-----------|------------------------------------------------------------------------|--------|
|                                                                                                          |   | **United                States**                                       |      | **Canada**                                                             |   | **Total** |   | **United                States** |   | **Canada** |   | **Total** |   |
|                                                                                                          |   |                                                                   |      |                                                                   |   |   |   |   |   |   |   |   |   |
| Installment                Contracts, net of unearned discounts, end of period                                |   | $                                                                      | 7,983,509 |                                                                   | $      | 2,780,352 |   | $ | 10,763,861 |   | $ | 6,789,074 |   | $ | 3,695,669 |   | $ | 10,484,743 |   |
|                                                                                                          |   |                                                                   |      |                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Installment                Contracts, net of unearned discounts, average during the period                (1) |   | $                                                                      | 7,674,408 |                                                                   | $      | 2,868,528 |   | $ | 10,542,936 |   | $ | 6,621,541 |   | $ | 3,729,458 |   | $ | 10,350,999 |   |
|                                                                                                          |   |                                                                   |      |                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Gross                charge-offs                                                                              |   | $                                                                      | 326,376   |                                                                   | $      | 100,260 |   | $ | 426,636 |   | $ | 277,707 |   | $ | 85,110 |   | $ | 362,817 |   |
| Recoveries                                                                                                    |   |                                                                   | 23,430    |                                                                   |   | 34,315 |   |   | 57,745 |   |   | 75,060 |   |   | 11,625 |   |   | 86,685 |   |
|                                                                                                          |   |                                                                   |      |                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                charge-offs                                                                                |   | $                                                                      | 302,946   |                                                                   | $      | 65,945 |   | $ | 368,891 |   | $ | 202,647 |   | $ | 73,485 |   | $ | 276,132 |   |
|                                                                                                          |   |                                                                   |      |                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                charge-offs as a % of avg. contracts during the period,                annualized          |   |                                                                   | 15.79     | %                                                                      |   | 9.20 | % |   | 14.00 | % |   | 12.24 | % |   | 7.88 | % |   | 10.67 | % |
|                                                                                                          |   |                                                                   |      |                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (1)                - Average is based on month-end                balances                                    |

**Item      2, MANAGEMENT’S DISCUSSION AND ANALYSIS**
***Critical      Accounting Policies, Judgments and Estimates***

----

**Item      2, MANAGEMENT’S DISCUSSION AND ANALYSIS**
***Critical      Accounting Policies and Judgments***

|                                                  |   | **Three                Months Ended****March                31, 2007** |     | **Three                Months Ended****March                31, 2006** |   |
|-------------------------------------------------------|--------|------------------------------------------------------------------------|----------|------------------------------------------------------------------------|--------|
|                                                  |   | **United                States**                                       |     | **Canada**                                                             |   | **Total** |   | **United                States** |   | **Canada** |   | **Total** |   |
|                                                  |   |                                                                   |     |                                                                   |   |   |   |   |   |   |   |   |   |
| Balance                at beginning of period         |   | $                                                                      | 551,192  |                                                                   | $      | 169,775 |   | $ | 720,967 |   | $ | 199,558 |   | $ | 212,670 |   | $ | 412,228 |   |
|                                                  |   |                                                                   |     |                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Charge-offs                                           |   |                                                                   | (326,376 | )                                                                      |   | (100,260 | ) |   | (426,636 | ) |   | (277,707 | ) |   | (85,110 | ) |   | (362,817 | ) |
| Recoveries                                            |   |                                                                   | 23,430   |                                                                   |   | 34,315 |   |   | 57,745 |   |   | 75,060 |   |   | 11,625 |   |   | 86,685 |   |
|                                                  |   |                                                                   |     |                                                                   |   |   |   |   |   |   |   |  |   |   |  |   |   |  |   |
| Net                charge-offs                        |   |                                                                   | (302,946 | )                                                                      |   | (65,945 | ) |   | (368,891 | ) |   | (202,647 | ) |   | (73,485 | ) |   | (276,132 | ) |
|                                                  |   |                                                                   |     |                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Provision                for credit losses            |   |                                                                   | 312,290  |                                                                   |   | 52,033 |   |   | 364,323 |   |   | 223,805 |   |   | 73,683 |   |   | 297,488 |   |
|                                                  |   |                                                                   |     |                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Effect                of foreign currency translation |   |                                                                   | -        |                                                                   |   | 2,617 |   |   | 2,617 |   |   | - |   |   | (2,215 | ) |   | (2,215 | ) |
|                                                  |   |                                                                   |     |                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance                at end of period               |   | $                                                                      | 560,536  |                                                                   | $      | 158,480 |   | $ | 719,016 |   | $ | 220,716 |   | $ | 210,653 |   | $ | 431,369 |   |

----

***Liquidity      and Capital Resources***

----

***Off-Balance      Sheet Arrangements***

| 2007  |   | $      | 38,727 |   |
|-------|--------|--------|--------|--------|
| 2008  |   |   | 34,095 |   |
| 2009  |   |   | 8,698  |   |
| 2010  |   |   | 2,900  |   |
| Total |   | $      | 84,420 |   |

----

**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                Upon Senior Securities** |
|--------------------------|----------------------------------------------------|

| **ITEM              4.** | **Submission                of Matters to a Vote of Security                Holders** |
|--------------------------|---------------------------------------------------------------------------------------|

| **ITEM                5.** | **Other                    Information** |
|----------------------------|------------------------------------------|

----

| **ITEM              6.** | **Exhibits                and Reports on Form 8-K** |
|--------------------------|-----------------------------------------------------|

**INDEX      TO EXHIBITS**

| **Exhibit**               |   |                                                                                                                                                                                                        |
|---------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **Number**                |   | **Description**                                                                                                                                                                                             |
|                      |   |                                                                                                                                                                                                        |
| 2.1                (a)    |   | Corrected                Trustee’s Amended Plan of Reorganization                                                                                                                                     |
|                      |   |                                                                                                                                                                                                        |
| 2.2                (a)    |   | Disclosure                Statement for Trustee’s Amended Plan of Reorganization                                                                                                                      |
|                      |   |                                                                                                                                                                                                        |
| 3.1                (a)    |   | First                Amended and Restated Certificate of Incorporation                                                                                                                                      |
|                      |   |                                                                                                                                                                                                        |
| 3.1.1                (a)  |   | Certificate                of Amendment to Certificate of Incorporation                                                                                                                                     |
|                      |   |                                                                                                                                                                                                        |
| 3.2                (a)    |   | Bylaws                                                                                                                                                                                                      |
|                      |   |                                                                                                                                                                                                        |
| 3.2.1                (a)  |   | Amendment                to Bylaws                                                                                                                                                                          |
|                      |   |                                                                                                                                                                                                        |
| 4.1                (a)    |   | Amended                and Restated Trust Agreement of Freedom Financial Group I Statutory                Trust                                                                                             |
|                      |   |                                                                                                                                                                                                        |
| 10.1                (a)   |   | Employment                Agreement with Jerald L. Fenstermaker                                                                                                                                             |
|                      |   |                                                                                                                                                                                                        |
| 10.1.1                (e) |   | Addendum                to Employment Agreement with Jerald L. Fenstermaker                                                                                                                                 |
|                      |   |                                                                                                                                                                                                        |
| 10.1.2                (g) |   | Extension                of Employment Agreement with Jerald L. Fenstermaker                                                                                                                                |
|                      |   |                                                                                                                                                                                                        |
| 10.2                (a)   |   | Investment                Banking Agreement with Milestone Advisors, LLC                                                                                                                                    |
|                      |   |                                                                                                                                                                                                        |
| 10.3                (a)   |   | Unanimous                Consent of the Board of Directors Adopting Executive Management Stock                Bonus Plan                                                                                    |
|                      |   |                                                                                                                                                                                                        |
| 10.4                (a)   |   | Office                Lease - 3058 East Elm                                                                                                                                                                 |
|                      |   |                                                                                                                                                                                                        |
| 10.5                (b)   |   | Purchase                and Sale Agreement, dated April 7, 2003, between Freedom Financial                Group,                Inc. (as Seller) and The Cadle Company (as Buyer)                           |
|                      |   |                                                                                                                                                                                                        |
| 10.6                (b)   |   | Commercial                Real Estate Purchase Contract, dated May 9, 2003, between Freedom                Financial Group, Inc. (as Seller) and New Life Church of God (as                Buyer)           |
|                      |   |                                                                                                                                                                                                        |
| 10.7                (b)   |   | Real                Estate Sale Contract, dated June 4, 2003, between Donald D. Bass                and Don                W. Bass (as Buyers) and Freedom Financial Group, Inc. (as                Seller) |
|                      |   |                                                                                                                                                                                                        |
| 10.8                (b)   |   | Application                and Order by Bankruptcy Court Approving Employment of Biltmore                Associates                                                                                         |
|                      |   |                                                                                                                                                                                                        |
| 10.9                (d)   |   | Stock                Grant Agreement dated January 9, 2006                                                                                                                                                  |
|                      |   |                                                                                                                                                                                                        |
| 10.10                (f)  |   | Revolving                Credit Loan and Security Agreement                                                                                                                                                 |
|                      |   |                                                                                                                                                                                                        |
| 10.11                (f)  |   | Promissory                Note                                                                                                                                                                              |
|                      |   |                                                                                                                                                                                                        |
| 10.12                (f)  |   | Stock                Pledge Agreement                                                                                                                                                                       |
|                      |   |                                                                                                                                                                                                        |
| 10.13                (f)  |   | Warrant                for 300,000 shares of common stock                                                                                                                                                   |
|                      |   |                                                                                                                                                                                                        |
| 10.14                (f)  |   | Warrant                for 200,000 shares of common stock                                                                                                                                                   |
|                      |   |                                                                                                                                                                                                        |
| 10.15                (f)  |   | Warrant                for 136,778 shares of common stock                                                                                                                                                   |
|                      |   |                                                                                                                                                                                                        |
| 10.16                (f)  |   | Warrant                for 91,185 shares of common stock                                                                                                                                                    |
|                      |   |                                                                                                                                                                                                        |
| 11.1                      |   | Statement                Re: Computation of Per Share Earnings - See Note 7 to Condensed                Consolidated Financial Statements                                                                   |
|                      |   |                                                                                                                                                                                                        |
| 14.1                (c)   |   | Code                of Ethics                                                                                                                                                                               |
|                      |   |                                                                                                                                                                                                        |
| 21.1                (a)   |   | Subsidiaries                                                                                                                                                                                                |
|                      |   |                                                                                                                                                                                                        |
| 31.1                      |   | Certification                of Chief Executive Officer Under Section 302 of the Sarbanes-Oxley                Act of                2002                                                                   |
|                      |   |                                                                                                                                                                                                        |
| 31.2                      |   | Certification                of Chief Financial Officer Under Section 302 of the Sarbanes-Oxley                Act of                2002                                                                   |
|                      |   |                                                                                                                                                                                                        |
| 32.1                      |   | Certifications                of the Chief Executive Officer and Chief Financial Officer under                Section                906 of the Sarbanes-Oxley Act of                2002                   |

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**SIGNATURES**

|                                               |                                                                                    |                                    |
|----------------------------------------------------|-----------------------------------------------------------------------------------------|-----------------------------------------|
|                                               | **FREEDOM                FINANCIAL GROUP, INC.**                                        |
|                                          |                                                                               |                               |
| Date:               May              14, 2007 | By:                                                                           | /s/              Jerald L. Fenstermaker |
|                                               | Jerald              L. Fenstermaker, President and Chief Executive              Officer |

|                                               |                                                     |                              |
|----------------------------------------------------|----------------------------------------------------------|-----------------------------------|
|                                          |                                                |                         |
| Date:               May              14, 2007 | By:                                            | /s/              Daniel F. Graham |
|                                               | Daniel                F. Graham, Chief Financial Officer |

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