diff --git a/server/src/com/cloud/network/security/SecurityGroupManagerImpl.java b/server/src/com/cloud/network/security/SecurityGroupManagerImpl.java
index 8b40666833a..e1c99130ce8 100755
--- a/server/src/com/cloud/network/security/SecurityGroupManagerImpl.java
+++ b/server/src/com/cloud/network/security/SecurityGroupManagerImpl.java
@@ -764,33 +764,18 @@ public class SecurityGroupManagerImpl implements SecurityGroupManager, SecurityG
         return createSecurityGroup(cmd.getSecurityGroupName(), cmd.getDescription(), owner.getDomainId(), owner.getAccountId(), owner.getAccountName());
     }
 
-    @DB
     @Override
     public SecurityGroupVO createSecurityGroup(String name, String description, Long domainId, Long accountId, String accountName) {
-        final Transaction txn = Transaction.currentTxn();
-        AccountVO account = null;
-        txn.start();
-        try {
-            account = _accountDao.acquireInLockTable(accountId); // to ensure duplicate group names are not created.
-            if (account == null) {
-                s_logger.warn("Failed to acquire lock on account");
-                return null;
-            }
-            SecurityGroupVO group = _securityGroupDao.findByAccountAndName(accountId, name);
-            if (group == null) {
-                group = new SecurityGroupVO(name, description, domainId, accountId);
-                group = _securityGroupDao.persist(group);
-            }
-
+        SecurityGroupVO group = _securityGroupDao.findByAccountAndName(accountId, name);
+        if (group == null) {
+            group = new SecurityGroupVO(name, description, domainId, accountId);
+            group = _securityGroupDao.persist(group);
             s_logger.debug("Created security group " + group + " for account id=" + accountId);
-            return group;
-        } finally {
-            if (account != null) {
-                _accountDao.releaseFromLockTable(accountId);
-            }
-            txn.commit();
+        } else {
+            s_logger.debug("Returning existing security group " + group + " for account id=" + accountId);
         }
 
+        return group;
     }
 
     @Override
diff --git a/server/src/com/cloud/user/AccountManagerImpl.java b/server/src/com/cloud/user/AccountManagerImpl.java
index 7c6f0e5dd2e..48cdcfe655a 100755
--- a/server/src/com/cloud/user/AccountManagerImpl.java
+++ b/server/src/com/cloud/user/AccountManagerImpl.java
@@ -54,10 +54,9 @@ import com.cloud.api.commands.UpdateResourceLimitCmd;
 import com.cloud.api.commands.UpdateUserCmd;
 import com.cloud.configuration.Config;
 import com.cloud.configuration.ConfigurationManager;
-import com.cloud.configuration.ResourceCount;
+import com.cloud.configuration.ResourceCount.ResourceType;
 import com.cloud.configuration.ResourceCountVO;
 import com.cloud.configuration.ResourceLimitVO;
-import com.cloud.configuration.ResourceCount.ResourceType;
 import com.cloud.configuration.dao.ConfigurationDao;
 import com.cloud.configuration.dao.ResourceCountDao;
 import com.cloud.configuration.dao.ResourceLimitDao;
@@ -68,11 +67,9 @@ import com.cloud.domain.DomainVO;
 import com.cloud.domain.dao.DomainDao;
 import com.cloud.event.ActionEvent;
 import com.cloud.event.EventTypes;
-import com.cloud.event.UsageEventVO;
 import com.cloud.event.dao.UsageEventDao;
 import com.cloud.exception.AgentUnavailableException;
 import com.cloud.exception.ConcurrentOperationException;
-import com.cloud.exception.InsufficientCapacityException;
 import com.cloud.exception.InvalidParameterValueException;
 import com.cloud.exception.OperationTimedoutException;
 import com.cloud.exception.PermissionDeniedException;
@@ -109,6 +106,7 @@ import com.cloud.utils.component.ComponentLocator;
 import com.cloud.utils.component.Inject;
 import com.cloud.utils.component.Manager;
 import com.cloud.utils.concurrency.NamedThreadFactory;
+import com.cloud.utils.db.DB;
 import com.cloud.utils.db.Filter;
 import com.cloud.utils.db.GlobalLock;
 import com.cloud.utils.db.SearchBuilder;
@@ -122,7 +120,6 @@ import com.cloud.vm.ReservationContextImpl;
 import com.cloud.vm.UserVmManager;
 import com.cloud.vm.UserVmVO;
 import com.cloud.vm.VMInstanceVO;
-import com.cloud.vm.VirtualMachine;
 import com.cloud.vm.VirtualMachineManager;
 import com.cloud.vm.dao.InstanceGroupDao;
 import com.cloud.vm.dao.UserVmDao;
@@ -1223,6 +1220,7 @@ public class AccountManagerImpl implements AccountManager, AccountService, Manag
 
     @Override
     @ActionEvent(eventType = EventTypes.EVENT_ACCOUNT_CREATE, eventDescription = "creating Account")
+    @DB
     public UserAccount createAccount(CreateAccountCmd cmd) {
         Long accountId = null;
         String username = cmd.getUsername();
@@ -1327,10 +1325,12 @@ public class AccountManagerImpl implements AccountManager, AccountService, Manag
         if (s_logger.isDebugEnabled()) {
             s_logger.debug("Creating user: " + username + ", account: " + accountName + " (id:" + accountId + "), domain: " + domainId + " timezone:" + timezone);
         }
-
+        
+        Transaction txn = Transaction.currentTxn();
+        txn.start();
         UserVO dbUser = _userDao.persist(user);
-
         _networkGroupMgr.createDefaultSecurityGroup(accountId);
+        txn.commit();
 
         if (!user.getPassword().equals(dbUser.getPassword())) {
             throw new CloudRuntimeException("The user " + username + " being creating is using a password that is different than what's in the db");