US SECURITIES & EXCHANGE COMMISSION
                      WASHINGTON, DC 20549
                            FORM 10-QSB

(X) Quarterly report under Section 13 or 15(d) of the Securities
Exchange Act of 1934 for the quarterly period ended March 31, 2006.

( ) Transition report under Section 13 or 15(d) of the Securities
Exchange Act of 1934 for the transition period from
to               .

               Commission File Number 0-24185

                CENTRAL AMERICAN EQUITIES CORP.
  Florida                                       65-0636168
  (State or other jurisdiction of             (IRS Employer
  incorporated or organization)               Identification No.)

          100 Wall Street, 15th Floor, New York, NY 10005
             (Address of Principal Executive Offices)

                     (212) 232-0120 ext. 221
       (Registrant's telephone number, including area code)


                    Hotel Alta, Alto de las Palomas
                       Santa Ana, Costa Rica
                Mailing Address: Interlink 964, PO Box 02-5635,
                           Miami, FL   33102
            (Former Address if Changed Since Last Report)

Securities registered under Section 12(b) of the Exchange Act:
None
Securities registered under Section 12(g) of the Exchange Act:

Common Stock, $.001 Par Value

Check whether the issuer (1) filed all reports required to be filed
by Section 13 or 15(d) of the Exchange Act during the preceding
twelve (12) months  (or for such shorter period that registrant was
required to file such reports), and (2) has been subject to such
filing requirements for the past ninety (90) days. YES (X) NO(  ).

Indicate by check mark whether the registrant is a shell company
(as defined in Rule 12b-2 of the Exchange Act) YES [  ] NO [X]

The number of shares outstanding on May 16, 2006 of each of the
issuer's classes of common equity:


           40,000,000 shares of Common Stock, $.001 par value

Transitional Small Business disclosure format (check one)
YES [  ]  NO [ X ]

DOCUMENTS INCORPORATED BY REFERENCE:  None.




PART I: FINANCIAL INFORMATION

         CENTRAL AMERICAN EQUITIES CORP. AND SUBSIDIARIES
               Consolidated Balance Sheet
                        UNAUDITED

                                                     March 31, 2006

ASSETS

Current assets
  Cash and cash equivalents                              19,511
  Account receivable                                    107,767
  Inventory                                              33,497
  Prepaid expenses                                          155
 Total Current Assets                                   160,930

Buildings and equipment,
  Net of depreciation                                 5,286,723

Total Assets                                          5,447,653

LIABILITY & STOCKHOLDER EQUITY

Current liabilities
  Accounts payable                                      114,809
  Note Payable Current Portion                           88,000
  Accrued expenses                                      218,223
 Total Current Liabilities                              421,032

Long-Term Liabilities
  Long term debt                                         68,661
  Due to shareholders                                   184,596
 Total Long-Term Liabilities                            253,257

Total Liabilities                                       674,289

Stockholders' equity
 Common stock - $.001 par value;
  100,000,000 authorized, 2,141,553
  issued and outstanding                                   2,142
 Preferred stock - $.001 par value;
  1,000,000 shares authorized,
  0 issued and outstanding                                     0
 Super voting preferred stock - no par
  value; 10,0000 shares authorized, issued
  and outstanding.                                             0

Additional paid-in capital                            10,422,738
Accumulated other comprehensive
  Income                                                  60,320
Retained deficit                                      (5,711,836)
                                                       4,773,364

Total liabilities & stockholders' Equity               5,447,653

See Notes to Consolidated Financial Statements



      CENTRAL AMERICAN EQUITIES CORP. AND SUBSIDIARIES
            Consolidated Statement of Operations

For the three month period ended March 31,

                                      2006               2005
                                   unaudited           unaudited


Revenues                         $   410,121       $   419,617

Cost of Services                      99,557           110,610
Gross Profit                         310,564           309,007

Operations
     General & Administrative        205,004           199,465
     Depreciation                     42,307            42,930

                                     247,311           242,395

Other Expense
  Interest Expense                     5,824            72,088
  Past Tax-Due Penalties              32,661                 0

                                      38,486            72,088

Income taxes                               0                 0

NET INCOME (Loss)           $         24,767        $  (5,476)

Weighted Average share of
Common Stock Outstanding           2,141,553        19,864,268

Net Gain (Loss) per Common Share    $    .01      $      ( .01)

Net Gain (Loss) per Fully Diluted
  Share                     $            .01          $  ( .01)





See Notes to Consolidated Financial Statements


                    CENTRAL AMERICAN EQUITIES CORP. AND SUBSIDIARIES
                               Statements of Cash Flow
                                     Unaudited
                          For the Three Months Ended March 31,

                                              2006           2005

Cash flows from operating activities:   $     24,767    $  16,366

Net Income
Adjustments to reconcile net loss to
net cash provided by operating activities:
  Unrealized Loss on Foreign Exchange         (7,527)       (6,023)
  Depreciation and amortization               42,307        42,930

Decrease (increase) in:
  Accounts receivable                         18,104        (2,013)
  Inventory                                     (528)          845
  Prepaid expense and other                        0         4,451

(Increase) decrease in:
  Accounts payable                           (27,439)       (10,206)
  Accrued expenses                           (48,134)       (65,613)

Net cash used in operating activities:         1,550        (19,263)

Cash flows from investing activities:
  Capital expenditures                             0        (23,857)

Net cash used in investing activities              0        (23,857)

Cash flows from financing activities:
  Proceeds from loans                        (32,215)       (36,000)
  Proceeds from loans from officers           31,426         56,505

Net cash provided by financing activities:      (789)        20,505

Net increase (decrease) in cash                  761        (22,615)

Cash - beginning of period                    18,749        128,966

Cash - end of period                          19,511        106,351



Supplemental Disclosures of cash flow information:

Cash Paid for Interest                         7,005        72,088
Cash Paid for Income Taxes                         0             0

Non-cash Transactions:

Shares Issued for Services                         0             0


          See Notes to Consolidated Financial Statements


          CENTRAL AMERICAN EQUITIES CORP. AND SUBSIDIARIES
           Notes to Consolidated Financial Statements

Note 1 -Summary of Accounting Policies

Nature of Business
Central American Equities Corp. and Subsidiaries (the "Company")
was incorporated under the laws of the State of Florida on
January 23, 1996.  The Company provides an integrated eco-
vacation experience in Costa Rica, and is in the business of
owning and operating hotels and real property in Costa Rica.

Financial Statement Presentation

The consolidated unaudited interim financial statements of the
Company as of March 31, 2006 and for the three month periods
ending March 31, 2006, included herein, have been prepared in
accordance with the instructions for Form 10QSB under the
Securities Exchange Act of 1934, as amended, and Article 10 of
Regulation S-X under the Securities Act of 1933, as amended. The
December 31, 2005 Consolidated Balance Sheet was derived from
audited financial statements, but does not include all disclosures
required by generally accepted accounting principles. Certain
information and note disclosures normally included in financial
statements prepared in accordance with generally accepted
accounting principles have been condensed or omitted pursuant to
such rules and regulations relating to interim consolidated
financial statements.

In the opinion of management, the accompanying consolidated un-
audited interim financial statements reflect all adjustments,
consisting only of normal recurring adjustments, necessary to
fairly present the financial position of the Company as of March
31, 2006, and the results of their operations for the three
month periods ending March 31, 2006 and 2005, and their cash
flows for the three months ending March 31, 2006 and 2005.

The results of operations for such periods are not necessarily
indicative of results expected for the full year or for any
future period. These financial statements should be read in
conjunction with the audited consolidated financial statements
as of December 31, 2005 and related notes included in the
Company's Form 10-KSB filed with the Securities and Exchange
Commission.

Cash and Cash Equivalents
For purposes of the statement of cash flows all certificates of
deposits with maturities of 90 days or less, were deemed to be
cash equivalents.



          CENTRAL AMERICAN EQUITIES CORP. AND SUBSIDIARIES
              Notes to Consolidated Financial Statements

Note 1 -Summary of Accounting Policies (continued)

Property and Equipment
Property and equipment are recorded at cost less accumulated
depreciation. Depreciation is computed provided using the
straight-line method over the estimated useful lives of five for
equipment, seven years for furniture and fixtures and forty
years for buildings and improvements.

Repairs and maintenance costs are expensed as incurred while
additions and betterments are capitalized.  The cost and related
accumulated depreciation of assets sold or retired are
eliminated from the accounts and any gain or losses are
reflected in earnings.

Estimates
Preparation of financial statements in conformity with generally
accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosures of contingent assets and
liabilities at the date of the financial statements and the
reported amounts of revenues and expenses during the reporting
period. Actual results could differ from those estimates.

Revenue Recognition
The Company records revenue at the point of service and
maintains its corporate records for both financial statement and
tax return purposes on the accrual method of accounting.

Foreign Exchange
Assets and liabilities of the Company, which are denominated in
foreign currencies, are translated at exchange rates prevailing
at the balance sheet date.  Non-monetary assets and liabilities
are translated at historical rates.  Revenues and expenses are
translated at average rates throughout the year.  The unrealized
translation gains and loses are accumulated in a separate
component of stockholders' equity translation exchange gains and
losses are reflected in net earnings.

Fair Value of Financial Instruments
The carrying amount of the Company's financial instruments,
which principally include cash, note receivable, accounts
payable and accrued expenses, approximates fair value due to the
relatively short maturity of such instruments.

The fair value of the Company's debt instruments is based on the
amount of future cash flows associated with each instrument
discounted using the Company's borrowing rate.  At March 31,
2006, the carrying value of all financial instruments was not
materially different from fair value.


      CENTRAL AMERICAN EQUITIES CORP. AND SUBSIDIARIES
         Notes to Consolidated Financial Statements

Note 1 -Summary of Accounting Policies (continued)

Income Taxes

The Company has net operating loss carryovers of approximately
$6 million as of March 31, 2006, expiring in the years 2012
through 2020.  However, based upon present Internal Revenue
regulations governing the utilization of net operating loss
carryovers where the corporation has issued substantial
additional stock, most of this loss carryover may not be
available to the Company.

The Company adopted Statement of Financial Accounting Standards
(SFAS) No. 109, Accounting for Income Taxes, effective July
1993.  SFAS No.109 requires the establishment of a deferred tax
asset for all deductible temporary differences and operating
loss carryforwards.  Because of the uncertainties discussed in
Note 2, however, any deferred tax asset established for
utilization of the Company's tax loss carryforwards would
correspondingly require a valuation allowance of the same amount
pursuant to SFAS No. 109.  Accordingly, no deferred tax asset is
reflected in these financial statements.

Note 2 -Going Concern

The Company has incurred approximately $6 million in net
operating loses that raise substantial doubt about the entity's
ability to continue as a going concern.  However, the Company
did record a net profit for the three months ending March 31,
2006 of approximately $25,000.

The Company has received additional financing through the sale
of a non-performing asset, continues to control expenses, and
evaluates the ongoing performance of the Company's assets.  The
ability of the Company to continue as a going concern is
dependent on the success of application and techniques.  The
financial statements do not include any adjustments that might
be necessary if the Company is unable to continue as a going
concern.


             CENTRAL AMERICAN EQUITIES CORP. AND SUBSIDIARIES
                 Notes to Consolidated Financial Statements

Note 3 -Property and Equipment

As of March 31, 2006 plant and equipment consisted of the
following:

Land                              $249,547
Buildings                        5,995,553
Machinery and equipment            125,535
Furniture and fixtures             286,635
Computer equipment                  73,668
                                 6,730,938

Less accumulated depreciation   (1,444,215)

                              $  5,286,723


Depreciation expense in the amount of $42,307 and $42,930 has
been recorded for the three months ended March 31, 2006 and 2005
respectively.

Note 4 - Common Stock

A total of 2,141,553 shares of common stock were outstanding as
of December 31, 2005 and as of March 31, 2006.

Note 5 - Super-Voting Preferred Stock

In February 2006, the Company issued 10,000 shares of Super-Voting
Preferred Stock to its board members.  Each preferred share of this
class of stock will be entitled to 1,000 votes.  This new class of
preferred stock enables the board of directors to vote a majority of
the Company's stock to enable the Company to complete a business
combination in the future without the necessity of an additional
shareholder meeting.

Note 6 -Notes Payable

The Company has $156,661 outstanding against a $500,000 line of
credit with Banco BCT, which bears interest at the prime rate
plus 3%.   In February 2002, the Company restructured the loan.
The new terms include a loan term of 70 months; an annual
interest rate of prime plus 3.75%, and monthly principal
payments that vary with the high and low occupancy periods of
Hotel Alta.  Monthly principal payments in year one will vary
from $3,000 to $12,000.

The funds advanced under this line of credit were utilized to
supplement cash flow for operating expenses and construction
costs.  The note is collateralized by property of the Company.

                    CENTRAL AMERICAN EQUITIES CORP. AND SUBSIDIARIES
                      Notes to Consolidated Financial Statements

Note 7 -Notes Payable - Related Parties

Notes payable to related parties consists of the following at
March 31, 2006:

  Notes payable to stockholders, various dates
  no set terms for repayment, unsecured                $184,596

  Total                                             $   184,596

Note 8 -  Commitments and Contingencies

The Company has a month-to-month lease for 1 acre of property.
Minimum rentals for the three months ended March 31, 2006 and
2005 are $4,500, respectively.

Included as a liability on the balance sheet is an accrued
expenses in the amount of approximately $140,000 for non-payment
of sales taxes for Hotel Alta.  The amount listed is an accurate
reflection on the amount past due at this time including
penalties and interest.

Note 9.	Subsequent Event

On March 13, 2006 Central American Equities Corp. and its
wholly-owned subsidiary, Ostar Acquisition Corp., entered into
an Agreement and Plan of Merger with Ostar Pharmaceutical, Inc.
Ostar Pharmaceutical owns 60% of Hebei Aoxing Pharmaceutical
Group, which is involved in the business of manufacturing and
distributing analgesic drugs in the People's Republic of China.

The Agreement provided that at a closing, Ostar Pharmaceutical
will be merged into Ostar Acquisition Corp., and become a
wholly-owned subsidiary of Central American Equities Corp.  In
connection with the merger, Central American Equities Corp. will
issue to the shareholders of Ostar Pharmaceutical 37,858,447
share of common stock and 300 shares of a new Series C Preferred
Stock.  The Series C Preferred Stock will be convertible into a
total of 120,000,000 shares of common stock.  Accordingly, the
current shareholders of Ostar Pharmaceutical will own, after the
merger, on a fully-diluted basis, 157,858,447 shares of Central
American Equities Corp common stock, representing 98.7% of the
outstanding, fully-diluted common shares.





                 CENTRAL AMERICAN EQUITIES CORP. AND SUBSIDIARIES
                   Notes to Consolidated Financial Statements

Note 9.	Subsequent Event (continued)

On the same date, Michael Caggiano, Richard Wm. Talley, and P.
James Voloshin, the principal shareholders of Central American
Equities Corp. (the "Principal Shareholders"), entered into a
Put and Call Option Agreement with Warner Technology and
Investment Corp.  The Agreement provides that the Principal
Shareholders can require Warner Technology to purchase, or
Warner Technology can require the Principal Shareholders to
sell, 551,415 shares of Central American Equities Corp. common
stock within a specified time period.
On the same date, Central American Equities Corp. entered into a
Subsidiary Purchase Agreement with the Principal Shareholders.
The Agreement provides that at any time during the period
commencing 90 days after closing of the merger and ending 180
days after closing of the merger, Central American Equities
Corp. may require the Principal Shareholders to purchase, or the
Principal Shareholders may require Central American Equities
Corp. to sell, all of the Costa Rican corporations that are, at
present, the subsidiaries of Central American Equities Corp.

The closing of the merger occurred on April 18, 2006 and was
reported on Form 8-K filed with the SEC on April 24, 2006.



ITEM 2. MANAGEMENT DISCUSSION AND ANALYSIS

Central American Equities Corp. (the "Company" or "CAE") is a US
hospitality company, based in Santa Ana, Costa Rica and
incorporated in the State of Florida on January 23, 1996. The
Company specializes in providing high-quality food and lodging
in unique natural settings in Costa Rica.  The Company is in the
business of owning and operating hotels and restaurants and real
property in Costa Rica.

As of March 31, 2006, CAE owned Hotel Alta in Santa Ana (a
suburb of the capital city of San Jose) and Sunset Reef (on the
Pacific Ocean in Mal Pais near the protected Cabo Blanco
Reserve).  CAE also owned and operated La Luz Restaurant
(located in Hotel Alta) and ATP-Costa Rica (a full-service
reservation, travel planning and in-bound tour operation based
in Costa Rica).

The first year of full operation of the Company's hotels was
1998.  On March 31, 2006, the Company had approximately 61 full-
time, part-time and contract employees.

The following is management's discussion and analysis of
significant factors that affected the Company's financial
position during the three-month period ended March 31, 2006.

Results of Operations

Comparison of Operations for the 3-Month Periods Ended March 31,
2006 and 2005

The first quarter of the year is the traditional high season for
tourism in Costa Rica.  During this quarter, the Company had
good results although mixed compared to the same period in 2005.
During the first three months of 2006, occupancy at Hotel Alta
was 83% compared to 89% in 2005.  Although occupancy dropped,
the average room rate jumped from $97 to $104.  Part of the
reason for the drop in occupancy was a change in reservations
policy (although anecdotal evidence suggests that tourism to
Costa Rica's central valley has slowed during this quarter
government statistics are not yet available to confirm this).
In 2006, Hotel Alta stopped intentionally overbooking the hotel,
choosing instead to anger fewer guests and, reduce expenses
related to the need to reserve overflow rooms at neighboring
hotels. On the whole, room revenue stayed about equal to the
previous years.

Sunset Reef's growth was similar.  During the first three months
of 2006, overall occupancy at Sunset Reef decreased as the
(privately run) Surf Camp drew fewer participants, but average
room rates and total revenue increased.  Occupancy at both Hotel
Alta and Sunset Reef was expected to be somewhat lower in 2006
than in 2005 because Easter week, always a high-occupancy period
at the beach, is celebrated in April in 2006 while it was
celebrated in March in 2005.

As a result, during the first quarter of 2006, corporate
revenues dropped slightly.   During the three-month period ended
March 31, 2006, revenues were $410,121.  This represents a
decrease of approximately $9,000 from the same period in 2005.
As revenues decreased, operational expenses (cost of services
and general and administrative costs) also declined.  During the
three-month period ended March 31, 2006, total operational
expenses were about $304,000.  This represents a decrease of
approximately $5,500 or about 2% from the same period in 2005.

Net income turned positive in the first quarter of 2006 (there
was a loss recorded in 2005).  During the three-month period
ended March 31, 2006 the Company earned approximately $105,000
before depreciation of about $42,000 and interest costs and
"other expenses" of about $38,000.  Approximately $33,000 of
"other costs" represents penalties and interest on taxes
previously owed (see legal proceedings). The net income,
including depreciation, interest and "other expenses" was
$24,767.  This is an increase of about $30,000 over 2005.

The Company balance sheet has also improved.   The Company
continued to pay down its $500,000 note to BCT.  As of March 31,
2006, the loan to BCT had a balance of about $157,000, a
reduction of $32,000 during the three-month period (some of the
balance is accounted for in the "Note Payable: Current Portion"
of the balance sheet).  Accrued expenses (which includes
interest and penalties on taxes owed to Tributacion, the Costa
Rica tax authority) declined by 48,000.  It is here, in accrued
expenses that the balance sheet fully shows a contingency in the
event that Hotel Alta loses its suit against Tributacion (see
Item 1 below for a full discussion). Total liabilities declined
by about $76,000.

Future Direction

During its annual meeting held on May 15, 2004 management
discussed the advantages and disadvantages of continuing to
operate its current business while remaining a publicly trading
company.  Foremost was the cost to the Company of remaining a
publicly trading company, as it is expensive and time consuming.
For this reason, the board questioned the value of remaining a
publicly trading Company and began to search earnestly for a
merger partner.

The search culminated on March 13, 2006 when Central American
Equities Corp. and its wholly-owned subsidiary, Ostar
Acquisition Corp., entered into an Agreement and Plan of Merger
with Ostar Pharmaceutical, Inc.  Ostar Pharmaceutical owns 60%
of Hebei Aoxing Pharmaceutical Group, which is involved in the
business of manufacturing and distributing analgesic drugs in
the People's Republic of China.

The Agreement provided that at a closing after the end of the
quarter, Ostar Pharmaceutical would merge into Ostar Acquisition
Corp., and become a wholly-owned subsidiary of Central American
Equities Corp.  In connection with the merger, Central American
Equities Corp. will issue to the shareholders of Ostar
Pharmaceutical 37,858,447 share of common stock and 300 shares
of a new Series C Preferred Stock.  The Series C Preferred Stock
will be convertible into a total of 120,000,000 shares of common
stock.  Accordingly, the current shareholders of Ostar
Pharmaceutical will own, after the merger, on a fully-diluted
basis, 157,858,447 shares of Central American Equities Corp
common stock, representing 98.7% of the outstanding, fully-
diluted common shares.
On the same date, Michael Caggiano, Richard Wm. Talley, and P.
James Voloshin, the principal shareholders of Central American
Equities Corp. (the "Principal Shareholders"), entered into a
Put and Call Option Agreement with Warner Technology and
Investment Corp.  The Agreement provides that the Principal
Shareholders can require Warner Technology to purchase, or
Warner Technology can require the Principal Shareholders to
sell, 551,415 shares of Central American Equities Corp. common
stock within a specified time period.
On the same date, Central American Equities Corp. entered into a
Subsidiary Purchase Agreement with the Principal Shareholders.
The Agreement provides that at any time during the period
commencing 90 days after closing of the merger and ending 180
days after closing of the merger, Central American Equities
Corp. may require the Principal Shareholders to purchase, or the
Principal Shareholders may require Central American Equities
Corp. to sell, all of the Costa Rican corporations that are, at
present, the subsidiaries of Central American Equities Corp.

The closing for these agreements occurred on April 18, 2006.

Liquidity and Capital Resources

During the first three months of 2006, the Company recorded
positive net income of approximately $25,000.   However, prior
to this filing, Company operations had resulted in losses. The
Company has limited, albeit improving, cash liquidity and
capital resources.  The Company plans to hold sufficient cash in
reserve to protect against cash flow needs during 2006.

ITEM 3.  CONTROLS AND PROCEDURES

The Company maintains disclosure controls and procedures that
are designed to ensure that information required to be disclosed
in the Company's Securities Exchange Act reports is recorded,
processed, summarized and reported within the time periods
specified in the Securities and Exchange Commission's rules and
forms, and that such information is accumulated and communicated
to the Company's management, including its Chief Executive
Officer and Chief Financial Officer, to allow timely decisions
regarding required disclosure.

An evaluation was performed under the supervision and with the
participation of the Company's management, including the Chief
Executive Officer and Chief Financial Officer, of the
effectiveness of the design and operation of the Company's
disclosure controls and procedures.  Based upon that evaluation,
the Chief Executive Officer and the Chief Financial Officer
concluded that the Company's disclosure controls and procedures
were effective as of the end of the period covered by this
report.  There were no significant changes in the Company's
internal controls or in other factors that could significantly
affect these controls during the last fiscal quarter.





PART II: OTHER INFORMATION


ITEM 1.  LEGAL PROCEEDINGS

Occasionally in the past there have been actions against Central
American Equities' subsidiaries in the Costa Rican Labor Court
that had been brought by former employees who had been dismissed
by the Company due to poor performance or insubordination.
These employees dispute the reason for their dismissal and, as
such, claim they are entitled to additional monetary
compensation.  The Company considers these actions to be routine
litigation that is incidental to the business (as defined under
Reg. Section 228.103). It is anticipated that any contingent
liability stemming from these claims would be immaterial to the
Company.  In the first quarter of 2006 there were no such claims
brought against the Company.

Legal Proceeding and Potential Liability

On November 2002, Hotel Alta owed Tributacion (the Costa Rican
taxing authority) approximately $240,000 in unpaid sales taxes.
These taxes have been listed on past balance sheets as an
accrued expense and had been fully reported to the government of
Costa Rica.  The Costa Rica government offered to all companies
in Costa Rica amnesty from interest and penalties for back taxes
paid by April 30, 2003.  Prior to April 30, 2003, CAE, unable to
pay these taxes in cash, proposed that the debt be resolved with
the exchange of property worth an equivalent value  (part of the
parcel in Playa Carmen where Restaurante Tropicana is located).
It is the Company's contention that Tributacion accepted this
offer on or before April 30, 2003 and began a process of
appraising the property to determine how much of the tax
liability was to be cancelled.  However, in August 2003,
Tributacion notified the Company that it would not accept the
property in lieu of payment (in whole or in part) and demanded
that the Company immediately pay the past due taxes with
interest and penalties.

Between August 2003 and August 2004 the Company attempted to
negotiate with Tributacion concerning the amount of taxes owed
and the applicability and legality of interest and penalties
related to those taxes.  These negotiations were unsuccessful.
As such, on September 13, 2004 the Company brought suit against
Tributacion in the Costa Rican constitutional court for not
accepting the offer of property in exchange for the outstanding
tax liability.  The refusal of the offer denied the opportunity
for the Company to successfully meet the tax amnesty deadline.

In December 2004, the Company was notified that the
constitutional court had declined to accept the case, directing
the Company to first present the case in the lower civil courts.
In February 2005, the Company initiated the process of filing
this case in Costa Rica's civil courts.  Believing it has been
denied due process and equal treatment under Costa Rican law,
management plans to pursue the case vigorously.

It is difficult to evaluate the likelihood of an unfavorable
outcome in this case but we estimate it to be at or below 50%.
If an unfavorable outcome results, the Company may be liable for
interest and penalties of more than $181,000.  The Company fully
accounts for the interests and penalties in the balance sheet
under accrued expenses and to date, through a payment plan, has
reduced the amount ot approximately 140,000.


ITEM 2. CHANGES IN SECURITIES

No common stock or preferred shares were sold or issued during
this three-month period.  As of March 31, 2006 the Company had
2,141,553 shares of Common Stock issued and outstanding.


ITEM 3. DEFAULTS UPON SENIOR SECURITIES

The Company did not default upon any securities of any kind
during the three-month period that ended on March 31, 2006.


ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

The Company submitted no matter to a vote of its security
holders during the three-month period ended March 31, 2006.


ITEM 5. OTHER INFORMATION

There is no other information to be filed here.  Additional
information concerning the merger with Ostar Pharmaceuticals can
be found in Form 8-K filed with the Securities and Exchange
Commission on April 24, 2006.


ITEM 6.  EXHIBITS AND REPORTS

No exhibits are filed with this Form 10-QSB.  Additional
information concerning the merger with Ostar Pharmaceuticals can
be found in Form 8-K filed with the Securities and Exchange
Commission on April 24, 2006.  Several additional Form 8-Ks have
been filed during the quarter of the period covered by this
report (on March 15, February 14 and January 4).  In addition,
the Company filed a Form SC 14F1 (Statement regarding change in
majority of directors) on March 28, 2006.



VERIFICATION SIGNATURES

In accordance with Section 12 of the Securities and Exchange Act
of 1934, the registrant caused this registration to be signed on
its behalf by the undersigned, thereunto duly authorized.


CENTRAL AMERICAN EQUITIES CORP.



By: /s/ Zhenjiang Yue
----------------------------------------------
Name: Zhenjiang Yue
Title: Chief Executive Officer and Chief Financial Officer
Date:   May 15, 2006






SARBANES-OXLEY ACT Section 302 CERTIFICATIONS

 I, Zhenjiang Yue,  certify that:

1. I have reviewed this quarterly report on Form 10-QSB of
Central American Equities Corporation;

2. Based on my knowledge, this report does not contain any
untrue statement of a material fact or omit to state a material
fact necessary to make the statements made, in light of the
circumstances under which such statements were made, not
misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other
financial information included in this report, fairly present in
all material respects the financial condition, results of
operations and cash flows of the registrant as of, and for, the
periods presented in this report;

4. I am responsible for establishing and maintaining disclosure
controls and procedures (as defined in Exchange Act Rules 13a-
15(e) and 15d-15(e)) and internal control over financial
reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-
15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused
such disclosure controls and procedures to be designed under our
supervision, to ensure that material information relating to the
registrant, including its consolidated subsidiaries, is made
known to us by others within those entities, particularly during
the period in which this report is being prepared;

(b) Evaluated the effectiveness of the registrant's disclosure
controls and procedures and presented in this report our
conclusions about the effectiveness of the disclosure controls
and procedures as of the end of the period covered by this
report based on such evaluation; and

(c) Disclosed in the report any change in the registrant's
internal control over financial reporting that occurred during
the registrant's most recent fiscal quarter (the registrant's
fourth fiscal quarter in the case of an annual report) that has
materially affected, or is reasonably likely to materially
affect, the registrant's internal control over financial
reporting;

5.  I have disclosed, based on our most recent evaluation of
internal control over financial reporting, to the registrant's
auditors and the audit committee of registrant's board of
directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the
design or operation of internal control over financial reporting
which are reasonably likely to adversely affect the registrant's
ability to record, process, summarize and report financial
information; and

(b) Any fraud, whether or not material, that involves management
or other employees who have a significant role in the
registrant's internal control over financial reporting.

/s/ Zhenjiang Yue
----------------------------------------------
Zhenjiang Yue
Chief Executive Officer and Chief Financial Officer
May 15, 2006


SARBANES-OXLEY ACT SECTION 906 CERTIFICATIONS

I Zhenjiang Yue, hereby certify that:

1. The quarterly report of the registrant on Form 10-QSB for the
quarter ended March 31, 2006 fully complies with the
requirements of Section 13(a) or 15(d) of the Securities
Exchange Act of 1934; and

2. The information contained in the quarterly report fairly
presents, in all material respects, the financial condition and
results of operations of the registrant as of the dates and for
the periods expressed in the quarterly report.

/s/ Zhenjiang Yue
----------------------------------------------
Name: Zhenjiang Yue
Title: Chief Executive Officer and Chief Financial Officer
Date: May 15, 2006






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