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      Sterling Equity Form 8-K Restatements
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                AND EXCHANGE COMMISSION</font></div>
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                D.C. 20549</font></div>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">FORM
                8-K</font></div>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">CURRENT
                REPORT</font></div>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
                to Section 13 or 15(d) of the</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Securities
                Exchange Act of 1934</font></div>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Date
                of report (Date of earliest event reported): March 30,
                2006</font></div>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>STERLING
                EQUITY HOLDINGS, INC.</strong></font></div>
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            <td align="left" colspan="2" valign="top" width="13%">&#160;</td>
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            <td colspan="12" valign="top" width="53%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Exact
                name of registrant as specified in Charter)</font></div>
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                or other jurisdiction of incorporation or organization)</font></div>
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                File No.)</font></div>
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            <td colspan="5" valign="top" width="27%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(IRS
                Employer Identification No.)</font></div>
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            <td align="left" colspan="2" valign="top" width="7%">&#160;</td>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1600
                Airport Freeway, Suite 370</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Bedford,
                Texas 76022</font></div>
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            <td align="left" colspan="2" valign="top" width="13%">&#160;</td>
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            <td align="left" colspan="2" valign="top" width="7%">&#160;</td>
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            <td align="left" colspan="2" valign="top" width="13%">&#160;</td>
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            <td align="left" colspan="3" valign="top" width="13%">&#160;</td>
            <td align="left" colspan="3" valign="top" width="13%">&#160;</td>
            <td align="left" colspan="2" valign="top" width="13%">&#160;</td>
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            <td align="left" colspan="3" valign="top" width="13%">&#160;</td>
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            <td align="left" colspan="2" valign="top" width="13%">&#160;</td>
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                Telephone number)</font></div>
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            <td align="left" colspan="3" valign="top" width="13%">&#160;</td>
            <td align="left" colspan="2" valign="top" width="13%">&#160;</td>
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            <td colspan="6" valign="top" width="27%">&#160;</td>
            <td align="left" colspan="3" valign="top" width="13%">&#160;</td>
            <td align="left" colspan="2" valign="top" width="13%">&#160;</td>
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            <td colspan="12" valign="top" width="53%" style="border-bottom: black thin solid;">&#160;</td>
            <td align="left" colspan="2" valign="top" width="13%">&#160;</td>
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            <td align="left" colspan="2" valign="top" width="13%">&#160;</td>
            <td colspan="12" valign="top" width="53%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Former
                name or former address, if changed since last report)</font></div>
            </td>
            <td align="left" colspan="2" valign="top" width="13%">&#160;</td>
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      the
      appropriate box below if the Form 8-K filing is intended to simultaneously
      satisfy the filing obligations of the registrant under any of the following
      provisions (see General Instruction A.2. below):</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
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      ]
      Written communications pursuant to Rule 425 under the Securities Act (17 CFR
      230.425)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">[
      ]
      Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
      240.14a-12)</font></div>
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      ]
      Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
      Act</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(17
      CFR
      240.14d-2(b))</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">[
      ]
      Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
      Act</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(17
      CFR
      240.13e-4(c))</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
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    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: -72pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Item
      4.02.</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 36.8pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Non-Reliance
      on Previously Issued Financial Statements or a Related Audit Report or Completed
      Interim Review.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;On
      March 30,
      2006, management of Sterling Equity Holdings, Inc. (the "Company"), following
      discussions with representatives of the Company&#8217;s independent registered public
      accounting firm and in response to comments received from the Securities and
      Exchange Commission (the "SEC"), determined that the previously filed
      consolidated financial statements of the Company as of and for the years ended
      December 31, 2002, 2003, 2004 and as of and for the nine-months ended September
      30, 2005 need to be restated. The restatement results from errors in purchase
      accounting relating to liabilities assumed, and goodwill arising from,
      acquisitions of the Company&#8217;s Austin, Texas and Gulfport, Mississippi real
      estate holdings and FBOs. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;Historically,
      the Company recorded assets and liabilities from the acquisition of FBOs, its
      Austin, Texas properties and Commodore Plaza at fair value. In each instance,
      fair value approximated historical cost. With respect to the FBOs and the Austin
      properties, the Company assumed liabilities that exceeded the fair value of
      the
      assets acquired. The Company recorded such excess liabilities as goodwill.
      As a
      result of the Company&#8217;s review, the Company has determined that liabilities
      assumed in excess of the fair value of assets acquired in the acquisitions
      of
      the FBOs and the Austin properties should be accounted for as &#8220;deemed
      distributions&#8221; to the parties transferring those assets and operations and not
      as goodwill. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;The
      Company
      had also recorded liabilities assumed on the acquisition of Commodore Plaza
      as
      paid-in capital. As a result of the Company&#8217;s review, the Company has determined
      that the liabilities assumed with respect to the Commodore Plaza acquisition
      should be accounted for as a reduction in the recorded cost of the assets
      acquired. </font></div>
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      therefore
      will restate our financial statements to correct the accounting for the
      liabilities assumed. The revision in purchase accounting with respect to the
      Austin properties and the FBOs is expected to result in a reduction in retained
      earnings at December 31, 2002 of approximately $6.5 million, a corresponding
      reduction in goodwill attributable to the Austin properties of $1 million and
      a
      corresponding reduction in assets held for sale attributable to the FBOs of
      $5.5
      million. The revision in accounting for liabilities assumed in the acquisition
      of the Gulfport, Mississippi property is expected to result in a reduction
      in
      paid in capital at December 31, 2002 of approximately $0.5 million and a
      corresponding decrease in land, improvements and leasehold costs. The reduction
      in land, improvements and leasehold costs is also expected to result in a
      reduction in depreciation expense and accumulated depreciation of approximately
      $4,000 in 2002 and $19,000 in each of 2003 and 2004. As a further result of
      the
      reduction in assets held for sale relating to the FBOs, the gain recognized
      from
      the sale of the FBOs in 2003 is expected to increase by approximately
      $5,613,000. As a result of the reduction in goodwill relating to one of the
      Austin properties that was sold in 2004, the gain recognized from the sale
      of
      the property is expected to increase by approximately $261,000.</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;As
      a result
      of the error and pending restatement, the consolidated financial statements
      and
      related report of independent registered public accounting firm for the years
      ended December&#160;31, 2003 and 2004 contained in our 2004 Annual Report on
      Form 10-KSB should no longer be relied upon. In addition, the consolidated
      financial statements for the quarters ended March&#160;31, 2005, June&#160;30,
      2005 and September&#160;30, 2005 contained in our 2005 Quarterly Reports on
      Forms 10-QSB should no longer be relied upon.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
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      estimates
      herein are subject to change as the Company&#8217;s independent registered public
      accounting firm and the SEC complete their review. The Company will amend the
      appropriate filings with the SEC to include the restated financial
      statements.</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SIGNATURES</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
      to the requirements of the Securities Exchange Act of 1934, the Registrant
      has
      duly caused this Report to be signed on its behalf by the undersigned hereunto
      duly authorized.</font></div>
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            <td width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td width="49%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
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            <td colspan="2"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: "><strong>STERLING
              EQUITY HOLDINGS, INC.</strong></font></td>
          </tr>
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            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;<br>&#160;</font></td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;<br>&#160;</font></td>
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          <tr valign="top" bgcolor="#ffffff">
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">Date:&#160;April
              3, 2006</font></td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">By:&#160;&#160;</font></td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">/s/&#160;Thomas
              Mathew</font></td>
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            <td align="left">
              <hr style="COLOR: black" align="left" noshade size="2" width="80%">&#160;&#160;&#160;
Thomas
              Mathew</td>
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            <td>
              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;&#160;&#160;
                Chief Executive Officer</font></div>
            </td>
          </tr>

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Sterling Equity Form 8-K Restatements
SECURITIES
                AND EXCHANGE COMMISSION
Washington,
                D.C. 20549
FORM
                8-K
CURRENT
                REPORT
Pursuant
                to Section 13 or 15(d) of the
Securities
                Exchange Act of 1934
Date
                of report (Date of earliest event reported): March 30,
                2006
STERLING
                EQUITY HOLDINGS, INC.
(Exact
                name of registrant as specified in Charter)
Nevada
0-33239
88-0485488
(State
                or other jurisdiction of incorporation or organization)
(Commission
                File No.)
(IRS
                Employer Identification No.)
1600
                Airport Freeway, Suite 370
Bedford,
                Texas 76022
(Address
                of Principal Executive Offices)(Zip Code)
817-358-0551
(Issuer
                Telephone number)
(Former
                name or former address, if changed since last report)
Check
      the
      appropriate box below if the Form 8-K filing is intended to simultaneously
      satisfy the filing obligations of the registrant under any of the following
      provisions (see General Instruction A.2. below):
[
      ]
      Written communications pursuant to Rule 425 under the Securities Act (17 CFR
      230.425)
[
      ]
      Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
      240.14a-12)
[
      ]
      Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
      Act
(17
      CFR
      240.14d-2(b))
[
      ]
      Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
      Act
(17
      CFR
      240.13e-4(c))
Item
      4.02.
Non-Reliance
      on Previously Issued Financial Statements or a Related Audit Report or Completed
      Interim Review.
On
      March 30,
      2006, management of Sterling Equity Holdings, Inc. (the "Company"), following
      discussions with representatives of the Company's independent registered public
      accounting firm and in response to comments received from the Securities and
      Exchange Commission (the "SEC"), determined that the previously filed
      consolidated financial statements of the Company as of and for the years ended
      December 31, 2002, 2003, 2004 and as of and for the nine-months ended September
      30, 2005 need to be restated. The restatement results from errors in purchase
      accounting relating to liabilities assumed, and goodwill arising from,
      acquisitions of the Company's Austin, Texas and Gulfport, Mississippi real
      estate holdings and FBOs.
Historically,
      the Company recorded assets and liabilities from the acquisition of FBOs, its
      Austin, Texas properties and Commodore Plaza at fair value. In each instance,
      fair value approximated historical cost. With respect to the FBOs and the Austin
      properties, the Company assumed liabilities that exceeded the fair value of
      the
      assets acquired. The Company recorded such excess liabilities as goodwill.
      As a
      result of the Company's review, the Company has determined that liabilities
      assumed in excess of the fair value of assets acquired in the acquisitions
      of
      the FBOs and the Austin properties should be accounted for as "deemed
      distributions" to the parties transferring those assets and operations and not
      as goodwill.
The
      Company
      had also recorded liabilities assumed on the acquisition of Commodore Plaza
      as
      paid-in capital. As a result of the Company's review, the Company has determined
      that the liabilities assumed with respect to the Commodore Plaza acquisition
      should be accounted for as a reduction in the recorded cost of the assets
      acquired.
We
      therefore
      will restate our financial statements to correct the accounting for the
      liabilities assumed. The revision in purchase accounting with respect to the
      Austin properties and the FBOs is expected to result in a reduction in retained
      earnings at December 31, 2002 of approximately $6.5 million, a corresponding
      reduction in goodwill attributable to the Austin properties of $1 million and
      a
      corresponding reduction in assets held for sale attributable to the FBOs of
      $5.5
      million. The revision in accounting for liabilities assumed in the acquisition
      of the Gulfport, Mississippi property is expected to result in a reduction
      in
      paid in capital at December 31, 2002 of approximately $0.5 million and a
      corresponding decrease in land, improvements and leasehold costs. The reduction
      in land, improvements and leasehold costs is also expected to result in a
      reduction in depreciation expense and accumulated depreciation of approximately
      $4,000 in 2002 and $19,000 in each of 2003 and 2004. As a further result of
      the
      reduction in assets held for sale relating to the FBOs, the gain recognized
      from
      the sale of the FBOs in 2003 is expected to increase by approximately
      $5,613,000. As a result of the reduction in goodwill relating to one of the
      Austin properties that was sold in 2004, the gain recognized from the sale
      of
      the property is expected to increase by approximately $261,000.
As
      a result
      of the error and pending restatement, the consolidated financial statements
      and
      related report of independent registered public accounting firm for the years
      ended December 31, 2003 and 2004 contained in our 2004 Annual Report on
      Form 10-KSB should no longer be relied upon. In addition, the consolidated
      financial statements for the quarters ended March 31, 2005, June 30,
      2005 and September 30, 2005 contained in our 2005 Quarterly Reports on
      Forms 10-QSB should no longer be relied upon.
The
      estimates
      herein are subject to change as the Company's independent registered public
      accounting firm and the SEC complete their review. The Company will amend the
      appropriate filings with the SEC to include the restated financial
      statements.
2
SIGNATURES
Pursuant
      to the requirements of the Securities Exchange Act of 1934, the Registrant
      has
      duly caused this Report to be signed on its behalf by the undersigned hereunto
      duly authorized.
STERLING
              EQUITY HOLDINGS, INC.
Date: April
              3, 2006
By:
/s/ Thomas
              Mathew
Thomas
              Mathew
Chief Executive Officer
3