From: Tim Adelphia [tekelley@adelphia.net]
Sent: Thursday, November 06, 2003 3:43 PM
To: rule-comments@sec.gov
Subject: S7-23-03

     The proposed SHO regulations do not go far enough unless they include the 
OTCC bb stocks in the "pink" and "gray" markets. My money is as green as anyone 
else's and I have lost much of it due to "naked shorting" in these markets in 
particular.

     The regulations do not appear to address the enforcement of trade settlements 
and the closing of loopholes that allow market makers and brokers to ignore 
requirements and fail to deliver.

     I have asked the NY Attorney Generals office to investigate naked shorting of 
several stocks in particular. When met with initial resistance I asked the following. 
If you went out and bought a car for $15000 dollars and the dealer promised to get 
you the certificate of title within 7 days but could not deliver because he never 
owned the car... he would be arrested correct? This happens to thousands of small 
investors every day and NOBODY cares! 

     I keep being told that this low end market is the wild west and buyer beware. 
I agree to a point and that point is the out and out fraud of selling something 
that does not even exist! 

     There appears to still be some doubt in the minds of the SEC as to whether or 
not naked shorting even exists so let me make a suggestion. Pick one stock from the 
list of 120 companies complaining and identify all the shareholders and share count 
and tell the DTC to start issuing certs until they run out. This is what these 
companies tried and  the SEC stepped in and shut down the process.

     In summary I believe the SHO regulation should include all markets and should 
provide for the enforcement of trade settlements with serious penalties. The number 
of shareholders being defrauded is staggering ,over 30,000 on PCBM(one of the 120 
companies) alone.
 
Thank you for the forum and please do the right thing and help the hundreds of 
thousands of small investors who have been begging for help for the last 10 years.
 
Tim Kelley