From: Frank Mc Dermott [calmcd@earthlink.net]
Sent: Monday, November 24, 2003 7:43 PM
To: rule-comments@sec.gov
Subject: Naked short sales! S7-23-03

Mr. Katz,

    Regarding S7-23-03 the naked short selling of company stocks. I find 
that this action continuously hampers the growth of small companies and cost 
investors such as myself money. The naked short sellers continue to sell 
short these companies which are under $2.00 a share and sell each time the 
companies I invest in release positive news thus negating any chance of the 
companies shares gaining ground and thus shareholder value. They just sell 
more and never cover because there is no reason to, no enforcement. The SEC 
has failed once again to regulate the brokerage houses and market makers who 
continue to use the trades of honest investors for their own personal gain. 

    The Sec needs to not only enforce future short sales of stocks but should 
force the settlement of all current naked short sales and 3 day rules. If the 
SEC fails to do this they will once again fail to look out for the investors 
and give a pass to all who have committed this fraud. We the investing public 
should be shown that the SEC enforces the current rules not just new ones.

    Think about the hundreds of naked shorted companies currently out there 
who have not failed and continue to fight against this crime. Hundreds of 
millions of dollars stand in limbo and those who continue to naked short thumb 
their nose at the SEC and the public looking out for their own interest. They 
have no intention of covering and want to succeed as they have in the past in 
driving these companies out of business and thus never have to cover until the 
stock is completely worthless. 

     I end this by saying act with the publics interests in mind and not all 
of the good-old-boys of Wall Street who use the unwritten rules of don't 
enforce you'll get the favor back. The public lacks faith in the stock market 
because those who run it are criminals and like my grandfather said, "the only 
ones who make money on the stock market are the brokers".  Get aggressive and 
enforce and prosecute don't just fine, the fines are never even big enough to 
cover the profits made by the naked shorts. As one broker told me, "you make 
the money now and pay the fine later". It is never big enough to dissuade 
criminal activity.

    Thank You, 
	
	Colum McDermott
    Long Beach, Ca.