From: Richard Byrd [rndbyrd@hotmail.com] Sent: Thursday, November 20, 2003 10:35 AM To: rule-comments@sec.gov Subject: RE: File No. S7-23-03 Date: November 20, 2003 To: Securities and Exchange Commission Office of Trading practices, Division of Market regulation Re: Proposed SHO rules Release No. 34-48709, File no. S7-23-03 Here we are again, It’s bad enough that the people in charge of regulation fail to act on the abuses that take place on the OTCBB and the Pinksheets for over five years, and then when the SEC asks for comments for the second time - they propose rules changes that will continue to allow the same abuses. The SEC further adds insult to the injuries by “proposing” new rules (further foot dragging while the working class investor is raped of their hard earned money) instead of enforcing the rules on the books already - Enforce Failed Settlement of Shares. To further confuse people, the term “NAKED SHORT SELLING” is used to describe the abuse – Which has nothing to do with “SHORT” selling, which is legal. The confusion is apparent in many of the responses to the proposal here, many trying to deliberately confuse people that aren’t quite sure what “NAKED SHORT SELLING” is or to divert your attention elsewhere away from their gravy train and tax free spoils. The name should be changed to “NAKED SELLING”. It’s just plain selling of shares that don’t exist because no regulatory agency is enforcing the FAILED SETTLEMENT that occurs after the transaction. Broker/Dealers/Market Makers have no one policing them – Improper tagging of short sales as long sales, whichever is beneficial to them, if found – they just shuffle it to another good ole boy to clear their books (kitting). There is nothing wrong with short selling, as long as you get an affirmative determination on the shares you wish to sell short, but with the ability to artificially inflate the Outstanding Shares (Naked Selling) by Market Makers without limit, oversight, or accountability, fraud runs rampant. Market cap based on supply and demand goes out the window. Should the Market Cap of my company be controlled by Market Makers as they are allowed to do now or by supply from the companies and demand from the shareholders? Is this not a “CIVIL RIGHTS” violation against small companies? Are we not entitled to equal protection under the law? When will action be taken? Are you going to “PROPOSE” your way into the future for others to take care of the abuses you let happen? Are you going to let AG Eliot Spitzer uncover the abuses and say “We didn’t know!!”? If that is the route the regulatory agency takes – I hope all U.S. Mail and E-mails concerning the abuses over the years are drug up and used as evidence that the abuse was swept under the rug. Thousands of investors are mailing and e-mailing you daily (both here and to enforcement) to build the ultimate paper trail of neglect!! ENFORCE the LAW! Stop slapping wrist and start imposing fines and jail times that fit the crime. Be it fraudulent companies or Broker/Dealer/Market Makers, Set an example, and set precedence. Just show the American investors that you “AREN’T” a joke and a pushover. Stop your lawyers from sitting on cases hoping to bankrupt companies, through exhaustive litigation, so the truth can’t get out. Hard working American investors are primed and ready for a whistleblower to uncover the truth about the Raping and Pillaging of their money so the Upper Class can continue to live the lives that you provide for them. All the while, the vermin spew their pontifications that there is no evidence when the SEC has admitted this is Manipulative, Abusive, and Problematic. Who will Break Ranks??? We Will Listen... We won’t go away... But more importantly WE WILL BE HEARD.... RNDBYRD _________________________________________________________________ Say “goodbye” to busy signals and slow downloads with a high-speed Internet connection! Prices start at less than $1 a day average. https://broadband.msn.com (Prices may vary by service area.)