From: Farid Yared [faridyared@cox.net]
Sent: Saturday, January 03, 2004 5:39 PM
To: rule-comments@sec.gov
Subject: Naked short selling should not be allowed

"Naked short positions are non existing shares borrowed without interest 
payments for the sole purpose of selling down the price of the shares. Drug 
cartels, the mafia and terror organizations use them for money laundry purposes. 
Yes you read correctly. Naked short positions carry no expenses, since the 
shares they are borrowed from don't exist and solely are invented as a vehicle 
to bring down share prices. "
 
 
Brokerage houses and their specialists should not be allowed to do the above. 
But I guess since it's harder to catch them, the SEC will do nothing about 
this. Or will they? How about creating a database where every short transaction 
by anybody includes a tracking record of the borrowed shares. Is this too hard 
for the SEC to accomplish? allowing a computer to do the work of the 
undermanned SEC?
 
Or is the SEC rather content with catching the little fish caught red handed 
while allowing the big fish to continue to steal millions and billions and 
use the stolen money to pay off the lawyers defending them against the SEC. 
If the SEC suspects a market maker or specialist of causing the public to 
lose 10 million while a specialist or a client gains 10 million, does a 1 
million dollar settlement make sense? As a true deterrent, the settlement 
should be a severe penalty that costs the firm more than the amount of 

damage it caused.
That will make them think twice before doing it again. Fining them 1 million 
for 10 million in damage will encourage them to keep looking for these zero 
cost, 90% profit transactions.
 
The trial should be for putting the company out of business permanently.
 
 
Enraged small investor,
Farid Yared