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Specific Stocks

Letter to SEC

409 posts

Joined
1/20/2006

Letter to SEC
Posted: 19 Apr 06 9:24 PM

Yet another letter to SEC
by: josephavenius
Long-Term Sentiment: Strong Buy

04/19/06 10:03 pm
Msg: 424138 of 424156

Linda Chatman-Thompson Wednesday, April 19, 2006
Securities & Exchange Commission
Division of Enforcement
100F Street NE
Washington, DC 20549

Dear Ms. Thompson:
I am trying to understand just how clear things have to be for the SEC to take action. How flagrant do crimes have to be for you to move? This is one of many letters about ‘naked short selling’ and fails to deliver. I wrote you last year about this and you have done……………..
Nothing!
Lets take one company Overstock.Com; it has 19,430,000 shares officially outstanding. However there are now another 16,000,000 shares existing in people’s accounts for a total of over 35,000,000 shares!
Shares holders voting rights? I guess you can’t be bothered. Small investors getting wiped out by illegal hedge fund trading? Give us a few more years, and maybe we will take a look. How about the law? Does that matter to anyone there?

a) It shall be unlawful for any person, directly or indirectly, by the use of the mails or any means or instrumentality of interstate commerce, or of any facility of any national securities exchange, or for any member of a national securities exchange--

1. For the purpose of creating a false or misleading appearance of active trading in any security registered on a national securities exchange, or a false or misleading appearance with respect to the market for any such security,
1. to effect any transaction in such security which involves no change in the beneficial ownership thereof,

This would open the Specialist firms, Options Market Makers, NSCC and all other broker dealers that ever failed to deliver through the markets - up to liability for violating the 1934 Act.
There are no exceptions in the1934 Act for anyone.

Of course this is in addition to the NSCC not complying with 17A of the same act to link all settlement and clearing facilities rather than divorcing them as they have done, which makes FTDing possible through the NSCC and also "ex-clearing", clearing agencies.

You know about this loophole, and you know some people are making a killing with it (at other people’s expense). Perhaps you are waiting for the problem to get bigger? Or are you just waiting for your golden parachute and land yourself on Wall Street. Just please don’t try to say you don’t know, or you are going to look into it. No one could be that ignorant.
Either you enforce the laws of this country, or stop pretending you are – just let everyone know “We gave up enforcement because some rich people who are stealing would get hurt”. You can pretend there are other reasons, but in you heart you know there is not. All you have to say is “deliver the shares – or buy them in!”

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Specific Stocks

Overstock.com (OSTK)

Letter to SEC...