Subject: File No. S7-12-06
From: Craig Payne

April 20, 2007

I urge the SEC to implement rules which will allow for a quick and forced covering of all FTDs (naked shorts)...PERIOD

It is counterfeiting, plain and simple...which you already know. I am almost certain that the SEC has absolutely no intention of implementing any rules which might jeopardize the ability of Market Makers, hedge funds, and Investment Banks to counterfeit shares at will....but on the slight chance that I am wrong, I bothered to send this e-mail.

There should be no exemptions to a prohibition on counterfeiting of shares....NONE. All trades must be settled at the end of the day. It is not enough to simply and supposedly "locate" shares to short.

You must implement procedures whereby those who are engaged in market manipulation by naked shorting are quickly identified and severely penalized....AS IN JAIL Time and Very Severe Financial Penalties.

Many markets around the world operate quite well without shorting of any kind at all...how do you explain that?

When a company ends up on Reg SHO, why do you refuse to give exact figures regarding how many shares are being illegally shorted and by which entities? The SEC is complicit in a massive cover-up....and you know it.

You also need to set up an expedited and independent review process wherein a company can go for immediate relief from these criminal cartels....I don't care whether they are in Canada or the States, or offshore.

You go after CEOs who backdate options but ignore the huge Wall Street players who are literally stealing Billions of Dollars.

Well, I vented, I don't "expect" any serious reform from such a contemptable bunch as yourselves....but I "hope" I am wrong.