Subject: File No. S7-12-06
From: US Citizen

February 5, 2007

Securities and Exchange Commission
100 F Street, NE
Washington, D.C. 20549

Dear Ladies and Gentlemen of the Commission,

Thank you again for allowing the honest, hard working, ethical, American investor to provide comments on these important issues that so many of us have researched and believe to be contributing to systemic risk in our national market system.

I have read many of the comments from my fellow Americans, and our concerned neighbors in Canada, and I am proud to stand beside them in this battle against corruption and financial terrorism.

The beginning of the end is upon us. American citizens and their small businesses will no longer permit the systematic raping of our investment capital by market operators that believe they are entitled to reap profits by selling and lending counterfeit securities.

It does not take a genius to steal from your fellow human being or a corporation. Any one of us could rob our neighbors and companies blind if we chose. This corruption on Wall Street continues due to some combination of a perverted upbringing, being mentored by a criminal, or a derivative of the two. No honest, self respecting parent would be proud of their offspring if they knew they made a living by facilitating these high financial crimes against humanity, and treason against a country that protects their life and liberty. We all know EXACTLY WHO is counterfeiting commercial securities, and the citizens of these United States are NOT going to stand by while an apparently captured or incompetent regulator allows it to continue for another decade. This criminal nonsense stops now

My message to you, as stewards of our securities markets, is to lay down your weapons of disinformation and protect this Country right now Our brave Men and woman of the US Armed Forces did not, and do not presently, fight for our freedom to enable a few hundred crooks on Wall Street to rob their retirement portfolios blind by criminal naked short selling, the counterfeiting of commercial securities

Investors out here in the real world can put a handful of people in your place that will cleanse the market of this counterfeiting crime in 60 days, completely. We could start by bringing back former SEC investigator Gary Aquirre, a US Patriot that was fired because he had the gall to take down an immune silver spoon that had "juice" on his side.

We want to keep Joseph Cella, chief of SEC market surveillance in place, or promote him to Commissioner, more likely. He seems to be a competent, honest, and brave American that is not afraid to take out the criminal trash on Wall Street.

We also want to promote Eric Ribelin, SEC market surveillance branch chief, to Commissioner. Mr. Ribelin also appears to be a competent, honest, and brave American that is not afraid to take out the criminal trash on Wall Street.

In addition, there is someone running your San Francisco branch that attempted to issue subpoenas to "journalists" suspected of being lapdogs to short sellers. We want that true American Patriot to be running the SEC Headquarters as well.

In addition to the incumbents selected above, we would like to install our own Counter financial terrorism task force, as follows, to advise them:

David Patch, Patrick Byrne, Rodney Young, Bud Burrell, Mark Faulk, Richard Altomare, "Bob O'Brien", and Darren Saunders. You will not find more true American Patriots willing to take-on and eliminate this stock counterfeiting crime head on.

Moreover, we would like to enlist the honorable and ethical expertise of the North American Securities Administrators Association (NASAA) to occupy all remaining director and commissioner positions at the SEC.

We trust the above team to investigate and prosecute perpetrators of financial crimes. We trust them to levy fines that fit the crime. We trust them to verify the fines were paid and recorded to the books of the SEC. We trust them to work with the DOJ and actually bring criminal charges against criminals. We trust they will use handcuffs and bring prison sentences where appropriate. This is the only language that persistent perpetrators of these crimes understand.

We have had enough of this apparent catering to the Wall Street elite.

The Senate Judiciary Committee had this to say about the Commission on the firing of Gary Aguirre:
------------------------------------------------------
BEGIN PRELIMINARY FINDINGS of the US Senate Judiciary Committee

the judiciary panel's preliminary findings show "extraordinarily lax enforcement by the SEC and ... may even indicate a cover-up by the SEC," Specter said.

The SEC's handling of the matter, including a review of the attorney's allegations by the agency's inspector general, "has all of the earmarks of the obstruction of justice," he said.

"These findings paint a picture of a troubled agency that faces serious questions about public confidence, the integrity of its investigations" and its ability to protect investors large and small evenhandedly, Grassley said. The SEC "circled the wagons and it shot a whistle-blower," he said.

The sacking of Mr. Aguirre had been "highly suspect", while a probe into the events by the SEC's own inspector-general had been "both seriously and fatally flawed".

Mr. Grassley said: "Taken together, these findings paint a picture of a troubled agency that faces serious questions about public confidence in the integrity of its investigations and its ability to protect all investors large and small. The SEC should have taken Mr. Aguirre's allegations more seriously. Instead . . . it circled the wagons and shot a whistleblower - an all too familiar practice in Washington . . . where whistleblowers are as -welcome as a skunk at a -picnic."

Both senators had particularly harsh words for the S.E.C.s inspector general, Walter J. Stachnik. Mr. Specter said that in all his years in the Senate he could not recall "an I.G. who said less, did less and was thoroughly inadequate in the investigation."

He mocked what he said was the inspector generals defense that it was not his responsibility to second-guess certain S.E.C. decisions. "Well, thats the purpose of having an I.G.," Senator Specter said.

"The I.G. spoke only to Aguirres supervisors, accepted everything they said at face value and reviewed only documents identified by those supervisors," the report concluded. "We believe the S.E.C. must take corrective and preventative action to ensure that future investigations, internal and external, do not follow the same path as the Pequot matter."

In fact, the report states, one longtime S.E.C. investigator told the committee that he planned to use Mr. Aguirres examination "as a model for how to take testimony in his training of new S.E.C. attorneys."
The report called Mr. Aguirre "a smart, hardworking, aggressive attorney who was passionately dedicated to the Pequot investigation."

"We are concerned about the circumstances under which it was done," investigators said. "Macks testimony was taken five days after the statute of limitations expired, and only a few months after we initiated our inquiry into this matter."

The report concludes that the S.E.C. finally interviewed Mr. Mack to deflect public criticism for not having done it earlier.

END PRELIMINARY FINDINGS of the US Senate Judiciary Committee
--------------------------------------------------


On February 2, 2007, our Champion, Patrick Byrne, CEO of Overstock.com, executed another move on our behalf to rid this dysfunctional national market system of the inherent crime that has been allowed to proliferate for only GOD knows how long.

Complaint:
http://media.corporate-ir.net/media_files/irol/13/131091/lawsuits/Complaint_Time Stamped.pdf
---------------------------------------------------------------------
Overstock.com Announces Lawsuit against Prime Brokers
Friday February 2, 4:20 pm ET
Seeks $3.48 Billion in Damages

SALT LAKE CITY, Feb. 2 /PRNewswire-FirstCall/ -- Overstock.com, Inc. (Nasdaq: OSTK - News)
announced today that it has filed a lawsuit in the Superior Court of California, County of San
Francisco against Morgan Stanley Co. Incorporated, Goldman Sachs Co., Bear Stearns Companies, Inc., Bank of America Securities LLC, Bank of New York, Citigroup Inc., Credit Suisse (USA) Inc., Deutsche Bank Securities, Inc., Merrill Lynch, Pierce, Fenner Smith, Inc., UBS Financial Services, Inc., and others. Certain shareholders of the company have joined Overstock.com in the suit.

The suit alleges that the defendants, who control over 80% of the prime brokerage market, participated in a massive, illegal stock market manipulation scheme and that the defendants had no intention of covering such orders with borrowed stock, as they are required to do, causing
what are referred to as "fails to deliver." The suit also alleges that the defendants' actions caused and continue to cause dramatic distortions with regard to the nature and amount of trading in the company's stock which have caused the share price of the company's stock to dramatically drop. The suit asserts that a persistent large number of "fails to deliver" creates large
downward pressure on the price of a company's stock and that the amount of "fails to deliver" has exceeded the company's entire supply of outstanding shares.

The suit accuses the defendants of violations of California securities laws and common law, and California's Unfair Business Practices Act. The company is seeking damages of $3.48 billion."I have a fiduciary duty to defend the company. These manipulative activities have caused tremendous damage to Overstock," said Patrick Byrne, chairman and chief executive officer of Overstock.com. "I believe that this conduct is harming our company and our shareholders deeply, and that investors have been failed by those who have a duty protect them. The best way to address and solve the problem is to get it in front of a jury of 12 Californians."

Source: Overstock.com, Inc.
http://biz.yahoo.com/prnews/070202/laf041.html?.v=83

------------------------------------------------------------------
John O'Quinn and His Legal Team File Complaint Against Major Financial Institutions on Behalf of Overstock.com, Inc. and Certain Shareholders

PR Newswire - February 05, 2007 13:15
HOUSTON, Feb 05, 2007 /PRNewswire via COMTEX/ -- The Legal Consortium of The O'Quinn Law Firm and Christian Smith Jewell, both of Houston, Texas and Stein Lubin LLP of San Francisco, California (the Firms) announced today they filed a Complaint in the Superior Court of California, County of San Francisco against Bank of America Securities LLC, Bank of New York, Bear Stearns Companies, Inc., Citigroup Inc., Credit Suisse (USA) Inc., Deutsche Bank Securities, Inc., Goldman Sachs Co., Merrill Lynch, Pierce, Fenner Smith, Inc., Morgan Stanley Co.
Incorporated, UBS Financial Services, Inc., and Does 1 through 100 (the Defendants) on behalf of Overstock.com, Inc. and certain of its shareholders. The Complaint accuses the Defendants of conversion, trespass to chattels, intentional interference with prospective economic advantage, violations of California Corporations Code sections 25400, et seq., and violations of California
Business Professions sections 17200, et seq. and sections 17500, et seq.

Lead attorney John O'Quinn commented: "For the good of the American economy, it is imperative that that there be full faith in the fairness of our financial markets. Naked short selling, "fails to deliver", counterfeiting stock and other manipulative tactics are a stain on the execution of our exchanges." The Complaint alleges that the Defendants, who control over 80% of the prime brokerage market, participated in a massive, illegal stock market manipulation scheme.

It further alleges that the Defendants had no intention of covering such orders with borrowed stock, as they are required to do, causing what are referred to as "fails to deliver". The Complaint also alleges that their actions caused and continue to cause dramatic distortions with
regard to the nature and amount of trading in Overstock stock which have caused Overstock's share price to dramatically drop.

The Complaint states that a persistent large number of "fails to deliver" creates large downward pressure on the price of a company's stock. It also states that "fails to deliver" lists are prepared and published daily detailing each company for which there has been a substantial number of failures to deliver stock within the 'national clearance and settlement system' at the
Depository Trust and Clearing Corporation (DTCC) and its subsidiaries. The Complaint goes on to state that Overstock has been on these lists consistently since they were first published in
January 2005.

Overstock.com is a leading "closeout" retailer. It offers customers the opportunity to shop conveniently online for brand name merchandise at heavily discounted prices and offers its suppliers an alternative means of inventory liquidation distribution. Overstock launched its first website through which customers could purchase products in 1999. Since that time, Overstock's overall business and gross revenues have grown steadily and consistently each year. Patrick Byrne, Chairman and CEO of Overstock, commented: "I have a fiduciary duty to defend the company. These manipulative activities have caused tremendous damage to Overstock," said Patrick Byrne, chairman and chief executive officer of Overstock.com "I believe that this conduct is harming our company and our shareholders deeply, and that investors have been failed by those who
have a duty to protect them. The best way to address and solve the problem is to get in front of a jury of 12 Californians. With John O'Quinn at my side, I have full confidence that we will prevail." John O'Quinn added: "We realize that we are taking on a mighty task. Patrick Byrne and I are a perfect combination in that we are not afraid of taking on the big boys. Our cause is
right and we won't back down."

SOURCE Christian Smith Jewell

Ivan Kronenfeld of Koerner Kronenfeld Partners, LLC, +1-212-448-9141 x1,
ikronenfeld@kkpnyc.com
http://www.prnewswire.com

------------------------------------------------------------------
Overstock Sues Prime Brokers For $3.8 Billion
Location: Blogs Bob O'Brien's Sanity Check Blog
Posted by: bobo 2/2/2007 1:48 PM
I always liked Patrick Byrne. Smart, aggressive, honest, talented, doesn't back down from a fight.

I like him even more as of about 20 minutes ago, when the following article came over the wire.
http://biz.yahoo.com/prnews/070202/laf041.html

OSTK is suing the prime brokers for collusive manipulation. We have known that goes on for years, and it seems that everyone who watches the markets (except,
of course, the SEC) has recognized it as SOP for years.
Now it looks like the brokers got some 'splainin' to do.
No doubt their defense will have lots of hyperbole about liquidity, and repo agreements, and the good of the market.

Can't wait to see 12 jurors listen to all that. "We had to sell tens and tens of millions of shares that don't exist, destroying thousands of investors, for the good of the markets" With RICO, that could easily go to $11+ billion.

I wish the attorneys would get NFI into the mix in that shareholder suit. Their damages are likely even larger. Could you imagine if this becomes the norm? Maybe we wouldn't see the kind of carnage that we have seen in NFI over the last month, and especially today, where the stock is throwing a 27% yield on no news, having been slammed down by over 30% in 20 trading days.

I wonder if the NFI attorneys can get that company into the mix? Wouldn't it be fun for the specialist (Banc of America) and the brokers to have to explain, with $3 or $4 billion on the line, why they sold this off and ruined the lives of countless retired investors, for the good of
God and Country?

Good going, Patrick. It's about frigging time that the crooks faced accountability via the courts. I wonder if their team will try the failed Federal gambit on this one? Probably. Stall, prevaricate, blame everyone else, and then try to settle before all facts become known.
Man I'd love to know how much of discovery goes to the DOJ. I bet a lot. It's one thing for a corrupt SEC to pardon this behavior with a wrist slap, another entirely for the DOJ to look at criminal implications of a cartel of miscreants defrauding investors, with a jury of 12 ordinary folks thinking it through, and contemplating what they would feel if it was their retirements on the line that had been stolen.

Triple damages may be too low.

http://thesanitycheck.com/BobsSanityCheckBlog/tabid/56/EntryID/566/Default.aspx
-------------------------------------------------------------
Financial Services
Naked Short Victim Strikes Back
Liz Moyer, 02.02.07, 6:35 PM ET
http://www.forbes.com/2007/02/02/naked-short-suit-overstock-biz-cx_lm_0202naked.html?partner=link
s
------------------------------------------------------------
Latest Overstock lawsuit seeks billions from financial giants

The online retailer claims the companies conspired to illicitly drive down share prices

By Bob Mims
The Salt Lake Tribune
Article Last Updated: 02/02/2007 11:42:17 PM MST
http://www.sltrib.com/business/ci_5149469
-------------------------------------------------------------
February 05, 2007 12:00 PM Eastern Time
Universal Express Supports Overstock.com's Naked Shorting'' Suit Against 10 Major U.S.
Brokerages

NEW YORK--(BUSINESS WIRE)--Universal Express Inc. (OTCBB: USXP), today announced its support, and congratulates Overstock.com and its Chairman, Dr. Patrick Byrne on the filing of its $3.5 billion lawsuit in California against 10 major U.S. Brokerages.

"Universal Express would like to extend its congratulations to Overstock.com and Chairman Dr.
Patrick Byrne on its Naked Shorting suit. Universal has received judgments in Florida courts of over $700 million against Naked Shorters, and is also contemplating further lawsuits," said Richard A. Altomare, Chairman and CEO of Universal Express, Inc.

Reference: http://www.forbes.com/business/2007/02/02/naked-short-suit-overstock-
biz-cx_lm_0202naked.html

(Due to the length of this URL, it may be necessary to copy and paste this hyperlink into your
Internet browser's URL address field. Remove the extra space if one exists.)
-------------------------------------------------------------


Ladies and Gentlemen of the Commission, I urge you to act swiftly to terminate these blatant securities market crimes inherent in todays US Stock Market. Seemingly everyone, except you, is aware of who is committing the crimes. We are tired of it, and we are not going away.

Sincerely,
-US Citizen