July 22, 2008
Naked short selling has long been illegal but the law has never been enforced by the SEC. The illegal short sellers have stolen large amounts of money from me and other investors through this fraud yet no one has ever been prosecuted for it. It's the perfect crime. High return with no risk of SEC investigation and no risk of going to jail.
Proposed amendments to Regulation SHO of selectively enforcing the law against illegal shorts sellers of 17 stocks while ignoring the crime of illegal short selling against all other stocks accomplishes nothing.
Since the SEC has chosen to ignore the law against naked short selling that it is mandated to enforce, maybe the FBI's white collar crime division would investigate if they receive enough complaints from concerned citizens.