Subject: File No. S7-19-07
From: Michael E Kushner, DMD

January 20, 2008

I am a small retail investor and shareholder in Syntax-Brillian (BRLC). The shares are on the REG SHO list and retail short sellers can not sell it. However, almost 5 million shares were added to the short position in the last reporting period.

The SEC has just published statistics on the failure to deliver BRLC shares. These stats confirm the persistent and deliberate naked shorting of this stock. Small investors are getting swindled every day while the problem is unresolved. In the case of Syntax/Brillian there appears to be a systemic inability for current regulatory structures to effectivlely confront this problem.
How does the short interest increase by 30% over a 10 day period for a company that has been on the Regulation SHO list for 235 consecutive trading days? For 235 consecutive trading days there has been persistent failures to deliver shares of Syntax-Brillian (BRLC) and the short interest has increased from 16.6 million to 21.6 million shares in the span of 10 days - despite the fact that there has been insider buying.

The faillure to deliver issue is now a matter of public record on this stock. At 5 million shares - it is obvious that this is not a clerical error. The current regulations are failing to protect investors from what amounts to organized crime.

The rolling foward of options trades to avoid settling is also evidenced in this stock by looking at the put option trades at high strike prices (7.50, 10.00, 12.50, 15.00, 17.50)seen the last reporting period - last two weeks of December and the first two weeks of 2008 opening and closing at large volumes on same day on a stock trading under 3.00.

More evidence of abuse of the options maker execption can be seen in the options trading on the last two options expiration date for December and January, the manipulators of this stock managed to have the shares close at exactly 2.50. That means that all calls expired out of the money. That is simply too convenient for the options brokers who wrote those options. It seems that they can drive this stock price anywhere they want and park it anywhere they want.

It is obvious to me and other investors from this kind of evidence that certain brokers are colluding with a large hedge funds to manipulate the price of this and other stocks.

Honest investors will be watching and waiting and encouraging their congressmen to support the removal of the the options maker exception. Let's hope that Congress acts to end this criminal manipulation of stocks which hurts honest investors and discourages investment in U.S. listed companies.