Subject: File No. S7-20-08
From: Chad C Warwick, Esquire
Affiliation: Attorney/Investor

September 9, 2008

Currently I am observing a shorting process whose design is to crush a microcap company that has relied upon the use of stock as a growth vehicle. I have been an active investor for twelve years and have yet to see such a blatant example of using short sales to unfairly depress share value. The company VCGH is involved in adult entertainment and so may be being shorted by some morally correct group or just by some hedge fund that hopes to benefit but I suspect the former since the stock generates so little turnover that it cannot be that lucrative. The stock is currently trading at 9X Current year's earnings, has a growth rate of 30 - 50% and is generating enormous cash flow. I realize that this may not be blatant enough for you to suspect foul play but I just want to put it on your radar. By this time next year I expect it to be trading at 6X current year's earnings with the same growth multiple rendering a PEG of .15 at which point I would appreciate someone doing something. It is clear right now that the same people are buying and selling the stock at a depressed price to hold it down. My understanding is that this is illegal even if they can prove they have some "borrowed" stock to rely on. Please contact me to indicate if I can receive any assistance from you or if I have to go it on my own.