From: Stephen E. Vanourny
Sent: January 29, 2007
Subject: File No. S7-25-06

I previously sent this by regular mail but have since learned that you prefer communication by email.

Synopsis: Regulate, if you wish, but don’t infringe on the rights of individual investor by mandating net worth limits. These investment vehicles are not more difficult to understand that most other investment vehicles. And net worth hardly correlates with investment prowess.

Nancy M. Morris, Secretary
Securities and Exchange Commission
100 F. Street, NW
Washington, DC 20549-0609

Dear Ms. Morris,

I write regarding the proposed changes to the definition of “accredited investors”, namely S7-25-06. As I understand it, you propose that only individuals with an investable net worth of $2.5 M or greater would be allowed to participate in certain investment vehicles, hedge funds among them. Further, I understand that your rationale includes the fact that only 1.5% of American families have net worth above $2.5M; thus, your proposal affects 98.5% of American families.

I wish to make the following points about this inane, ill-conceived and anti-libertarian idea;

  1. Do you really think that fully 98.5% of Americans are so naïve and uneducated in financial matters that they require such “protection” by a federal agency? I think not!

  2. The SEC was established to uncover and prosecute fraud and insure full disclosure; it most certainly was not established to limit individual American’s choices.

  3. It is exceeding arrogant, in my opinion, for the federal government and, in particular, unelected bureaucrats, to substitute their judgment for individual prerogatives and ingenuity. As a matter of fact, the major shortcoming of politicians for the last fifty years (with the possible exception of Ronald Reagan) is that they seem to believe that Americans can’t think for themselves, that they need to be “taken care of” by government, that personal initiative and drive are somehow a thing of the past.

  4. Our personal liberties are gradually being eroded by federal regulations such as this and others. Perhaps no single regulation by itself will end our liberty but collectively they amount to severe limitations on our personal choices.

I assume you are an intelligent and honorable person and are attempting to protect innocent people from unscrupulous promoters of crooked investment vehicles. Well, I suggest that your job is to do just that. Inform the public, educate all Americans, legislate full and understandable disclosure, prosecute the villains, confiscate their ill-gotten gains, put them in jail, let them know you have a zero tolerance for fraud, don’t let them off with a wrist slap.

Do all these things but please don’t further compromise the hard-won liberties of industrious Americans who just want to invest their hard earned dollars as they see fit and participate fully in the American Dream.

Thank you for listening,


Stephen E. Vanourny