Author:  Eric Harper 
Date:    06/20/2000  8:23 PM

Subject: S7-24-99    Presidential election issue

There is in America today a growing movement to end 
this rule. We shall as a group try and push it to the 
national media level and indeed make it an election 
issue.
     
I read with disdain the MM attorneys reply to you on 
their need to "naked short" a OTCBB stock in order to 
create liquidity in the market. I happen to disagree 
especially when some profitable companies on the OTCBB 
have strong investor interest and indeed millions of 
dollars worth of stock are trading hands daily.
     
But if we must look at the poor multi billion dollar 
market maker firms opinion that it is needed lets say 
it is needed for them. But their is in no way any 
plausible reason to give them the ability to hold 
these short positions indefinitely. Trusting that 
these firms will not take advantage of the ability to 
commit fraud that is afforded them. There "must" be a 
check system in place that they "must" cover these 
positions at some point in time. if not bi-weekly then 
monthly, but to say you can keep it as long as you 
need to is absurd.
     
If anything the question nationally needs to be asked 
and hopefully will be at town meetings both candidates 
for president are going to hold, "Where are the untold 
millions of dollars in money that is taken in exchange 
for these ficticious shares"? This is reality, market 
makers can sell literally millions of dollars worth of 
securities and keep this money until they feel they 
wish to cover.  
     
Is the money in interest bearing accounts? Is it being 
used by the member firms to invest in the other 
markets? Are they using it to cover other short 
positions in the Nasdq market, the NYSE market when 
they are forced into a squeeze? The truth is nobody 
knows, not you not the Nasdaq or the OTCBB. 
     
4000 public companies on the OTCBB, how many tens of 
millions are being held or invested by market maker 
firms? The public doesn't know where there money is 
now but you can bet your bottom dollar they will be 
election day. Such an easy rule to put into effect, ok 
you can short "if" you need to. But the unpublishing 
of these positions to the public days are over. And 
the holding of said short positions for an infinite 
amount of time are over. Plain and simple and easy and 
leaves these firms no way of disputing the rule.
     
If they were to dispute it, then they would have to 
provide reasons for the need to keep these numbers in 
secrecy and indeed keep "hardworking Americans" money 
in interest bearing accounts or other investments for 
their own personal gain. With now more than 50% of the 
American public investing in the markets today and the 
new plans set forth by both candidates to allow them 
to invest in their own future in the markets through 
social security. They should be able to explain when 
asked what they would do to end the ripping off of 
"hardworking Americans".
     
We are going to try and get dozens of investors to 
hold signs on the elction routes and outside and 
inside the town meetings and indeed bring up the 
question at every single meeting. I have no doubt with 
the sheer numbers of investors that is growing 
everyday, we will indeed be able to put it into the 
debate and indeed into the national media spotlight. 
Show me a politician that is not looking for an angle 
and I will show you one that doesn't want to win.
     
I would like to applaud you in your moves to clean up 
the OTCBB so don't get me wrong. It has been a long 
time coming and your efforts are apreciated by all. 
But in cleaning out the fraudsters and scam companies 
you have only done half your job. If you are going to 
make public companies on the OTCBB accountable then 
you must finish the job and make market makers in 
these securities accountable.
     
I and no other investors in this movement are trying 
to say that the securities dealers of America are out 
to steal. But human nature is human nature and fraud 
in all the markets world wide even in those with 
detailed check systems in place have it occasionally 
happen. Too much money involved its a given and 
letting unchecked, unaccounted for short selling to go 
on is inviting the fraud that you and I know will be 
taken advantage of is absurd to say the least.
     
No one blames you, and I am in no way putting you on 
the spot. I am just making you well aware of the fact 
that this is an election year and literally thousands 
of investors weekly are becoming aware of the problem. 
They are also joining together and realizing they have 
the oppurtunity to make swift changes like never 
before. The doors to cleaning up the OTCBB market are 
open, companies have to account those trading in those 
securtities must also be held accountable.
     
In closing I ask you the question, "do you know how 
much money we are talking about"? Sit back and think 
about it for a moment and realize what we are dealing 
with here, how many investors we are talking about 
here. The truth is we don't know and the reason is it 
is unchecked and covering at least once a month is not 
required. All of us are going to contact our federal 
elected officials no matter what party. I am a stauch 
republican but at this stage I don't care if the 
Democrats take the lead and bring it to light. Someone 
must and in this crucial election year I have no doubt 
in my mind that savvy politicians will see the reality 
and the oppurutunity to gain.
     
I am not a naive investor and niether are many OTCBB 
investors. In my years of investing 10 of 12 OTCBB 
companies I have invested in have gone on the the 
Nasdaq. But I have had my fill of the manipulation 
especially now in the recent market interest it has 
become so flagrant it is evident that it is rife with 
fraud. And the American government is allowing it to 
happen and we will ask the Senatorial candidates and 
the Presidential candidates why something has not been 
done.