October 5, 2005

Subject: File Number 265-23

According to the web-site for the SEC, the SEC Advisory Committee on Smaller Public Companies is seeking to assess the current regulatory system for smaller companies under the securities laws.

The assessment is obvious. The currently regulatory system is HOSTILE for smaller companies. If the SEC wanted to have an immediate dramatic improvement on the currently regulatory system for smaller public companies, the SEC could start by enforcing EXISTING laws against illegal naked shorting and failure of deliveries (FTD's).

IF the SEC had been doing its job and enforcing the rules against illegal naked shorting and persistent FTD's, Reg. SHO wouldn't have been necessary. And even Reg. SHO isn't working. FTD's are supposed to be cleared within 13 days for companies on those lists and instead the companies are staying on the Reg. SHO lists for MONTHS.

What is the SEC waiting for, for companies to be listed for years on the Reg. SHO lists, instead of merely months? Is the SEC waiting for another state attorney general to step forward, and clean up the mess, like Eliot Spitzer?

This situation reminds me of the time when the mutual funds were allowing late trading by their largest customers at the expense of smaller investors. What did the SEC do about it? Absolutely NOTHING. It took Eliot Spitzer to stop those abuses.

Eliot Spitzer made a very telling remark about the SEC in Newsweek. According to Newsweek, Spitzer said that he wouldn't trust SEC lawyers to do a closing on a house.

Thanks for nothing. The SEC can now go back to holding endless, pointless meetings, and pretending like it actually cares about protecting the integrity of the US financial markets. You should all be ashamed.

Brian Furrer