From: alan schultz [mrmidnite@earthlink.net]
Sent: Friday, June 28, 2002 5:00 PM
To: rule-comments@sec.gov
Subject: comments on proposed rule 34-46079

Gentlemen:

Recent as well as current revelations clearly show that there are
serious problems concerning what one might describe as a "disconnect"
between the financial statements issued by many corporations and the
facts of the matter. Assumptions or claims that the CEO's and CFO's are
unaware of such discrepancies are simply not credible. Neither are
claims to the effect that corporate officers at such levels cannot "know
everything", for they not only "should know", they must be held fully
responsible, without limits.

It is my understanding that currently proposed rules would require CEO's
and CFO's, perhaps other corporate officers, to '"personally" guarantee
the accuracy of financial statements, for the next quarter or so. You
might have heard the old saying about something "cutting the mustard",
well this proposal doesn't begin to "cut the mustard", due to the short
term responsibility laid on these people. They should be held,
personally responsible, without limits, for the accuracy, the
truthfulness of the statements they are party to the issuance of. Their
responsibility should be criminal as well as civil. In addition, in such
cases where they are found guilty of being party to the creation of
"cooked books", they should experience the total divestiture of any and
all of their ill gotten gains, stock options, bonuses, salaries and
such. Should they complain about the hardship that such remedies inflict
on them, and or their families, remind them of the damage they did to
others.

In conclusion, let me address another aspect of the corporate scams that
unfold without end, before us. That scam is the "restatement of
earnings" which constitute in less diplomatic terms, wire and or mail
fraud, both of which are felonies, correct me if I'm wrong. In every
instance where earnings are "restated", the earlier characterizations of
earnings were lies, lies distributed via The U.S. Mails, and or
Interstate Wire Systems, therefore we come to Mail Fraud and or Wire
Fraud.

These executives lied to their shareholders, they lied to their
employees, they lied to everyone and everything in sight, and for this,
they must be punished, and they must suffer real punishment, which does
not amount to the spending of a few months at some "federal tennis
club". They must serve hard time, with the "common criminals", no
special privileges, just hard time. There should not be any such thing
as plea bargains or consent decrees either.

So gentlemen, there you have it. Take these bums out and hang them. By
the way, the "hanging" should be done in the full view of the largest
possible portion of The People, the very same people that kept them is
such high style, the same people who they so viciously betrayed. Lest we
forget, corporate boards, the mobs that granted such magnificent benefit
arrangements to these corporate thieves need to be held up under a
strong light too.

Alan Schultz
149 Nineteen North Court
Pittsburgh, PA 15237
mrmidnite@earthlink.net