From: Earl [mailto:imspirit@kingmanaz.net]
Sent: Saturday, July 06, 2002 3:00 PM
To: rule-comments@sec.gov
Subject: Financial Oversight

To Whom It May Concern

There cannot any longer be any misunderstanding that major corporations and auditing firms are
taking enormous liberties within "general and accepted accounting practices" a standard disclaimer
that seems to signify something like "motherhood and apple pie". Just not the case. It is clear
that at the highest levels of executive management, distortion and misleading statements are made
and presented as a matter of routine without fear of punishment.  Information is omitted and even
the most astute student is in trouble by the time any true condition is found out. The entire
situation is totally out of control and had been so for many years. It is only because of the
blatant total disregard for any investor interest and confidence on a world wide basis and pure
corporate insider greed, that it has become more prevalent, and that is because they believe that
they are so powerful that there is no penalty and that they can "fix" any consequence of discovery.


I am an average retired person with some reasonable investments that I thought would protect my
future and now I am no longer sure. The absence of investor confidence will eroded the ability to
raise monies for venture capital developments and worse, further eroding the confidence in the
government to even do a superficial oversight job. Who is  protecting those that are of the belief
that there is some degree of integrity within the business/auditing/governmental oversight? It is
my view that these have all collapsed within what was a cloak of not too secret secrecy and total
incompetence within just a smidgen of controlled oversight.

What has been shaken is the foundation of faith in the future. The economy is at stake here. Not
even the "under God" ruling has such dire consequences. One cannot even now plan their own future
without the enormous monies of corporations given governmental legislators that circumvent and
shred any evidence of fair play and somewhat openness. It sure gives appearance of just another
government/business (Republican)  conspiracy to promote the rich getting richer and the poor
getting screwed. 

The average citizen does not any longer trust Federal Government, State Government, and surely not
local Government, not Wall Street, Brokerage firms, Accounting firms nor consultants. And further,
even the religions of the west are at risk. High school students now generally accept that cheating
is ok if it gets you what you want and ahead of someone else. It is becoming a society normalcy to
lie, cheat and steal.. And certainly to lie either directly or by omission or by embellishment. I
think all of business has lost its moral and ethical compass. 

So I would highly recommend that there be some sincere, tough oversight and openness and severe
penalties (fines and jail time in a prison and not a "country club") for those committing such
crimes and also some auditing standards that are more than "reasonable and generally accepted".  I
cannot be sure if it is purely to enforce the existing laws. I do know that "general and accepted
accounting practices" are implied acceptance by someone other than the company and the auditors
that audits that firm. That's not good enough for me nor should it be good enough for anyone else. 

Crime should pay, and I don't mean financial reward. 

Earl Engelhardt