July 24, 2008
I still can't believe that the SEC is protecting these investment banks from naked short selling while you continue to turn a blind eye to all of the thousands of ordinary companies who have been totally devastated by naked short selling -- generally by the same banks that you are now so concerned about helping.
I have personally been contacting everyone possible within the SEC, my congress representatives, and anybody else I could to ask you to please, please enforce the laws that you already have on the books to stop this criminal activity. Stop the counterfeiting of our shares. I and the thousands of people who I communicate with on this issue have received replies -- from the SEC -- to the effect that naked shorting doesn't exist, naked shorting is just something that's talked about by shareholders who want their shares to go up, naked shorting may exist, but it isn't illegal, naked shorting helps the volatility of the market, naked shorting may exist to a small degree, but it isn't serious enough to be an issue, and dozens of other responses that are basically telling us to please shut up and go away while you and your friends fill your pockets with cash.
So if naked shorting doesn't exist, or it's so helpful in boosting the volatility of the market, why would you even consider halting it for your banking friends? Won't it help their volatility too? Isn't it a major element of a free market for your banking friends too, just like it is for the thousands of companies that have gone out of business because you ignored it and turned your back on them?
I lost my life's savings on a stock named CMKM Diamonds that registered the largest naked short in history. As it turns out, the SEC was not only unhelpful in protecting me when I pleaded with you years ago to do something about the terrible manipulation that destroyed this once very promising stock. It now appears that the SEC was using me and tens of thousands of other innocent shareholders in a totally fraudulous stock scam while leaving us totally in the dark -- to this very day. I have seen evidence that the SEC was aware of this fraudulous manipulation years and years ago, and has yet to offer the shareholders any compensation even though laws were clearly broken and so many people continue to suffer.
Why are you now moving so quickly to condemn naked short selling and protect your investment banker friends? Where was that protection when I needed it? And I'm sure you realize that it was your investment banker friends who continued for decades to make a fortune off of naked short selling themselves -- by fleecing shareholders like me.
Is this justice? Is this the American judicial system at work? How do you people sleep at night?
It's a disgusting display of greed at the highest levels of our government and financial system. And it makes me embarrassed to be an American.
Please let me know if you need any more "guidance" on helping your investment banking friends with their naked shorting problem. I have a lot more I'd like to tell you.
H. Livingston