Subject: File No. S7-08-09
From: Dennis Madden
Affiliation: a lowly shareholder of stock

September 11, 2009

The one thing the SEC is ignoring is the out of control of selling of "NAKED SHARES". There are rules but the reporting at the end of the required periods is by our estimates of a particular stock, not even 1% of the actual sales are reported. I know you are not too excited about penny stocks but when they are traded on an exchange, the rules should apply to all. I am aware of one company that has been fighting the short sellers of naked stock for a long time and are aware that millions shares are now naked and the market makers cover it all. Some short sellers main goal is to drive companies into bankruptcy by driving the price so low is does just that. The naked shares sold is the vehicle and the so-called "regulators" pay no attention to bogus reporting. I agree with the common complaint, that the SEC needs to completely clean house and start over with new faces and new leadership to attain that goal.