Subject: File No. S7-12-06
From: M. Thomsen

September 19, 2006

Nancy M. Morris, Secretary
Securities and Exchange Commission
100 F Street, NE
Washington, D C, 20549-0609

Re: Amendments to Reg. SHO Release No. 34-54154, File No. S7-12-06

Dear Ms. Morris:

I am and individual investor whose assets have been systematically looted through the widespread and illegal practice of naked short selling. Each month, the reported short interest in a number of stocks I own rises despite the long-term tenure of these stocks on the SHO list. Oddly enough, the market prices of these stocks have experienced a corresponding decline. I strongly believe that Reg. SHO has been a complete and utter failure.

The SEC has expressed a great deal of concern about a short squeeze ensuing from the implementation of any changes to Reg. SHO. Why is there no concern about the ongoing long squeeze, which has transferred untold amounts of wealth from IRA and 401K accounts into the pockets of the financial services industry? Why does it require an FOIA request to get any specific information about short sales even at an aggregate statistical level? Any why is a holder of a long position greater that 5% of the outstanding shares required to register with the SEC and have their position made public, while a holder of a short position of similar magnitude may remain anonymous? Regulations to significantly increase transparency of activities on the short sale side are badly needed so that criminal activities can be exposed to the light of day.

I have read all of the comments posted to date on your web site. I note with some interest that, as I write this, there are no posted comments from major firms in the financial services industry. I am quite certain that these firms have offered a plethora of feedback regarding the proposed Reg. SHO changes, and hope that their views will be subjected to the same public scrutiny as those from the public, which are posted on your web site.

Many of the comments I have read expand upon the proposed Reg. SHO changes and recommend further reforms that are urgently needed in order to restore integrity to our markets. Rather than re-iterate those recommendations, I will refer you to the letter from Virginia Strang, dated September 11 and posted September 14 to your web site. I strongly agree with and endorse the views expressed by Ms. Strang, as well as the views expressed by other parties whose comments she cites in her letter to you

A continued failure of the SEC to enforce existing securities laws will further erode confidence in our markets, our economy, our government, and our country. Do not let this happen on your watch. The SEC must stop allowing the massive fraud that naked short selling represents. Enforce the securities laws, settle the trades, and send criminals who break the law to jail.

M. A. Thomsen