Subject: File No. S7-12-06
From: Rick H Franz
Affiliation: retired Portfolio Manager for Wells Fargo

July 31, 2006

As a retired Portfolio Manager and now a private investor, I want to encourage you to take strong and immediate action to crack down on naked short selling. It is illegal and morally and ethically wrong for hedge funds or private investors to engage in this practice which I believe is very widespread and can cripple companies and will eventually destroy our free market if left untouched. I believe you must act quickly and decisively to investigate and punish those who have and are profitting from this type of activity.