From: Craig C. Smith
Sent: January 14, 2007
Subject: File No. S7-12-06

Subject: Please overturn the Grandfather Clause for Naked Short Selling

To Whom It May Concern:

I am writing this letter in reference to the Grandfather Clause for Fails to deliver or Naked Short Selling. This practice has taken the integrity of investing out of the equation. No longer does the pps of the stock move with the success or lack of success of the company. It moves when the stock manipulators allow it to move or decide to bring it down. This has undercut the value of the stocks that honest investors have placed their money in. This is like someone selling land that wasn’t theirs and the government saying it was ok because it was before they really started monitoring the practice. Now the land has been sold numerous times over and the value of the land is significantly reduced. Please help restore the value of these stocks by removing the Grandfather Clause immediately.

Thank you for your time,

Craig C Smith