Subject: File No. S7-12-06
From: Bruce A Thompson

July 21, 2006

What part of the public is being protected when a few hedge funds and brokers are allowed to counterfiet multiples of the outstanding shares of a public company?

For example, the argument is given that a company's shares would be allowed to rise to extremes not supported by facts if the shorters were not allowed to control the price by scheming to defraud innocent investors by massively selling shares that do not exist TO AN EVEN LARGER NUMBER OF UNSUSPECTING INVESTORS.

That is called FRAUD, COUNTERFIETING, and NAKED SHORT SELLING. It is also called making crime pay for a chosen protected few.

It is rampant and your Reg SHO did not do anything to stop it or even slow it down.

The Grandfathering Clause is absolutely inexcuseable.

Thank you