From: Troy Chinevere
Sent: April 3, 2007
To: rule-comments@sec.gov
Subject: File No. S7-12-06


Hello:

It seems to me that the penalty for catching institutions with FTD's is much too soft. If a major institution can make millions or tens of millions of dollars by naked short selling, and be fined only a fraction of what they made, then the risk/reward greatly favors the criminals. This is purely stealing from the middle-class, while at the same time they are hurting the company. The penalties for these tactics should be fines equal to their profits from naked short selling plus an additional 25-50% on top of that. The current penalties are like giving a serial killer 6 months in a low security prison.