Subject: File No. S7-20-08
From: Brad Patterson

August 5, 2008

While this temporary measure is all nice and fuzzy, it is still lip service until the $24 trillion that has been stolen from the American people is returned to them and the over trillion shares of fails is taken out of circulation.
Putting 19 financials on special terms for naked shorting is in and of itself a measure by the SEC that usurps its fiduciary responsibility to shareholders and investors in the entire US Financial System. The SEC's obligation is to protect the marketplace and investors from unfair practices as a whole and not just a few companies that "the Commission" deems might pose a financial risk to this country as a whole. This isn't task forces and continuous meetings. This is implementing immediate STOP measures market wide across all equities or instruments available for trading.

Whether or not the Commission is even considering such a measure, which anything less would be a blatant disregard for the Act of '34, they need to be aware of the newest form of crime hitting the marketplace. That would be the inability to buy and only sell. I cite the stock DKAM as an example. Not that it matters because it doesn't. But this is a company whose Board of Directors is full of beverage giants and well respected individuals representing many sectors and businesses. This company Drinks Americas also represents the largest music company in the world in Universal.

This stock has been trapped for many months unable to move higher. This after it spent almost a year backing up at the hands of naked shorting with net fails and ex clearing fails totalling over 50 million shares. Even an investor in the stock, a former market maker using Level 3, can see the messages and the naked shorting plus trade mirroring happening on a daily basis.

The stock currently is being controlled and held hostage by NITE as the top inside Bid and Ask every single day. They have found a way to prevent orders of size from executing. Many orders sit in the queue for hours before a fill even takes place. Any order of 50000 shares or higher, like 100K or 200K or 500K sits in the system for the entire day and not a single share will execute. The CEO has print outs that no shareholders are liquidating any orders of size. There are no 144s being exercised. No hedge fund is liquidating. It is pure and blatant market manipulation.

By way of example, in a normal trading environment, if you or I wanted to buy 200K of a stock with a Bid of .30 and an ask of .32, and you wanted to be assured of getting as many shares as possible, then it could be considered an effective strategy to put that order in limit .35 for the day and it is NOT an all or none order. You could see the stock fill 20000 at .32, then 20000 at .33, then 20000 at .34, and then 20000 at .35. The remaining 120000 shares that have not filled now become the highest inside bid at .35 where the current ask might be .37.

This does not happen with this stock. Numerous references of trying to buy stock in DKAM are occurring everywhere where orders are not getting filled. Customers are calling brokers and brokers are calling the market maker and getting no fills and no answers. If an order comes in to effect any size, NITE pulls back off the ask to trap it and then once the order fills, drops the ask to a lower price, only to trade mirror right hand to left hand the same shares into the bid price of the stock.

Further, one market maker in Citi(SBSH) and ECN in ARCA both pulled off the stock in the past month citing they would no longer be taking trades on the security. They discovered they could not get orders from their customers to fill, nor could they get NITE to fill orders and were getting no answers, so they left the stock completely.

Listen to me now. This isn't going to be one of those situations where a few hundred shareholders have to engage the Senate Banking Committee and their local Congressman to get our voice heard. Nor are they all going to incur the expense of getting certificates in hand to prevent the naked shorting only to have it continue. Nor are they going to incur the considerable legal expense of hiring lawyers when we have 300 of them AT OUR DISPOSAL in the SEC. Please remember that, you work for the investor, not for the Broker Dealers or the market makers.

Because of the recent news surrounding this company. insiders are prevented from buying large amouns of shares. These guys on NITE know this and that close insiders will not recognize the problem like individual shareholders would. The CEO has already engaged the company's attorneys on a cease and desist order against NITE and they are basically laughing at the company. These guys have found a way to take this stock lower on the day positive news is released on 42 of the past 47 press releases over the past 18 months.

As I write this, the company is coming off the most positive earnings conference call in company history where 7 company changing news items were contained in one press release on 8/4/08. Not a single share has traded for over 1 hour of trading in the session following that conference call. I am sitting here receiving messages that people are trying to buy the stock and not one single order is crossing the tape of any kind. Go look at the time and sales right now. Nothing. And it has been going on for months.

Your job is to protect investors from this kind of heinous crime. Ours is not to do your job for you. NITE, once again as like so many times in the past, is manipulating yet another stock where they have been slapped with numerous charges, fines, and sanctions in the past.

There is only one resolution. The SEC WILL, I repeat WILL pull NITE off this stock and effect the immediate buy in of over 50 million outstanding net fails on this stock and not allow NITE or the entity running this algorithmic program to ever trade this, or any other security again.

It doesn't matter which exchange this stock is on. NITE has purposelfully taken the market away from this stock and this company and is holding all of its shareholders hostage. There are numerous ICC and Federal crimes being committed here and if the SEC does not do a thing about it, they will then be an accessory to the very crimes being committed.