From: Leonard Burningham [lwb@burninglaw.com] Sent: Saturday, March 22, 2003 1:36 PM To: rule-comments@sec.gov Subject: DTC Request to Stop Issuers From Exiting DTC Dear Ladies and Gentlemen: I am truly sorry that I was out of town when the deadline for comments on the recent proposal of the DTC came to my attention; yesterday, I forwarded by facsimile copies of my earlier correspondence regarding this problem of "naked shorting" to Jim Matheson, the Congressman from the State of Utah. Ken Israel of the Salt Lake Branch of the SEC had indicated to me that he would look into what has been a concerted effort of DTC to assits in "naked shorts" by refusing to provide any adequate information of OTC issuers whose securities are relentlessly shorted with its aid and assistance, either intentionally or without design. What purpose can this proposed Rule have but to insulate DTC. It has already changed most laws effecting transfers of securities so that neither it nor the brokers or clearing houses it serves are required to be bona fide purchasers of securities to defeat adverse claims, and this is just another step claims based upon naked shorts that have been made against DTC. This will not solve the problem, but is special legislation to protect one of the parties causing the problem. The real problem is the naked shorting. How can it be stopped? It has been going on for years and it is a greater fraud than many of the schemes that the SEC investigates and commences proceedings. Companies have been ruined and shareholders have lost all of their value in many instances, by virture of the shorting alone. I have to deliver securities in three days, as any other shareholder who sells shares does; why is there a double standard for unscrupulous brokers and others to defraud us with this practice. What ever happened to Regulation T???? It is about time the SEC made everyone subject to delivery in three days, and not by parking or some other forms of conspiracy among brokers and clearing houses. This should be investigated thoughly as you are aware as any broker or investor is that this practice runs rampant! I would like you to consider these comments and those that were addressed to Congressman Matheson in my facsimile to you yesterday. Thank you. Leonard Leonard W. Burningham, Esq. 455 East 500 South, Suite 205 Salt Lake City, UT 84111 Phone: 801-363-7411 Fax: 801-355-7126 This transmission contains privileged and confidential information that is intended only for the above named person. If you are not the intended recipient, you are hereby notified that the disclosure of this communication is strictly prohibited. If you have received this transmission in error, please notify our office immediately and delete this original message. Thank you!