I'm writing this morning to implore, cajole, and otherwise strongly advocate immediate action by the SEC to stem and eliminate the illegal practice of naked-short-selling, especially on the OTC, and Pink-sheet issues!
Its is supremely un-fair, un-American, and quite illegal, to allow this practice to continue! Such nefarious undertakings benefit the very forces the SEC was designed to protect retail investors from, that is, "bigger-money", and insiders, who know the machinations of the Market, and are able to manipulate stocks, and PPS direction, by often setting-up off-shore accounts to illegally short-sell various securities, often with tepid support from the accomplice brokerage houses!
This not only hurts common investors, but the target companies as well, along with the larger national economy. I dare venture to guess how many millions, if not billions, of dollars have been fleeced from American enterprise, by turning a blind-eye to this deleterious practice. Furthermore, in an era of criminal terrorism, I would also contend that tacitly supporting the practice of selling short securities illegally, could and most probably does, aid and support vested interest in forces that would see harm done upon America! (the logic being, if someone is willing to rob a common investor and/or corporation of their assets, then they'd probably be willing to go one step further and aid and/or abet terrorist elements, imo!)
As you well know, naked-short-selling is carried-out by selling short a particular security without the brokerage house accounting for the shares. Thus, theoretically and practically, companies and investors can be "shorted out of existence", b/c there is not limit to the amount of short-interest applied against a stock, when the shares sold short don't exist in the first place. The SEC must put its foot down, and demand that brokerage houses have strict accounting procedures for "loaning out shares to be sold short". And for those off-shore brokerage accounts, please let them know that they can be restricted from buying any US listed security, if they are party to this disastrous and criminal practice!
Hoping to see the SEC "get-tough" on this issue and grave problem!
-A concerned Investor,
T. Carter Wynn
PO Box 820415
Memphis, TN 38182