From: Chris Lucas [lucas@infonetz.com] Sent: Wednesday, January 07, 2004 1:17 PM To: rule-comments@sec.gov Subject: New rule for Naked short selling (s7-23-03) To the SEC, I feel I've already written so much on this problem but once more maybe will help First....Naked shorting left or never covered after the 3 day settlement date is just outright fraud..and should be dealt with as such...permanent barred from trading. Second. The continuation of this fraudulent practice undercuts the very foundation of the equity market.That all shares are Bona Fide. Third. It mostly affects young co's whose growth of business is largelt dependant on business growth being reflected in stock price. Fraudulent shares being traded, which is what really happens, dilutes the results of the co's work and self investment... thereby reducing potential employment, buying of good and services and taxes paid. It is a snowball effect. Fourth. The practice continues regardless of rules on books because they are too rarely enforced.WE need something that they cannot miss...being permanently barred from trading, from firm, principals and nominees. Fifth. Were the SEC to announce that an audit of all NASDAQ listed and unlisted stock market makers looking for uncovered sales, and that any found with , and I mean even 1, uncovered transactions discovered were to be barred from trading for ever...no fines..no deals..no appeals...it would give the guilty until the audit commencement date to clean it all up. I Believe they would. That's my nutshell. Thanks for your attention...now do something.Regards, Chris Lucas