From: JOSEPH SCHEIB [jhs92056@msn.com] Sent: Wednesday, November 26, 2003 8:44 AM To: jhs92056@msn.com; rule-comments@sec.gov Subject: Re: File no. S7-23-03 My name is: Joseph Scheib 919-850-2026 >From: "JOSEPH SCHEIB" >To: rule-comments@sec.gov >Subject: File no. S7-23-03 >Date: Wed, 26 Nov 2003 08:39:44 -0500 > >Dear Mr. Katz, >I have been in the securities industry for a long time and have learned the >hard way about how the small-cap, BB and pink sheet market is controlled >and manipulated by the large institutions on Wall Street. As an investor of >BB stocks I have had many instances where the B/D could not make delivery >of the stock because the B/D had a huge Fail to Receive from DTC. This >would go on for months. Could never get delivery of my shares. The buy-in >rules which apply to listed securities are not the same for BB stocks. The >rouge B/d's never have to buy-in the security because they cannot obtain a >good delivery. This is nothing but a huge naked short position. As long as >the SEC allows firms and hedge funds to short a stock without having to >borrow the shares this manipulation will continue. The real question you >should ask yourself is "Why should the shorting of a stock be treated >differently just because of the market it is traded in." 100 shares of IBM >or CSCO should have the same rules as ant BB stock. Reverse the situation. >Could you imagine the US stock market with listed securities being shorted >without requiring the seller to affirm his ability to borrow the >stock.Scary thought. >Two of the companies listed in the report(RTNH and EPXR) have both been >attacked by Stocklemon.com. This is nothibg but a sham foreign company >which has no offices and no one can find them but they post on Raging Bull >and other sites with false and misleading info. If a real B/D did this you >the SEC and the NASD would close them down. >As an investor, I should be able to invest on a level playing field. By >allowing these firms to manipulate the market you(NASD and SEC) are >allowing pure corruption to exist in the marketplace. When the >"police" of the industry do not protect all investors equally the criminals >will commit crimes. > _________________________________________________________________ Need a shot of Hank Williams or Patsy Cline? The classic country stars are always singing on MSN Radio Plus. Try one month free! http://join.msn.com/?page=offers/premiumradio