World Surveillance Group Inc (fka WSGI)

[ken w]

Mt bigsky, I just finished speaking to an SEC agent and I am here to tell you that as far as enforcing any SHO threshold provisions and naked short selling in general - forget it. According to this agent, the SEC views Naked Shorting as perfectly legal. And according to this person I spoke with he said that there are many reasons that a stock will continue to repeatedly appear on the SHO threshold report. When asked if they would enforce the laws of violators, he said only if there is proven manipulation issues involved. I asked if failure to abide by their own threashold law would be reason to take action and he again replied "only if there is proof of purposeful attempts to manipulate". His final response was, we want to wait and see how the changes to the grandfather clause work out - in other word, forget any SEC enforcement IMO. All words and there will be no action IMO. Talk about depressing.