Date: 06/21/2000 5:22 PM
Subject: file number- S7-24-99
To SEC: Regarding Market Makers Shorting Stocks on OTCBB
File No. S7-24-99
From: John Herby & Richard Raabe- 209 Pike Street,Covington,Ky 41011
859-291-9127 Business Owners- Printing Company
& Investors in Small Emerging
Growth Companies
It is quite obvious to me and my business parter,Rick, that many market
makers
have large short positions in many of the OTC Bulletin Board stocks. It is to
the
market maker's financial gain to collapse the stock prices of most, if not
all, of the
OTCBB stocks that they have shorted. Taking a look at most OTCBB stocks since
March,2000 the OTCBB stocks show that a very large majority of the stocks have
dropped approximately 60 to 80 percent from their highs. I do believe that
many of
the big stock declines were related to the large short positions held by the
criminal
market makers. The market makers do not make a market that reflects any "true
stock demand:, the only thing the market makers are interested in doing is to
"crash" the stock's price in a downward movement which will enable the market
makers to cover their large short positions at extremely low stock prices
which allows the market makers a large profit on covering their short
positions. Then after
they have screwed most of the investors(by scaring most investors to sell
because of
the fear the market makers have induced with these artifically-induced low
stock
prices), they then will start the entire illegal process over again.
I definitely am going to talk to my lawyer, my congressmen in Kentucky
and
probably the FBI to see if anything can be enacted to prevent the OTCBB
market makers from having unlimited power on controlling the market by
allowing unlimited
shorting which they have taken to the "criminal level". I don't understand
why the SEC allows this shorting to continue( the market makers don''t post
short positions
for public record and probably hide this from almost anyone including the
SEC).
The market maker's shorting is far worst than insider trading in my honest
opinion.
The market makers in the OTCBB market have created a monopoly market which
they control for their financial gain, and not based on supply and demand on
trades
by honest investors who should determine the actual market price.
One example of stock price manipulation(we own stock in Invest America-
Stock
Symbol- INVT). the market makers are dropping the price on sells of only 100
to
500 shares, but continual buying of 5,000, 10,000 share lots and even recently
300,000 plus share lot did not move the stock price upwards. The trading by
market
makers in Invest America indicate to me that several market makers have
extremely
large short positions and that the market makers are "acting in collusion" to
drive the
price of Invest America stock downward so to force investors to take their
losses and
get out of Invest America and then eventually the market makers will cover
when they
get the price low enough or have accumulated enough cheap shares to cover
their
large short position in Invest America. The market makers are artifically
destroying
Invest America stock price, but the market makers are running into a dilema
because Invest America investors keep buying more stock than is being sold, so
now the market makers are sitting on the stock at these low prices trying to
play
a waiting game and outlast Invest America shareholder's patience and drive
the
shareholders to sell out of this stock at extremely low prices. The market
makers
are nothing more but old fashioned gangster -styled crooks distorting
investment
dollars from honest investors who had no idea how rigged this game is in
letting the
market makers screw us honest investors. I say bullshit to these dishonest
market
makers and send them to hell if possible. The FBI needs to investigate the
illegal
practices of these market makers and put some of these crooks in jail where
they
belong.
Sincerely yours,
John
Herby
Richard Raabe
AI
