Plastic2Oil Inc (PTOI)

[jimmenknee]

Reply received. I intend to follow-up with a phone call.

SEC Response - File xxxxxxxxxx [ ref:_xxxxxxxxxx ]?
From: "Help" <[e-mail]> ([e-mail])
Sent: Sun 12/09/12 6:24 PM
To: xxxxxxxxxx
Dear xxxxxxxxxx:

Thank you for your correspondence to the U.S. Securities and Exchange Commission (SEC) that has been forwarded to the SEC's Office of Investor Education and Assistance (OIEA) for response. You ask whether it is possible for a company to have 10,000,000 of its shares short (naked short) when the reported short interest has remained under 100,000 and the current fails-to-deliver data is below 20,000. You cite specifically to JBI, Inc. and refer to xxxxxxxxxx.

If the short interest is 100,000, then this is the only public information on how many short shares are open. This data is reported by broker-dealers to self-regulatory organizations twice a month. It is unlikely that xxxxxxxxxx has any knowledge of how many shares are being shorted, naked or otherwise, except from the short interest data or the fails-to-deliver data as they are the only public data available.

In this regard, you may find instructive information on the SEC’s Division Trading and Markets (formerly the Division of Market Regulation) web page, “Key Points About Regulation SHO,” dated April 11, 2005. See http://www.sec.gov/spotlight/keyregshoissues.htm. Specifically under Roman numeral V, Q&A 12, the Division states the following Q&A:

Q:I read on an internet chat room or website that a specific security has a large number of fails; are these sources reliable?

A: Investors should always be cautious that issuers, promoters, or shareholders may be seeking to stimulate buying interest by making false, misleading or unfounded statements in internet chat rooms or other such forums about alleged large naked short positions in some smaller issuers, particularly those trading on the OTCBB or Pink Sheets. Some individuals may encourage other investors to buy these issuers' securities by claiming that there will be an imminent "short squeeze," in which the alleged naked short sellers will be forced to cover open short positions at increasing prices. These claims in fact may be false.

Please note that OIEA has made available publications on the SEC's website at www.sec.gov that provide helpful guidance on the securities markets and sales and trading practices, including short selling. Investors and prospective investors should be cautious of rumors on chat rooms where the intent of nameless and faceless computer users is in doubt.

Finally, OIEA processes many comments from individual investors and others. We keep records of the correspondence we receive in a searchable database that SEC staff may make use of in inspections, examinations and investigations. In addition, some correspondence received by OIEA is referred directly to other SEC offices and divisions for their review. If they have any questions or wish to respond directly to your comments, they will contact you.

I hope this information is helpful. Feel free to call me if you have further questions.

Sincerely,

xxxxxxxxxx
Attorney
Office of Investor Education and Advocacy
U.S. Securities and Exchange Commission
xxxxxxxxxx
www.sec.gov

File Attachment:
Correspondent Name: xxxxxxxxxx
Create Date: 11/30/2012
Origin: Web
File #: HO::~00264814~::HO
Description:
In general terms, is it possible for an OTC company to have 10,000,000 shares short (naked short) when the reported Short Interest has remained under 100,000 since February, 2012 and the current Fails-to-Deliver data is less than 20,000?

For background, company: JBI Inc (JBII)
Share structure as of November 16, 2012:
OS: 89,855,816
Restricted: 33,650,573
(Float: 56,205,243)

Average volume last 30 days: 66,448

A xxxxxxxxxx, which includes an inferred SEC complicity with xxxxxxxxxx.

The SEC has brought action against this company and two of its officers earlier this year (Litigation Release No. 22220) so I understand that comments specifically related to JBI are not possible. I was hoping to understand if-- in general terms -- such a large/disconnected block of "ghost" shares could be possible as I had assumed most NSS loopholes had been dealt with (i.e. Threshold Securities and Obligation Warehouse).

Thank you in advance.

v/r
xxxxxxxxxx

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