July 29, 2008
Actions urgently needed:
1. Prosecute illegal naked short sellers.
2. Make the DTCC fully accountable to the SEC.
As an investor for 38 years, I am convinced that naked short selling is now a major form of market manipulation.
I am also convinced that many naked short sellers are knowingly spreading false information in order to profit.
Finally, I believe that illegal naked short selling is abetted by the DTCC's lack of both transparency and full accountability to the SEC.
As one possible example of naked short selling, combined with a disinformation campaign, I ask you to examine the short sales of American Superconductor (AMSC) since June 10, 2008. For that same period, also review the concurrent allegations that the company's announcement of a $450 million contract was fraudulent. E.g., such allegations began appearing on seekingalpha.com and were regularly posted, in various forms, on AMSC's Yahoo message board.