When SEC Enforcement Director Richard Walker addressed the National Press Club last April with a speech entitled "A Bull Market in Securities Fraud?", was he referring to those evil naked shorts? No, he was talking about internet stock promotors:
What is more notable than the current rise in fraud itself is the medium by which much of it is taking place. As the Dow has soared over the last decade, so too has the Internet experienced explosive growth. History will no doubt record the evolution of the Internet as among the most significant developments of all time, in the same league as the invention of the printing press or the discovery of electricity. By providing cheap, quick, and easy access to vast sources of investment opportunities, the Internet has, among other things, transformed the way we invest. Unfortunately, the access it has provided to potential investors on a relatively anonymous basis has also made the Internet a favorite tool for many con artists. For example, it has helped to revolutionize the old fashioned boiler room. Who needs an army of telemarketers when you can reach millions of investors worldwide with the simple click of a mouse? A prominent state regulator has aptly noted, "Any con artist not on the Net should be sued for malpractice."
sec.gov
It's also interesting to note that a search of the SEC non-edgar archives brings up nothing of any value for the keyword "naked". The word "priorities" comes to mind.
- Jeff
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