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To: John S. Baker who wrote (2962)	6/3/1998 9:54:00 PM
From: FARcom	Respond to of 4783

Well the shares had to be sold to said investor by a specific MM and your brokerage house would know which MM cause they pick em'. BUT.. who's to say who had legal shares or who didn't since they all come from the MM not from who shorted. I think the only thing that matters is that the shorts must cover, if they exist. Is anyone going to call to request verbal clarification on net earnings. This could give us an edge. PS, I'm back in to see the results of name change at least and my friend never left. FP

To: John S. Baker who wrote (2962)	6/3/1998 11:01:00 PM
From: StandFast	Read Replies (2) \| Respond to of 4783

Serious question: If in fact the brokerage sold you counterfeit shares as in your example, would you lose your shares and /or money? Or is the brokerage responsible for covering your expected return? Who gets the screw? Thats the main question I guess I'm asking. Thanks in advance!:)

To: John S. Baker who wrote (2962)	6/4/1998 5:07:00 AM
From: TraderGreg	Read Replies (1) \| Respond to of 4783

TO ALL VERY IMPORTANT--John- If someone shorts shares illegally, the person who bought them IS STILL THE LEGITIMATE OWNER OF THE SHARES. No ands, ifs, or buts about it. PLEASE, do not forget this very important fact. You are not the purchaser of stolen goods when you buy from an illegal shorter. That's the intoxicating aspect of short squeezes(that of course materialize only rarely). Then why do illegal shorters do it ? Because most of the time they get away with it. They sell vapor and if the stock tanks, they replace it. Tell me John, is it embezzlement if the money is replaced before anyone catches wind of it missing??? Same analogy. BTW, the reason most squeezes don't work is that people sell into the run up that is in anticipation of the squeeze. Again, I don't want to be redundant, but the buyer of an illegally shorted stock is still the legitimate owner of that stock. TG