How To Avoid Reporting Naked Short Sales

In Chinese slang, to stink also means to have unjustified pride as does Pei Yu, business head of the venerable firm of Sum Dum Investors. Yu was just pridefully bragging how easy it is to avoid Reg SHO reporting of short sales without a borrow or even a locate.. No use SS says Yu, always use S. Marking a ticket S means its a sale. Marking a ticket SS means its a short sale. So instead of admitting that you failed to borrow or locate shares before selling them short you represent that you already own them before selling them. Unfortunately, you fail to deliver them because they still reside somewhere in your sock draw. But what if the running dogs of the SEC fine Sum Dum Investors for failing to obtain shares represented as already held by seller asks a dubious Ming. The SEC's dogs are puppies laughs Yu. Of 480MM of fines levied from 1997-2002 only 140MM were collected according to an audit by the General Accounting Office. This is a cost of doing business. Maybe Pei Yu isn't all wet after all.