8000 Inc Letter to to the SEC

May 25, 2011 - PRLog -- Dear Ms Tao,

8000 Inc. (the “Company”) has received your May 21, 2011 letter responsive to a letter sent directly to Mary Schapiro, Chairperson of the SEC. Within the letter, there are statements which the Company is convinced to be inaccurate and to avoid any potential embarrassment to the Office of the Chairperson, we feel obliged to provide information to bring your office up to date. Your letter indicates you have taken a serious interest into the claims made by Mr. xxxx, and you will find within this letter the supporting evidence and methodology backing up his statements.


We enclose and attach a shareholder update which addresses the key points that seem to be referenced inaccurately within your letter. As this matter has been on-going for some 6-8 months now, and due to your stated serious interest, we would like to concentrate on the core issue: our conviction of improper shorting in the Company’s common stock.
The Company and its shareholders believe, and have supporting evidence, that there is a significant illegal naked short position held with its traded common shares (EIHGH.pk). In fact, ignoring the numbers, you state in your letter that you are aware of short positions in EIGH.pk, bearing in mind, this stock is not eligible for short sales (since not DTC-eligible) and is physical certificated trades only, recorded on the DRS system. You have therefore confirmed our suspicions.
Specifically, you state there are 30,034 shares short in the stock and state that the recorded short position in this short sale ineligible stock being September 2010 being the highest in the past year! And have been tracking short positions, E*TRADE, as we have informed the Staff, has admitted in writing that (i) they hold 173,000 shares short through failures to deliver and failures to receive and that, contrary to the rules and regulations, (ii) will not address until instructed to do so (presumably by the SEC and/or FINRA).
Very simply, you have confirmed a wrongful, illegitimate naked short position in EIGH.pk. Your quoted figure differs from known admitted short positions. The Company has counted the number of shares held in shareholder accounts by brokerage, by date, by name and accompanied by a testimony to confirm the shareholding. This figure, attained through simply adding up the numbers of shares recorded at each brokerage firm by each shareholder total, represents only 60% of the total number of shareholders with over 300 accounts to be counted in 42 individual brokerage firms. The simple addition of these shareholdings adds up to 178,548,813 shares of EIGH.pk. This means tens of millions of shares have been sold to the public more than the Company has ever issued!  As stated, these figures come from the simple addition of EIGH.pk holdings within individual shareholder accounts with testimony to confirm that fact by each individual. All supporting evidence is contained within the shareholder statement below and attached.
Surely, now that you have stated there is a short position in EIGH.pk, which stock is ineligible for short sales, that the figure you quoted was 6 times less than the number of reported short positions held at E*Trade and the very fact a simple exercise of adding up all the verified shares purchased by 60% of the shareholders of the Company show, to our satisfaction unless we are proven wrong, short positions and discrepancies in the numbers. This cries out for you to act and to evaluate the situation and to correct the current understanding of Ms. Schapiro and the rest of the SEC staff?
We would suggest that in order to avoid potential embarrassment for your offices and to finally put this matter to rest, you review our submission of the shareholder records and testimonies. You can then simply, without lobbying or other subjective influence, add up the numbers of shares held in each account? In this way you can objectively elicit the answer, can prove either way who is correct and, having done so, then act to ensure the brokerage firms follow the rules and procedures and redress the short position through buy-in or other appropriate action.
Please advise where we should send the information and in what format you would require. We have the spreadsheets already compiled and the information, including testimonies alluded to are in electronic format.

By accepting this offer, it will allow this matter to be finally resolved and will permit your office to address what we believe to be a fraud against the shareholders of 8000 Inc and the public in line with the SEC’s mission statement.
Please contact me directly or Carl Duncan, Legal Counsel at Thomas@8000inc.net or enquiries@8000inc.net.

Yours,

Thomas Kelly
CEO 8000 Inc.

# # #

8000 inc is the culmination of 15 years of networking experience and success in the corporate world, stock markets and the technology and financial arenas with direct accessto corporate networks and Investment Banks.