Mr. Harvey L. Pitt’s chief accountant and the Securities and Exchange Commission’s (“SEC”) spokesperson acknowledged that they were aware of the former Federal Bureau of Investigation and Central Intelligence Agency director William H. Webster’s involvement with U. S. Technologies, Inc. (OTC: USXX.PK, $0.01). Mr. Pitt and his SEC associates claimed Mr. Webster’s involvement did not impinge on his ability to serve as America’s chief regulator of the accounting industry.

It was later discovered that Mr. Pitt had failed to inform his fellow commissioners about Mr. Webster’s ties to U.S. Technologies. The facts surrounding the fraudulent nature of U.S. Technologies’ investor representations are what made Mr. Pitt’s failure to disclose Mr. Webster’s ties to U.S. Technologies so egregious. The Public Company Accounting Oversight Board needs an independent, knowledgeable, pro-investor leader. The selection of a career politician, with no accounting or professional investment experience, was an inappropriate choice to head the accounting board. Mr. Webster served on the board of a public company that had only caused losses to investors. U.S. Technologies had engaged in fraudulent stock promotions throughout its entire history, commencing with its initial penny stock offering in 1987. It is fortunate for the American people that the short selling community provided the media with highly detailed research on U.S. Technologies and Mr. Webster’s role with the company. Hopefully, Mr. Webster will allow the new SEC Chairman the opportunity to appoint a more appropriate head of the accounting board. Asensio & Company, Inc. believes that the following are essential elements in any plan to improve the freedom and fairness of U.S. capital markets: 1.) decentralize the SEC’s Enforcement authority away from its politically-appointed, Washington, D.C. based Commissioners to the Chief Enforcement Officer at its local branches; 2.) eliminate the regulatory bias against investors who oppose Wall Street’s unreasonable stock schemes (these include the up-tick restrictions, the stock borrowing requirement and the exclusion of short sellers from the protections granted to other investors under the anti-fraud provisions of securities laws); 3.) establish listing requirements that prevent public companies from filing frivolous lawsuits against analysts, media or other public commentators who criticize its management or have opposing opinions concerning the value of its publicly traded securities.