Mary Ann Gadziala, Associate Director, Office of Compliance Inspections and Examination U.S. Securities and Exchange Commission 100 F Street, NE Washington, D.C. 20549 August 28, 2010 Dear Associate Director Gadziala: I recently read that you said "fraud detection and asset verification are priorities of the SEC's examination program for both broker- dealers and investment advisors". That’s good news because asset verification and broker-dealer examinations are exactly what 1000 Energy Source Inc. shareholders are asking for. The SEC has been on the Energy Source Inc. (BCIT) case for over five years. If the DTC only has custody of and is safeguarding 645,806 shares of Energy Source Inc., who is the qualified custodian that has physical custody and is safeguarding the other 349 million shares held in SEC regulated brokerage accounts? As Grace Vogel, FINRA's Executive Vice President of Member Regulation recently stated, "Obviously, if the assets don't exist at the custodian, a fraud has been uncovered." According to the Energy Source Inc. 8K filed on June 13, 2008, the DTC only held 645,806 Energy Source Inc. shares. That same 8K states that Broadridge, the company which tabulated votes for the Energy Source Inc. 2008 annual meeting, identified approximately 349,554,194 additional shares held in "street name" ie in brokerage accounts not held at the DTC (custodian). If the shares held in custody at the DTC remains the same today as the June 13, 2008 8K states, then the 2008 Broadridge tabulation indicates the inventory of legitimate Energy Source Inc. shares at the DTC is not sufficient for brokerages to be in compliance with securities laws and regulations. On November 3, 2009 the SEC revoked the registration of the shares of Energy Source Inc.(BCIT) by default for failing to file timely periodic reports. As a result of the SEC revoking the registration of Energy Source, Inc. securities, I opted to exit the indirect holding system and informed XXXXX in a letter dated December XX, 2009, that I wanted to obtain direct ownership of my Energy Source Inc. securities. The ability of a shareholder to switch to direct ownership is one of the fundamental rights associated with security entitlements and is a right that exists whether a security's registration is revoked or not. When XXXXX approached Energy Source Inc.'s SEC registered transfer agent (Empire Stock Transfer) in January 2010 to process my request, XXXXX was informed that shares were not available because the DTCC would not release any shares, consequently, XXXXX denied my request. I contacted Energy Source Inc. to inquire if legitimate shares were available directly from the Company if brokerages were unable to access them at the DTC. On May 25, 2010 Energy Source Inc.’s CEO Mr.Thomas Megas, replied to me: "the brokers can get as many shares as they need. They simply have to ask the company directly for them and pay for them. They cannot get shares from the dtc or anybody else because dtc in reality has none since the most of the paper they hold are simply based on electronic entries and not backed by real paper. Both the brokers and the dtc have committed fraud. best regards thomas megas" Whether you want to call it fraud or not, the five year 'global lock' indicates the DTCC is aware of the discrepancy between what they actually have in custody and what brokerages have obligations for. The DTCC can lockdown those 645,806 shares forever but it will not relieve XXXXX of their legal obligations to me or restrict my right to have my securities directly registered. Security entitlements have no expiration date and are legally enforceable contracts, therefore, the SEC must make it clear to brokerages that they are obligated to obtain legitimate Energy Source Inc. shares to cover the security entitlements they created in customer accounts. The SEC can start by notifying XXXXX Compliance Department of their legal obligation to allow shareholders to exit the indirect holding system and be directly registered on the Energy Source Inc. books. Effective compliance and supervision is critical for investor protection. Energy Source Inc. shareholders need to know who the qualified custodian is that has physical custody and is safeguarding their 349 million shares held in SEC regulated brokerage accounts. The 2008 Broadridge findings noted in the Energy Source Inc 8K, corroborated by XXXXX inablily to access shares from a custodian and the CEO’s claim that brokerages and the DTC have committed fraud, suggests the assets are not safeguarded at a custodian, rather they remain unpurchased in the Company’s treasury. Because the SEC has responsibility for the examination of broker- dealers, transfer agents, clearing agencies, and the SROs, I am requesting the SEC do the necessary examinations to verify assets, including physical examination of Energy Source Inc. securities held at brokerages or custodians. Please provide both US Senator XXXXX and Energy Source Inc. with a copy of the completed asset verification and custody report for all Energy Source Inc. securities held in brokerage accounts including photocopies of the corresponding Energy Source Inc. certificates held at all qualified custodians, and identification of those qualified custodians. Please contact me if you have any questions, Sincerely, XXXXXX XXXXXXXX XXXXXXXXXXX cc US Senator XXXXXX cc Thomas Megas, CEO Energy Source, Inc. tpm14@hotmail.com cc Grace Vogel, Finra's Executive Vice President of Member Regulation