PLAINTIFF'S MOTION FOR ENTRY OF FINAL JUDGMENTS BY CONSENT AGAINST DEFENDANTS ERIC A. BLOOM AND CHARLES K. MOSLEY AND MOTION TO DISMISS MONETARY CLAIMS AGAINST THESE DEFENDANTS

SHEILA M. FINNEGAN, Magistrate Judge.

Plaintiff, U.S. Securities and Exchange Commission (the "SEC"), respectfully moves this Court for entry of Final Judgments by consent against Defendants Eric A. Bloom ("Bloom") and Charles K. Mosley ("Mosley"). The SEC has filed a civil complaint against Bloom and Mosley. (See Docket Entry No. 64) Bloom and Mosley each have agreed to resolve this matter by the entry of a final judgment. (See Exhibit A, Consent of Eric A. Bloom; Exhibit B, Consent of Charles K. Mosley) Accordingly, the SEC now submits proposed Final Judgments against each of Bloom and Mosley. (See Exhibit C, proposed Final Judgment as to Bloom; Exhibit D, proposed Final Judgment as to Mosley). The SEC has submitted these proposed Final Judgments to the Court's e-mail address at Proposed_Order_Kocoras@ilnd.uscourts.gov.

Bloom's Consent contains a provision that if the appellate court vacates Bloom's criminal conviction in United States v. Eric A. Bloom, Case No. 1:12-cr-409, then upon motion by Bloom, his Consent will be considered withdrawn, the Final Judgment as to him will be vacated, and this action as to him will be restored to an active docket.

The proposed Final Judgments do not provide for disgorgement, prejudgment interest, or civil penalties against Bloom and Mosley. Accordingly, the SEC moves to dismiss these monetary claims based on the criminal convictions against Bloom and Mosley, and the criminal sanctions imposed on them; provided, however, that if the appellate court vacates Bloom's criminal conviction, and Bloom moves to vacate the Final Judgment against him as set forth in the preceding paragraph above, then the SEC's monetary claims against him will be restored to an active docket, along with the rest of the case against him.

On December 4, 2015, this Court continued a status hearing to January 28, 2016 to allow the parties to finalize settlement papers. (See Docket Entry No. 272) Because the parties now have finalized their settlements, and the case is fully resolved, the SEC respectfully requests that this January 28 status hearing be stricken.

WHEREFORE, the SEC respectfully requests that this Court: (i) grant this motion; (ii) enter Final Judgments by consent against Defendants Eric A. Bloom and Charles K, Mosley, (iii) dismiss the SEC's claims for monetary relief against Bloom and Mosley, as set forth above; (iv) strike the January 28, 2016 status hearing; and (v) award such other and further relief as this Court deems just.

UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION

CONSENT OF DEFENDANT ERIC A. BLOOM

1. Defendant Eric A. Bloom ("Defendant") acknowledges having been served with the amended complaint in this action, enters a general appearance, and admits the Court's jurisdiction over Defendant and over the subject matter of this action.

2. Defendant has been convicted of criminal conduct relating to certain matters alleged in the complaint in this action. Specifically, in United States v. Eric A. Bloom, Case No. 1:12-cr-409, Defendant was criminally convicted of violations of 18 U.S. Code Section 1343 (wire fraud and 15 U.S. Code Sections 80b-6(1) and (2)), and 80b-17 and 15 U.S.C Code Section 2 (investment adviser fraud). Bloom acknowledges the collateral estoppel effect of his conviction on this case and, while not admitting any of the facts or legal conclusions stated herein, does not contest entry of judgment. This Consent, and the final judgment in the form attached hereto (the "Final Judgment") and incorporated by reference herein, shall remain in full force and effect regardless of the existence or outcome of any further proceedings in United States v. Eric A. Bloom, including Defendant's pending appeal of his criminal conviction; provided, however, that if the appellate court vacates Defendant's criminal conviction, then upon motion by the Defendant, this Consent will be considered withdrawn, the Final Judgment will be vacated, and this action will be restored to an active docket.

3. Defendant hereby consents to the entry of the Final Judgment in the form attached hereto (the "Final Judgment") and incorporated by reference herein, which, among other things, permanently restrains and enjoins Defendant from violations of Section 10(b) of the Securities Exchange Act of 1934 (the "Exchange Act") [15 U.S.C. § 78j(b)] and Rule 10b-5 promulgated thereunder [17 C.F.R. § 240.10b-5], Section 17(a) of the Securities Act of 1933 (the "Securities Act") [15 U.S.C. § 77q(a)], Sections 206(1) or 206(2) of the Investment Advisers Act of 1940 ("Advisers Act") [15 U.S.C. §§ 80b-6(1) and 80-b-6(2)] and Section 206(4) of the Advisers Act [15 U.S.C. § 80b-6(4)] and Rule 206(4)-(2) thereunder [17 C.F.R. §275.206(4)-2].

4. Defendant waives the entry of findings of fact and conclusions of law pursuant to Rule 52 of the Federal Rules of Civil Procedure.

5. Defendant waives the right, if any, to a jury trial and to appeal from the entry of the Final Judgment.

6. Defendant enters into this Consent voluntarily and represents that no threats, offers, promises, or inducements of any kind have been made by the Commission or any member, officer, employee, agent, or representative of the Commission to induce Defendant to enter into this Consent.

7. Defendant agrees that this Consent shall be incorporated into the Final Judgment with the same force and effect as if fully set forth therein.

8. Defendant will not oppose the enforcement of the Final Judgment on the ground, if any exists, that it fails to comply with Rule 65(d) of the Federal Rules of Civil Procedure, and hereby waives any objection based thereon.

9. Defendant waives service of the Final Judgment and agrees that entry of the Final Judgment by the Court and filing with the Clerk of the Court will constitute notice to Defendant of its terms and conditions.

10. Consistent with 17 C.F.R. 202.5(f), this Consent resolves only the claims asserted against Defendant in this civil proceeding. Defendant acknowledges that no promise or representation has been made by the Commission or any member, officer, employee, agent, or representative of the Commission with regard to any criminal liability that may have arisen or may arise from the facts underlying this action or immunity from any such criminal liability. Defendant waives any claim of Double Jeopardy based upon the settlement of this proceeding, including the imposition of any remedy or civil penalty herein. Defendant further acknowledges that the Court's entry of a permanent injunction may have collateral consequences under federal or state law and the rules and regulations of self-regulatory organizations, licensing boards, and other regulatory organizations. Such collateral consequences include, but are not limited to, a statutory disqualification with respect to membership or participation in, or association with a member of, a self-regulatory organization. This statutory disqualification has consequences that are separate from any sanction imposed in an administrative proceeding. In addition, in any disciplinary proceeding before the Commission based on the entry of the injunction in this action, Defendant understands that he shall not be permitted to contest the factual allegations of the complaint in this action.

11. Defendant understands and agrees to comply with the terms of 17 C.F.R. § 202.5(e), which provides in part that it is the Commission's policy "not to permit a defendant or respondent to consent to a judgment or order that imposes a sanction while denying the allegations in the complaint or order for proceedings," and "a refusal to admit the allegations is equivalent to a denial, unless the defendant or respondent states that he neither admits nor denies the allegations." As part of Defendant's agreement to comply with the terms of Section 202.5(e), Defendant: (i) will not take any action or make or permit to be made any public statement denying, directly or indirectly, any allegation in the complaint or creating the impression that the complaint is without factual basis; (ii) will not make or permit to be made any public statement to the effect that Defendant does not admit the allegations of the complaint, or that this Consent contains no admission of the allegations, without also stating that Defendant does not deny the allegations; (iii) upon the filing of this Consent, Defendant hereby withdraws any papers filed in this action to the extent that they deny any allegation in the complaint. If Defendant breaches this agreement, the Commission may petition the Court to vacate the Final Judgment and restore this action to its active docket. Nothing in this paragraph affects Defendant's: (i) testimonial obligations; or (ii) right to take legal or factual positions in litigation or other legal proceedings in which the Commission is not a party.

12. Defendant hereby waives any rights under the Equal Access to Justice Act, the Small Business Regulatory Enforcement Fairness Act of 1996, or any other provision of law to seek from the United States, or any agency, or any official of the United States acting in his or her official capacity, directly or indirectly, reimbursement of attorney's fees or other fees, expenses, or costs expended by Defendant to defend against this action. For these purposes, Defendant agrees that Defendant is not the prevailing party in this action since the parties have reached a good faith settlement.

13. The Commission may present the Final Judgment to the Court for signature and entry upon notice to Defendant's counsel.

14. Defendant agrees that this Court shall retain jurisdiction over this matter for the purpose of enforcing the terms of the Final Judgment.

UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION

[PROPOSED] FINAL JUDGMENT AS TO DEFENDANT ERIC A. BLOOM

Plaintiff U.S. Securities and Exchange Commission (the "SEC") having filed a Complaint and Defendant Eric A. Bloom ("Defendant") having entered a general appearance, consented to the Court's jurisdiction over Defendant and the subject matter of this action; Defendant has agreed not to oppose entry of this Judgment after his conviction in United States v. Eric A. Bloom, Case No. 12 CR 409 (which was pending before the United States District Court for the Northern District of Illinois, Eastern Division, the Honorable Judge Guzman presiding), waived more specific findings of fact and conclusions of law other than as set forth herein; has waived any right to appeal from this Final Judgment; and has acknowledged that this Final Judgment shall remain in full force and effect regardless of the existence or outcome of any further proceedings in United States v. Eric A. Bloom, Case No. 1:12-cr-409, including Defendant's pending appeal of his criminal conviction; provided, however, that if the appellate court vacates Defendant's criminal conviction, then upon motion by the Defendant, this Final Judgment will be vacated, and this action will be restored to an active docket:

I.

IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant and Defendant's agents, servants, employees, and all persons in active concert or participation with them who receive actual notice of this Final Judgment by personal service or otherwise are permanently restrained and enjoined from violating, directly or indirectly, Section 10(b) of the Securities Exchange Act of 1934 [15 U.S.C. § 78j(b)] and Rule 10b-5 promulgated thereunder [17 C.F.R. § 240.10b-5], by using any means or instrumentality of interstate commerce, or of the mails, or of any facility of any national securities exchange, in connection with the purchase or sale of any security:

IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant and Defendant's agents, servants, employees, and all persons in active concert or participation with them who receive actual notice of this Final Judgment by personal service or otherwise are permanently restrained and enjoined from violating Section 17(a) of the Securities Act of 1933 [15 U.S.C. § 77q(a)] in the offer or sale of any security by the use of any means or instruments of transportation or communication in interstate commerce or by use of the mails, directly or indirectly:

III.

IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant and Defendant' agents, servants, employees, and all persons in active concert or participation with them who receive actual notice of this Final Judgment by personal service or otherwise are permanently restrained and enjoined from violating Sections 206(1) and (2) of the Investment Advisers Act of 1940 ("Advisers Act") [15 U.S.C. §§ 80b-6(1) and (2)], while acting as an investment adviser within the meaning of Section 202(11) of the Advisers Act [15 U.S.C. § 80b-2(11)], by use of the mails or any means or instrumentality of interstate commerce, directly or indirectly:

IV.

IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant and Defendant's agents, servants, employees, and all persons in active concert or participation with them who receive actual notice of this Final Judgment by personal service or otherwise are permanently restrained and enjoined from violating Sections 206(4) of the Advisers Act [15 U.S.C. § 80b-6(4)] and Rule 206(4)-8 promulgated thereunder [17 C.F.R. § 275.206(4)-8], while acting as an investment adviser within the meaning of Section 202(11) of the Advisers Act [15 U.S.C. § 80b-2(11)], by use of the mails or any means or instrumentality of interstate commerce, directly or indirectly, to make any untrue statement of a material fact or to omit to state a material fact necessary to make the statements made, in light of the circumstances under which they are made, not misleading, to any investor or prospective investor in a pooled investment vehicle or otherwise engage in any act, practice, or course of business that is fraudulent, deceptive, or manipulative with respect to any investor or prospective investor in the pooled investment vehicle.

V.

IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that this Court shall retain jurisdiction of this matter for the purposes of enforcing the terms of this Final Judgment.

VI.

There being no just reason for delay, pursuant to Rule 54(b) of the Federal Rules of Civil Procedure, the Clerk is ordered to enter this Final Judgment forthwith and without further notice.

UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION

CONSENT OF DEFENDANT CHARLES

1. Defendant Charles K. Mosley ("Defendant") acknowledges having been served with the amended complaint in this action, enters a general appearance, and admits the Court's jurisdiction over Defendant and over the subject matter of this action.

2. Defendant has pleaded guilty to criminal conduct relating to certain matters alleged in the complaint in this action. Specifically, in United States v. Charles K. Mosley, Case No. 1:12-cr-00409, Defendant pleaded guilty to violations of Title 15 U.S. Code Sections 80b-6(1) and (2), and 80b-17. In connection with that plea, Defendant admitted that he, while an investment adviser, willfully, by use of a means and instrumentality of interstate commerce, namely, the phone and email, directly and indirectly, (a) employed a scheme to defraud a customer and prospective customer of Sentinel and (b) engaged in a transaction, practice and course of business which operated as a fraud and deceit on a Sentinel customer and prospective customer. In connection with that plea, Defendant admitted that: (a) On July 25, 2007, Defendant used a telephone to misrepresent to a prospective customer the risks associated with investing in Sentinel, and Sentinel's financial condition; and (b) On August 1, 2007, Defendant used email to cause a false and misleading Sentinel daily account statement to be sent to a Sentinel customer. This Consent shall remain in full force and effect regardless of the existence or outcome of any further proceedings in United States v. Charles K. Mosley.

3. Defendant hereby consents to the entry of the final judgment in the form attached hereto (the "Final Judgment') and incorporated by reference herein, which, among other things, permanently restrains and enjoins Defendant from violations of Section 10(b) of the Securities Exchange Act of 1934 (the "Exchange Act") [15 U.S.C. § 78j(b)] and Rule 10b-5 promulgated thereunder [17 C.F.R. § 240.10b-5], Section 17(a) of the Securities Act of 1933 (the "Securities Act") [15 U.S.C. § 77q(a)], Sections 206(1) or 206(2) of the Investment Advisors Act of 1940 ("Advisors Act") [15 U.S.C. §§ 80b-6(1) and 80-b-6(2)] and Section 206(4) of the Advisors Act [15 U.S.C. § 80b-6(4)] and Rule 206(4)-(2) thereunder [17 C.F.R. §275.206(4)-2] .

4. Defendant waives the entry of findings of fact and conclusions of law pursuant to Rule 52 of the Federal Rules of Civil Procedure.

5. Defendant waives the right, if any, to a jury trial and to appeal from the entry of the Final Judgment.

6. Defendant enters into this Consent voluntarily and represents that no threats, offers, promises, or inducements of any kind have been made by the Commission or any member, officer, employee, agent, or representative of the Commission to induce Defendant to enter into this Consent.

7. Defendant agrees that this Consent shall be incorporated into the Final Judgment with the same force and effect as if fully set forth therein.

8. Defendant will not oppose the enforcement of the Final Judgment on the ground, if any exists, that it fails to comply with Rule 65(d) of the Federal Rules of Civil Procedure, and hereby waives any objection based thereon.

9. Defendant waives service of the Final Judgment and agrees that entry of the Final Judgment by the Court and filing with the Clerk of the Court will constitute notice to Defendant of its terms and conditions. Defendant further agrees to provide counsel for the Commission, within thirty days after the Final Judgment is filed with the Clerk of the Court, with an affidavit or declaration stating that Defendant has received and read a copy of the Final Judgment.

10. Consistent with 17 C.F.R. 202.5(f), this Consent resolves only the claims asserted against Defendant in this civil proceeding. Defendant acknowledges that no promise or representation has been made by the Commission or any member, officer, employee, agent, or representative of the Commission with regard to any criminal liability that may have arisen or may arise from the facts underlying this action or immunity from any such criminal liability. Defendant waives any claim of Double Jeopardy based upon the settlement of this proceeding, including the imposition of any remedy or civil penalty herein. Defendant further acknowledges that the Court's entry of a permanent injunction may have collateral consequences under federal or state law and the rules and regulations of self-regulatory organizations, licensing boards, and other regulatory organizations. Such collateral consequences include, but are not limited to, a statutory disqualification with respect to membership or participation in, or association with a member of, a self-regulatory organization. This statutory disqualification has consequences that are separate from any sanction imposed in an administrative proceeding. In addition, in any disciplinary proceeding before the Commission based on the entry of the injunction in this action, Defendant understands that [he, she, it] shall not be permitted to contest the factual allegations of the complaint in this action.

11. Defendant understands and agrees to comply with the terms of 17 C.F.R. § 202.5(e), which provides in part that it is the Commission's policy "not to permit a defendant or respondent to consent to a judgment or order that imposes a sanction while denying the allegations in the complaint or order for proceedings." As part of Defendant's agreement to comply with the terms of Section 202.5(e), Defendant acknowledges the guilty pleas for related conduct described in paragraph 2 above, and: (i) will not take any action or make or permit to be made any public statement denying, directly or indirectly, any allegation in the complaint or creating the impression that the complaint is without factual basis; (ii) will not make or permit to be made any public statement to the effect that Defendant does not admit the allegations of the complaint, or that this Consent contains no admission of the allegations; and (iii) upon the filing of this Consent, Defendant hereby withdraws any papers filed in this action to the extent that they deny any allegation in the complaint. If Defendant breaches this agreement, the Commission may petition the Court to vacate the Final Judgment and restore this action to its active docket. Nothing in this paragraph affects Defendant's: (i) testimonial obligations; or (ii) right to take legal or factual positions in litigation or other legal proceedings in which the Commission is not a party.

12. Defendant hereby waives any rights under the Equal Access to Justice Act, the Small Business Regulatory Enforcement Fairness Act of 1996, or any other provision of law to seek from the United States, or any agency, or any official of the United States acting in his or her official capacity, directly or indirectly, reimbursement of attorneys fees or other fees, expenses, or costs expended by Defendant to defend against this action. For these purposes, Defendant agrees that Defendant is not the prevailing party in this action since the parties have reached a good faith settlement.

13. In connection with this action and any related judicial or administrative proceeding or investigation commenced by the Commission or to which the Commission is a party, Defendant (i) agrees to appear and be interviewed by Commission staff at such times and places as the staff requests upon reasonable notice; (ii) will accept service by mail or facsimile transmission of notices or subpoenas issued by the Commission for documents or testimony at depositions, hearings, or trials, or in connection with any related investigation by Commission staff; (iii) appoints Defendant's undersigned attorney as agent to receive service of such notices and subpoenas; (iv) with respect to such notices and subpoenas, waives the territorial limits on service contained in Rule 45 of the Federal Rules of Civil Procedure and any applicable local rules, provided that the party requesting the testimony reimburses Defendant's travel, lodging, and subsistence expenses at the $$then-prevailing U.S. Government per diem rates; and (v) consents to personal jurisdiction over Defendant in any United States District Court for purposes of enforcing any such subpoena.

14. Defendant agrees that the Commission may present the Final Judgment to the Court for signature and entry without further notice.

15. Defendant agrees that this Court shall retain jurisdiction over this matter for the purpose of enforcing the terms of the Final Judgment.

On Oct. 13, 2015, Charles K. Mosley a person known to me, personally appeared before me and acknowledged executing the going Consent.

UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION

[PROPOSED] FINAL JUDGMENT AS TO DEFENDANT CHARLES K. MOSLEY

The Securities and Exchange Commission having filed a Complaint and Defendant Charles K. Mosley having entered a general appearance; consented to the Court's jurisdiction over Defendant and the subject matter of this action; consented to entry of this Final Judgment; waived findings of fact and conclusions of law; and waived any right to appeal from this Final Judgment:

IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant and Defendant's agents, servants, employees, attorneys, and all persons in active concert or participation with them who receive actual notice of this Final Judgment by personal service or otherwise are permanently restrained and enjoined from violating, directly or indirectly, Section 10(b) of the Securities Exchange Act of 1934 (the "Exchange Act") [15 U.S.C. § 78j(b)] and Rule 10b-5 promulgated thereunder [17 C.F.R. § 240.10b-5], by using any means or instrumentality of interstate commerce, or of the mails, or of any facility of any national securities exchange, in connection with the purchase or sale of any security:

IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant and Defendant's agents, servants, employees, attorneys, and all persons in active concert or participation with them who receive actual notice of this Final Judgment by personal service or otherwise are permanently restrained and enjoined from violating, directly or indirectly, Section 17(a) of the Securities Act of 1933 (the "Securities Act") [15 U.S.C. § 77q(a)] in the offer or sale of any security by the use of any means or instruments of transportation or communication in interstate commerce or by use of the mails, directly or indirectly:

III.

IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant and Defendant's agents, servants, employees, attorneys, and all persons in active concert or participation with them who receive actual notice of this Final Judgment by personal service or otherwise are permanently restrained and enjoined from violating, directly or indirectly, Sections 206(1) or 206(2) of the Investment Advisors Act of 1940 ("Advisors Act") [15 U.S.C. §§ 80b-6(1) and 80-b-6(2)], by using the mails or any means or instrumentality of interstate commerce:

IV.

IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant and Defendant's agents, servants, employees, attorneys, and all persons in active concert or participation with them who receive actual notice of this Final Judgment by personal service or otherwise are permanently restrained and enjoined from violating Section 206(4) of the Advisors Act [15 U.S.C. § 80b-6(4)] and Rule 206(4)-(2) thereunder [17 C.F.R. §275.206(4)-2], by using the mails or any means or instrumentality of interstate commerce, directly or indirectly to engage in any act, practice, or course of business which is fraudulent, deceptive or manipulative, as those terms have been defined by the SEC by rules and regulations, by taking custody of client funds or securities that were not maintained by a qualified custodian in a separate client account for each client under that client's name; or in accounts that contain only the clients' funds and securities, under the investment advisor's name as agent or trustee for the clients.

V.

IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that this Court shall retain jurisdiction of this matter for the purposes of enforcing the terms of this Final Judgment.

VI.

There being no just reason for delay, pursuant to Rule 54(b) of the Federal Rules of Civil Procedure, the Clerk is ordered to enter this Final Judgment forthwith and without further notice.