UNITED STATES DISTRICT COURT 

NORTHERN DISTRICT OF ILLINOIS 

EASTERN DIVISION

__________________________________________

 : 

UNITED STATES SECURITIES : 

AND EXCHANGE COMMISSION, : 

 : 

 Plaintiff, : 

 : Civil Action No: 03 C 2182 

 v. : 

 : 

FRANK J. CUSTABLE, JR., et al., : Judge Gottschall 

 : Magistrate Judge Valdez 

 Defendants. : 

__________________________________________: 

FINAL JUDGMENT AS TO DEFENDANT 

ROBERT BLAGMAN

The Securities and Exchange Commission (“SEC” or “Commission”) having filed a 

Complaint, First Amended Complaint and Second Amended Complaint (which is the current 

operative pleading) in this action and defendant Robert Blagman (“Defendant”) 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 without admitting or denying the 

allegations of the Second Amended Complaint (except as to jurisdiction, which Defendant 

admits); waived findings of fact and conclusions of law; and waived any right to appeal from this 

Final Judgment: 

I. 

[PERMANENT INJUNCTION PROHIBITING VIOLATIONS 

OF SECTION 5 OF SECURITIES ACT] 

 IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant and 

Defendant’s officers, directors, subsidiaries, affiliates, successors, agents, servants, employees, 

attorneys, and all persons in active concert or participation with them who receive actual notice 
2

of this Final Judgment by personal service or otherwise are permanently restrained and enjoined 

from violating Section 5 of the Securities Act [15 U.S.C. § 77e] by, directly or indirectly, in the 

absence of any applicable exemption: 

 (a) Unless a registration statement is in effect as to a security, making use of any 

means or instruments of transportation or communication in interstate commerce 

or of the mails to sell such security through the use or medium of any prospectus 

or otherwise; 

 (b) Unless a registration statement is in effect as to a security, carrying or causing to 

be carried through the mails or in interstate commerce, by any means or 

instruments of transportation, any such security for the purpose of sale or for 

delivery after sale; or 

 (c) Making use of any means or instruments of transportation or communication in 

interstate commerce or of the mails to offer to sell or offer to buy through the use 

or medium of any prospectus or otherwise any security, unless a registration 

statement has been filed with the Commission as to such security, or while the 

registration statement is the subject of a refusal order or stop order or (prior to the 

effective date of the registration statement) any public proceeding of examination 

under Section 8 of the Securities Act [15 U.S.C. § 77h]. 

II. 

[DISGORGMENT, PREJUDGMENT INTEREST, CIVIL PENALTY]

IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant is ordered 

to pay disgorgement of $250,000, together with prejudgment interest thereon in the amount of 
3

$83,934, and a civil penalty in the amount of $50,000 pursuant to Section 20(d) of the Securities 

Act. 

Defendant shall satisfy his monetary obligations under this judgment by paying $50,000 

within 10 days of entry of the Final Judgment, and then by making four equal quarterly 

installments of $83,483.50, plus any post-judgment interest that has accrued to the portion to be 

paid as of the date of each payment, with the first such quarterly payment due 90 days after the 

date of entry of the judgment and successive payments due every 90 days thereafter. The rate of 

post-judgment interest shall be calculated in accordance with 28 U.S.C. § 1961. 

Each payment shall be made by certified check, bank cashier’s check, or United States 

postal money order payable to the Securities and Exchange Commission. The payment shall be 

delivered or mailed to the Office of Financial Management, Securities and Exchange 

Commission, Operations Center, 6432 General Green Way, Mail Stop 0-3, Alexandria, Virginia 

22312, and shall be accompanied by a letter identifying Robert Blagman as a defendant in this 

action. Each letter accompanying a payment shall set forth the title and civil action number of 

this action and the name of this Court, and specify that the payment is made pursuant to this 

Final Judgment. Defendant shall pay post-judgment interest on any delinquent amounts pursuant 

to 28 U.S.C. § 1961. Defendant shall simultaneously transmit photocopies of such cover letter 

payment and letter to the SEC=s counsel of record in this action. Defendant relinquishes all legal 

and equitable right, title, and interest in such funds, and no part of the funds shall be returned to 

Defendant. The Commission shall remit the funds paid pursuant to this paragraph to the United 

States Treasury. 

If Defendant fails to make any payments ordered in this Final Judgment, all outstanding 

payments under this Final Judgment, including post-judgment interest, shall become due and 
4

payable immediately. In addition, the Commission may enforce the Court’s judgment for 

disgorgement and prejudgment interest by moving for civil contempt (or through any other 

collection procedures authorized by law) for the entire amount of the judgment. In response to 

any such civil contempt motion by the Commission, Defendant may assert any legally 

permissible defense. 

In the event that Defendant fails timely to make any payment ordered in this Final 

Judgment, the Commission may seek expedited discovery concerning Defendant’s financial 

condition, and Defendant shall cooperate in any such discovery efforts, including, without 

limitation, providing sworn financial statements, financial records and other documents to the 

Commission within five business days of any such request for documents or a financial 

statement, and making himself available for a deposition with five business days of any request 

for a deposition for the purpose of discovering assets or assessing his financial condition. 

III. 

[INCORPORATION OF CONSENT OF DEFENDANT] 

 IT IS FURTHER ORDERED, ADJUDGED AND DECREED that the Consent of 

Defendant, filed in conjunction with the SEC’s motion for entry of this Final Judgment, are 

incorporated in this Final Judgment with the same force and effect as if fully set forth herein, and 

that Defendant shall comply with all of the undertakings and agreements set forth therein. 

IV. 

[RETENTION OF JURISDICTION] 

 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. 
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V. 

[RULE 54(b) CERTIFICATION] 

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. 

SO ORDERED: 

____________________________________ 

UNITED STATES DISTRICT JUDGE 

Dated: _______, 2009