IN THE UNITED STATES DISTRICT COURT
                            FOR THE DISTRICT OF COLUMBIA




SECURITIES AND EXCHANGE COMMISSION
450 Fifth Street, N.W.
Washington, D.C. 20549-0708,
                                                          :
                                            Plaintiff,   :
                                                          :
                            v.                            :  Case No. 1:02CV01136 (RJL)
                                                          :
EDWARD F. GOBORA                                          :
2021 Beacon Hill Drive                                    :
Newtown, Pennsylvania 18940,

                                          Defendant.




                                       COMPLAINT

Plaintiff Securities and Exchange Commission ("Commission") alleges as follows against
the above-named defendant:

                                        SUMMARY

1. This case involves a former portfolio and currency manager and foreign exchange
trader at Merrill Lynch Investment Managers, LP ("Merrill Lynch") who defrauded
several Merrill Lynch clients by engaging in two fraudulent foreign exchange trading
schemes. The first scheme involved delaying the execution of foreign exchange trades on
behalf of registered investment companies, and then allocating some of the trades to
certain favored clients if they became profitable. The second scheme involved the
misallocation of tactical foreign exchange trades and hedging transactions, with
profitable trades allocated to certain clients and losing trades allocated to certain other
clients. Gobora engaged in these schemes at certain times from mid-1997 through April
2001, when he was terminated by Merrill Lynch.

                                      JURISDICTION

2. The Court has jurisdiction of this action pursuant to Sections 21(d), 21(e) and 27 of the
Securities Exchange Act of 1934 ("Exchange Act") [15 U.S.C. §§ 78u(d) & (e) and
78aa], Sections 209(d) and 214 of the Investment Advisers Act of 1940 ("Advisers Act")
[15 U.S.C. §§ 80b-9 and 80b-14] and Section 42(d) of the Investment Company Act of
1940 ("Investment Company Act") [15 U.S.C. § 80a-41(d)].

UNITED STATES OF AMERICA
Before the
SECURITIES AND EXCHANGE COMMISSION

INVESTMENT ADVISERS ACT OF 1940
Release No. 2042 / July 10, 2002

   ADMINISTRATIVE PROCEEDING
   File No. 3-10828
     _________________________________________________________________

   In the Matter of

   EDWARD F. GOBORA,

                                                              Respondent.
     _________________________________________________________________

   ORDER INSTITUTING PROCEEDINGS PURSUANT TO SECTION 203(f) OF THE
   INVESTMENT ADVISERS ACT OF 1940, MAKING FINDINGS AND IMPOSING REMEDIAL
   SANCTIONS

                                     I.

   The Securities and Exchange Commission ("Commission") deems it
   appropriate and in the public interest that public administrative
   proceedings be, and hereby are, instituted against Edward F. Gobora
   ("Gobora" or "Respondent") pursuant to Section 203(f) of the
   Investment Advisers Act of 1940 ("Advisers Act").

                                    II.

   In anticipation of the institution of these public administrative
   proceedings, Gobora has submitted an Offer of Settlement which the
   Commission has determined to accept. Solely for the purposes of these
   proceedings and any other proceedings brought by or on behalf of the
   Commission or to which the Commission is a party, and without
   admitting or denying the findings, except that Gobora admits to the
   entry of the permanent injunction set forth in Section III.B., and
   Gobora admits the jurisdiction of the Commission over himself and over
   the subject matter of this proceeding, Gobora consents to the entry of
   this Order Instituting Proceedings Pursuant to Section 203(f) of the
   Investment Advisers Act of 1940, Making Findings and Imposing Remedial
   Sanctions ("Order").

                                    III.

   On the basis of this Order and Gobora's Offer of Settlement, the

Securities and Exchange Commission
Washington, D.C.

Litigation Release No. 17555 / June 11, 2002

   SEC FILES SETTLED CIVIL ACTION AGAINST EDWARD GOBORA, FORMER PORTFOLIO
   MANAGER AND HEAD OF FOREIGN EXCHANGE TRADING AT MERRILL LYNCH
   INVESTMENT MANAGERS, L.P.

   SEC v. Edward F. Gobora, U.S. District Court for the District of
   Columbia, Docket No. 1 02CV01136 (RJL)

   The Securities and Exchange Commission announced today that it has
   filed a settled enforcement action against Edward F. Gobora, the
   former global head of foreign exchange trading and a portfolio manager
   at Merrill Lynch Investment Mangers, L.P., an investment adviser
   registered with the Commisison. Without admitting or denying the
   allegations in the Commission's complaint, Gobora, age 35, of Newtown,
   Pennsylvania, consented to the entry of a final judgment which
   permanently enjoins him from violating the antifraud provisions of the
   federal securities laws and from violating reporting and recordkeeping
   provisions relating to investment advisers and investment companies.
   Gobora will pay a civil penalty of $75,000. Gobora also consented to a
   Commission Order which will bar him from association with any
   investment adviser for at least five years.

   The Commission's complaint, filed in the U.S. District Court for the
   District of Columbia, alleges that, during the period 1997 through
   April 2001 Gobora defrauded Merrill Lynch clients in two ways. The
   first scheme involved "cherry picking" short term foreign exchange
   trades, with profitable trades allocated by Gobora to favored clients,
   and losing trades given to unfavored clients. The second scheme
   involved delaying the execution and allocation of foreign exchange
   trades that were prompted by client trades of foreign securities; if
   the market moved positively after a position was opened, Gobora
   allocated the trade to favored clients, with the original client
   trading the foreign exchange at the later, less favorable price. The
   Merrill Lynch clients that were hurt by these schemes included several
   U.S. registered investment companies.

   Gobora will be permanently enjoined from violating Section 10(b) of
   the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and
   from aiding and abetting violations of Sections 204, 206(1), 206(2)
   and 207 of the Investment Advisers Act of 1940 and Rule 204-2
   thereunder, and from aiding and abetting violations of Sections 31(a)
   and 34(b) of the Investment Company Act of 1940 and Rule 31a-1
   thereunder. The SEC is continuing its investigation of this matter as
   it relates to other parties.