In The United States District Court
                           For The Northern District Of Illinois
                                       Eastern Division


Commodity Futures Trading Commission,  Civil Action No:  02 C 6222
  Plaintiff,
vs.

John Martin Lofgren,

and

Melrose Asset Management Corporation,
  Defendants.


                        STATUTORY RESTRAINING ORDER AND
                             ORDER APPOINTING RECEIVER

        Having read the Complaint for Injunctive and Other Equitable Relief, the Plaintiff's

Motions for a Statutory Restraining Order on Notice and Appointment of a Receiver, the

declaration of Hugh J. Rooney, and the brief submitted in support of its motions:

        THE COURT FINDS:

        1.     The Court has jurisdiction over the subject matter.

        2.     Section 6c of the Commodity Exchange Act, as amended ("Act"), 7 U. S. C.

§ 13a-1 (2001), permits this Court to enter a statutory restraining order and appoint a temporary

receiver.

        3.     It appears that there is good cause to believe that Defendants John Martin Lofgren

("Lofgren") and Melrose Asset Management Corporation ("Melrose") (collectively "the

Defendants"), have engaged, are engaging in and are about to engage in violations of Sections


4b(a)(2)(i)-(iii), 4c(b) and 4o(1) of the Act, 7 U.S.C. §§ 6b(a)(2)(i)-(iii), 6c(b) and 6o(1), and

Commission Regulation 33. 10, 17 C.F.R. § 33.10 (2002).

       4.      It also appears that this is a proper case to appoint a temporary equity receiver and

                           In The United States District Court
                          For The Northern District Of Illinois
                                       Eastern Division

Commodity Futures Trading Commission,
  Plaintiff,
vs.                                                    Civil Action No: CIV 02 C
                                                       6222
John Martin Lofgren,
                                                       Complaint For Injunctive And
and                                                    Other Equitable Relief And

Melrose Asset Management Corporation,   Civil Monetary Penalties Under
  Defendants.                                          The Commodity Exchange Act





                                          I.  Summary

        1.     From at least April 1998 to the present ("relevant time period"), Melrose Asset

Management Corporation ("Melrose") and John Martin Lofgren ("Lofgren") have solicited and

accepted customer funds for use in trading in commodity futures and commodity options in a

commodity pool entitled The Melrose Fund, L.L.C. ("the Fund" or "the pool").  They have

misappropriated at least $1,400,000 of those funds and have issued false statements to at least

two pool participants that did not disclose their unauthorized withdrawal of funds from the Fund.

        2.     Specifically, Lofgren and Melrose (collectively "the Defendants") have engaged,

are engaging, or are about to engage in acts or practices which violate the anti-fraud sections of

the Commodity Exchange Act ("Act"), 7 U.S.C. §§ 1 et seq. (2001), and Commission

Regulations thereunder, 17 C.F.R. §§ 1 et seq. (2002).  Defendants have violated Sections 4b

4c(b) and 4o(1) of the Act, 7 U.S.C. §§6b, 6c(b) and 6o(1), and Commission Regulation 33.10,



17 C.F.R. § 33.10, by misappropriating pool participants' funds and by making false statements

to at least two pool participants in connection with commodity futures and options transactions.