The SEC sued Marc Gabelli, son of Mario Gabelli and former portfolio manager of the Gabelli Global Fund, and Gabelli Funds chief operating officer Bruce Alpert over an alleged undisclosed market timing arrangement with London-based hedge fund firm Folkes Asset Management, now known as Headstart Advisers.

The complaint, April 24 in the United States District Court for the Southern District of New York, alleged that Marc Gabelli authorized Headstart to place market timing trades in the fund, and neither he nor Alpert informed the board of directors that Headstart was permitted to market time while other market timers were blocked from doing so.

Meanwhile, Gabelli Funds has settled with the SEC, agreeing to pay $16 million. The New York firm neither admitted nor denied the SEC's findings.  

Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE