Defendant Name: Gabelli Funds LLC

Defendant Type: Subsidiary of Public Company
Public Company Parent: GAMCO Investors Inc.
SIC Code: 6211
CUSIP: 36143810

Initial Case Details

Legal Case Name In the Matter of Gabelli Funds, LLC
First Document Date 12-Jan-2009
Initial Filing Format Administrative Action
File Number 3-13332
Allegation Type Investment Advisers/Investment Companies

Violations Alleged

Related Violations Alleged

Gabelli Funds LLC is alleged to have aided and abetted The Gabelli Convertible and Income Securities Fund Inc.'s violation of Section 19(a) Investment Company Act; Rule 19a-1 Investment Company Act (willfully/knowingly).
Gabelli Funds LLC is alleged to have aided and abetted The Gabelli Utility Trust's violation of Section 19(a) Investment Company Act; Rule 19a-1 Investment Company Act (willfully/knowingly).
Gabelli Funds LLC is alleged to have caused The Gabelli Convertible and Income Securities Fund Inc.'s violation of Section 19(a) Investment Company Act; Rule 19a-1 Investment Company Act.
Gabelli Funds LLC is alleged to have caused The Gabelli Utility Trust's violation of Section 19(a) Investment Company Act; Rule 19a-1 Investment Company Act.

Resolutions

First Resolution Date 12-Jan-2009
Headline Total Penalty and Disgorgement $450,000

Related Documents:

IA-2827 12-Jan-2009 Administrative Proceeding
Order Instituting Administrative and Cease-and-Desist Proceedings Pursuant to Section 203(e) of the Investment Advisers Act of 1940 and Sections 9(b) and 9(f) of the Investment Company Act of 1940, Making Findings and Imposing Remedial Sanctions and A Cease-and-Desist Order
On January 12, 2009, the SEC instituted settled administrative and cease-and-desist proceedings against Gabelli Funds, LLC, stating: "This matter concerns violations of Section 19(a) of the Investment Company Act and Investment Company Act Rule 19a-1 by two closed-end funds, The Gabelli Convertible and Income Securities Fund Inc. and The Gabelli Utility Trust (collectively, the "Funds"). Section 19(a) of the Investment Company Act and Investment Company Act Rule 19a-1 require funds to provide shareholders with contemporaneous written statements identifying the source of distributions to shareholders if any portion of the distributions is from a source other than the fund's net income.2 The purpose of Section 19(a) and Rule 19a-1 is to provide shareholders adequate disclosure of the sources from which distributions are made. During the period from January 1, 2002 through December 31, 2003 (the "relevant period"), significant portions of all but one of the Funds' shareholder distributions were from shareholder capital and capital gains. None of the distributions was accompanied by a notice that contained the information required by Rule 19a-1. The Funds therefore violated Section 19(a) of the Investment Company Act and Investment Company Act Rule 19a-1."