Defendant Name:
Gabelli Funds LLC
Defendant Type:
Subsidiary of Public Company
Public Company Parent:
GAMCO Investors Inc.
SIC Code:
6211
CUSIP:
36143810
Document Reference:
IA-2827
Document Details
Legal Case Name
In the Matter of Gabelli Funds, LLC
Document Name
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
Document Date
12-Jan-2009
Document Format
Administrative Proceeding
Allegation Type
Investment Advisers/Investment Companies
Document Summary
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."
Disgorgement & Penalty Information
Resolutions
Cease and Desist Order
Cooperation Before the Resolution
Remedial Acts or Efforts Before the Resolution
Monetary Penalties:
Civil Penalty
Individual:
$450,000.00
Shared:
