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-2727

Document Details

Legal Case Name In the Matter of Gabelli Funds LLC
Document Name Order Instituting Administrative and Cease-and-Desist Proceedings, Making Findings, and Imposing Remedial Sanctions and a Cease-and-Desist Order Pursuant to Sections 203(e) and 203(k) of the Investment Advisers Act of 1940 and Sections 9(b) and 9(f) of the Investment Company Act of 1940
Document Date 24-Apr-2008
Document Format Administrative Proceeding
File Number 3-13019
Allegation Type Investment Advisers/Investment Companies
Document Summary On April 24, 2008, the SEC instituted settled administrative and cease-and-desist proceedings against Gabelli Funds LLC. According to the SEC: "This is a proceeding against Gabelli Funds, an investment adviser to mutual funds, based upon its undisclosed market-timing agreement in which it permitted a hedge fund investment manager based in the United Kingdom (the 'U.K. hedge fund manager') to market time a mutual fund managed by Gabelli Funds from September 1999 to August 2002 while Gabelli Funds otherwise monitored for and rejected market-timing purchases from other investors of the mutual fund. Approximately six months after the market timing commenced, Gabelli Funds also allowed the U.K. hedge fund manager to increase its market-timing capacity in exchange for the U.K. hedge fund manager's long-term investment in an affiliated hedge fund."

Disgorgement & Penalty Information

Resolutions
Cease and Desist Order
Censured
Independent Distribution Consultant Undertaking; Undertaking to Cooperate in Related Action
Fair Funds
Plan of Distribution
Monetary Penalties:

Disgorgement

Individual:     $9,700,000.00 Shared:    

Civil Penalty

Individual:     $5,000,000.00 Shared:    

Pre-Judgment Interest

Individual:     $1,300,000.00 Shared:    

Total Penalty

Individual:     $16,000,000.00 Shared:    

Related Documents:

33-8911 24-Apr-2008 Administrative Proceeding
Order under Section 27A(b) of the Securities Act of 1933 and Section 21E(b) of the Securities Exchange Act of 1934, Granting Waivers of the Disqualification Provisions of Section 27A(b)(1)(A)(ii) of the Securities Act of 1933 and Section 21E(b)(1)(A)(ii) of the Securities Exchange Act of 1934
The Commission ordered that: "a waiver from the disqualification provisions of Section 27A(b)(1)(A)(ii) of the Securities Act and Section 21E(b)(1)(A)(ii) of the Exchange Act as to Gabelli Funds and its affiliates resulting from the entry of the Order is hereby granted."
34-57796 07-May-2008 Administrative Proceeding
Order Appointing Tax Administrator
The SEC authorized its Secretary to appoint Damasco and Associates as Tax Administrator for distribution funds that may have tax obligations as Qualified Settlement Funds (QSFs). This specific order (May 7, 2008) formally appoints Damasco and Associates as the Tax Administrator for the Gabelli Funds, LLC administrative proceeding.
34-60656-pdp 26-Aug-2009 Administrative Proceeding
Proposed Plan of Distribution
On August 26, 2009, a proposed plan of distribution was filed in the matter of Gabelli Funds, LLC.
34-60656 11-Sep-2009 Administrative Proceeding
Notice of Proposed Plan of Distribution and Opportunity for Comment
The Commission stated: "Notice is hereby given . . . that the Division of Enforcement has filed with the Commission the proposed plan ("Distribution Plan") for the distribution of monies in In the Matter of Gabelli Funds LLC. . . . The Distribution Plan provides for distribution of disgorgement in the amount of $9.7 million, prejudgment interest of $1.3 million, and a civil money penalty in the amount of $5 million, plus any accumulated interest, less any federal, state, or local taxes on the interest."
34-61255 30-Dec-2009 Administrative Proceeding
Order Appointing a Fund Administrator and Waiving Bond
On December 30, 2009, the SEC ordered the appointment of Rust Consulting, Inc. as the Fund Administrator and that the bond requirement is waived for good cause shown.
34-61256 30-Dec-2009 Administrative Proceeding
Order Approving Distribution Plan
On December 30, 2009, the SEC ordered the approval of the Distribution Plan.
34-62728 16-Aug-2010 Administrative Proceeding
Order Directing Disbursement of Fair Fund
On August 16, 2010, the SEC ordered that "the Commission staff shall transfer $6,199,426.66 of the Fair Fund to U.S. Bank, and the Fund Administrator shall distribute such monies to investors, as provided for in the Distribution Plan."
34-62806 31-Aug-2010 Administrative Proceeding
Order Directing Disbursement of Fair Fund
On August 31, 2010, the SEC ordered that "the Commission staff shall transfer $6,018,207.06 of the Fair Fund to U.S. Bank, and the Fund Administrator shall distribute such monies to investors, as provided for in the Distribution Plan."
34-68733 25-Jan-2013 Administrative Proceeding
Order Authorizing the Transfer of Remaining Funds and Any Future Funds Returned to the Fair Fund to the U.S. Treasury, Terminating the Fair Fund, and Discharging the Fund Administrator
On January 25, 2013, the SEC ordered "the remaining Fair Fund balance of $6,356,291.10 and any future funds returned to the Fair Fund shall be transferred to the U.S. Treasury". The SEC also ordered the termination of the Fair Fund and the discharge of the Fund Administrator.

Related Actions:

SEC v. Marc J. Gabelli, and Bruce Alpert
Bruce Alpert
Marc J. Gabelli