LAWSUITS NEWS & LEGAL INFORMATION
Market Timing
New York, NY: (Apr-24-08) The US Securities and Exchange Commission brought charges against Gabelli Funds LLC and Marc Gabelli, son of company founder Mario Gabelli, alleging that the company engaged in market-timing,the practice of short-term buying, selling, and exchanging of mutual funds to exploit pricing inefficiencies. Though the company denied the allegations and did not admit to any wrongdoing, sources familiar with the negotiations said that Gabelli Funds LLC agreed to pay $16 million to resolve the claims.
Court papers reveal that the suit also named Gabelli Funds Chief Operating Officer Bruce Alpert, who was accused of being party to an undisclosed market-timing arrangement with the predecessor of Headstart Advisers Ltd. Agency investigators stated that Headstart's returns on three accounts over two years were between 73% and 185%, while the return for other fund shareholders was, at best, negative 24.1%. From 1999 to 2002, Headstart made 863 trades in the fund with a total value of $4.2 billion. [BLOOMBERG: GABELLI PAYS $16 MILLION TO SETTLE SEC MARKET TIMING INQUIRY]
Published on Apr-25-08
Court papers reveal that the suit also named Gabelli Funds Chief Operating Officer Bruce Alpert, who was accused of being party to an undisclosed market-timing arrangement with the predecessor of Headstart Advisers Ltd. Agency investigators stated that Headstart's returns on three accounts over two years were between 73% and 185%, while the return for other fund shareholders was, at best, negative 24.1%. From 1999 to 2002, Headstart made 863 trades in the fund with a total value of $4.2 billion. [
Legal Help
If you have a similar problem and would like to be contacted by a lawyer at no cost or obligation, please click the link below.Published on Apr-25-08
