Reversing a decision of a lower court. U.S. District Court for the Southern District of New York Judge Jed S. Rakoff is allowing a SEC lawsuit against Marc Gabelli, son of Mario Gabelli, to proceed.
The younger Gabelli is accused of allowing hedge fund Folkes Asset Management, from 1999 to 2002, to market time $20 million in the Gabelli Growth Fund, in exchange for the hedge fund investing $1 million in the fund. The hedge fund was able to foresee when the share prices of the fund were about to rise or fall through time zone arbitrage.
