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.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.