Four years ago, the board of directors of the Gabelli Funds conducted a thorough investigation into charges by the Securities and Exchange Commission that market timing had occurred in its funds, according to a press release the invesment manager issued on behalf of one of its former principals who is now under investigation.
That executive, Marc Gabelli, says he is innocent of the charges recently re-issued against him (see "Marc Gabelli Hit With $16 Million Timing Fine," MME 4/25/08).
"The trading at issue, by a single investment advisor, was not prohibited by the fund's prospectus, and was stopped with Mr. Gabelli's approval 5-1/2 years ago, in August 2002, over a year before the SEC began investigating the mutual fund marketplace for market timing issues," according to the release issued late yesterday.
"Mr. Gabelli never violated any rule or regulation and always managed the mutual funds under his direction lawfully and in the best interests of shareholders," it continues.
Gabelli himself issued the statement: "I intend to clear my name by responding vigorously to this allegation in court."