The Department of Justice is going to follow up on a civil lawsuit against Mario Gabelli, accusing him of creating bogus minority-owned and small-business companies to qualify for millions of dollars worth of discounted FCC licenses for cellphones and other communications devices, only to turn around and sell those licenses for a $206 million profit.

 

Russell C. Taylor III, a lawyer with a law firm involved in bidding for radio spectrum, sued Gabelli in 2001, charging that a number of companies with ties to Gabelli and financed by own of his private investment firms had made successful bids on his behalf. They obtained $90 million in discounts and $70 million in low-interest-rate federal loans, the suit charges.

The trial is scheduled to begin June 1.

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