Marc Gabelli, son of Mario Gabelli, one of the most famous and highest-paid names in the business, has consented, without admitting to or denying fault, a $16 million fine from U.S. regulators for processing market-timing trades between 1999 and 2002 from U.K. hedge fund Folkes Asset Management, now going by the name of Headstart Advisers. The company's Chief Operating Officer, Bruce Alpert, is also named in the suit, but his portion of the case remains open.
Headstart earned tremendous profits, according to the complaint, at the expense of a mutual fund the 40-year-old Gabelli ran and whose performance, at the expense of long-term investors, was below par.
Gabelli left Gabelli Funds in January 2006, but his footprints remain at the firm as 5% majority owner of the firm's publicly traded holding company. He also chairs communications manufacturer LGL Group.