The Securities and Exchange Commission last week subpoenaed mutual fund firm Gabelli Asset Management for possible improper trading, the company announced.

Gabelli, headed up by industry guru Mario Gabelli, admitted the subpoena in an SEC filing last week, The Wall Street Journal reports. Last October, New York Attorney General Eliot Spitzer filed a subpoena against Gabelli, which admitted that one client had market-timing arrangements.

A lawyer for Gabelli said he was not aware of any formal investigation by the Commission.

The firm, which possesses $28 billion in assets under management, instituted anti-market timing language into its prospectuses in May 2003, placing a 2% redemption fee on any quick in-and-out trades. Before that, the company apparently had an unwritten rule that banned anyone who timed the market.

However, it later disclosed that before the May 2003 mandate, one client in its Gabelli Growth Fund was allowed to continue with the market timing without being kicked out. The investor was finally banned from the fund in August 2002.

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