NEW YORK, May 13, 2008 (PRIME NEWSWIRE) -- In response to the Securities and Exchange Commission filing a complaint against Marc Gabelli, Mr. Gabelli stated today that he disputes the allegations of the complaint, and he intends to respond to them forcefully in court.
Mr. Gabelli is a former portfolio manager of Gabelli Funds LLC ("the firm"). He is now Chairman of the LGL Group, Inc. (AMEX:LGL).
Four years ago, the firm's board proactively investigated the claim the SEC is now making and found no wrongdoing. The trading at issue, by a single investment adviser, was not prohibited by the fund's prospectus, and was stopped with Mr. Gabelli's approval five-and-a-half years ago, in August 2002, over a year before the SEC began investigating the mutual fund marketplace for market timing issues. Marc Gabelli never violated any rule or regulation and always managed the mutual funds under his direction lawfully and in the best interests of shareholders.
Indeed, the complaint does not allege that Mr. Gabelli made any false statements to investors, does not allege that the trading violated the fund's prospectus, does not allege that permitting the trades violated any rules of the fund, and does not allege that Mr. Gabelli knew of any possible harm to investors.
"I intend to clear my name by responding vigorously to this allegation in court," Mr. Gabelli said.