Thursday, September 3, 2009
SPECIAL INVESTIGATIVE REPORT
Life-Long Republican Janet DiFiore Grabs Huge
Campaign Contribution From Gabelli Fund
Sued By S.E.C. & F.C.C. For Public Ripoffs
At this time in our nation’s history, when we have become too painfully aware of the unlawful antics
and schemes that so-called hedge funds and investment advisors and managers have engaged in over
the past several years, raking in enormous personal profits at the expense of honest, trusting clients, it
is appalling to discover that Janet DiFiore has accepted an enormous campaign contribution, in May
of this year, from Gabelli Funds, headquartered at One Corporate Center, Rye, New York.
According to a BusinessWeek report dated August 13, 2009, “Gabelli Funds, LLC is an asset management arm of Gamco Investors,
Inc. with approximately $29 billion in assets under management.
The firm provides its services to investment companies. It manages a family of equity, fixed-income, money-market and balanced mutual funds for its clients.”
BusinessWeek reported, in April of last year, that, “Gabelli Funds, LLC reached a settlement with the SEC.”The BusinessWeek report
stated, “SEC Sues Former Portfolio Manager Of Gamco Global Growth Fund And Chief Operating Officer Of Gabelli Funds.”
The report detailed, “The Securities and Exchange Commission filed a civil fraud action in the United States District Court for the Southern District of New York against Marc J. Gabelli, the former portfolio manager of Gabelli Global Growth Fund, currently known as Gamco Global Growth Fund, and Bruce Alpert, Chief Operating Officer of Gabelli Funds, LLC in connection with an undisclosed market timing arrangement with Folkes Asset Management, currently known as Head Start Advisors, Ltd.
The report further states, “The complaint charges Marc Gabelli and Alpert with fraud for aiding and abetting violations of Sections 206(1) and 206(2) of the Investment Advisors Act of 1940.” It goes on to state, “It charges Alpert with violations of Section 17(a) of the Securities Act of 1933, and Secton 10(b) of the Securities Exchange Act of 1934 and Exchange Act Rule 10-5.”
The report explains, “In a related administrative proceeding, the Commission simultaneously instituted and settled Administrative Cease And Desist proceedings against Gabelli Funds, a registered investment advisor.” Gabelli Funds, Janet DiFiore’s second-biggest contributor, from
who she saw fit, three months ago, to accept $16,000, last year:
• was censured;
• ordered to Cease And Desist its violations of federal laws;
• ordered to pay $9.7 million in disengorgement;
• ordered to pay $1.3 million in pre-judgment interest, and;
• ordered to pay $5 million penalty, for a total of $16 million in 2008.
Under the court order, the monies paid by Gabelli Funds were to be distributed to shareholders who were harmed by the market timing activity Gabelli had engaged in.
Two years earlier, in 2006, according to www.lawyersandsettlements.com, “Mario Gabelli and Companies agree to pay $130 million to settle fraud allegations brought by the Federal Communications Commission (FCC)” who charged that he “allegedly created fake companies to gain an illegal advantage in the auction of cell phone spectrum, and in so doing, sought to benefit from public resources.”
Most people recognize that Janet DiFiore, despite her ridiculous attempt to convince voters that she is a Democrat, is, in fact, a very wealthy, heavily-connected Republican accustomed to doing business with the Gabellis, and other high rollers like them. Having very wealthy friends certainly isn’t a crime.
However, accepting a huge campaign contribution from their company just three months ago, knowing full well that that company, over the last couple of years, was compelled to pay nearly $150 million to settle suits brought by both the SEC and the FCC because of unlawful activities harmful to American citizens and investors, is totally unacceptable and speaks volumes about who Janet DiFiore really is.