U.S. Motions to Take Over Mario Gabelli Suit
The U.S. Justice Department filed an expected motion to take over a lawsuit against investor Mario Gabelli in a case that alleges he was at the center of a scheme to defraud the government, the U.S. attorney’s office said Wednesday.
The motion, filed March 17 in Manhattan federal court, comes after a prosecutor two weeks ago said the government would move to take over a 5-year-old lawsuit against Gabelli, one of Wall Street’s best-known money managers, and other defendants.
In a complaint filed Monday, the Justice Department said it would bring additional claims against the defendants under the False Claims Act. The government demanded a jury trial, and said it would seek damages on three charges.
Judge Paul Crotty did not immediately rule on the government’s request.
Gabelli has vowed to fight the charges, saying the case is without merit.
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