NEW YORK (CNNMoney.com) - The U.S. Justice Department is pursuing civil fraud claims against famed money manager Mario Gabelli.

The Justice Department Wednesday filed a motion to intervene in a civil fraud case currently underway against Gabelli in the U.S. District Court for the Southern District of New York, presided over by Judge Paul Crotty, an agency spokesperson told CNNMoney.com.

Mario Gabelli

In that proceeding Gabelli, the chairman and CEO of the money management firm GAMCO Investors (Research), is being sued for allegedly participating in a Federal Communications Commission license scam in the 1990s.

In that case, Gabelli is accused of being part of an operation using "sham" small businesses to secure spectrum licenses from an FCC auction beginning as early as the mid-1990s. After securing the licenses, Gabelli allegedly turned around and sold them for a profit. According to the watchdog group Taxpayers Against Fraud, the operation may have netted as much as $206 million.

Lanny Breuer, an attorney for Gabelli, condemned the government's attempt to get involved in the case.

"I believe the steps taken by the government today are simply outrageous," Breuer told CNNMoney.com.

Breuer also criticized the FCC for failing to provide documents related to the case, many of which he fears are now missing.

Patrick Burns, a spokesperson for the watchdog group TAF said the government's involvement does not bode well for Mario Gabelli, dubbed "Super Mario".

"Mario Gabelli has booted up a game he cannot win at this point," said Burns.

A Justice Department spokesperson said a ruling by Judge Crotty on whether the government will be able to pursue their case is to be expected sometime after April 10.

According to wire reports, the government decided to intervene because of a court ruling in November that only the government could recover any profits ruled to be "unjust" -- because it was a federal auction in the first place.

___________________

Missed out on the rest of the day's headlines? Click here.