CNBC- Futures and options broker MF Global Ltd. agreed Wednesday to pay more than $77 million (euro53.5 million) to settle federal charges that it failed to watch over a hedge fund charged with fraudmore than two years ago.
The Commodity Futures Trading Commission settled the charges with MF Global, formerly known as Man Financial.
The government said the company did not adequately supervise accounts used by Philadelphia Alternative Asset Management Co., a hedge fund that regulators charged with fraud in summer 2005.
The CFTC, which pursued the case with the receiver in charge of the hedge fund’s assets, said it settled the charges with both MF Global and a former account executive, Thomas Gilmartin, who also had an ownership stake in the hedge fund and failed to tell his employer.
