NEW YORK (Bloomberg) — MF Global Inc., the world's largest broker of exchange-traded futures and options, will pay $77 million to settle a US regulator's claims stemming from the collapse of a Philadelphia hedge fund.

MF Global will pay $69 million in restitution, $6 million in legal fees and a $2 million fine over its role as a broker for Philadelphia Alternative Asset Management Company, which collapsed amid fraud claims in 2005, the US Commodity Futures Trading Commission said in a statement.

The company said on December 3 it would pay the restitution and fees to the hedge fund's court- appointed receiver.

The receiver sued Bermuda-based MF Global in 2006, accusing the broker and seven employees of fraud and racketeering.

Thomas Gilmartin, an MF Global executive, was fined $250,000 over his handling of the hedge-fund accounts, the CFTC said. Gilmartin has been on leave from the firm since the fall of 2005, Skule said.

Dennis Suplee, a Philadelphia attorney that Skule said was representing Gilmartin, didn't immediately return an after-hours call seeking comment.

The CFTC sued the hedge fund in June 2005, claiming it hid more than $140 million in trading losses from investors. MF Global was accused of participating in the fraud by letting the fund conceal losses in a brokerage account.

The company was the US brokerage arm of London-based Man Group Plc, the world's biggest publicly traded hedge fund firm, until it became a separate company with its initial public offering this year.