Man Group's brokerage unit, Man Financial, and seven of its employees are being sued for fraud and racketeering, in an effort to recover assets lost by investors in a hedge fund that collapsed, Bloomberg reports.

Man Financial helped hedge fund Philadelphia Alternative Asset Management hide more than $140 million in trading losses in a brokerage account with the firm. In so doing, Man Financial violated the Commodity Exchange Act and the Racketeer Influenced and Corrupt Organizations Act (RICO) by allowing the fund to hide its losses.

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