* Firm, executives agrees to censure, fines, supervision

* Accused of failing to spot $45 mln fraud

By Gina Keating

LOS ANGELES, Nov 10 (Reuters) - San Francisco brokerage firm Merriman Curhan Ford & Co and two top executives have settled a government lawsuit accusing them of failing to spot fraud committed on clients by its managing director and Silicon Valley venture capitalist William "Boots" Del Biaggio.

The settlement with Merriman co-founder Jon Merriman, 48, and former general counsel Christopher Aguilar wraps up a wider SEC probe into investor and bank frauds involving Del Biaggio, founder of Sand Hill Capital LP, and Merriman firm managing director David "Scott" Cacchione.

The SEC order, disclosed on Tuesday, imposed a censure and a $100,000 penalty against the Merriman firm, a $75,000 penalty against Jon Merriman and a $40,000 penalty against Aguilar for failing to take steps to deter Cacchione's $45 million fraud.

Aguilar, 46, and Merriman are suspended from acting in a supervisory capacity at broker-dealer firms for a year, and the firm must retain independent counsel to review compliance and supervisory policies, SEC Branch Chief Kristin Snyder said.

Aguilar has since left the firm, Snyder said.

In a statement, Merriman said the firm was "pleased to put this 18-month matter behind us, and view the SEC's administrative order as a very constructive conclusion."