New York ? J.P. Morgan Chase and Citigroup reached settlements with the federal government Monday for their roles in the manipulation of Enron’s finances, agreeing to pay nearly $250 million that will go to victims of the energy trader’s massive fraud.

The payments settle charges that J.P. Morgan and Citigroup helped Enron mislead investors by creating complex transactions that made its financial condition appear sound when the company was actually drowning in debt.

The Securities and Exchange Commission contends the banking giants knew Enron was seeking the transactions specifically to improve its bottom line.

“If you know or have reason to know that you are helping a company mislead its investors, you are in violation of the federal securities laws,” SEC enforcement chief Stephen Cutler said.

Enron plunged into bankruptcy in 2001 after massive accounting irregularities were revealed — the first in a string of scandals that have tainted corporate America. Enron’s collapse destroyed the retirement savings of thousands of employees and damaged outside investors and pension funds nationwide.

Under Monday’s deals, J.P. Morgan will pay $135 million to the SEC and Citigroup will pay $101 million. All of that money will eventually be used to pay back the victims of Enron’s fraud, the SEC said.

The payments represent just a tiny fraction of the banks’ worth. J.P. Morgan reported earnings of $1.83 billion for the most recent quarter, while Citigroup earned $4.3 billion.