Topeka The Kansas Securities Commissioner says it has reached a settlement with investment bank Goldman Sachs.
The commission announced Friday that Goldman Sachs had agreed to pay the state $800,000. The commission alleged that the investment bank misled Kansas investors about the safety of the auction rate securities market.
The state says securities were marketed as safe and easy to sell, but the long-term investments can be difficult to resell. The auction failed in early 2008, meaning the owners could not access their money.
The fine will be placed in the Kansas Investor Education Fund, which gives grants to organizations for education on fraud prevention and financial literacy.