NEW YORK(

TheStreet

)--

Goldman Sachs

(GS) - Get Report

will pay $333,000 to settle allegations that it misled Virginia investors who purchased auction-rate securities.

Regulators in Virginia had alleged that the bank misrepresented auction-rate securities as safe investments and did not inform investors of the risks associated with buying auction-rate securities.

A

press release on the Commonwealth of Virginia's State Corporation Commission's website

says that under the terms of the settlement, Goldman must repurchase the auction-rate securities from its clients.

A spokesperson for Goldman was not immediately available for comment.

--Written by Maria Woehr in New York.

To contact the writer of this article, click here:

Maria Woehr

.

To follow the writer on Twitter, go to

http://twitter.com/newsgirlmw

.

To submit a news tip, send an email to:

tips@thestreet.com

.