NEW YORK( TheStreet)-- Goldman Sachs ( GS) 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: email@example.com.