Steven Rattner, the former Obama administration auto industry czar, was sued by New York's attorney general for allegedly paying kickbacks to win investments from the state's public pension fund.
The attorney general, governor-elect Andrew Cuomo, is seeking to recover $26 million from Rattner.
The U.S. Securities and Exchange Commission said Rattner has agreed to pay $6.2 million to settle its own civil charges related to the case.
A lawyer for Rattner was not immediately available for comment.
A spokesman for Rattner's former firm, private equity firm Quadrangle Group, declined to comment.