Goldman Sachs agreed to buy back more than $5 million in auction rate securities from Colorado investors in a settlement with the Colorado Division of Securities.

The settlement came after allegations that Goldman Sachs made misleading representation that auction rate securities were secure, liquid securities that were a suitable alternative for cash management purposes. The investigation allegedly found that the firm failed to adequately supervise its salespeople to make sure their clients would know about the mechanics of the auction process and the potential illiquidity of the securities.

Investors were unable to sell the securities after they had been frozen in the auction market during the banking crisis of 2008.

This is the tenth settlement finalized by the division. Other settlements include Deutsche Bank Securities, Citigroup Global Markets, Bank of America Securities, Credit Suisse Securities, JP Morgan Chase, Merrill Lynch, RBC Capital Markets, UBS Securities and Wachovia Securities.