Colorado Securities Commissioner Fred Joseph reached a settlement with E*Trade Securities related to its sale of auction rate securities to Colorado investors.

Under terms of the agreement, E*Trade will buy back $3.5 million worth of auction rate securities from Colorado investors who found themselves unable to sell securities after they had been froze. The settlement also includes a broader agreement by E*Trade to return about $100 million to the firm’s clients on a nationwide basis.

The settlement concludes a multi-state investigation of the E*Trade for its role in the sale of securities for making misleading representations that the securities were the same as seven-day paper and were an alternative to money market funds for liquidity purposes.

The agreement is the 15h reached by the Securities Commission since 2008.