The Koch Industries financial services company has been accused of misleading investors and regulators about the risks of their products.
The company was charged with five counts of securities fraud in November.
The charges were related to its attempts to sell a range of financial products to investors.
Koch Industries, the largest private company in the US, had faced a $2.5 billion penalty for the fraud and has agreed to pay the fines.
In June, it was also ordered to pay more than $3.2 billion to settle criminal charges.
The Kochs financial services industry has long been a source of conflict in the United States.
Its financial services are one of the largest in the world, accounting for nearly one-third of the total financial services sector in the country.
In 2011, the company spent $1.1 billion lobbying the US government.
The group has received a $1 billion donation from the Kochs, according to the Center for Responsive Politics.
Koch is the fifth-largest private company by revenue in the company’s history.
The US Attorney for the District of Columbia has said the Koch Industries investigation is about the firm’s efforts to “protect the interests of shareholders and consumers.”
The company is currently fighting the charges in court.
“Koch Industries, Inc. (Koch) is pleased that the U.S. Attorney’s Office for the Eastern District of Virginia has decided to prosecute this matter, and will continue to fight for the best interests of its shareholders and its investors,” the company said in a statement.