It also secured a small piece of potential profits through securities known as warrants.
Through securities lending, pensions and mutual funds borrow money to make trades, adding to the risks within the financial system.
It derives a profit from the difference between the costs (including interest payments) of attracting and servicing deposits and the income it receives through interest charged to borrowers or earned through securities.
Under the federal sentencing guidelines, if Mr. Chiasson is found guilty of making $57 million through securities fraud, he will face a recommended sentence of at least 10 years in a federal prison.
While the settlement resolves pending regulatory actions against Mr. Lerner and his firm, dozens of investors are still trying to recoup money through securities arbitration claims and class-action lawsuits.
"They took 40 percent of our profits, and even that was O.K.," said Jerry D. Davis, the chairman of the municipal employee pension fund in New Orleans, which lost about $340,000, enough to wipe out years of profits that it had earned through securities lending.
