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September 28, 2012 12:56 AM EST

Goldman Sachs Group Inc agreed to pay about $12 million (7.4 million pounds) to settle charges that it violated "pay-to-play" rules in a case involving undisclosed campaign contributions to Timothy Cahill, the former Massachusetts state treasurer who was a candidate for governor, U.S. securities regulators said on Thursday.

The Securities and Exchange Commission also charged Neil Morrison, a former investment banker at Goldman, in the case.

Goldman settled without admitting or denying the charges. The SEC's case against Morrison continues.

(Reporting By Aruna Viswanatha and Karey Wutkowski; Editing by Gerald E. McCormick)

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Copyright 2012 Thomson Reuters UK. All rights reserved.

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