New Era Chief, SEC Reach Agreement

The Securities and Exchange Commission, the federal agency that regulates many financial transactions, has settled its lawsuit against the founder of the Foundation for New Era Philanthropy.

Under terms of the settlement, the S.E.C. agreed to accept the $1.5-million that John G. Bennett has already paid to a federal bankruptcy trustee.

The agency had been seeking an additional $1.9-million, but it waived that when it became clear that Mr. Bennett had no means to come up with that much money. However, if Mr. Bennett is found to have any hidden assets, he could be forced to turn over additional money to the government.

Mr. Bennett is serving 12 years in prison without the possibility of parole. He pleaded no contest last spring to charges of fraud, money laundering, and tax-code violations. Before New Era collapsed in 1995, Mr. Bennett had persuaded charities and donors to turn over more than $350-million in what the S.E.C. said was a Ponzi scheme.