The U.S. Securities and Exchange Commission has settled a civil injunctive action against an Austrian bank claiming that it aided Refco Group Ltd.’s alleged fraud in U.S. District Court for the Southern District of New York on Monday.

The SEC’s complaint alleges that BAWAG P.S.K. Bank für Arbeit und Wirtschaft und Österreichische Postsparkasse AG, a major Austrian bank, helped Refco conceal hundreds of millions of dollars in debt owed to Refco by an entity controlled by Refco’s CEO, thereby aiding and abetting Refco’s violations of the anti-fraud and periodic reporting provisions of the federal securities laws.

Without admitting or denying the allegations in the commission’s complaint, BAWAG consented to the entry of a final judgment that will permanently enjoin it from violating the antifraud provisions, and from aiding and abetting violations of the periodic reporting provisions, of the federal securities laws.

The SEC alleges that, from at least February 2000 into 2005, BAWAG engaged in a series of fiscal transactions with Refco and Refco Group Holdings Inc. designed to conceal the real condition of Refco’s balance sheet. It also alleges that Refco made certain representations to investors and filings with the commission that failed to disclose the RGHI receivables.

Finally, the commission’s complaint alleges that BAWAG had additional connections with Refco, including, for a period of time, an equity interest in Refco. Partly as a result of those connections, former BAWAG executives understood, from at least 2002 through 2004, that Refco had misstated its balance sheet, that Refco’s CEO and BAWAG intended to cash out their Refco ownership positions, and that concealment of the RGHI receivables would increase the likelihood of Refco being sold. It also claims that BAWAG knowingly aided and abetted Refco in its deception of investors who purchased Refco securities.

In a related action, the U.S. Attorney’s Office for the Southern District of New York announced today that it had entered into an agreement with BAWAG not to prosecute the bank for its role in assisting Refco’s CEO in his scheme, and that BAWAG would forfeit $337.5 million, funds that will be distributed to victims of the Refco fraud. The office also announced that BAWAG would pay at least $675 million (including the forfeited $337.5 million) to settle its non-prosecution agreement and related claims against it by the Refco bankruptcy estate.

The commission says its investigation is continuing.