Goldman Sachshas agreed to pay about $14m to settle allegations that it failed to disclose campaign contributions that one of its bankers allegedly made to a Massachusetts official in order to win state business.

The US Securities and Exchange Commission has filed civil charges in the alleged “pay-to-play” scheme against Neil Morrison, a former banker, for allegedly campaigning for Tim Cahill, then the state Treasurer, from 2008 to 2010. He is also accused of making undisclosed cash contributions to Mr Cahill’s campaign to be governor. Before joining Goldman, Mr Morrison served as deputy treasurer to Mr Cahill.

Goldman earned $7.5m in underwriting fees for state business won as a result of the campaign contributions, the SEC alleged. Banks are prohibited under pay-to-play rules from engaging in certain municipal business within two years of a campaign contribution.