Charleston Southern University has agreed to pay nearly $4-million to settle allegations that it helped a former economics professor swindle investors out of more than $90-million, the Associated Press reported, citing documents filed today in the U.S. District Court in Charleston, S.C.

The professor, Albert E. Parish Jr., pleaded guilty in October and is awaiting sentencing on federal charges of fraud and lying to investigators.

The settlement, if it is approved by a federal judge, would protect Charleston Southern from further lawsuits as a result of its association with Mr. Parish, a lawyer involved in the proceedings told the AP. The university, which itself has claimed a loss of $8.4-million that it invested with the professor, would waive its claim to damages unless other investors received at least 18 percent of what they had invested, the lawyer said.

Most of the $3.9-million that Charleston Southern has agreed to pay is covered by insurance, leaving $160,000 to be paid out of cash reserves, according to the AP. University officials declined to comment on the agreement, but have denied knowing of any fraudulent activities by the professor. —Charles Huckabee