A close business associate of disgraced former junk bond king Michael Milken has agreed to pay $7.95 million to settle securities fraud charges brought by the Securities and Exchange Commission.

David Solomon, former president and majority stockholder of New York-based Solomon Asset Management Inc., settled the charges growing out of his relationship with Milken without admitting or denying guilt.The SEC announced the filing of the charges in Manhattan federal court simultaneously with the settlement.

The commission said that of the total, $7.29 million represents repayment of illegal profits and $661,674 represents a penalty.