Ernst & Young will pay more than $9 million to settle aninvestors' suit that accused the firm of aiding AmericanInternational Group and PNC Financial Services Group Inc. in amultimillion-dollar phony accounting scheme.

According to court documents, U.S. District Court Judge DavidStewart Cercone, sitting in Pittsburgh, approved the $9.08 millionsettlement Thursday. The money will be paid into a fund forinvestors who filed suit against PNC over financialmisstatements.

The accounting firm--accused of assisting AIG in thescheme--admitted no wrongdoing in the settlement.

In 2004 the Securities and Exchange Commission accused AIG ofaiding PNC in taking $762 million in bad loans and venture capitalinvestments off its financial statements by moving them to specialentities it created back in 2001.

The move inflated PNC's earnings by $155 million that year, theSEC said.

In November of 2004 PNC paid $30 million to resolve the classaction suit, while AIG paid an additional $4 million into thefund.

AIG paid a total of $120 million in 2004 to the U.S. JusticeDepartment and the SEC for the questionable insurance transactionsbut never admitted any wrongdoing.

The New York-based insurer also agreed to the appointment of anindependent monitor to review the placement of nontraditionalinsurance products between 2000 and 2004.