The Securities and Exchange Commission began distributing $357 million to investors who lost money because of accounting errors at Fannie Mae.

Disbursement of the money, which Fannie forfeited under a settlement with regulators last year, will be completed by October, the SEC said Monday.

Fannie agreed in May to pay $400 million to settle complaints by the SEC and the Office of Federal Housing Enterprise Oversight that it broke accounting rules in overstating earnings from 1998 to 2004.

In December the government-sponsored enterprise announced $6.3 billion of restatements for financial reports from 2001 through June 2004.

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