The Securities and Exchange Commission said Monday it approved the fraud settlement that will cost Time Warner as much as $300 million for exaggerating the revenue and subscibers number for its AOL online advertising.

The financial results for the company should be restated by cutting its reported AOL revenue by about $500 million the fourth quarter of 2000 through 2002.

America Online advertising system was a target for the probe of the Securities and Exchange Commission and Justice Department that lasted for two years.

"We have confidence in our top financial officers, and we’re pleased that they will continue to serve our company in their current positions," Time Warner Chief Executive Dick Parsons said in a statement.

"Our complaint against AOL Time Warner details a wide array of wrongdoing, including fraudulent round-trip transactions to inflate online advertising revenues, fraudulent inflation of AOL subscriber numbers, misapplication of accounting principles relating to AOL Europe, and participation in frauds against the shareholders of three other companies," said Stephen Cutler, the SEC’s director of enforcement.

Time Warner’s Chief Financial Officer Wayne Pace, Controller James Barge and Deputy Controller Pascal Desroches settled SEC’s accusations without admitting or denying charges.