Construction Company Settles in New York City Probe

December 1, 2010

Prosecutors say a construction company has agreed to pay $20 million to resolve an investigation that it falsely claimed hiring minority subcontractors on several major New York City projects.

The Schiavone Construction Company signed the nonprosecution agreement with the Brooklyn U.S. attorney’s office on Monday.

Prosecutors say the company admitted fraudulently evading requirements on federally funded projects. It says it claimed using a certain percentage of minority-owned and women-owned subcontractors or disadvantaged businesses.

The projects included a water filtration plant in the Bronx and the rehabilitation of the Times Square and South Ferry subway stations.

The Secaucus, N.J., company said the settlement enables Schiavone to put the investigation behind it.

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