Contractor enters agreement in NY hiring probe

AP News
Posted: Apr 01, 2011 1:33 PM
Contractor enters agreement in NY hiring probe

A subsidiary of one of the nation's largest construction companies has agreed to pay $19.6 million to settle a New York criminal investigation into allegations it circumvented government minority hiring rules.

Court papers say the settlement with the Manhattan U.S. attorney means Skanska USA Civil Northeast Inc. will not face charges.

Skanska was accused of committing fraud against government programs designed to encourage the hiring of minority- and women-owned businesses. It was the general contractor on seven New York transit projects.

A related indictment levels fraud charges against the owners of a subcontractor used by Skanska USA Civil Northeast and other companies.

Skanska admitted no wrongdoing.

President Richard Cavallaro said Skanska "takes pride in its industry leadership in supporting diversity." Skanska said it has "recommitted itself to best practices."