Contractor enters agreement in NY hiring probe

NEW YORK (AP) - 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.

According to court papers, 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, unsealed Thursday, levels fraud charges against the owners of a subcontractor used by Skanska USA Civil Northeast and other companies.

Skanska admitted no wrongdoing in its settlement and said it has cooperated with investigators.