Two leading construction firms with multi-billion dollar contracts for massive projects — including the planned Fulton Street Transit Center — are under investigation for allegedly scamming their way out of minority-hiring requirements.
Schiavone Construction Co. and Skanska USA allegedly used front companies to meet government quotas for employing sub-contractors owned by women and minorities.
Schiavone — whose former part owner, ex-Labor Secretary Raymond Donovan, beat mob-tied fraud charges in 1987 — is expected to settle a criminal probe by the Brooklyn U.S. Attorney’s Office early next week, a source told The Post.
The company’s lawyer, Austin Campriello, declined to comment.
Skanska, meanwhile, confirmed that it was under scrutiny for its hiring of New Jersey-based minority sub-contractor.
“We are aware of a government investigation involving Environmental Energy Associates, a minority sub-contractor used by Skanska USA Civil in New York, as well as numerous other contractors,” spokeswoman Nicole Didda said.
“Skanska has and continues to cooperate fully with the government in connection with this inquiry.”
A man who answered the phone at Environmental Energy this afternoon refused to discuss the probe or even reveal his name.
“I dont want to give you anything like that,” he said.
The investigations, by federal prosecutors in Brooklyn and Manhattan, were spurred in part by an outside monitor hired by the Metropolitan Transportation Agency to oversee mega-projects including Fulton Street, the planned Second Avenue subway and extension of the number 7 line.
The consultant, Toby Thatcher, discovered some of the sub-contractors were actually front operations, and passed on his findings to the MTA Inspector General’s Office, which then informed the feds.
“This development shows that the monitor performed exactly as expected,” MTA spokesman Aaron Donovan said.