Partly Cloudy
29°FPartly CloudyFull Forecast

Feds, state settle with Chicago construction firm

Published: Thursday, May 1, 2014 1:34 p.m. CST

CHICAGO — Illinois and federal officials have announced a $12 million whistleblower settlement with a Chicago construction company accused of fraudulently securing multi-million dollar public contracts.

Illinois Attorney General Lisa Madigan and U.S. Attorney Zachary Fardon announced the settlement with James McHugh Construction Company on Thursday. Investigators say the company wrongly used two subcontractors to do work reserved for women or minority-owned businesses. An investigation found the subcontractors didn't fulfill disadvantaged business enterprises requirements on seven public construction contracts.

The public projects included Chicago-area road work, including on downtown's Wacker Drive and on Chicago Transit Authority train lines.

The company said in a statement that it "recognizes the seriousness of the allegations" but disputes that it intentionally disregarded program requirements. The company says it has new compliance and training policies.

Get breaking and town-specific news sent to your phone. Sign up for text alerts from the Northwest Herald.

Copyright 2017 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Reader Poll

Which would you be more inclined to do for charity?
Shave my head
Jump into icy water