A New York judge has approved the $7.5 million settlement of civil fraud claims over minority hiring against two construction companies building a tunnel connecting the Long Island Rail Road to Grand Central Station.
Federal Judge Laura Taylor Swain in Manhattan approved the deal last Wednesday. Federal prosecutors say Dragados USA Inc. and Judlau Contracting Inc. agreed to pay the money and jointly admitted they failed to hire disadvantaged business enterprises as required by federal law.
The Eastside Access Project will provide rail tunnels for the LIRR to Grand Central Terminal on Manhattan’s east side. LIRR trains now stop at Penn Station. Its projected completion date is 2016.
Dragados said in a statement that it notified authorities after discovering the issues related to minority hiring during an internal integrity check.
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