Dive Brief:

• James McHugh Construction Co. will pay $12 million to close an investigation by state and Illinois officials into a scheme to use a female-owned business as a straw subcontractor to get government contracts.
• The Chicago contractor, which had revenues of $513 million last year, admits no guilt in the settlement, which was announced Thursday and involved work on large highway and transit projects going as far back as 2005.
• While McHugh posted a notice on its website about the announcement, a whistle-blower whose actions kicked off the probe will get 17% of the settlement.

Dive Insight:

The investigation that tripped up McHugh became public in 2012 when the U.S. brought charges that Elizabeth Perino, who owns a contracting firm, let her company be a "sham pass-through" subcontractor. Perino's charges are pending.