(CNN) -- The Department of Justice expects to bring fraud charges next week against a major construction firm -- Secaucus, New Jersey-based Schiavone Construction Company -- for its work on two of the biggest government construction projects in the New York region, according to a source with knowledge of the investigation.
The case involves work on upgrades of New York's subway system and the Croton Water Treatment Plant. Schiavone is likely to be charged with violations of rules designed to assure minority- and female-owned contractors receive portions of federal contracts, the source said. Schiavone, according to the source, actually received the bulk of such subcontracts for major projects in the New York region and farmed out work to a trucking firm with ties to organized crime.
The New York Times reported that Schiavone is in negotiations to settle the charges by paying more than $20 million. The source confirmed the accuracy of that report.
Another person with knowledge of the case said the settlement is still in the process of being negotiated and has not yet been finalized.
A spokesperson for the U.S. Attorney for the Eastern District of New York, which is reportedly handling the case, declined comment.
Austin Campriello, an attorney for Schiavone Construction Company, had no comment.