New York, NY – Authorities say nearly all of the more than $600 million that New York City paid for a new payroll system was directly or indirectly tainted by fraud.
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Prosecutors had previously said the fraud involved in the CityTime project totaled $85 million.
The new estimate came Monday as federal prosecutors and the New York City Department of Investigation announced more charges in the case.
The indictment names a Wayne, N.J.-based subcontractor, TechnoDyne LLC, and its owners. Prosecutors say they believe Padma and Reddy Allen have fled to their native India. Efforts to reach them for comment through online messages were unsuccessful.
Eleven people now have been charged. Monday’s indictment alleges some of the defendants conspired to hire consultants the city didn’t need. They’re also accused of inflating charges and work hours.
no wonder this country is going broke you dont have to be a brain surgeon to see it.
This is so ironic that the project to cut away fraud, was basically begging to be ripped off. Sadly, us taxpayers will be paying another few years worth of taxes just to cover this expense.
Aren’t “business leaders” supposed to know how to run things more efficiently? Next up: investigating all the DOE subcontractors
For a project to go from 60 million to 800 million with no oversight is beyond belief. New York city needs some serious reforms. Another project that was a similar failure was the school system’s attemp to computerize. Any technology company doing business with NYC made millions and rarely delivered.
Bloomberg needs to take full responsibility and step down emidetally. His whole basis for serving a third term was that during such difficult economic times, the city needs a mayor like himself who’ll run the city effectively and efficiently.
If such a scandal could happen when he’s at the helm, then he should be held accountable.
No big deal. This is only one of many city projects, sadly so under the watch of Bloomberg – a shrewd businessman, that either does not fulfill its mission or makes things worse. Most of us fools believed that this wealthy mayor would make money for the city, too. We believed this, listened to his promises, voted him in again, and these are the results.
Even Bloomberg does not think this is a serious issue. Just create a few more “crimes”, like parking your car somewhere, and the tickets will be guaranteed income. Shrink the police force, but triple the traffic agents. Look for every creative way to abuse New Yorkers. Go, Bloomie, go. Just make sure no one ever blames you for the gross incompetence of ruining our economy and making New York a dreaded place to live.