Six Arrested In Payroll Project Fraud In NYC

NEW YORK (AP/WCBS 880/1010 WINS) — Four city consultants and the wife and mother of one consultant have been charged with defrauding New York City of $80 million through a project that was supposed to save money by consolidating payroll records.

WCBS 880’s Rich Lamb gets reaction from Mayor Bloomberg.

1010 WINS’ Stan Brooks reports Mayor will fight to get stolen money back

The defendants were charged with conspiracy in federal court in Manhattan on Wednesday. Authorities said the payroll program was supposed to cost a total of $63 million when it was started in 1998. They say it had cost $628 million by September, with only a little over a third of its intended user population using it.

Mayor Michael Bloomberg said it was a “major fraud perpetrated on city taxpayers.” He said investigators told him the city would likely recover most of the money.

(Copyright 2010 by The Associated Press. All Rights Reserved.)

More from Rich Lamb
  • Jetsfan

    How much do you want to bet this is a Kosher caper?

  • The Truth

    Give jail for life. Why no names? Who are they trying to protect now?

    • KPMc

      According to NY Post…

      “Busted were consultants Dmitry Aronshtein, Victor Natanzon, Scott Berger and Mark Mazer — along with Mazer’s wife, Svetlana, and his mom, Larisa Medzon.”

      You and JetsFan can draw your own conclusions but CBS Local’s motivation has come in to question lately as far as I’m concerned.

      I’m still waiting for them to report on the leader of secretive religious sect in Brooklyn who allegedly raped and sexually abused his own daughters along with his sons.

      I’d provide a link for all you skeptics who will ask but CBS Local seems to be censoring some posts so maybe no links will get this one though. Do a Google search. I know it’s on the sites of NY1, WNBC-TV and NY Post as well as others… but not CBS Local.

  • pat

    Mayor Michael Bloomberg said it was a “major fraud perpetrated on city taxpayers.” Other than and your administration?

    Doesn’t Mayor Bloombergs daughter work for the very same “outfit” these criminals were from?? Oh wait let me guess she resigned right befor the arrests were made.

  • jane

    As a taxpayer I am struggling to pay my mortgage and the annual house taxes that has been going up along with all the amenities. Do these people who hire consultants play a pay in the cut back, Time for the mayor and his people to look at the blue collar that he hires as so call consultants.

  • emma

    Aren’t they the same people MTA is planning to hire?

  • whatever...yawn.

    Captain Renault: I’m shocked, shocked to find that gambling is going on in here!
    [a croupier hands Renault a pile of money]
    Croupier: Your winnings, sir.
    Captain Renault: [sotto voce] Oh, thank you very much

  • teetotaler

    Can you imagine how many fraudsters there are out there who have made and continue to make millions and will probably never be caught.

  • Phillip M Carver


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