Feds: $600M-Plus Of NYC’s ‘CityTime’ Payroll Project Was Tainted

NEW YORK (AP / CBSNewYork) – Authorities now estimate more than $600 million that New York City paid for the “CityTime“‘ automated payroll project was directly or indirectly tainted.

U.S. Attorney Preet Bharara says it is truly jaw dropping. Prosecutors had previously put the figure at about $85 million.

“Unfortunately, in just a few months since the first announcement of arrests, we have developed evidence that the corruption on CityTime was epic in duration, magnitude and scope,” Bharara said on Monday.

The new estimate came 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.

WCBS 880’s Irene Cornell Follows The Money

Monday’s indictment alleges the defendants conspired to hire consultants the city didn’t need. They’re also accused of inflating charges and consultants’ work hours.

There have now been a total of 11 people arrested and indicted, along with a consulting company said to be at the heart of the fraud.

(TM and Copyright 2011 CBS Radio Inc. and its relevant subsidiaries. CBS RADIO and EYE Logo TM and Copyright 2011 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)

More from Irene Cornell
  • SusanLaws

    It’s not just NYC. This is an inevitable result of outsourcing IT projects – eventually we loose the ability to do the technical work, and the ability to oversee the work. These kinds of highly complex projects cannot be managed by bureaucrats – they need to be managed by technically competent people.

    This does not even begin to deal with the issue of incenting politicians who need money to lay off highly-skilled IT workers and replace them with young, poorly-paid contractors (usually imported guest workers) so their political friends can rake in tens or hundreds of millions of dollars in the spread, as they invoice the clients for $125/hour or more for the work that would previously have been done by a skilled, senior programmer making $85 or $100K a year as a government employee and is now done for a pittance by some new graduate from the INdian Institute of Technology.

    In complaining about similar sitatuations on technical newslists, I get reports of things like this happening all over the country.

  • rob

    How much money Bloomberg got from all this nobody will ever know. But one thing we do know is this mayor is the worst thief NYC has ever had. This guy is a professional when it comes to money…being stolen and put into his pockets.

  • The Facts

    Follow the money and let the chips fall where they may. Where was the accountability at City Hall (mayor, public advocate, city council)? Seems like only the comptroller got wind of this thanks to a reporter from the Daily News named Juan Gonzalez.

  • rocky

    When are the FEDS going to investigate our great Mayor for under the table PAY OFFS

  • EricAdamsSleepswithLittleBoys

    How much money did Bloomer’s mother get? Did she will it to him and then when he could not get it fast enough, he killed her? STOP THE FUNERAL. STEAL THE BODY. CONDUCT AN AUTOPSY AND MAKE SURE THAT HE DIDN’T HAVE HER MURDERED!!!!!

  • Bloomturdsbaby

    Another well run bloom burg project

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