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NYC to get compensation from CityTime payroll scandal


14:01, March 15, 2012

NEW YORK, March 14 (Xinhua) -- A U.S. attorney announced on Wednesday that New York City will be paid more than 500.4 million U.S. dollars by a computer contractor that conducted the biggest payroll scandal in the history of New York.

Science Applications International Corp, the main contractor that ran CityTime, a New York City payroll system, agreed to pay 370.4 million U.S. dollars in restitution to the city, as well as a penalty of 130 million U.S. dollars, to resolve a federal criminal investigation into its conduct.

"The corruption on CityTime was epic in duration," said U.S. Attorney Preet Bharara. "The CityTime project was corrupted to its core by one of the largest and most brazen frauds ever committed against the city of New York."

SAIC admits in a deferred prosecution agreement that it defrauded the city into overpaying for CityTime that was long- delayed and significantly over budget.

The fraud also involved more than 40 million U.S. dollars in kickbacks and an international network of shell companies created to launder cash, according to prosecutors.


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