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June 20, 2011 By News Staff
More details emerged Monday, June 20, in an ongoing fraud investigation connected to New York City’s modernized payroll and timekeeping system.
In a newly unsealed indictment, federal prosecutors announced that 11 people and one company have been charged with wire fraud, conspiracy, bribery and other charges in connection with CityTime, a Web-based system in the works for the past decade.
The project — initially projected to cost $63 million — ballooned to more than $600 million. A group of contractors working on the project is alleged to have overbilled and paid kickbacks on the project.
Manhattan U.S. Attorney Preet Bharara called the corruption “epic in duration, magnitude, and scope.”
“As alleged, CityTime served as a vehicle for an unprecedented fraud, which appears to have metastasized over time,” Bharara said.
Millions of dollars in bribes and kickbacks were allegedly laundered through overseas shell companies, according to the New York Daily News.
For more details, read the newspaper’s ongoing coverage and the prosecutor's offical announcement of the indictment.
You may use or reference this story with attribution and a link to
http://www.govtech.com/public-safety/Epic-Corruption-New-York-CityTime-System.html
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What? Epic corruption in New York City government? Who do they think they are? Chicago?
Not Chicago! Chicago has lost the crown for corrupt practices to the New Orleans area with the Miami area in 2nd place. New York, Chicago, and Detroit are major contenders. Among small towns, I think all will agree that Bell, California, set new benchmarks for the greed of their public officials.
Funny - my own mental list of most corrupt cities aligns almost exactly with skeptica1's list. At least the Chicagos and NYCs and New Orleanses attempt to hide their tracks. Detroit's particular contribution is how shameless they are at not even bothering to hide their corruption. I don't think any city can compete with them in that category.
This is a huge stain on Mayor Bloomy. This is an epic failure. The Mayor lays off Union Workers and hires these clowns to steal from taxpayers.