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Mar 19, 2012 by |

SAIC to Pay $500 Million to Settle New York CityTime Fraud

SAIC to Pay $500 Million to Settle New York CityTime Fraud


A contractor hired to overhaul the payroll systems for several New York City agencies has agreed to pay $500.4 million to the U.S. Attorney’s office. This contractor, Science Applications International Corp (SAIC) has admitted to failure to investigate claims that they received kickbacks from a subcontractor, Technodyne LLC. This and other fraudulent activity had allegedly been in progress for longer than seven years.

Manhattan U.S. Attorney Preet Bharara has called this scheme “the single largest fraud ever perpetrated on the city,” and celebrates the reimbursement of $500 million to be paid by SAIC.

In addition to the settlement, the project manager has been arrested and charged with fraud and conspiracy. Prosecutors have charged 12 other defendants, including Technodyne – the alleged kickback company.

This and other similar fraudulent practices can be brought to justice with resources dedicated to fraud schemes that target or affect governmental agencies and their affiliates. For more information on Qui Tam or False Claims Acts and laws, contact us for a free consultation with a California lawyer.

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