Science Applications International Corporation, the contractor tasked with creating New York City’s CityTime payroll system, has agreed to pay the city $500 million, nearly 80% of the cost of the project, to settle allegations that the company was involved in a kickback scheme.  SAIC allegedly hired hundreds of consultants from TechnoDyne, driving the project’s costs to $620 million, in exchange for millions of dollars of kickbacks.  Although a whistleblower came forward in 2005, the company allegedly failed to report the complaint to the city.

According to Manhattan U.S. Attorney Preet Bahara, the settlement, which includes restitution and penalties, is believed to be the largest amount ever paid to resolve an alleged contract fraud involving a state or local government.  The U.S. Attorney’s office also agreed not to file criminal charges if the company adopts specified reforms and hires an independent monitor.

Read the entire article, “Contractor Strikes $500 Million Deal in City Payroll Scandal”