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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 This material may not be published, broadcast, rewritten, or redistributed.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.)

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