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Former Payroll Consultant Arrested In NY Scandal

NEW YORK (AP) -- The project manager who developed New York City's troubled CityTime payroll system has been arrested on charges that he received at least $5 million in kickbacks for his work.

Gerard Denault was awaiting a court appearance in Manhattan Friday after he was arrested Thursday in Danbury, Conn.

1010 WINS' Stan Brooks has more on the scandal.


Prosecutors said he laundered the kickback money through international shell companies. Authorities have said consultants including Denault bilked the city out of $80 million as they worked on a plan to help the city cut costs and save money.

The project was supposed to modernize the payroll system for city employees at a cost of $63 million. It has cost $700 million so far.

It was not immediately clear who would represent Denault in court.

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 This material may not be published, broadcast, rewritten, or redistributed.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