NYC to be paid $500 million in SAIC fraud case

Reuters News
|
Posted: Mar 14, 2012 1:39 PM
NYC to be paid $500 million in SAIC fraud case

(Reuters) - New York City will be paid a little more than $500 million by a computer contractor that conducted the biggest fraudulent scheme against any municipality in history, Preet Bharara, the Attorney for the Southern District of New York, said on Wednesday.

A unit of SAIC Inc has agreed to pay $500.4 million to resolve its part of a federal criminal probe into fraud at CityTime, a New York City payroll system.

Science Applications International Corp agreed to pay $370.4 million in restitution to the city, as well as a penalty of $130 million, according to a deferred prosecution agreement made public on Wednesday. It also consented to the filing of a charge accusing it of conspiring to commit wire fraud.

(Reporting by Joan Gralla and Jon Stempel; Editing by Jan Paschal)