The Wall Street Journal reports that the development of New York City’s automated payroll system – known as CityTime – was the subject of significant fraudulent kickbacks. The US Attorney recently announced indictments of two New Jersey executives accused of paying off contractors involving over $600 million in city funds, and over $40 million in kickbacks. In total, 11 individuals have been charged with the fraud. The alleged corruption has proved to be an embarrassment to Mayor Michael Bloomberg, and the project itself has been subject to cost overruns, which has inflated the total cost from $68 million initially to over $700 million today.
For more information see: http://online.wsj.com/article/SB10001424052702303936704576398100826124240.html