SAIC to Pay $500 Million to Settle New York CityTime Fraud
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Science Applications International Corp., the contractor hired to overhaul payroll systems for New York City agencies, agreed to pay $500.4 million under a deferred-prosecution agreement to resolve claims that it conspired to defraud the city.
SAIC admitted it failed to investigate claims that a manager of the CityTime payroll project directed staffing tasks to a single subcontractor, Technodyne LLC, in exchange for kickbacks, according to documents unsealed today by federal prosecutors. The McLean, Virginia-based company also failed to notify the city of the claims, according to the agreement.