2 CityTime Fraud Suspects Flee Overseas: Authorities

Two consultants accused of helping steal tens of millions from the CityTime payroll project have fled to India, prosecutors said.

Pamda Allen and her husband Reddy Allen ran consulting firm Technodyne, which was supposed to help implement the new city employee time-keeping system. Instead, U.S. Attorney Preet Bharara said Monday, the pair helped orchestrate $40 million in overbilling and illegal kickbacks.

The Allens were among four more people charged in the corrupt scheme. 

"We have developed evidence that the corruption on the CityTime project was epic in duration, magnitude and scope," Bharara said.

From 2003 through 2010, investigators said officials with another firm, SAIC, also ripped off taxpayers by submitting bogus bills. Two officials with SAIC are accused of taking part in the massive scheme.

The company declined comment.

CityTime was a project meant to modernize the payroll system for New York City workers. The original cost was estimated at $63 million but soon mushroomed to more than $600 million.

"The top consultants on the project stand indicted," Department of Investigation Commissioner Rose Gill Hearn said, adding that more than $38 million has been frozen in accounts controlled by the suspects.

So far 11 people have been charged.

Charges range from bribery to wire fraud to money laundering with top counts carrying up to 20 years in prison if convicted. 

Contact Us