Sunday, April 10, 2011

The CityTime Cover Up


Breaking City Time 3 Found Guilty For A IT Crime That Could Have Been Stopped
 
Biggest Scandal in NYC History
Three men involved in $100 million CityTime fraud sentenced to 20 years in prison.(NYDN) Gerard Denault, Mark Mazer and Dmitry Aronshtein were found guilty in November of siphoning away nearly $100 million associated with CityTime in a kickback and money laundering scheme. A Manhattan federal judge gave the men the maximum sentence for each count Monday, but will allow the sentences to be served concurrently, meaning each will spend about 20 years behind bars. Three men who "treated the city like their own giant ATM" by cheating the city out of millions of dollars on the costly CityTime project were sentenced to 20 years in prison Monday in a standing room only courtroom.* Three Men Sentenced to 20 Years in CityTime Scheme (NYT) Federal prosecutors said the defendants were responsible for more than $100 million in losses to New York City through the payroll modernization project.* CityTime head, accomplices sentenced to 20 years in prison (NYP)


Not On City Employee Has Been Indicted . . .  Not One Reform Has Been Put in Place to Stop Corrupt Contracts


"The city did little to prevent their brazen schemes," Judge Daniels said, calling the city's current contracting process an "invitation not just for corruption but for waste and fraud." "Until significant reforms are instituted ... criminal prosecutions of fraud against the city will continue," the judge said. In November, a jury found the trio guilty of siphoning away nearly $100 million associated with CityTime in a kickback and money laundering scheme that Manhattan U.S. Attorney Preet Bharara called "one of the most brazen frauds" in city history. Mazer, 50, directed millions to crooked staffing companies, then took kickbacks through overseas bank accounts.
He gobbled up about $30 million in just five years. Denault, 52, who worked on CityTime as a bigwig with contractor S.A.I.C., had a similar con. With Mazer and Denault running the show, the project, budgeted at $63 million in 1998, ballooned to over $600 million.Denault took secret cash kickbacks below a Manhattan massage parlor, and defendants stored more than a million dollars in cash in safe deposit boxes on Long Island, jurors heard in the month-long trial. In all, eight people have been convicted in connection with the scam. Our Juan Gonzalez's column: "By slapping stiff 20-year sentences on the main CityTime project thieves, Manhattan Federal Judge George Daniels sent some clear messages Monday to the burgeoning world of government computer contracts. First: Crooked IT consultants can’t simply rip off taxpayers for millions of dollars and then expect to get treated lightly. Second: City officials failed miserably in doing oversight and need to revamp how they hold their consultants accountable."

Mayor, Council, DOI Knew Since 2003 That Contract Was Corrupt  . . .  But Nothing Happened 

Cover-Up
Flashbacks
 CityTime contractor to pay $500M in fraud - New York Daily News * Contractor in NYC's CityTime Scandal Avoids Prosecution with ...Boss Tweed would be proud - New York Daily News * CityTime CNN I report Whistle blowing post that called them all out including Jelly Bean(Jan 2009) * Time-Out Proposed For CityTime System - City Limits Magazine(May 19, 2008) * City Council to probe CityTime; timekeeping and payroll system(Dec 18, 2009) * Liu Crows as CityTime Investigation Widens(NYO) * Richard Valcich wrote a letter to SAIC complaining of waste and bloat in the main contract.  In 2003 Valcich wrote: the city had spent "approximately $35 million on CityTime and does not have a tangible system to show for it. Ex-payroll boss blew whistle on CityTime in scathing 2003 letter and nothing was done(NYDN) * Letter found by Liu reveals shady CityTime job offer pitch in '02 from main contractor to Valcich.(NYDN) A second reason why the city knew was a CNN IRerort in 2009 by an anonymous city worker who said that the project was corrupt. 2 of the three people mentioned in the report have been indicted * Daily News' Juan Gonzalez published a report how several whistleblowers who when to DOI in 2008 to report corruption in the CityTime contract were ignored. * * $450 million scam couple flee before CityTime indictment(NYDN) * U.S. Attorney: CityTime Project "Corrupted To Its Core"(NY1) * The city official who was the project’s point person, Joel Bondy, resigned in December and had close ties to the suspected mastermind of the schemeClocking CityTime, the craziest contract ever | Crain's New York ...* Behind Troubled City Payroll Project, Lax Oversight and One Powerful Insider (NYT)  *CityTime Scandal Contractors Tried to Hire City Critic (Village Voice)
CityTime, MTA and DOE Contract Scandal (True News)


Holtzman Should Give the City Her Lobbying Fees From From the Corrupt Citytime
Ms. Holtzman's lobbying firm was paid $120,000 in 2009, $90,000 in 2010, and $200,000 in 2011 by SAIC, the maker of CityTime, to lobby New York City politicians in order to keep NYC.gov paying CityTime's huge cost overruns. Eventually, it was estimated that SAIC over-billed New York City by $600 million, and Ms. Holtzman was one of the principal lobbyist being paid to keep that gravy train rolling. Her lobbying firm was paid $410,000 to keep the CityTime gravy train rolling into Ms. Holtzman's station. Holzman lobbied Borough President - Queens, NYC Council Members. Comptroller's Office, Office of Management & Budget (OMB), Office of The Mayor (OTM), Office of the Contract Service. The city's lobbying database shows a small army of former prominent city officials who did work for SAIC and Technodyne. Defense contractor SAIC has retained former City Comptroller Liz Holtzman, Peter Powers, who served as Mayor Giuliani's top deputy Mayor for operations, and Seth Kaye, who worked in both the Giuliani and Bloomberg administrations. Technodyne's lobbyists include former Bloomberg Department of Information Technology and Telecommunications Commissioner Gino Menchini and Agostino Cangemi, who also held key posts in both administrations. National Strategies, the lobbying firm that employs Menchini and Cangemi, says the firm had no role in CityTime and discontinued working "on general business procurement" for Technodyne as soon as the criminal allegations surfaced. (Another Technodyne lobbyist of record, Sal Salamone, was director of the Mayor’s Office of Computer Planning and has worked for SAIC.) 
_____________________________
CityTime 3 Guilty - What Did the City Know?
The largest and most brazen fraud in city history. 
The payroll management system, originally budgeted at $63 million, that ballooned to $700 million, thanks in part to millions in kickbacks.
3 Found Guilty in CityTime Corruption Trial (NYT) Mark Mazer, a former consultant to the city’s Office of Payroll Administration, was convicted of fraud and other charges; he was accused of taking about $30 million in kickbacks for steering work to favored contractors on the project, called CityTime. Originally budgeted at $63 million, the cost of the project exploded to about $700 million by 2011, with almost all of the more than $600 million that the city paid to the prime contractor, Science Applications International Corporation, or S.A.I.C., “tainted, directly or indirectly, by fraud,” an indictment charged.
 _____________________________________
911 System Cost Overruns Fines No Legal Cases Again
Verizon to Pay City for Cost Overruns(NYT) Verizon has agreed to pay New York City at least $50 million for falling behind schedule in developing software for the new 911 system that then failed to meet city standards. * Bloomberg, Liu agree on $50M Verizon settlement over 911 system work(NYDN)
More On CityTime Cover Up

Not On City Employee Has Been Indicted . . .  Who Was Watching the Books for the City?

ridiculous in CityTime corruption trial(NYDN) A key defendant in the CityTime corruption trial repeatedly stumbled and contradicted himself on the witness stand Tuesday during the last day of testimony.*Accused CityTime scammers ‘treated city like ATM machine’(NYP) The accused mastermind behind the massive CityTime payroll scam and his two trusted accomplices made out like bandits on the taxpayers’ dime, prosecutors told a Manhattan federal jury on Tuesday in closing statements at the high-profile trial. “Each one of these three men made a fortune,” said Assistant US Attorney Andrew Goldstein, referring to CityTime kingpin Mark Mazer and co-defendants Gerard Denault and Dimitry Aronshtein. “They treated the city like their own giant ATM machine.” The government alleges Mazer pocketed $30 million through the kickback scheme while Denault made $9 million and Aronshtin $5 million. SAIC last year paid the city $500 million to avoid prosecution for profiting from the scandal, in which the cost of a new, high-tech municipal payroll system ballooned from $63 million to more than $600 million.
__________________________________________________________________________________
CityTime Trial

 
Mayor Bloomberg knew CityTime contractors were getting rich on taxpayer money, and his administration signed off on it, defense lawyers told the jury during opening statements in the trial on what has been dubbed one of the “largest and most brazen” frauds in NYC history.  Juror’s Gesture Livens CityTime Fraud Trial(NYT) Judge George B. Daniels questioned the juror after a defense lawyer said she had made the outburst against his client.Federal prosecutors depicted the three men accused of bilking New York City out of tens of millions of dollars through the CityTime payroll system as fraudsters who rigged the system to make themselves a combined $44 million, The Wall Street Journal reports * Trial Begins for Architects of Pay System(WSJ) * Bloomberg administration signed off on CityTime expenses: lawyers(NYDN)
The CityTime Cover Up(True News) * Juror ‘flips the bird’ at CityTime payroll scam defendant(NYP) * Juror in Tussle Over Taxi Is Taken Off Fraud Case(NYT) Juror No. 5 in the CityTime trial, who clashed with a defendant over a cab, is said to have admitted reading an article about the case.

Bloomberg Unlikely to Testify In Citytime Trial

Strange Not One City Employee Has Been Charge With the CityTime Corruption, Now the Mayor May Not Testify. . .  Not Getting to the Cause of the Biggest Scandal in NYC History
Judge George Daniels of Federal District Court indicated that he was unlikely to approve a defense lawyer’s request to have Mayor Michael Bloomberg testify as a witness in a fraud trial over New York City’s failed CityTime program, Bloomberg Is Unlikely to Testify in Fraud Trial, Judge Says(NYT)

CityTime Payroll System Scandal

________________________________________
CityTime Trial

Gonzalez: Alleged CityTime crooks demanded fast payment for fake invoices of more than $5M per month, witness says(NYDN)

___________________________________________________________________________________
911 Failure Warning

“If the city withheld any documents from my office during the course of our audit into the 911 system, they violated the City Charter,” Comptroller John Liu 
Or is a city contractor Gartner trying to cover its ass to protect itself from a lawsuit between city fire unions and City Hall.  Fire officials acknowlede that emergency-response times were actually on the rise — instead of decreasing — since the new system was installed.




Mayor, Comptroller Thompson and City Council Unable to Stop Corruption.  Why?
Another defendant, Gerard Denault, S.A.I.C.’s project manager for CityTime, was accused of taking $9 million in kickbacks, and also was convicted on Friday of fraud and other charges. He was acquitted on a count of conspiracy to commit bribery. A third man, Dmitry Aronshtein (whose name has also been spelled Dimitry) was convicted of paying bribes and kickbacks in return for receiving work on the CityTime project.* CityTime scammers guilty(NYP) * Three CityTime consultants found guilty of scamming NYC in massive fraud(NYDN)   Mark Mazer, the mastermind of the scheme and lead defendant in the trial, and Gerard Denault, both face life in prison. A third consultant, Dimitry Aronshtein faces up to 20 years in prison.* Time for justice (NYDN Ed) CityTime convictions end a long, costly fraud saga



Holtzman Should Give the City Her Lobbying Fees From From the Corrupt Citytime Project
Ms. Holtzman's lobbying firm was paid $120,000 in 2009, $90,000 in 2010, and $200,000 in 2011 by SAIC, the maker of CityTime, to lobby New York City politicians in order to keep NYC.gov paying CityTime's huge cost overruns. Eventually, it was estimated that SAIC over-billed New York City by $600 million, and Ms. Holtzman was one of the principal lobbyist being paid to keep that gravy train rolling. Her lobbying firm was paid $410,000 to keep the CityTime gravy train rolling into Ms. Holtzman's station. Holzman lobbied Borough President - Queens, NYC Council Members. Comptroller's Office, Office of Management & Budget (OMB), Office of The Mayor (OTM), Office of the Contract Services

CityTime ATM Nobody Noticed?
Not One City Employee Has Been Indicted 

ridiculous in CityTime corruption trial(NYDN) A key defendant in the CityTime corruption trial repeatedly stumbled and contradicted himself on the witness stand Tuesday during the last day of testimony.*Accused CityTime scammers ‘treated city like ATM machine’(NYP) The accused mastermind behind the massive CityTime payroll scam and his two trusted accomplices made out like bandits on the taxpayers’ dime, prosecutors told a Manhattan federal jury on Tuesday in closing statements at the high-profile trial. “

Each one of these three men made a fortune,” said Assistant US Attorney Andrew Goldstein, referring to CityTime kingpin Mark Mazer and co-defendants Gerard Denault and Dimitry Aronshtein. “They treated the city like their own giant ATM machine.” The government alleges Mazer pocketed $30 million through the kickback scheme while Denault made $9 million and Aronshtin $5 million. SAIC last year paid the city $500 million to avoid prosecution for profiting from the scandal, in which the cost of a new, high-tech municipal payroll system ballooned from $63 million to more than $600 million.



City knew of $2B 911 fiasco in 2011 (NYP) Mayor Bloomberg’s controversial $2 billion effort to modernize the 911 system — billed as a cure-all for every emergency-communications ill — was labeled a boondoggle by the city’s own experts two years ago, The Post has learned. The project “does not have a defined business case” for spending $2 billion on a new 911 system, Gartner Consulting told City Hall in a March 2011 report marked “draft — confidential.” In bureaucratic-speak, Gartner was telling Hizzoner “the program should not go forward” because the city hadn’t shown a legitimate need, as required by federal guidelines.

Problems Outlined in 2011 Reporter Were Never Fixed
* Repeated failures of the emergency-response software were reported but were not fixed. * The NYPD refused to merge its system for dispatching units with that of the FDNY and the EMS — although that was a key reason for creating the new system. And the departments would not work together to create a unified management structure for the new system. * The city agencies involved in the plan would not assist the system’s architects in setting up the new 911 network.



The Big Guys City Employees Who Pocketed Billions in Tech Funds Are Not Indicted But the City Goes After 2 Old Ladies that Pocketed $445
City sacks sibs (NYP) $445 scam on 150G salary  Two sisters with a combined 56 years working at the city’s Finance Department have been sacked after being found guilty of ripping off $8.40 a day, the price of a lunchtime sandwich. Laura and Karen Slabinsky got the ax for claiming separate auto allowances on 53 days that they traveled together to work assignments in the same car, according to public records. Their total haul between September 2010 and September 2011: $445.20. Their combined salaries as tax assessors: $151,010 a year. CityTime contractor to pay $500M in fraud - New York Daily News * Contractor in NYC's CityTime Scandal Avoids Prosecution with ...Boss Tweed would be proud - New York Daily News Still No Arrests CityTIme NYC Gov officials but 2 sisters arrested Dept of Financing r u kidding me?(Artist)

The Bloomberg administration demoted a high-ranking agency official on Wednesday after she admitted falsifying time sheets and collecting more than $22,000 that she had not earned.(NYT) * CityTime Preet Bharara Where are the Arrests of NYC Gov Officials? The city official who was the project’s point person, Joel Bondy, resigned in December and had close ties to the suspected mastermind of the scheme. More on the CityTime Scandal * CityTime CNN I report Whistle blowing post that called them all out including Jelly Bean


NYC Tech Disasters Continue
911 Lost Data; CityTime Sandal; Wireless Network Outdated;  CityNet interrupted and CitiServ Confusion

City’s Top Technology Official Resigns Amid Clashes Over Troubled Projects(NYT)The departure of the technology official, Carole Post, was announced on Thursday, a day before Mayor Michael R. Bloomberg said the city would challenge a judge’s order to release what is said to be a sharply critical consultant’s report on an over-budget, much-delayed modernization of the city’s emergency calls and dispatching system.* With City Appeal, 911 Report Remains Secret (WSJ) 
Beside 911 non working billion dollar fix up.  Cost of an upgrade to CityNet, the city’s internal data network; continuing problems and shortcomings with CitiServ, a data center that was supposed to consolidate dozens of city agency servers; and a shortage of users for NYCWin, a secure municipal wireless network. The wireless network, for example, which cost $500 million to build and costs $40 million a year to operate, is underused and arguably outdated. CityNet has experienced interruptions in service, despite a system of redundant fiber optic rings intended to enable it to withstand a breakdown. And the $95 million CitiServ project has confounded agency officials, with DoITT struggling to migrate old systems into the new data center.
Ms. Post, who is to remain in her job until her replacement is named, is leaving, the city said, to become an executive vice president and the first chief strategy officer at New York Law School, where Mayor Bloomberg’s former counsel, Anthony W. Crowell, is president and dean.  3rd Bloomberg DOITT commissioner out. Crowell was special counsel on nypd and fdny pensions....(google Susan Edelmam NYPD FDNY pensions - read how pensions mismanaged)  Rudy's deputy mayors turned lobbyists for SAIC which caused the CityTime scandal.


More Evidence of Billion Dollar 911 Fix Up Failure
THE FIRE UNION has gotten roughly 1,600 complaint reports from its members since early 2009 about bunk info provided to FDNY crews by the city’s revamped 911 system

New Tech DOIT Commissioner Out
 Bloomberg’s Commissioner for Information Technology and Telecommunications Carole Post is leaving her job to take a top position at the New York Law School.

Emergency system spewing bogus information (NYDN) Correction Log Sheets dispatching wrong data * 911 SOS: Taxpayers hit with bill (NYP)


From the CityTime Scandal to the 911 Report What is Mike Hiding?
Judge compares Bloomberg's refusal to release report on city's 911 system to Nixon's actions during Watergate
Mike ordered to bare 911 report(NYP) * Judge Tells Bloomberg to Release 911 Report (NYT) * Court Orders City to Open 911 Records*WSJ)* 411 on 911 City told to release data Comparison  to Wat(NYDN)

Mayor refuses to release 911 system report, but court date looms (NYP)* Bloomberg’s obsession with data-driven government has proved to be a double-edged sword.








City Council the Fix is Fixed

City Hall Admits Mishandling Technology Projects(NYT)  After 11 arrests by the feds of those involved with the CityTime contract the Bloomberg administration admitted the reality when they agreed to support a city council bill alert them when a city contract runs into problems.  A lot of good that will do.  On May 8 2008 the city council held hearing on the troubled Citytime contract and the corruption when on for 3 more years * Cas Holloway admitted at a City Council hearing that the Bloomberg administration had bungled some of its contract with outside technology consultants, and pledged greater oversight.

 6

6

6

City Council is Shocked That There Was Corruption in the CityTime Contract

How Will Being Alerted Help Them Stop Bad Contracts When They Knew About CityTime Corruption and Did Nothing?

Time-Out Proposed For CityTime System - City Limits Magazine(May 19, 2008) * City Council to probe CityTime; timekeeping and payroll system(Dec 18, 2009)

 





Holtzman Taking CityTime Lobbying Payoffs and Wants Weiner Seat
As reported by City Hall on Friday, the Queens Democratic Party is seriously considering picking former congresswoman Liz Holtzman as the Democratic nominee in the race to replace Weiner. But one big problem for Holtzman could be her recent lobbying work on behalf of the giant defense firm SAIC, the main contractor on the scandal-scarred CityTime project. In the first four months of 2011, Holtzman was paid a whopping $80,000 to lobby the comptroller's office and mayor's office on CityTime.* "Holtzman could likely be trusted not to run against Crowley or Rep. Gary Ackerman." * The Bringing Down of Liz Holtzman * CityTime Payroll Scandal a Cautionary Tale(WNYC) * Elizabeth Holtzman Thinks She’s Ideal for Weiner’s Seat(NYT) * The Special Election Timetable (YNN) * Elizabeth Holtzman Interested in Running for Weiner's Seat(Forward) * NY9: “Whoever wins the seat may have little time to enjoy it.” [Jewish Forward Daily] * Candidates interviewed by the Brooklyn/Queens GOP include: Would-be GOP candidates in NY-9: Asher Taub, Andy Sullivan, Juan Reyes Tim Cochrane, Col. Fred Britton, Steve Schiffman, Robert Turner. NOT interviewed: NYC Councilman Eric Ulrich, Assemblyman Doc Hikind, Civil Court Judge Noach Dear.






June 29, 2011

31 Days After Bloomberg Says CityTime Did "A Pretty Good Job" He Now Wants Our Money Back
 What happens if mayor takes the CityTime to court and put Bloomberg on the stand to ask him if he believes the contractor did a good job?

 : We Want The $600 Million We Lost In The Payroll Back.. * Bloomberg Wants $600 M. Refund From CityTime Contractor(NYO) * Bloomberg demands refund from CityTime contractor(NYP) * NYC has 47,000 private contracts. Here's the "jaw-dropping" story of what happened when it dropped the ball on 1(WNYC)


Mayor Mike Bloomberg says city did 'pretty good job' with CityTime ...(NYT)


Son of Citysource Will Also Cost the City Millions More
City system taking an even bigger budget byte(NYP) The city’s much-hyped personnel computer system — already burdened by delays and mammoth budget overruns — is expected to cost 10 percent more than the most recent City Hall estimate. NYCAPS, the New York City Automated Personnel System, was originally budgeted at $66 million. Now the city Independent Budget Office says the cost of NYCAPS is $377.2 million, up from $343 million.

 "Another CityTime" — Letitia James
“Another CityTime” is how Councilwoman Letitia James (D-Brooklyn) described the benefits-tracking system, comparing it to the fraud-ridden $700 million automated-payroll project that has become the biggest scandal of Mayor Bloomberg’s tenure. “Same problem, same lack of oversight, same lack of transparency, and we, the taxpayers, pay the price again and again,” she said. CAPS is supposed to replace paper records for benefits and human-resource functions for more than 330,000 city workers.  A Bloomberg spokeman said  It’s “a fully functional system used successfully every day by thousands of city employees, and the system has increased the efficiency and cost effectiveness of our human-resources operations,” he said.



June 28, 2011
Mayor Tries to Take Pressure Off of CityTime Scandal By Accepting Blame and Saying He Do Better Next Time

Mike: I share blame in CityTime fiasco(NYP) * Mayor Bloomberg Defends Record(WSJ) *  Bloomberg: My Bad About That Whole $740 Million CityTime Mess(Gothamist) * Corruption: Accused crook in CityTime scandal can’t afford lawyer. [Bruce Golding / NY Post]

CityTime, MTA and DOE Contract Scandal(True News)







June 27, 2011

I Am Sorry CityTime Investigation Over

Mayor Takes Partial Blame For CityTime Scandal

 "Hopefully we learn and don't make the same mistake again."Bloomberg

Can you imagine if Nixon told the Washington Post after the first Watergate Story that he is sorry and should have paid more attention to what his staff was doing and the Post never continued its investigation, because he said it would not happen again.  The dumbing down of reporters and the changing culture of the press from watch dogs for the average Joe to corporate owners of the media who use their papers to make money for themselves.  The mayor has reason to optimistic  that the press will not push him to come up with answers to who in his administration was in on the corruption.  We already know DOI looked the other way when the former head of the Office of Payroll Richard Valcich sent a letter in 2003 to DOI outlining the corruption that was going on.   
4
We also know from the reporting Juan Gonzalez that a whistleblowers wrote a letters to DOI in 2008 to warn them of fake times sheets and hours claims where being made my CityTime.  If Quinn wanted to get to the bottom of who in the city was involved in the CityTime scandal she would call Gia Morris was the Inspector General at the City Finance Dept who job was to investigate CityTime.  Quinn can find her working at the Dept. of Corrections where she was quietly transferred a few months ago.  

Forgetabout the press getting to the bottom of city workers involvement in the CityTime scandal that job if let to the U.S. Attorney and Comptroller Liu who have uncovered what the head of the southern district Preet Bharara called the largest corruption scandal in the city's history. If you watch the infrocommerical for Deprtment of Investigations Commissioner Rose Gill Hear in which the reporter never asked her about the Valcichset 2003 letter or the whistleblowers that went to her with proof of corruption at CityTime in 2008,  you would see the need for many reforms in how the city investigates corruption. * Mayor Bloomberg's CityTime Mea Culpa(NYDN)

CityTime Contractor Repays Nearly $2.5M To City(NY1)



Blame Bloomberg For CityTime Scandal

The ongoing CityTime payroll scandal has resonance for those who remember the 1986 scandal that stripped the squeakyclean veneer off the administration of Mayor Ed Koch, arguably one of the most popular mayors in New York City history. The Parking Violations Bureau scandal destroyed Koch’s administration, many of his friends and allies and signaled the end of his political career. While Koch was never implicated, then-columnist Jimmy Breslin said of Koch, “[He] worked incessantly at knowing nothing.” The daily papers lived in the story for months, drawing it ever closer to Koch and his closest friends and political allies. Those who don’t remember the scandal should know that one of Koch’s allies steered a $22.7 million contract for hand-held scanners to another top Koch ally. Bloomberg’s scandal, CityTime, cost the city and its taxpayers numbers that make Koch’s PVB scandal look like small potatoes. According to federal prosecutors, all of the $600 million paid to the company was tainted – part of a massive fraud that was perpetrated on the city during Bloomberg’s watch and under the eyes of those the city hired to monitor the program – who have also been indicted. Why was Koch excoriated by the press in 1986, while Bloomberg seemingly is getting a free ride from the daily press today? We think that Bloomberg gets a free ride because of the millions in charitable donations he throws around – including some to the publishers’ favorite charities. The New York Post said in a recent editorial, “When that much money goes up in smoke and nobody notices, there has been a fundamental [management] breakdown. Mike needs to fix it.” Whatever the case, the scandal should be laid at Bloomberg’s door just as the PVB scandal was laid at the door of former Mayor Ed Koch. That probably won’t happen, however, because the daily papers have been ducking the question of Bloomberg’s responsibility for years, ever since they backed his destroying the will of the voters to gain a third term. Everybody is just looking the wrong way, and the city suffers.







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


Part II: Bloomberg
11 CityTime Workers Have Been Indicted So Far

“Today’s announcement unfortunately sheds more light on just how flawed the management of the CityTime project was,” said Comptroller John C. Liu. “According to the indictment ‘virtually the entirety of the more than $600 million that was paid to SAIC was tainted directly or indirectly, by fraud.’ New Yorker’s can hope that this will eventually lead to restitution for the hundreds of millions of dollars paid on an out-of-control project, years overdue and, ten-fold over budget.” Two Executives Are Charged in Payroll Scandal * Carl Bell, was the chief systems engineer for the New York office of the contractor, Science Applications International Corporation or S.A.I.C. pleaded guilty to charges including two counts of wire fraud conspiracy, one count of wire fraud and money laundering conspiracy. 2 CityTime Fraud Suspects Flee Overseas: Authorities(NBC) * Mayor Mike Bloomberg Technodyne Arrests CityTime SAIC ScandalTax Payers Want Full Refund! * Liu Crows as CityTime Investigation Widens(NYO)



Containment Journalism On CityTime/NYPD Ticket Scandal
The Press is limiting itself to reporting on the CityTime Scandal only when the U.S. Attorney indicts someone.  We do not know what role the city officials Mark Page or resigned Joel Bondy who he supervised as head of Office of Payroll Administration.  Both men knew there were problems with the CityTime contract as the cost went up over 1000% ($63 million to $700 Million).  This is not the only corruption story the press is covering passively.  We still do not know which city official and or council members had there tickets fixed by the NYPD.

  
City Officals All Knew About CityTime Corruption

Where Are the Reporters Demanding Answers From These Guys?

Page, Bondy, Bloomberg, DOI all knew about CityTime in 2003, when the former head of the city's Office of Payroll Administration Richard Valcich wrote a letter to SAIC complaining of waste and bloat in the main contract.  In 2003 Valcich wrote: the city had spent "approximately $35 million on CityTime and does not have a tangible system to show for it.* Ex-payroll boss blew whistle on CityTime in scathing 2003 letter and nothing was done(NYDN) " Letter found by Liu reveals shady CityTime job offer pitch in '02 from main contractor to Valcich.(NYDN) A second reason why the city knew was a CNN IRerort in 2009 by an anonymous city worker who said that the project was corrupt. 2 of the three people mentioned in the report have been indicted


City Council
Why at a City Council oversight hearings about CityTime the past few years, no one at OPA or City Hall ever mentioned the Valcich letter?












Orwellian Journalism
To Control Not Inform
Today's reporters have a value system that allows them to write public relations stories of a mayor trying to avoid blame in what the U.S. Attorney from the Southern District Preet Bharara has called the largest municipal scandal in history and still consider themselves journalists.  This is not the journalism that John Peter Zenger practised in 1735 when he was jailed by the British for publishing newspaper stories that exposed corruption in the kings administration.  As a kid we used to joke about government propaganda published by the Soviet Union news organizations like Provida.  Who knew that in 2011 in New York the culture of journalist would sink so low to limit coverage to the governments line. Thomas Jefferson understood the damage being done to us when he said, "An informed citizenry is the only true repository of the public will."  No other story points out have far in value journalism has sunk today than coverage of the CityTime scandal.


How the NYT Covered the Mayors Request for a Refund by CityTime


In an article by David Chen it what he left out that tells the real storyBloomberg Seeks $600 Million Refund From CityTime Company(NYT).  While Chen included the mayor spin line  “Certainly nobody paid as much attention to it as they should have, from me on down.” He left out why the administration and DOI despite being warned several times failed to or cover up the corruption at CityTime.  Chen did now write about the former head of the city's Office of Payroll Richard Valcich letter that blew the whistle on CityTime corruption in 2003.  Or how the Daily News' Juan Gonzalez published a report how several whistleblowers who when to DOI in 2008 to report corruption in the CityTime contract were ignored.  Questions the NYT could have ask was why former Comptroller Thompson never audited CityTime when it was his responsibility?  Why A woman who worked for DOI was removed from the CityTime contract a few months ago and give a job a corrections?  Was DOI Covering Up Corruption in CityTime? Was there no city employee in the corruption?

How the WSJ Covered the Mayors Request for a Refund by CityTime

The WSJ which is supposed to be in a newspaper war with the NYT covered the CityTime scandal the exact same way.  Report Michael Howard Saul wrote the mayor spin and none of the background what caused this corruption to happen over a decade.  Saul wrote "Certainly nobody paid as much attention to it as they should have, from me on down," Mr. Bloomberg said on Monday. "I think it's fair to say we could have and should have watched it more carefully."  Saul even added how the mayor was limiting damage by demanding the money back. "If the mayor recoups a large sum of money, it could blunt some of the political damage Mr. Bloomberg sustained for failing to detect what prosecutors have called one of the largest frauds in city history." Nothing about Valcich 2003 letter, whistleblowersgoing to DOI years ago or of the possible cover up by the administration.  32 days ago the mayor said CityTime did a good job.Mayor Demands SAIC Repay City(WSJ) * Budget: Gap closed this year is same size as money Bloomberg wants back from CityTime contractor. [Bob Hennelly / WNYC]

DOI: Investigations are Political (True News)  

 

I Am Sorry CityTime Investigation Over

Mayor Takes Partial Blame For CityTime Scandal

 "Hopefully we learn and don't make the same mistake again."Bloomberg

Can you imagine if Nixon told the Washington Post after the first Watergate Story that he is sorry and should have paid more attention to what his staff was doing and the Post never continued its investigation, because he said it would not happen again.  The dumbing down of reporters and the changing culture of the press from watch dogs for the average Joe to corporate owners of the media who use their papers to make money for themselves.  The mayor has reason to optimistic  that the press will not push him to come up with answers to who in his administration was in on the corruption.  We already know DOI looked the other way when the former head of the Office of Payroll Richard Valcich sent a letter in 2003 to DOI outlining the corruption that was going on.   
4
We also know from the reporting Juan Gonzalez that a whistleblowers wrote a letters to DOI in 2008 to warn them of fake times sheets and hours claims where being made my CityTime.  If Quinn wanted to get to the bottom of who in the city was involved in the CityTime scandal she would call Gia Morris was the Inspector General at the City Finance Dept who job was to investigate CityTime.  Quinn can find her working at the Dept. of Corrections where she was quietly transferred a few months ago.  

Forgetabout the press getting to the bottom of city workers involvement in the CityTime scandal that job if let to the U.S. Attorney and Comptroller Liu who have uncovered what the head of the southern district Preet Bharara called the largest corruption scandal in the city's history. If you watch the infrocommerical for Deprtment of Investigations Commissioner Rose Gill Hear in which the reporter never asked her about the Valcichset 2003 letter or the whistleblowers that went to her with proof of corruption at CityTime in 2008,  you would see the need for many reforms in how the city investigates corruption. * Mayor Bloomberg's CityTime Mea Culpa(NYDN)






June 21, 2011
Manhattan US Attorney Preet Bharara called CityTime"truly jaw-dropping" and "epic in duration, magnitude and scope." 
"Corrupted to its core by one of the largest and most brazen frauds ever committed against the City of New York” Bharara

The defendants are accused of defrauding the city by hiring consultants who were not needed, inflating the rates charged for consulting work and — in an irony, given the project’s subject matter about timekeeping — inflating the hours worked by consultants. $600 mil CityTime 'swindle'(NYP) * City Payroll Project Was Riddled With Fraud, U.S. Says(NYT) * CityTime Project Awash in 'Fraud'(WSJ) * $450 million scam couple flee before CityTime indictment(NYDN) * U.S. Attorney: CityTime Project "Corrupted To Its Core"(NY1)


The NYT Says: No city official has been implicated

Investigators suggested that the Bloomberg administration, which was deeply invested in the project and anxious for the technology to work, had failed to recognize what Mr. Bharara said was a scheme that “appears to have metastasized over time.”  DOI's Ms. Gill Hearn said, “The individuals charged today understood, exploited and preyed upon the city’s desire to modernize its timekeeping and payroll operations for more than 160,000 employees.” Marc LaVorgna, a spokesman for Mr. Bloomberg, said: “Our Department of Investigation uncovered this fraud, bringing it to federal prosecutors


Cover Up I
The Bloomberg Administration Knew of CityTime Corruption in 2003
Page, Bondy, Bloomberg, DOI all knew about CityTime in 2003, when the former head of the city's Office of Payroll Administration Richard Valcich wrote a letter to SAIC complaining of waste and bloat in the main contract.  In 2003 Valcich wrote: the city had spent "approximately $35 million on CityTime and does not have a tangible system to show for it.* Ex-payroll boss blew whistle on CityTime in scathing 2003 letter and nothing was done(NYDN) " Letter found by Liu reveals shady CityTime job offer pitch in '02 from main contractor to Valcich.(NYDN) A second reason why the city knew was a CNN IRerort in 2009 by an anonymous city worker who said that the project was corrupt. 2 of the three people mentioned in the report have been indicted * Mike Bloomberg Administration DOI Failed CityTime SAIC * Want $460 Million? Just Get NYC Gov't Contract And Steal It!(Gothamist)



Cover Up II
Why at a City Council oversight hearings about CityTime the past few years, no one at OPA or City Hall ever mentioned the Valcich letter?









June 20, 2011




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


Part II: Bloomberg
11 CityTime Workers Have Been Indicted So Far

“Today’s announcement unfortunately sheds more light on just how flawed the management of the CityTime project was,” said Comptroller John C. Liu. “According to the indictment ‘virtually the entirety of the more than $600 million that was paid to SAIC was tainted directly or indirectly, by fraud.’ New Yorker’s can hope that this will eventually lead to restitution for the hundreds of millions of dollars paid on an out-of-control project, years overdue and, ten-fold over budget.” Two Executives Are Charged in Payroll Scandal * Carl Bell, was the chief systems engineer for the New York office of the contractor, Science Applications International Corporation or S.A.I.C. pleaded guilty to charges including two counts of wire fraud conspiracy, one count of wire fraud and money laundering conspiracy. 2 CityTime Fraud Suspects Flee Overseas: Authorities(NBC) * Mayor Mike Bloomberg Technodyne Arrests CityTime SAIC ScandalTax Payers Want Full Refund! * Liu Crows as CityTime Investigation Widens(NYO)



Containment Journalism On CityTime/NYPD Ticket Scandal
The Press is limiting itself to reporting on the CityTime Scandal only when the U.S. Attorney indicts someone.  We do not know what role the city officials Mark Page or resigned Joel Bondy who he supervised as head of Office of Payroll Administration.  Both men knew there were problems with the CityTime contract as the cost went up over 1000% ($63 million to $700 Million).  This is not the only corruption story the press is covering passively.  We still do not know which city official and or council members had there tickets fixed by the NYPD.

  
City Officals All Knew About CityTime Corruption

Where Are the Reporters Demanding Answers From These Guys?

Page, Bondy, Bloomberg, DOI all knew about CityTime in 2003, when the former head of the city's Office of Payroll Administration Richard Valcich wrote a letter to SAIC complaining of waste and bloat in the main contract.  In 2003 Valcich wrote: the city had spent "approximately $35 million on CityTime and does not have a tangible system to show for it.* Ex-payroll boss blew whistle on CityTime in scathing 2003 letter and nothing was done(NYDN) " Letter found by Liu reveals shady CityTime job offer pitch in '02 from main contractor to Valcich.(NYDN) A second reason why the city knew was a CNN IRerort in 2009 by an anonymous city worker who said that the project was corrupt. 2 of the three people mentioned in the report have been indicted

Why at a City Council oversight hearings about CityTime the past few years, no one at OPA or City Hall ever mentioned the Valcich letter?

City Council


 june 17, 2011

CityTime SAIC Media Cover-ups + SAIC Share Holder Meeting today! Ssshhhh 

Media SAIC Conspiracy Theories Welcomed
SAIC has a shareholder meetings and lucky for the shareholders the NY Press has not reported any news or scandals including the cancellation of a 50 million dollar contract by SAIC fan Mike Bloomberg...Ssshhh, hush hush...why?

CityTime, MTA and DOE Contract Scandal(True News)



 June 15, 2011

Quieting One of the Only Pol Talking Out Against CityTime Corrupt Contract

Why not tell Bloomberg who has been saying that CityTime has been doing a good job to shut up also?

City Comptroller Is Asked to Curb Comments on Fraud Case The U.S. attorney in Manhattan asked John C. Liu to make no more public statements about a criminal inquiry into New York City’s troubled automated payroll project without consulting investigators. (NYT)

 


June 2, 2011

Stop Tiger Blood Weiner

The NYPD Ticket Scandal, CityTime and ethic, rent regulations, tax cap, LIFO and  issues in Albany have all taken a back seat to a congressman who keeps changing his story and cannot identify his own private part. WE Don't even know what this weeks Wall Street crash will have on the city's economy.  Curtis Sliwa on his radio show today called to Schumer to set up an intervention to stop New York's Charlie Sheen and the enabling press who gives him over and over again rope to hang himself. On a man very sick would answer the Daily News like this "Asked by editors if he possessed “similar photos,” congressman responded, “I can’t answer a question that broad. I don’t know.” 




The Mayor Attempt to Contain and Control Information on the CityTime Contract Scandal has Lead to a Drip Drip Never Ending News Cycle of the Scanadal 
Reason Mayor's Poll Going South

NY contractor fraud case scandal a thorn for mayor Drip, drip of news on NYC contractor fraud case a thorn for Bloomberg(YahooNews.com)

 







June 1, 2011

Technodyne Out of Business

Corrupt CityTime Subcontractor Going Out of Business

CityTime consulting company Technodyne goes bust, terminates over 200 employees in wake of scandal (NYDN)



May 30, 2011


The Citytime Cover Up Falls Apart

"We were told specifically when other City officials visited us NOT to "bad" mouth the project...we all along with management KNEW very well this was going to be a complete failure."  Whistleblower in 2009 

Federal investigators arrested another central figure in their widening inquiry into the city’s troubled automated payroll project. Gerard Denault, a former executive with Science Applications International Corporation, the company overseeing CityTime, was charged with receiving over $5 million in kickbacks for his work as the project’s senior manager. Federal-court papers say Denault's thievery persisted despite an anonymous whistleblower's attempt to alert the project's prime contractor  With Arrest, Criticism for Payroll Project Grows (NYT) *  CityTime 'kickbacks' Project boss pocketed $5.6M: feds(NYP) * CityTime Case Expands With Another Arrest(WSJ) * Former CityTime Manager Out On $1M Bail (NY1) * Ex-Payroll Consultant Arrested in CityTime Scandal (WNYC)

5

City Computer Manager funnel $$$ Into Company He Owned in India

Indian Computer Imputers
According to the complaint, Mr. Denault had worked as CityTime’s program manager since 2003 and had perpetrated a kickback scheme for much of his involvement. He urged his employer to hire a New Jersey company, TechnoDyne, L.L.C., as the project’s main information technology subcontractor. TechnoDyne received some $450 million out of $600 million that was paid to Science Applications International and funneled $5.6 million to a sham consulting company, said to have been based in India, that Mr. Denault actually owned. 

5
5

Is the City's Department of Investigation Involved in the Cover Up?

Why Was IG Inspector Moved From the Department of Finance?
 Gia Morris was the Inspector General at the City Finance Dept., her job was to investigate and corruption over Citytime....Well, a few months ago she was quietly left her position and has now re-appeared as an Assistant Commissioner in the NYC Department of Correction. If this is a case like the SEC investigators in the Madoff case who did not do their job, why give her another  city position? Queens Crap Comments

5
5

Bloomberg has long defended the project’s goal of modernizing an antiquated & largely paper-based system
 What ever the Mayor Says is Reported by the press no matter how much it contradicts his early statements

Just hours before Denault's arrest was announced yesterday, Mayor Bloomberg defended the unfinished electronic-payroll system on his weekly radio show, saying, "We actually did a pretty good job."  He later expressed gratitude "that the city's Department of Investigation found the fraud, and is addressing it with the US Attorney's Office."





5
Is Bloomberg's Commissioner Bondy Next - He is Deeply Connected to Those Already Indicted

The city official who was the project’s point person, Joel Bondy, resigned in December and had close ties to the suspected mastermind of the scheme

 A Warning Ignored By the Mayor and DOI
How did DOI Miss this CNN I Report in 2009 on CityTime and their Corrupt Managers?
The managers rake in hundereds of $$$ for themselves and produce little in return except a faltering system. The project is a total waste and will NOT accomplish the goal to automate all 80+ agencies. They know it and so do many of the consultants. I would suggest that the media contact the NYC Payroll department and obtain more information on "CityTime". You will be surprised to discover what lies beneath the covers.

U.S. Attorney
More Arrests To Come in the CityTime Scandal
In a statement announcing Denault's arrest, US Attorney Preet Bharara noted that "there are more individuals yet to be held accountable" in the case.

CityTime, MTA and DOE Contract Scandal (True News)

 

Another Corrupt MTA Contract

He's so 'bus'ted MTA big steers $1.8M work to kin (NYP)




May 27, 2011
First SAIC Employee Indicted in City's Growing Computer Consultants Contract Scandals

CityTime Was Supposed to Cost $63 Million, to Date It Has Cost the City Over 700 Million

Consultant on Payroll Project Is Arrested Gerard Denault is accused of having received at least $5 million in illegal kickbacks. The consultant, Gerard Denault, a former executive of Science Applications International Corporation, was also charged with wire fraud conspiracy and money laundering in an indictment unsealed in United States District Court in Manhattan. (NYT) * CityTime Contractor Arrested on Bribe Charges * Feds CityTime Complaint * Here we go again: CityTime contracter steered $450M in kickbacks, say feds(NYDN) * The CityTime scandal continues to deepen (CrainsNY) * CityTime: So far, 8 arrests. * Former CityTime Manager Out On $1M Bail: Former CityTime project manager Gerard Denault, charged with receivingFormer Payroll Consultant Arrested In NY Scandal(WCBS) *  CityTime exec arrested on fraud charges (CrainsNY) * Former CityTime Consultant Arrested(NBC)


When the Press Does Not Question the Mayor You Get BloomNixon

Bloomberg claims city did 'pretty good job' with scandal-plagued CityTime(NYP)

On March 1, 2011 the Mayor Defended CityTime

Mayor Bloomberg praises scandal-scarred CityTime time-keeping ...

A Year Before Also on March 1, 2010 Bloomberg Said  Bloomberg admits $722M CityTime system to replace paper timesheets has been 'a disaster'(NYDN)

Today The Mayor Said  Bloomberg claims city did 'pretty good job' with scandal-plagued CityTime (NYP)

And He Added Nixon Did A Great Job With Watergate?

 



May 26th, 2011
CityTime Outside Contractor
What Others Vendors Are Ripping Off the City?
The person in charge of developing a timekeeping system to keep track of New York City employees . . . bilked New York City taxpayers by not keeping [his] own time." 

 How Did the Mayor, Comptroller Thompson and City Council Miss for Years the CityTime Ripoffs?


In another black eye for the Bloomberg administration, a contractor for the scandal-scarred CityTime electronic-payroll system yesterday admitted the project's manager ripped off the city by cheating on his own time sheet.  Officials at the contractor, Science Applications International Corp., said they will reimburse the city the $2.47 million that project manager Gerard Denault unfairly billed when he worked on the massive project to switch city employees to the system. * Citytime Honcho Gets Ax (WSJ) * CityTime boss' own cheat sheet(NYP)CityTime Manager Fudges Timesheets(Gotham Gazette) * CityTime Payroll Project’s Main Contractor Fires a Manager(NYT) * Mike Bloomberg Praised SAIC - SAIC Fires Head Guy NYC! More Corruption Fall-Out To Come!!!! * Gerard Denault, CityTime Project Manager, Fired for Raiding the Till(Village Voice)



Another Pay A Fine With No Criminal Charges or Jail Time 
CityTime Can Make Me Mayor

"By their own admission, this latest development now implicates for the first time in this scandal SAIC, the prime contractor," Liu said. Liu also said, “The total amount that should be returned to the city is potentially far larger.”

Why Was This City Employee Not Fired?
On March 1, 2011 the Mayor Defended CityTime

Mayor Bloomberg praises scandal-scarred CityTime time-keeping ...

CityTime, MTA and DOE Contract Scandal (True News)

 

 

 

May 29, 2011

CityTime Was Just the Beginning of Corrupt Contractors

$3.6 million taken from NYC Dept. of Ed; "second time in less than a year that federal prosecutors accused consultants hired by the city of multimillion dollar thefts." Stolen Money: "Lanham Enterprises allegedly was paid $5.3 million for consulting work that cost his company only $1.7 million."* Stolen Money: "investigation revealed another embarrassing lack of supervision in one of the city's technology projects."


Schools Consultant Stole Millions, Officials Say (NYT) * Contractor Fraud Alleged(WSJ) * DOE consultant charged with stealing $3.6M from schools * Investigator: Consultant Stole $3.6M From City Schools (NY1) * Ex-schools consultant charged with stealing $3.6M (NYP)


 May 24, 2011

City Hall Flacks Celebrate the CityTime Contract

 In A Preemptive Attempt to Defend Against Demands to Cut Outside Consultants Before Firehouse and Teachers

Long-delayed, over-priced & criminal computer system is operational 

CityTime Finally Clocks In The city's long-delayed, over-budget computerized payroll system—a project at the center of a major criminal probe that Mayor Bloomberg once described as a "disaster"—is "essentially" fully operational.(WSJ) * Bloomberg SAIC Rudy FDNY Schools Tech(Video)


 

May 20, 2011

Why Did the City's IG Miss All These Corrupt Contractors Until the Feds Indicted CityTime Workers

Department of Education official who quit in probe helped lover get secret info, big raise (NYDN)

CityTime, MTA and DOE Contract Scandal (True News)


May 13, 2011

City spends $1 BILLION on consultants as it lays off 4,100 teachers(NYDN) * Gonzalez: Education Department official resigns amid investigation (NYDN)

 

 

 

May 6, 2011

 Unions Cut Corrupt Consultants to Save Job

Insourcing

Cut New York consultants to save $300 million: union As New York Governor Andrew Cuomo and public-employee unions negotiate over his threat to lay off 9,800 state workers, one union on Thursday said that the state could save $300 million alone by using fewer private consultants. (WSJ) * While deep in contract negotiations with the Cuomo administration, PEF has reprised its call for more “insourcing” and less outside consultants. * Albany: "Cuomo will be with Silver on rent control. An says Jimmy Vielkind.

 

 May 4, 2011

Pay to Play Department of Education 

Top DOE official under investigation for conflict of interest with owners of computer contractor

 


May 1, 2011


Doubts and Crazy or Contracts Whose Corruption Was Cover Up Because of Powerful Backers?

Both the Citytime and Schools Consultant Contract radio active with corruption that the mayor, comptroller or city council could have easily picked up.  It is clear that lobbyists and special interests protected these contractors and no doubt protect other corrupt contracts the city makes. Doubts About Schools Consultant Charged in $3.6 Million Fraud Dated to ’02(NYT)Clocking CityTime, the craziest contract ever | Crain's New York ...

 

March 28, 2011


 CityTime Scandal: Bloomberg and NYT Throw Budget Director Page & Comptroller Thompson Under the Bus


Pass the Buck
The Buck does not Stop at the mayors desk.  No blame and no questions were directed towards the mayor for the corruption scandal CityTime contract.  Behind Troubled City Payroll Project, Lax Oversight and One Powerful Insider (NYT)  * The fathers of Cuomo's budget victory (CrainsNY)
 

 

March 27, 2011

 Where is the Money Mr. Mayor?                   

Federal agents raid safety deposit boxes linked to CityTime scam, and come up nearly empty

Federal agents with search warrants opened safety-deposit boxes linked to the CityTime payroll kickback scheme - only to find them virtually empty, the Daily News has learned.(DN) * It wasn't the union protests nor Councilwoman Letitia James' prescient description years before of just how vulnerable the city had become to multi-million dollar sub-contractor fraudsters that provided the "aha" moment for the Bloomberg Administration. (WNYC)

 March 25, 2011

 After 6 Arrests Connected With Outsourced CityTime Contract, Goldsmith Heart Mind Follows


New York City caves, cans pricey consultants Administration finally agrees with critics who say the city spends too much on outside consultants. (DN)













March 24, 2011

 After 6 Arrests Connected With the Outsourced CityTime Contract, Goldsmith Heart and Mind Follows

NYC Employees: Deputy Mayor Goldsmith writes "I have concluded that much of the solution lies not in more outsourcing to the private sector, but rather in employing city workers to perform more of our IT work." [Daily News] * Bloomberg Deputy Goldsmith We Want a FULL REFUND CityTime + 911 TECH * Bloomberg By the Numbers: $80 Million School Data System Still Evolving

 

 March 21, 2011

What About CityTime Contract Corruption? Goldsmith

Privatization NYC: Deputy Mayor Goldsmith's plan. [Adam Lisberg]

Unions Drop Savings Pact A much-heralded cost reduction program launched two years ago by New York unions and contractors to stimulate construction has come to a halt ahead of a major round of contract negotiations. (WSJ)

March 18, 2011

 Bloombertg's Contract Patronage Giveaway

Daily News' Gonzalez Continues to Hit the Mayor on His Sweetheart Contract Giveaways 

Disclose the details: Cloaked city technology contracts result in $185K for a help desk operator (DN)

New York City's private computer army keeps mushrooming under Mayor Bloomberg - and no one has any idea of its exact size. What we do know is the city's overall contract spending has doubled to more than $10 billion in the last five years - and a huge part of the increase is for technology contracts.

 March 4, 2011

City's Computer Consultants From CityTime, 911 to DOE Eat Money

Education Dept. plans to spend $52M on computer contractors as it lays off 4,600 teachers (DN) * Gonzalez: Mayor gives in to Controller Liu on call-center Bloomberg has yielded to John Liu's demand that city rein in skyrocketing cost of its 911 system modernization. (DN) * Hardhat firm cheated employees and should be banned from government contracts for three years: feds (DN)

 Feb 28, 2011

CityTime Shows the City Has A Computer Virus That Started In Human Greed

Housing Agency’s Computer Woes Put Aid Recipients in Limbo Possible loss of federal voucher holders’ personal data (NYT) *  Bloomberg on CityTime

Sunday, February 20, 2011


Citytime

Bloomberg's Scandal II The main contractor on the CityTime project has been slapped with a federal subpoena * Juan Gonzalez reports: “The criminal probe of the bloated CityTime payroll system keeps spreading. Virginia-based Science Applications International Corp., the main contractor on the $740 million project, has been hit with a federal subpoena for its CityTime records, a company spokesperson confirmed Tuesday.”

Bloomberg Tries to Clean Private Contract Mess Before More City Time Contract Fall Out

Which Private Contractor is Stole the People's Money? Bloomberg

'T Was All of The

 Overcharge: Like City Time overcharged the city on 100 city-financed projects between 1999 and 2009, paying some foremen unearned overtime and extra pay. Center of a federal investigation into allegations of severe over-billing on public projects, city officials announced on Wednesday. Contractor and City Settle Overcharges for $5 Million (NYT)

 

 

 

NYC's Computer-System Cash-Dump Disaster

New York City threw away a mountain of cash over a new computer system. Now, finally, someone is going to pay.

 



City Still Missing 56 Million in the City Time Contract Scandal

Timely 'take back' Probers find $26M(NYP) * Authorities seized $27M in CityTime scam - theft keeps piling up (DN)

 


This Blog

Linked From Here
This Blog

Linked From Here

Friday, January 21, 2011


Organized Crime Contract CityTime

Did Ex Commission Joel Bondy Set Up the City? 

Bondy used to work with indicted CityTime workers for a subcontractor of the project

City Comptroller John Liu warned Thursday that the city's long-delayed and over-budget computerized payroll system will be held "hostage" to the project's developer because the firm's employees are the only ones who know how to operate it.  "New York City taxpayers paid hundreds of millions for the full, custom development of CityTime from scratch," said Mr. Liu, referring to the new payroll system by its name. "A decade later, CityTime is not only overdue, overpriced and wrought with allegations of fraud, but today we learned that it doesn't even come with a user manual."

The New Patronage

The process of patronage-performing favors and offering lucrative positions or rewards to people who raise money or offer service-has always been a part of government, but not to the extent that it is in American politics today, argue the Tolchins in this fascinating exposé Pinstripe Patronage . Once defined by reliable blue-collar jobs and gifts of food to the poor, patronage has moved into the boardroom and grown exponentially in worth and influence. What's particularly troubling in an era of growing deficits and cries for "smaller government" is that responsibilities once undertaken by the state are being outsourced, often without bidding, to private companies with no oversight or qualification.  Report Warns City Is Yoked to Maker of Payroll System (NYT) * Liu Sees Further CityTime Woes(WSJ) * CityTime's 700M scandal gets worse: Accounting firm says only contractor has knowledge to run it (DN)



Gonzalez Owns the  CityTime Scandal Story

CityTime scandal grows, as does the number of scammer squealing to gov't (Gonzalez, DN)

Comptroller Liu would not be fighting the mayor on the CityTime contract without the good work of journalist Gonzalez.  It is very questionable if the 80 million dollar scandal would been investigated by the feds in the first place if it was not for this the work by the Daily News journalist.

Today Gonzalez reports prosecutors have not accused anyone from CitiTime subcontractors Technodyne or SAIC, one of the country's biggest defense contractors, of wrongdoing yet. He goes on to report that Virginia-based Science Applications International Corp. ousted systems engineer Carl Bell after an internal review found he approved timesheets for a highly paid CityTime consultant for years even though the consultant did no work on the project.  Gonzalez's says a person who knows him well said Bell flew out of the country this week for an extended stay in Trinidad. * Defendant In CityTime Scandal Pleads Guilty (NY1)Guilty Plea in CityTime Fraud Scheme (WSJ) *  CityTime: “[Turncoat Victor Natanzon's] cooperation is a turning point as DOI looks into whether Bloomberg administration officials broke any laws as CityTime’s pricetag rose from $63 million to $700 million.” (nydailynews.com)



Guilty Plea in CityTime Fraud Scheme - Metropolis - WSJ Feb 10, 2011

Millions In School Contracts Also With Company At Center Of CityTime Dec 20, 2110

Juan Gonzalez: NYC CityTime Fraud Scheme "Biggest Scandal of ...Dec 23, 2010

MTA back outs of contract with CityTime scandal company - am New York Feb 17, 2011


Alleged CityTime 'brains' Mark Mazer had an arrest in 1999 for larceny Dec 2010



Bloomberg's WaterGate

CityTime Contractor Running Another Scam Contract at the Department of Ed

Cost Overruns Found in Technology for Placement of High School Students

This time Spherion under bid everyone else with a contract of $3.6 million the DOE quickly add an addition $13.5 million - sound like CityTime all over again.  

NYT Left Out MTA Canceled A CityTime Contract Yesterday

The NYT knows that the story was about the NY Comptroller Liu audit of another corrupt CityTime contract,  not about placement about high school students,  MTA Cancels Contract(WSJ)

MTA scraps plan to hire scandal-plagued CityTime contractors for new subway radio station (NYDN) * MTA back outs of contract with CityTime scandal company - am New York

Post: Yet another crooked scheme at the NYCDOE



Why Did the City's IG Miss All These Corrupt Contractors Until the Feds Indicted CityTime Workers

Department of Education official who quit in probe helped lover get secret info, big raise (NYDN)

CityTime, MTA and DOE Contract Scandal (True News)

 

 

This is the latest development in an already absurd story in which a seemingly simple idea (centralize the city's time keeping records for a cool $68 million) was turned into a veritable money pit that has cost the city $740 million bucks and counting—$80 million of which was allegedly stolen by consultants (always consultants!) who made the program so complex that nobody else can use it


Willard Lanham, Department of Education consultant, charged with stealing $3.6M from city schools

A cuckolded computer consultant hired to link the city's 1,400 schools to the Internet was charged Thursday with downloading $3.6 million into his crooked pockets.  Willard (Ross) Lanham, aided by corporate giants IBM and Verizon, masterminded the massive fraud to enjoy a life of luxury from 2002 to 2008, according to a scathing report from the special schools investigator.  "Lanham effectively stole from schoolchildren so he could buy fancy cars and valuable real estate," said Manhattan U.S. Attorney Preet Bharara.

CityTime Scandal Contractors Tried to Hire City Critic (Village Voice)

Payroll Official Joel Bondy Resigns Amid CityTime Woes - WSJ.com

 

Juan Gonzalez: NYC CityTime Fraud Scheme "Biggest Scandal of Entire Bloomberg Era" (Video)

MTA dumps CityTime contactor from subway radio overhaul - NYPOST.com

 

Assistant Aging Dept. Commissioner Demoted for Faking Time Sheets ...(May 25, 2011

 

New Details in CityTime Corruption Case: Contractor Arrogance and Incompetence + 2003 Letter From the Commisioner of the Payroll

 

Guilty Plea In CityTime Fraud Scheme - Corruption Currents - WSJ

Victor Natanzon, federal prosecutors alleged, paid millions of dollars in bribes and kickbacks to an unnamed agent of the city’s Office of Payroll Administration in order to receive work related to the CityTime automated-timekeeping project.

Guilty Plea in CityTime Fraud Scheme(WSJ)

Bloomberg Administration Kills Sanitation Contract with CityTime ... '

Dec 22, 2010 

Bloomberg official defends CityTime's cost | Crain's New York Business

 

Mayor Bloomberg's budget brawler Mark Page hurt but set for new fight(Jan 16, 2011)

One of the main things that happened was that Valcich resigned as director of OPA in 2004 and was replaced by Joel Bondy. Bondy was then a consultant on CityTime for Spherion Inc., the firm tasked to certify the quality of all CityTime contractors. Spherion paid Bondy $307,000 the year before he moved to OPA, payroll records show. Soon after Bondy arrived, the cost overruns on CityTime spiraled even higher.  Ex-payroll boss blew whistle on CityTime in scathing 2003 letter and nothing was done Dec 21, 2010


CityTime, Major Crime (NY Civic)

Where were OMB, DOI, DOITT, the Mayor's Office of Operations, the Mayor's Committee on Contracts, and all the other oversight agencies that slow the operation of government in the interest of assuring integrity and transparency? What was the response, if any, to the Gonzalez articles?

 

As CityTime scandal continues to grow, turncoats start cooperating with the government Victor Natanzon



9 Days After Report That Stated Verizon Conspired to Steal $3.6 Million From the City, It Got A $175 Million Contract
Yes We are Corrupt

Can you hire me now? Verizon hit in $175M tech 'fraud'(NYP)

The city awarded a $175 million contract to Verizon, just nine days before the communications giant was cited by special schools investigator Richard Condon for "facilitating" a $3.6 million fraud by a technology consultant. On April 28, Condon issued a scathing report that accused both Verizon and IBM of playing roles in an alleged six-year swindle by consultant Willard Lanham, who was accused of shielding his thievery through layers of contractors and subcontractors in a project to wire public schools for the Internet.   Condon charged that Lanham was able to pull off his scheme by hiding the consultants as workers for Verizon and IBM, which billed the Education Department for their services at marked-up rates.


Breaking News

New York City Payroll Chief Resigns After Indictments in Project He Oversaw (NYT)

NYC payroll chief resigns after fraud probe (WSJ)

Head of City Payroll Office Resigns (WNYC)

NY1 Exclusive: Wide Inquiry Into City IT-Related Contracts Follows Payroll ...(NY1)


City Payroll Chief Quits Amid Growing Scandal


The city allowed the oversight consultant firm, Spherion, to select its own watchdog

'Kickback' in Time City payroll firm eyed for shady deal(NYP)* Liu Hits at Mayor on CityTime Fraud (WSJ) * Mark Mazer, CityTime consultant accused of scamming millions, has checkered past of investigations The former Child Welfare Administration cut his pay after he was eyed in an FBI probe into missing millions. (DN)* NYC Comptroller John Liu questioned Bloomberg’s professed “zero tolerance” approach to public corrruption. * CityTime Scam Gains Kickbacks, Sketchy History (Gothamist)


SAIC, which employs 44,000 people and took in $8 billion last year (Vanity Fair)

 Mayor Bloomberg On CityTime: It Won't Happen Again

Councilwoman Says More Arrests Needed In CityTime Scandal 


Paul Cosgrove, the mayor's IT commissioner, sounded a warning about the fraud-ridden CityTime payroll system more than four years ago, but was ignored

Aide gave mayor CityTimely warning (NYP) The warnings came from Paul Cosgrave, the mayor’s commissioner of information technology and telecommunications at the time, according to three people with direct knowledge of the discussions. Cosgrave “was of the mind that, frankly, they should have just shut the project down,” one source at the meetings in 2007 told The Post. 

The Mayor and DOI Knew in 2003 That The CityTime Contract Was A Fraud 

Why did the papers and bloggers miss this today?

Bloomberg, DOI all knew about CityTime in 2003, when the former head of the city's Office of Payroll Administration Richard Valcich wrote a letter to SAIC complaining of waste and bloat in the main contract.  In 2003 Valcich wrote: the city had spent "approximately $35 million on CityTime and does not have a tangible system to show for it.* Ex-payroll boss blew whistle on CityTime in scathing 2003 letter and nothing was done(NYDN) " Letter found by Liu reveals shady CityTime job offer pitch in '02 from main contractor to Valcich.(NYDN) A second reason why the city knew was a CNN IRerort in 2009 by an anonymous city worker who said that the project was corrupt. 2 of the three people mentioned in the report have been indicted

The CityTime Cover Up (True New) The DOI Cover Up (True News)


Liu Joins Stringer and diBlasio in Calling for Bloomberg Cover Up of the Reason for Goldsmith leaving

City comptroller John Liu calls for Council probe into Bloomberg's handling of Goldsmith's arrest(NYDN) * Mayor Bloomberg's pals get a pass while all others pay the price(NYDN) * Christine Quinn disagrees * Andrew Cuomo said of the way Bloomberg handled the crisis, “We all bring our own management style and values to office, and the people who elected us are the judges. I think that’s the way it should be and that’s what will happen here.” * Tom Allon Tells Mayoral Hopefuls to Pipe Down on Goldsmith (NYO)

Daily News Cover Up of CityTime Corruption 


 Daily News Owner Zuckerman Always Supports Bloomberg And Used His Paper to Change the Term Limits Law So the Mayor Could Run for a Third Term

City's $6M computer system keeps crashing, delays latest property tax roll(NYDN) Only 75% of data is finished, Finance Department sources say


 The DN Does Not Even Mention the Corruption and Cover Up Involved In the Contract That Built the Unfinished Software

The Daily News Reporter Blau failed to connect the crashing of the city's financial computers to the corrupt contractor Technodyne and the fact that no city employee has been indicted. 11 arrests by the feds of those involved with the CityTime contract.  The DN left out how the mayor was pushing the contract until the arrests and then demanded and got a partial refund. The DN own reporter Juan Gonzalez wrote in 2008 that a whistleblowers wrote a letters to DOI to warn them of fake times sheets and hours claims where being made my CityTime. The DN did now report about the former head of the city's Office of Payroll Richard Valcich letter that blew the whistle on CityTime corruption in 2003.The city official who was the project’s point person, Joel Bondy, resigned in December and had close ties to the suspected mastermind of the scheme. The  DN failed to inform its readers that  Mayor Bloomberg praises scandal-scarred CityTime time-keeping. * Privatization NYC: Deputy Mayor Goldsmith's plan.



City Hall Admits Mishandling Technology Projects(NYT) * Time-Out Proposed For CityTime System - City Limits Magazine(May 19, 2008) * City Council to probe CityTime; timekeeping and payroll system(Dec 18, 2009) Bloomberg demands refund from CityTime contractor(NYP)Mike: I share blame in CityTime fiasco(NYP)*  CityTime Contractor Repays Nearly $2.5M To City(NY1) * Mayor Mike Bloomberg Technodyne Arrests CityTime SAIC ScandalTax Payers Want Full Refund! * Liu Crows as CityTime Investigation Widens(NYO) * Mayor Mike Bloomberg's CityTime tax payers Titanic renewal must be stopped Sept(5/27/2010)

Is the CityTime Scandal Being Downplayed Because It Was Largely Uncovered By Liu? 

Report Warns City Is Yoked to Maker of Payroll System (NYT) * Liu Sees Further CityTime Woes(WSJ) * CityTime's 700M scandal gets worse: Accounting firm says only contractor has knowledge to run it (DN)

More on the CityTime Cover Up







___________________________________________________________________________________
Forgetabout Corruption



Bloomberg Says City Time Corruption Is OK
Mayor Bloomberg: detection of fraud in CityTime scandal saved NY money (NYP) It’s “lucky” that there was massive fraud in the CityTime contract because the city ended up with a giant bargain, Mayor Bloomberg said yesterday.  The mayor said the entire embarrassing episode actually ended up saving taxpayers money to finance.. * Mayor Bloomberg says NYC 'LUCKY' it had $500 * Frequent Bloomberg critic (who is being sued by Bloomberg!) NYC Comptroller John Liu was less happy, with his spokeswoman telling the Post, "The heat must be getting to Mayor Bloomberg, who conveniently forgets that his gross mismanagement led to consultants ripping off taxpayers to the tune of a half-billion dollars just from CityTime, and millions more from other consultants


CityTime Trial
 

Mayor Bloomberg knew CityTime contractors were getting rich on taxpayer money, and his administration signed off on it, defense lawyers told the jury during opening statements in the trial on what has been dubbed one of the “largest and most brazen” frauds in NYC history.  Juror’s Gesture Livens CityTime Fraud Trial(NYT) Judge George B. Daniels questioned the juror after a defense lawyer said she had made the outburst against his client.Federal prosecutors depicted the three men accused of bilking New York City out of tens of millions of dollars through the CityTime payroll system as fraudsters who rigged the system to make themselves a combined $44 million, The Wall Street Journal reports * Trial Begins for Architects of Pay System(WSJ) * Bloomberg administration signed off on CityTime expenses: lawyers(NYDN)
The CityTime Cover Up(True News) * Juror ‘flips the bird’ at CityTime payroll scam defendant(NYP) * Juror in Tussle Over Taxi Is Taken Off Fraud Case(NYT) Juror No. 5 in the CityTime trial, who clashed with a defendant over a cab, is said to have admitted reading an article about the case.

The CityTime system came in on budget -- if you don't count the stolen $660 million we want back(NYDN Ed)


 

No comments:

Post a Comment