SAIC Settles CityTime Case For $500.4 Million

First time accepted submitter arnott writes "Science Applications International Corp. said that it will pay $500.4 million in restitution and penalties under a settlement over its CityTime program with New York City. From the article: 'Two former SAIC employees have been charged with conspiring to defraud New York, and New York Mayor Michael R. Bloomberg (I) has called on the company to reimburse the city for the more than $600 million it spent on the program over an 11-year period.'"

Comments

Re:great

[WrongSizeGlass]

So who will be the one to keep all that money?
I can hardly believe that the money will be spent for other projects or the citizens of NYC.

It's money they've already spent and it will be returned to the coffers of NYC. The next NYC budget proposal is for more than $68 billion. I'm sure they'll find a way to spend it.

Re:Another quality SAIC project...

[fuzzyfuzzyfungus]

SAIC is a highly evolved obligate parasite of government.

As with many highly evolved parasites, many capabilities are either vestigial or entirely absent; but the apparatus used to find, latch on to, and suck nutrients from, the host has been optimized to an impressive degree.

Re:great

[Woogiemonger]

It's money they've already spent and it will be returned to the coffers of NYC.

http://newsandinsight.thomsonreuters.com/Securities/News/2012/03_-_March/SAIC_to_pay_NY_City_$500_mln_in_fraud_case/

"SAIC 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. The city will get $96 million of the penalty, with the rest going to the federal government."

So that would be $466 million total, but..

"In addition, New York City will not have to pay about $40 million of the bills it was charged."

So all in all, the judgement nets NYC $506 million.

That Is a Lie About Bloomberg

[Doc Ruby]

I live and work in NYC. The Washington Post might love kissing billionaire technocrat ass, but Bloomberg didn't get this money back. In fact Bloomberg is responsible for letting SAIC rob over $600M on this contract, all the way until the bitter end while Bloomberg defended SAIC and its "cost overruns". As he finally admitted last Summer. It's the Federal prosecutor, Manhatttan US Attorney Preet Bharara, who clawed back this money. Though indeed even Bharara couldn't get it all back: the ripoff claimed $652M, the court awarded $540M, and the city might get from $466-518M. Meanwhile Bloomberg whined that getting the $500M wasn't done "in a more pleasant way". (FWIW, when his bankster cops were macing women on public sidewalks last Summer, he had no complaint that it couldn't be done in a more pleasant way). Bloomberg says we now have a functioning system "at a very reasonable cost", because he's not including all the costs of recovering the money in court. He defended this ripoff until the bitter end, and continues to spin it.