6 arrests in payroll project fraud in NYC

6 arrests in payroll project fraud in NYC   (Associated Press)

In the wall street journal this morning I was amazed to see this story:

Four city consultants and the wife and mother of one consultant have been charged with defrauding New York City of $80 million through a project that was supposed to save money by consolidating payroll records.

The defendants were charged with conspiracy in federal court in Manhattan on Wednesday. Authorities said the payroll program was supposed to cost a total of $63 million when it was started in 1998. They say it had cost $628 million by September, with only a little over a third of its intended user population using it.

Mayor Michael Bloomberg said it was a “major fraud perpetrated on city taxpayers.” He said investigators told him the city would likely recover most of the money.

 Still to this day it amazes me on how some government projects are out of control, and become a way for criminals to steal money and never deliver anything. I love the “was started in 1998” 1998??? Its a basic enterprise payrole system… $628 million???

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