4 Contractors Charged in Scheme to Defraud N.Y.C. – The New York Times money laundering bangladesh

Four contractors were arrested and charged wednesday with misappropriating more than $80 million for work on the development of an automated timekeeping system for new york city employees.

Federal prosecutors said that mark mazer, who was hired to do quality assurance on the creation of the system, citytime, awarded contracts to people he had ties to and took nearly $25 million in kickbacks. Mr. Mazer, his colleague scott berger and the men whose companies he steered business toward, dmitry aronshtein and victor natanzon, also submitted false time sheets for consulting work, the authorities said.

“in an ironic twist, funding for citytime, a project intended to prevent payroll waste, fraud and abuse, was itself allegedly bilked in part by fraudulent timekeeping,” preet bharara, the united states attorney in manhattan, said in a statement.

Along with mr.Money laundering bangladesh mazer, mr. Aronshtein and mr. Natanzon, mr. Mazer’s wife and mother were charged with money laundering for, prosecutors said, funneling the kickbacks through a series of shell companies.

The investigation was a joint effort between mr. Bharara’s office and the city’s department of investigation.

“the supposed experts hired and paid well to protect the city’s interests were exposed as the fox guarding the hen house, secretly pocketing millions and purchasing expensive homes and cars,” rose gill hearn, the department’s commissioner, said in a statement.

The four contractors are charged with conspiring to commit wire fraud and face up to 20 years in prison and large fines if convicted. On the money-laundering charges, the defendants also face 20 years in prison and fines.

Four contractors were arrested and charged wednesday with misappropriating more than $80 million for work on the development of an automated timekeeping system for new york city employees.Money laundering bangladesh

Federal prosecutors said that mark mazer, who was hired to do quality assurance on the creation of the system, citytime, awarded contracts to people he had ties to and took nearly $25 million in kickbacks. Mr. Mazer, his colleague scott berger and the men whose companies he steered business toward, dmitry aronshtein and victor natanzon, also submitted false time sheets for consulting work, the authorities said.

“in an ironic twist, funding for citytime, a project intended to prevent payroll waste, fraud and abuse, was itself allegedly bilked in part by fraudulent timekeeping,” preet bharara, the united states attorney in manhattan, said in a statement. Along with mr. Mazer, mr. Aronshtein and mr. Natanzon, mr. Mazer’s wife and mother were charged with money laundering for, prosecutors said, funneling the kickbacks through a series of shell companies.Money laundering bangladesh

The investigation was a joint effort between mr. Bharara’s office and the city’s department of investigation.

“the supposed experts hired and paid well to protect the city’s interests were exposed as the fox guarding the hen house, secretly pocketing millions and purchasing expensive homes and cars,” rose gill hearn, the department’s commissioner, said in a statement.

The four contractors are charged with conspiring to commit wire fraud and face up to 20 years in prison and large fines if convicted. On the money-laundering charges, the defendants also face 20 years in prison and fines.