SAIC engineer caught in $450M tech scam, newspaper reports

Owners of contracting company flee to India

The owners of a New Jersey-based computer consulting company that earned $450 million on a subcontract with New York City have fled to their native India, leaving 200 employees out of work and an employee of the prime contractor, Science Applications International Corp., under arrest, the New York Daily News reports.

TechnoDyne owners Reddy Allen and his wife, Padma, flew to India just after federal prosecutors subpoenaed them to appear before a grand jury to answer charges of money laundering and paying millions of dollars in kickbacks to get work on the city’s computer payroll project, known as CityTime.

According to the newspaper, the couple and nine others have been indicted on charges related to the CityTime contract since December.

A June 20 announcement of the indictment by the U.S. Attorney for the Southern District of New York reported that SAIC’s chief systems engineer in New York, Carl Bell, has “pled guilty to multiple charges based on his participation in the fraudulent scheme and his receipt of millions of dollars of kickbacks.”

Reader Comments

Thu, Jun 30, 2011 Janie R. Williams

Here we go again. We just do not get it.

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