SAIC agrees to pay NYC $500M in CityTime scandal

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Science Applications International Corp. has agreed to pay $500 million in restitution and penalties for its role in the massive CityTime  payroll project scandal, the New York Daily News reports today.

The agreement between SAIC and federal prosecutors was announced Wednesday morning, with the company admitting that it “defrauded the city into significantly overpaying for CityTime.”

Under the deal, the city will receive more than $370 million in restitution and another $130 million in penalties, the Daily News reported.

In a court filing cited by the newspaper, SAIC acknowledged that it "failed to take actions that might have detected, disrupted or curtailed the charged conspiracies, allowing the city to be victimized repeatedly and systematically for more than seven years.”

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