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.'"

Another quality SAIC project...

[Anonymous Coward]

having had experience with SAIC in the past - one wonders how they remain in business when most of the projects turn out to be crap and have to be redone?

Re:great

[Doc Ruby]

Humanity? This is faith in the courts. If SAIC had been convicted instead of merely agreeing to keep a little more than it originally contracted, it could have lost much of the government contracts that are over 80% of its very big business.

The court told SAIC that its gamble here didn't pay off, but it didn't lose anything either. Try it again with a different city, a different court, and the law of averages (or bribery) could give you a 5:1 payoff!

Something is wrong here

[zill]

From reuters: [thomsonreuters.com]

Critics say city employees could have done the work far less expensively. Bills spiraled out of control over the years, hitting $692 million, and city investigators brought federal prosecutors into the probe after uncovering payments routed through shell companies.

... 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.

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

Let me see if I got this right:
-$692 million in bills +$40 million in canceled bills + $370.4 million in restitution + $(130-96) million in penalty payments = -$247.6 million

Shouldn't the restitution payment at least cover how much NYC originally paid?