Gerald Shargel Would Have Nuked Mayor Bloomberg's legacy CityTime Trial,
Robin and Geller up Next SAIC CityTime NYC Gov acting like they are hiding something
Mike Bloomberg avoids testifying like he did during Haggerty trial -- sitting mayor king deposed -- Shargel would have exposed Mike Bloomberg more like excoriated him on 911 and CityTime. Vacco was powerful but Shargel would have "nuked" Bloomberg's Legacy.
Yikes, the street is back from hiding and reading and up for some more hell raising. Latest from the courts. SAIC continues its tactics to see its shareholder lawsuit dismissed pushing back against the judges ruling the shareholders could amend the complaint to address SAIC's acknowledgement and then required disclosure of huge CityTime losses as of March 2011. Mouthful, sorry acid re flux kicking in.
Stockholders are suing SAIC (now Leidos, means leer in spanish) for not telling them about the real possibility and huge amount of money SAIC would have a to pay back, a half billion dollars! to the City of New York.
Its down to the short hairs this past week. Shareholder attorney firm Robin Geller is pushing hard to move the case forward. Shareholders claim SAIC knew and should have disclosed (told) stockholders about the potential, likely, reasonable probable CityTimes losses. Those losses when known are suppose to be shared on its financial statements because the its required. (where were the auditors, calling out Delloitte)
SAIC now Leidos (means leer in spanish) says there is no way they knew still about the huge loss on CityTime as of March 2011. Claiming SAIC employee was not under indictment "yet" just on administrative leave (Denault). Gerad Denault o was indicted on May 27, 2011, Carl Bell SAIC lead engineer had left SAIC and In June 14th plead guilty http://www.contractormisconduct.org/index.cfm/1,73,222,html?CaseID=1647. I suppose Joel Bondy resigning in Dec 2010 and 6 other non SAIC employees one of which was SAIC's subcontractor Technodyne do not count as employees on the CityTime contract. All these people were just secretive master-minds that screamed it out in front of bars but no one knew. http://www.newsrt.us/news/curb-it-dude-citytime-scammers-yelled-about-kickbacks-on-the-street-in-front-of-downtown-bar-witness-says-1251313.htm
Refresh timeline and the streets two cents. Although no claims had been made against SAIC by March 2011 (very convenient), the following SEC (security exchange filing) form 10K certainly dated and overlapped JUNE 3rdto require SAIC to tell its shareholders a loss was eminent. Sure beat me with a calendar...June 3rd is after May 27th but before June 14th...SAIC , right? Read on...
SAIC April 2011 SEC Form 10-k file June 3rd
"In the course of conducting an internal investigation of the CityTime program, the Company discovered that it could not validate all of the time recorded to the contract by its CityTime program manager. As a consequence, the Company could not determine the extent to which any time may have been incorrectly overbilled to the City for this employee. The Company then informed the City on May 23, 2011 that it had terminated the employment of this employee and offered to voluntarily refund approximately $2.5 million, representing all of this employee’s time directly billed to the City. The Company recorded a liability of approximately $2.5 million as of April 30, 2011, associated with its offer to refund this amount."
"The U.S. Attorney’s Office for the Southern District of New York is conducting a criminal investigation relating to the CityTime program. In December 2010, the U.S. Attorney’s Office filed a criminal complaint against six individuals who were employees of the quality assurance vendor that was under a direct contract with the New York City Office of Payroll Administration, or
15
SAIC, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
were principals of staffing firms that provided staff to the CityTime program as second-tier subcontractors to the Company, or were otherwise relatives of those individuals. On February 10, 2011, a federal grand jury indicted four of the individuals and added another individual defendant. On May 27, 2011, a criminal complaint was filed against the former Company employee whose time charges were subject to the refund offer. The complaint alleges that this former employee conspired to defraud the City into extending the duration of and overpaying for the CityTime project and personally received kickbacks totaling $5.6 million. It also alleges that he defrauded the Company by depriving it of his honest services, and charges him with money laundering to conceal proceeds of the fraudulent schemes. The Company is continuing to cooperate with the U.S. Attorney’s investigation but cannot predict its outcome.
Statements have been issued from the City’s Office of the Mayor and Office of the Comptroller indicating that the City’s Department of Investigation would conduct a more extensive investigation regarding the CityTime contract, and that the City would withhold payment of amounts owing to the Company until the investigation was complete. In addition, these statements have also indicated that the City intends to pursue the recovery of costs associated with the CityTime program that the City’s investigation reveals were improperly charged to the City. The City has not filed any claim against the Company or otherwise requested reimbursement or return of payments previously made to the Company and the Company has not recorded any liabilities relating to this contract other than the approximately $2.5 million it offered to refund. However, there is a reasonable possibility of additional exposure to loss that is not currently estimable if there is an adverse outcome. An adverse outcome of any of these investigations may result in non-payment of amounts owed to the Company, a demand for reimbursement of other amounts previously received by the Company under the contract, claims for additional damages, and/or fines and penalties, which could have a material adverse effect on the Company’s consolidated financial position, results of operations and cash flows."
mayor bloomberg king of new york: Mayor Bloomberg CityTime Biggest embarrassment trial of the century?
Mayor Bloomberg's NYC Gov Sued over CityTime NYC Blocking Access To Docs
