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The government awards contracts to companies with histories of misconduct such as contract fraud and environmental, ethics, and labor violations. In the absence of a centralized federal database listing instances of misconduct, the Project On Government Oversight (POGO) is providing such data. We believe that it will lead to improved contracting decisions and public access to information about how the government spends hundreds of billions of taxpayer money each year on goods and services. Report an instance of misconduct »

SAIC

U.S. v. Denault (CityTime Contract Fraud)

Date: 05/27/2011 (Date of Announcement of Charges)

Misconduct Type: Government Contract Fraud

Enforcement Agency: Multiple Agencies

Contracting Party: State/Local

Court Type: Criminal

Amount: $2,470,522

Disposition: Pending

Synopsis: Former SAIC executive Gerard Denault was charged with receiving at least $5 million in illegal payments in connection with his work as SAIC’s project manager on the New York City information technology project CityTime. Denault was also charged with wire fraud conspiracy and money laundering conspiracy. Denault is alleged to have accepted $5.6 million in kickbacks while steering more than $450 million in city funds to Technodyne LLC, the principal subcontractor on the CityTime project. Denault also allegedly submitted inflated bills to the city. In May 2011, SAIC announced it had fired Denault and would reimburse the city $2.47 million for Denault’s false billings, the exact amount of which had not yet been determined.