Thursday, February 10, 2011

Key Figure Pleads Guilty In CityTime Scandal

A key figure in the CityTime scandal has pleaded guilty to federal charges and is cooperating in the expanding probe of one of the biggest municipal scandals in recent years, our Greg B. Smith reports today:

victor.gifVictor Natanzon is one of four computer consultants arrested in December, charged with participating in a complex scheme to skim $80 million from CityTime, the ill-fated project to computerize the city's vast payroll system.

Natanzon appeared in Manhattan Federal Court on Tuesday to plead guilty to an 8-page criminal information, admitting his role in the long-running scheme, records show.

He signed a plea agreement with the U.S. Attorney's office, agreeing to help the city Department of Investigation in its ongoing examination of the complicated scam in a program that's risen in cost from $68 million to more than $700 million.

Natanzon's lawyer, Tony Mirvis, did not return calls seeking comment.

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