Gothamist

A non-profit newsroom, powered by WNYC.

Gothamist

WNYC Listen Live

Donate

 

 

News

CityTime Consultants Charged With Stealing $80 Million


By

Garth Johnston

Published Dec 16, 2010

Modified Dec 16, 2010


Share

FacebookTwitterRedditEmail


Never miss a story

 Email address

By submitting your information, you're agreeing to receive communications from New York Public Radio in accordance with our Terms .

A 2007 NY Times graphic describing CityTime's biometric scanner

 


By

Garth Johnston

Published Dec 16, 2010

Modified Dec 16, 2010


Share

FacebookTwitterRedditEmail


We rely on your support to make local news available to all

Make your contribution now and help Gothamist thrive in 2026. Donate today

Gothamist is funded by sponsors and member donations

Back in 2007, the city thought it could save $60 million by installing biometric scanners to keep track of employees' time (CityTime, they called it). But years later the city has spent $722 million extra because the project is, well, a huge mess of bloated salaries to consultants and overruns ("an endless money pit," Comptroller John Liu called it). And now an already embarrassing situation has gotten distinctly worse. Four consultants hired to run quality assurance have been accused of taking $80 million in "an elaborate fraud and kickback scheme" that involved faked time sheets (ha!) and a series of shell companies. According to the suit the suspected ringleader even got his mom and his wife in on the scheme!

Prosecutors say the scam was the brainchild of Mark Mazer, a consultant hired to oversee quality assurance on the project. Instead he just assured his own quality of living, taking in nearly $25 million in kickbacks by moving existing city contracts through a series of shell companies from which he would siphon what he could. Along with Mazer the city is charging his colleague Scott Berger and two business associates whom he steered money towards (and who submitted false time sheets). Mazer's wife, Svetlana, and mother, Larisa Medzon, were also arrested and charged with money laundering.

The charges are a black eye to the Bloomberg administration and call into question how much control they have had (or haven't) over the project. Just last year the Office of Payroll Administration's executive director Joel Bondy told a City Council hearing that Mazer and Berger “have proven themselves in the past and currently to be highly capable and competent at their jobs...The reasons why they are working in these positions is because of that competency.” Did we mention that Bondy, before he took his current job, used to work for Spherion, the company that Mazer and Berger worked for?

Mayor Bloomberg, for his part, pointed to the arrests as a good sign arguing that they show that the city has "zero tolerance for any waste" and added “the issue is that here we had somebody that we trusted, or one of our contractors trusted, and that trust was misplaced. And we just have no tolerance for this whatsoever. And you can rest assured we can do everything possible to ensure that we get that money back and that the perpetrators are prosecuted to the fullest extent of the law."

Other politicians, meanwhile, are having a field day. City Councilman Letitia James (D-Brooklyn), a critic of the program, told the Post "I am shocked. Eighty million just disappeared and no one from the administration raised a question." And Liu held an emergency session of the payroll administration board of directors saying “These charges will be another stain on the checkered history of the CityTime project.”

And in case you were wondering, CityTime is currently only used by 35% percent of city employees.

Tagged

citytime

embezzlement

joel bondy

john liu

Larisa Medzon

letitia james

mark mazer

mayor bloomberg

Scott Berger

Svetlana Mazer


Garth Johnston

Read more

Gothamist is funded by sponsors and member donations


Gothamist is funded by sponsors and member donations


MORE news

Central Park birders, others remember 63-year-old woman killed in park

People who said they knew her described her as an artist and a familiar presence in the Ramble.

By

Charles Lane

Published Sep 28, 2026 at 7:04 p.m. ET


Dump truck driver hits and kills cyclist on 34th Street in Midtown, NYPD says

It's the latest in a string of hit-and-run deaths in the city in recent months.

By

Liam Quigley

News

Dump truck driver hits and kills cyclist on 34th Street in Midtown, NYPD says

It's the latest in a string of hit-and-run deaths in the city in recent months.

By

Liam Quigley


New ingredient mandated for Latin American kitchen, restaurant plates in NJ

By

Arya Sundaram

A Brooklyn jail cell filled with smoke. The emergency button failed, a lawyer said.

By

Samantha Max

Crews launch tunnel machines to dig first new Hudson River rail tunnels since 1910

By

Michael Sol Warren


Never miss a story

Catch up on the most important headlines with a roundup of essential NYC stories, delivered to your inbox daily.

Sign upEmail address

By submitting your information, you're agreeing to receive communications from New York Public Radio in accordance with our Terms .