New York City recoups $26 million from payroll scandal

Investigations into the broad timeclock and payroll scandal that struck New York City officials have led to the recovery of more than $26 million dollars, according to the New York Daily News. That money was retrieved from numerous banks as part of the New York City Department of Investigation's look into a money laundering scam that could potentially reach $80 million in total damages.

On December 15, DOI officers arrested six New York City officials, including four consultants from the city's payroll services, for their part in pilfering the city's time and attendance program, channeling funds through foreign banks before depositing the cash in U.S. banks via dummy corporations, the paper details.

Additionally, the DOI retrieved more than $1 million from private safe deposit boxes of the defendants. The investigation continues over what is one of the biggest public scandals of the decade for New York City. The department is also investigating how the city's payroll service ballooned from a $68 million service contract to one that has reached nearly $700 million, according to the Daily News.

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