CityTime SAIC: Regulation FD Disclosure Timekeeping Contract with City of New York (Does this mean lies, fraud, theft and a lot of smoke and mirrors?)

http://www.faqs.org/sec-filings/110602/SAIC-Inc_8-K/dex992.htm

See my very long youtube series on SAIC and countless blog postings on SAIC and CityTime and folks rumor is a lot if not all the sub-contractor seemed to be challenged when it came time to their own time sheets.

Read the last paragraph:

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.

Read more: http://www.faqs.org/sec-filings/110602/SAIC-Inc_8-K/dex992.htm#ixzz1OKv1TQD6