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Federal prosecutors allege that New York City was the victim of a massive case of contract fraud known as the CityTime scandal. It's a cautionary tale of what can happen when the city drops the ball on oversight for just one of its 47,000 private contracts.

The federal probe into a conspiracy to defraud the city of tens of millions dollars from a contract meant to automate the city's payroll system continues to widen.

Federal prosecutors and the city's Department of Investigation have now identified a Wayne, New Jersey company with significant ties to India as a central player in phase two of the roiling CityTime scandal. Additional arrests could come any day.

A business consultant charged as part of the CityTime payroll scandal pleaded guilty to paying bribes in order to secure government contracts.