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"Padma Allen and Reddy Allen are charged with obstructing justice by, among other things, creating a phony cover story for Bell to use if questioned about the kickbacks and leaving the country and moving to India at a time when they knew they were under federal investigation," according to the U.S. Attorney's office.
Said Manhattan U.S. Attroney Preet Bharara in a statement: "As alleged, CityTime served as a vehicle for an unprecedented fraud, which appears to have metastasized over time. But as stunning as the allegations are, our resolve is even stronger. We will continue to aggressively investigate the CityTime project until every criminal participant is brought to justice. And we will not rest until -- one way or another -- every penny of fraud is recovered and returned to the City."
The Allens and Technodyne were all indicted on charges of wire fraud conspiracy, wire fraud, honest services fraud conspiracy, honest services fraud, bribery conspiracy, bribery, travel act conspiracy and money laundering conspiracy. The Allens were also indicted for obstruction of justice conspiracy. Most of the charges carry penalties of up to 20 years in prison, three years' supervised release and fines from $250,000 to twice the value of the laundered funds.