Indian American couple Reddy and Padma Allen,charged with defrauding the city of New York of $ 460 million,have an office of their New Jersey-based TechnoDyne LLC in Bangalore but with another name. The company,which has been operating from south Bangalores J P Nagar for the last few years,is registered as Mccreade Software Asia Pvt Ltd,which,according to recruitment ads put out by the company,is TechnoDynes sister concern. The Allens are accused of paying kickbacks to bag an IT sub-contract to create a payroll system for New York City and then over billing the city for profits in a scam that has been described by Manhattan US Attorney Preet Bharara as a truly jaw-dropping fraud,epic in duration,magnitude and scope. Bharara has said that US prosecutors are now seeking to have the Allens extradited from India,where they allegedly fled in February after being slapped with grand jury subpoenas. A grand jury yesterday indicted the Allens on federal fraud and kickback charges in relation to scandals around Mayor Michael Bloombergs administrations CityTime municipal payroll project. More than $ 600 million of the projects bloated budget is tainted by fraud,the grand jury concluded. Though TechnoDyne claims on its website that it has a global development centre in Bangalore,it does not have a Bangalore address registered with the Registrar of Companies,Karnataka. The office of Mccreade Software Asia Pvt Ltd which has been a front for TechnoDyne to recruit staff for both its US operations and India offshore work was shut on Tuesday evening. Calls to Mccreades registered numbers went unanswered. Deepa Shetty,a Mccreade recruiter whose contacts have been referenced in recruitment ads,also did not respond to calls. According to information gleaned from the Registrar of Companies and online forums for Mccreade,Mccreade was being run in Bangalore by Dr Padma Allens mother Soundarya Raghu,a director on the Board since 2005 and the majority shareholder in the company. The Registrar of Companies has a document that shows that a Padma Alla wife of A V Reddy was a director of the company in 1999. A comment on a consumer complaints online forum for India on April 14 by a vijay.mccreade says: They are illegally running this company. After working in this company you would be having a offer letter of Mccreade,but your experience would be in Technodyne,for which you do not have any proof. How do you apply for a new job. Your career and future are both spoiled by these greedy people. Another commentator,who identifies himself as reddy_p2,says: I am working in Technodyne. Its a family business of Mccreade. Technodyne is US registered company. Mccreade is India registered company. From India they are supporting business of Technodyne. In this mode of business they need to pay huge tax to government,in order to escape the same,they are running the business in different names. The company declared foreign exchange earnings of Rs 2.47 crore in 2003-04. There is no electronic record of annual returns and balance sheets for 2008,2009 and 2010 available with the Registrar of Companies.
