DXC Technology has accused contractors and an ex-DXC employee of carrying out a years-long, multi-pronged fraud scheme that, among other elements, included a currency swap scam in which the subcontractor charged the client in dollars, but paid employees in Indian rupees, according to court filings.
Atlas Communications Technology and Smart IMS were used by DXC Technology to help service the company’s Citibank contract, providing technical support in 85 locations for one of the largest banks in the country, according to a lawsuit filed in US District Court in New Jersey.
However early in 2019, DXC discovered billing discrepancies which led to an internal investigation that revealed the managing director of its Citibank account, ex-DXC employee Mark Angarola, had been submitting inflated expense invoices, hiring friends and family members for no show jobs and charging hourly rates of between US$400 and $600, well above the technician rate of $22 to $34 per hour. Between 2016 and 2018, DXC estimates that it was overcharged some US$12.2 million.
However a lawyer for the companies that DXC Technology accused of facilitating the US$12.2 scheme called the claims “a bunch of nonsense,” saying her clients worked solely at the direction of a DXC employee the entire time they had the account.
“He was in charge of the account,” Katheryn Hatfield with the Weiner Law Group told CRN on Wednesday. “There was no one other than him.”
Hatfield is representing Atlas Communications Technology and Smart IMS, She said one of the companies that DXC said participated in that fraud never worked on the account.
“Smart IMS didn’t have anything to do with the Citibank account,” Hatfield said. “They weren’t involved in that at all. They had no relationship with DXC on the Citibank account … DXC owes Atlas and Smart IMS a lot of money. These are litigation tactics designed to deflect from their own complicity.”
A lawyer for DXC did not return a call and email on Wednesday for comment.