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Charges Brought In $80 Million Fraud Scheme In New York City

NEW YORK (RFE/RL) -- Three immigrants from the former Soviet Union and an American accomplice have been arrested in New York and charged with an elaborate scheme that led to the misappropriation of more than $80 million from the New York City administration.

Mark Mazer, Dmitry Aronstein, Victor Natanzon, and Scott Berger are accused of defrauding the city in their capacity as consultants to an information technology project known as CityTime.

In addition, Mazer's wife, Svetlana Mazer, and his mother, Larisa Medzon, are charged with using a network of shell corporations to launder the proceeds of the fraud.

Some of the stolen money has been transferred to a bank account in Latvia, the indictment says.