Ex-DXC Technology Manager Accused Of ‘Fraud Scheme’ In Citibank Dealings: Lawsuit

According to a federal lawsuit, DXC’s Citibank account manager ‘directed the hiring of certain consultants and contractors who were friends and family ... and had those individuals submit fabricated time sheets and expenses.’

The ex-general manager of DXC Technology’s account with Citibank is accused of carrying out a fraud scheme in which he put friends and family on the payroll, then submitted “fabricated” time sheets and expenses, according to a federal civil lawsuit filed this week.

Until March, Mark Angarola worked for DXC where he was “responsible for overall relationship, delivery and PNL for Citi,” according to his LinkedIn account. However, shortly before Angarola parted ways with DXC, the company discovered “issues” with the billing and expenses of a contractor -- Atlas Communications Inc. – who performed work on the Citi account, and investigated, according to a lawsuit.

“During this investigation, DXC advised Atlas that DXC Account General Manager Angarola was at the center of the alleged fraud and the terminated Atlas consultants purportedly also were involved in Angarola’s scheme,” the lawsuit said. “According to DXC, Angarola directed the hiring of certain consultants and contractors who were friends and family of Angarola and had those individuals submit fabricated time sheets and expenses to Atlas for payment to DXC,”

When reached by CRN, and asked about the allegations, Angarola said, “None of it is accurate.” He declined to comment further and did not respond to requests to speak to his lawyer. According to his LinkedIn profile Angarola left DXC in March 2019. He started a company called Comatrex, which appears to be a New Jersey-based solution provider, in January. On that website, he said he was responsible for Citi’s “data center maintenance support, end-user compute and support, options trading execution and market data hosting and applications testing amongst other areas.”

He is also listed as the chief technology officer and co-founder of HARDHATS, a maker of an app.

DXC declined to publicly address the issue when contacted by CRN.

“We do not comment on investigations and employee matters,” the company said via email.

On its website, DXC said it has been providing services to Citibank for 14 years – going back to the time when DXC was part of HPE. Angarola – who became a DXC employee as part of the 2017 spin-merger -- was HPE’s liaison with Citi beginning in June 2014. DXC described the nature of the work on its website.

“DXC supports Citi across 85 locations and approximately 80,000 associates in Citi Campus environments in the U.S. and Canada,” it says. “With about 200 dedicated staff members, DXC provides break/fix, IMAC, site maintenance and project support. We also assist Citi technology teams with voice and data networking, VDI support, tech room fit-outs, asset and materials management, vulnerable asset remediation and a variety of major project initiatives”

The accusations against Angarola are included in a suit filed by Atlas Communications Inc., a Plainsboro, N.J. based staffing service provider, in U.S. District Court in New Jersey.

A lawyer representing Atlas declined to answer questions about the accusations, telling CRN that “the suit speaks for itself.”

In that suit, Atlas said DXC has refused to pay some $3 million in invoices, in violation of a contract the two companies signed in May 2017.

“During the work engagement between DXC and Atlas, Atlas provided more than 50 consultants to DXC as managed staff for work on Citibank sites,” the company states. “All Atlas consultants and the work they performed was directed by DXC and its employees. DXC controlled the time, attendance, objectives, deliverables, manner and scope of work performed by Atlas consultants.”

In return for this work, Atlas sent DXC monthly invoices and expenses to be approved by Angarola. Then in February 2019, DXC told Atlas it had discovered issues with billing and expenses on the Citibank project. DXC told Atlas that certain consultants and DXC employees were “engaged in a scheme to defraud DXC.” DXC ordered Atlas to fire the employees, which it did.

“Thereafter, both Atlas and DXC conducted independent investigations into DXC’s allegations,” the suit said.

A short while later, DXC told Atlas that Angarola was at the center of the “alleged fraud,” and that the terminated Atlas consultants purportedly were involved in Angarola’s scheme as well.

DXC told Atlas that Angarola had hired consultants and contractors who were friends and family, and had them submit fabricated timesheets and expenses to Atlas for payment by DXC. Atlas said in his role as general manager, Angarola prohibited Atlas from communicating with anyone at Citibank or anyone besides him at DXC.

“Until this time, Atlas had no knowledge of Angarola’s activities or the participation of Atlas consultants in Angarola’s scheme,” the lawsuit states. “At all times, Atlas complied with Angarola’s instructions regarding the onboarding of consultants and the payment of expenses. Angarola advised Atlas that the incurrence of expenses was on behalf of Citibank and Atlas has no opportunity or way to verify this fact as all communication was solely through Angarola.”

Throughout this investigation and afterwards, Atlas continued to provide DXC with technicians to service Citibank sites. However, DXC has refused to pay the company since September 2018, and now owes Atlas $3.05 million, the lawsuit states. Last month DXC told Atlas “it had no intention” of paying the invoices, the lawsuit states. Atlas now says DXC is also “poaching” its workforce, in violation of the employees’ work agreement with Atlas.

“Since July 2019, more than 50 Atlas employees have resigned and are now working at DXC,” the suit states. “This loss of resources has and will cost Atlas at least $4 million in revenue annually.”