The heads of the primary subcontractor for the scandal-ridden CityTime payroll project lost their bid to recover more than $11.5 million in forfeited money because of the fugitive disentitlement statute.

The U.S. Court of Appeals for the Second Circuit Tuesday said the wife and husband team of Padma and Reddy Allen and the company they founded, Technodyne LLC, lost any claim to funds and properties seized by the government in 2011, when they left for India to avoid prosecution.

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