A New Jersey state assemblyman has asked that an investigation of Redflex Traffic Systems Inc. be opened after a high-ranking official of the embattled company Arizonabased firm said recently that municipal officials in several states have been offered bribes.
On May 12, Culver City approved a new three-year contract with Redflex. The city previously had a contract with the red light camera enforcement firm for seven years.
Reflex is being investigated by federal authorities on accusations of corruption and bribery in a probe that began in Chicago in 2012 and escalated in 2013. On May 15, the News reported that federal officers arrested John Bills, the Chicago official who was in charged with running that city’s red light camera program.
Redflex executives allegedly paid thousands of dollars to Bills and other municipal leaders for golfing outings, meals and hotel accommodations in exchange for securing the city’s red light enforcement contract. Shortly after the investigation was announced, Chicago terminated its $100 million contract with Redflex.
Redflex also is accused of giving a consultant more than $2 million who then was supposed to give additional funds to Chicago transportation authorities.
New Jersey Assemblyman Declán O’Scanlon (D- Monmouth) has asked the United States Attorney’s office to look into claims made by former Redflex Traffic Systems Inc. Vice President of sales Aaron Rosenberg that the alleged payoffs extend to at least 13 others states, including New Jersey and California. Rosenberg was fired in the wake of the bribery scandal and three other highranking executives resigned last year. The company is also suing Rosenberg for damages in an Arizona court.
“Red light camera corruption, overt bribery and the inherent systematic corruption of the program have a huge negative impact on the motorists of New Jersey,” O’Scanlon said. “There is sufficient evidence to suggest that New Jersey’s red light camera program is government sanctioned theft that systematically puts motorists’ lives and property at risk for the benefit of out of state crooks.”
Reflex has an office in Culver City. No officials from the local office have been publicly implicated in any corruption probes.
In a civil counterclaim against his former company, Rosenberg and his wife Lisa allege that Redflex officials “through its former chief executive officer, current chief executive officer and current and former Redflex board members engaged in providing government officials with lavish gifts and bribes. These behaviors were institutionalized as it became common in the Redflex annual budget, which is presented by the CEO and approved by the board of directors to include a category called ‘entertainment,’” the Rosenbergs state in their lawsuit.
In court papers, the couple, who are cooperating with the federal investigation, claims tickets to professional football and baseball games, golfing outings and meals were part of what the company deemed “associated costs with new pursuits and ongoing customer management.
“A budget for these items was approved and there was never a distinction between these expenses and expenses that are considered gratuities and bribes,” the Rosenbergs say in court documents.
“Redflex Traffic Systems denies the allegations in the counterclaim which are from Aaron Rosenberg, a former executive vice president, terminated for violating company policies and procedures. Redflex will aggressively defend itself against the allegations as well as prosecute its claims against the former executive,” said Redlex Communication Director Jody Ryan. “We are committed to transparency and honesty in our business practices. Our focus continues to be on providing best in class customer service and technology to our clients to make their communities safer.”
Last year, Ryan told the News that no one from Culver City had contacted her company after news of the scandal broke in the Chicago Tribune to inquire about the allegations. Culver City’s was in its last year of a three-year contract when the scandal was reported.
All members of the Culver City Council have stated that they have no concerns regarding the current investigation and company’s record with red light camera enforcement in Culver City.
