Redflex Traffic Systems puts criminal, civil matters to bed

A view of photo radar vehicles employed by the Town of Paradise Valley. (File photo)

Redflex Traffic Systems is announcing the company has resolved all criminal and civil matters in the United States arising out of the company’s 2013 investigation into misconduct by former executives and city of Chicago officials.

RTSI is a wholly owned subsidiary of Redflex Holdings Group, which operates on five continents and in sixteen countries.

“Today marks a new beginning for Redflex,” said RTSI President & CEO Michael Finn in a prepared statement.

“Over the last four years, we took the actions every responsible company would have chosen and enhanced our compliance management, training and oversight functions. We have been recognized for our efforts by our customers and the government, and emerged with a single-minded focus to provide innovative public safety solutions. Thanks to our resilient and remarkable employees, we are well-positioned for this new day.”

Redflex, an Australian-based company with a U.S. subsidiary in Phoenix, faced scrutiny on existing and pending contracts for service from several local governments across the nation due to the ongoing bribery investigation in Chicago, which was originally reported by the Chicago Tribune in 2013.

Those communities include Orange County, Fla.; Prescott Valley, Ariz.; San Rafael, Calif.; and Jefferson Parish, La., the Chicago Tribune reported at the time.

Redflex Traffic Systems is the vendor of the Town of Paradise Valley photo radar program.

Under the terms of the settlement, Redflex will pay the city of Chicago $20 million, with $10 million payable by the end of 2017 and the balance to be paid, in various annual installments by the end of 2023, unless extended by the terms of the agreement.

As a result of these provisions, Redflex remains financially strong, with over 150 existing contracts in communities across the Americas.

The settlement of the qui tam case follows last month’s announcement by the United States Department of Justice of a Non-Prosecution Agreement (NPA) with RTSI. The NPA provides the Department of Justice will not charge RTSI with any offense relating to the activities the department was investigating in Chicago and locations in Ohio, provided the Company fully complies with the provisions of the NPA, a press release states.

The company was not required to pay any fine or penalty to the Department of Justice, which noted in its public announcement that the company had conducted an internal investigation, shared the results with the government, terminated the employment of those involved in wrongdoing, accepted responsibility for its conduct, and made early and extensive remedial efforts.

Beyond photo traffic enforcement systems the company’s advanced technology also includes automatic license plate recognition — which is in use in the Town of Paradise Valley — ticketless parking solutions and software to track unpaid tickets.

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