Redflex Traffic Systems Inc., a Phoenix-based automated safety company, was granted a non prosecution agreement in connection with a traffic camera bribery case.
Redflex Traffic Systems is wholly owned by Redflex Holdings Group of Melbourne, Australia, which owns and operates a network of digital speed and red-light cameras worldwide.
The company installs cameras that automatically record and ticket drivers who run red lights.
Its former CEO was convicted as part of the probes into bribes paid to elected officials to procure or expand Redflex’s contracts with Chicago and Columbus.
The investigations also resulted in the convictions of a Chicago official and a Columbus lobbyist. John Bills, a former Chicago assistant transportation commissioner, was convicted of accepting cash and benefits from Redflex in exchange for expanding the company’s business with Chicago.
The lobbyist, John Raphael, pled guilty to extorting cash from Redflex to pass on to elected officials in Ohio in an effort to obtain red-light camera contracts.
Redflex was represented by Scott Lassar, David Hoffman and Geeta Malhotra of Sidley & Austin in Chicago.
Since the inception of the U.S. investigations, Redflex has initiated substantial additions and changes to its compliance program, policies and procedures. The company agreed in the non-prosecution agreement to revise and address any deficiencies in its compliance code, policies and procedures regarding compliance with applicable anti-bribery and anti-corruption laws. Redflex agreed to adopt new policies to ensure that it maintains a rigorous anti-bribery and anti-corruption compliance code, and to install procedures designed to detect and deter violations of such laws.
During the term of the agreement, Redflex must prepare at least four follow-up reports and periodically submit them to Department of Justice.
If the Department determines that Redflex has violated any provision of the non-prosecution agreement, Redflex shall be subject to prosecution for any applicable violation of U.S. law, including perjury and obstruction of justice.
The Justice Department said that the agreement was reached in part due to Redflex’s extensive and thorough cooperation over recent years – including cooperation with the successful prosecutions of several individuals, including a high-ranking city of Chicago official and Redflex’s prior Chief Executive Officer.
Among the company’s obligations under the agreement, which shall continue for two years, Redflex will pay restitution and compensatory damages to the City of Chicago, the amount of which will be determined either by a final judgment or a settlement agreement in Chicago’s pending civil lawsuit against Redflex.
Redflex will also pay restitution of $100,000 to the City of Columbus, Ohio.