Redflex Traffic Systems’ Woes Continue

Redflex Traffic Systems has had a rough few months.

First, the Chicago Tribune gets hold of some internal company documents which shows the former Chicago Department of Transportation manager in charge of the red light cameras received some free hotel accommodations. Chicago Mayor Rahm Emanuel disallowed the city’s current red light camera vendor from bidding on the new speed camera contract. A shocking turnaround for the company that seemed a sure bet for that contract.

More recently, the Tribune reported even more unethical behavior. Emanuel struck again and disallowed Redflex from rebidding the red light camera contract–a contract the company has held for ten years, since the program’s inception. The Chicago contract accounted for 13% of total company revenues.

Since then, things have continued to flow downhill.

After the Trib story, the company’s stock has plunged to half it’s value in a handful of days and now trades at around $1 a share on the Australian Stock Exchange.

Late last week Redflex fired a long time Vice President named Aaron Rosenberg, who allegedly has first hand knowledge or participated in some of the company’s bad behavior in Chicago according to the Chicago Tribune. In fact, the company has filed suit against Rosenberg claiming he misappropriated funds from Redflex.

The Daily Herald reports Redflex’s problems in Chicago has raised the eyebrows of suburbs who use the company for RLC enforcement in their towns. These problems, the story implies, may affect contract renewals in Carol Stream, Gurnee and Aurora.

The Redflex scandal in Chicago has been bad for the entire automated camera industry in general. The Chicago City Council is planning on having hearings on the city’s RLC program in a few months. News organizations have jumped on the anti-camera bandwagon and have put RLC enforcement under the microscope.

Not only did NBC News broadcast a national piece on red light cameras, but Fox News will reportedly air a similar story on Tuesday.

4 Responses to Redflex Traffic Systems’ Woes Continue

  1. barnet says:

    We haven’t seen anything yet.

  2. Linda D Caldwell says:

    That’s what should happen to their shady asses. Don’t stop @ Redflex, the city should examine the temp agency that does business with the city through Redflex.

  3. David says:

    This is typical of the individual greedy executive, but not typical of the company or industry as a whole. A few bad apples will always spoil teh bunch. It is too bad that the city doesn’t see this and continue with Redflex. If they want to switch to another vendor, and they will, it will cost a ton of money and revenues will be hit hard. Replacing over 300 systems overnight cannot be done. It will take years to get them replaced.

  4. Howard says:

    The Red Light Cameras enforcement in California is unconstitutional under Federal Law as any Redflex evidence has a “primary purpose” of “establishing or proving past events potentially relevant to later criminal prosecution” under the authority of Bullcoming vs. New Mexico 131 S Ct 2705 at 2714-2719.

    When Redflex elected to introduce a photo a defendant has an absolute right under the Confrontation Clause which imposes a burden on the prosecution to present witnesses, not a defendant to bring those adverse witnesses into Court.

    This is the holding of Bullcoming supra

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