Skip to main content

Redflex enters into non-prosecution agreement with United States

The Department of Justice and the United States Attorney’s Offices for the Northern District of Illinois and the Southern District of Ohio (collectively, “DOJ”) have entered into a non-prosecution agreement with Redflex Traffic Systems Inc., a Phoenix-based automated safety company. The agreement was reached in part due to Redflex’s extensive and thorough cooperation over recent years, which is detailed in the agreement. It included cooperation with the successful prosecutions of several individuals, in
January 4, 2017 Read time: 3 mins
112 Redflex Traffic Systems has entered into a non-prosecution agreement with the US Department of Justice and the United States Attorney’s Offices for the Northern District of Illinois and the Southern District of Ohio (DOJ), due in part to Redflex’s extensive and thorough cooperation over recent years, which is detailed in the agreement.  This included cooperation with the successful prosecutions of several individuals, including a high-ranking city of Chicago official and Redflex’s previous chief executive officer.

Among its obligations under the agreement, which continues 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.  The company will also pay restitution of US$100,000 to the City of Columbus, Ohio.

Redflex also agreed to cooperate fully with DOJ and any other law enforcement agency designated by DOJ, including the Australian Federal Police and other Australian law enforcement authorities.  As part of that obligation, Redflex must, if requested, provide those authorities with all non-privileged information, documents, records, or other tangible evidence.  In spite of the two-year time period of the agreement, Redflex agreed to cooperate with DOJ, the Australian Federal Police, and other Australian law enforcement authorities until all investigations or prosecutions are concluded.

In exchange, DOJ agreed that it will not criminally prosecute Redflex for any of the conduct arising out of investigations in Chicago and Columbus.  The agreement does not relate to any potential tax charges.

Since the start of the US 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.  It 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 DOJ.  If the company is found to have violated any provision of the non-prosecution agreement, it will be subject to prosecution for any applicable violation of US law, including perjury and obstruction of justice.

For more information on companies in this article

Related Content

  • Imtech issues significant announcements
    June 19, 2013
    Following the recent announcement of its agreement with its main financiers, Dutch company Royal Imtech has published a series of significant announcements, including: Report to Shareholders on Investigations; Audited annual report, which confirms preliminary results; First Quarter results; New Supervisory Board members; and extensions to the Board of Management. The Report to Shareholders provides a comprehensive overview of the irregularities, their impact and related corrective actions. The investigatio
  • InfoConnect delivers accurate travel information on all levels
    August 1, 2012
    Deryk Whyte provides an overview of how the New Zealand Transport Agency's InfoConnect concept was developed. Historically, the New Zealand Transport Agency (NZTA) (formerly Transit New Zealand) has faced challenges in communicating effectively with road users, its customers, about highway-related events or incidents in a timely, accurate manner. Prior to 2007, Transit relied on a third-party organisation to collect and disseminate national road condition information. This often resulted in incomplete infor
  • Future of tolling: the priorities
    January 14, 2020
    In the final part of his investigation into the future of tolling technology, Josef Czako of Moving Forward Consulting asks what industry figures see as the priorities going forward…
  • Dutch to level EU protest against German toll plan
    August 28, 2014
    A petition with almost 45,000 signatures will be submitted to the European Parliament on 2 September by the Royal Dutch Touring Club (ANWB) in protest at a proposed German road toll that will fall primarily on foreign drivers. The Dutch Club is urging the European Parliament to get involved and address the question of discrimination against international motorists. The ANWB will be represented by their President, Frits van Bruggen, and the European Parliament will be represented by Dutch MEP, Wim van de