Redflex signs non-prosecution deal with US government

Company News

by David Chau

The US Department of Justice has agreed not to proceed with criminal charges against Redflex Traffic Systems Inc, a subsidiary of Redflex Holdings Ltd (ASX:RDF), a company which supplies digital speed cameras and red light cameras.

The company allegedly won US$131 million in red light contracts over several years in Chicago and Ohio through kickbacks and bribes.

The company was under investigation by the Department of Justice over misconduct perpetrated by senior management. Redflex’s former CEO, Karen Finley, was sentenced last month to 30 monthsin prison for conspiracy to commit federal program bribery.

Redflex has now signed a Non-Prosecution Agreement, which states that the Department of Justice will not charge Redflex with any criminal offences arising out of that misconduct.  Under the deal, Redflex will pay a yet-to-be-determined amount of restitution and damages to Chicago. It will also pay US$100,000 to Ohio.

Redflex reported a net loss of $4.7 million at 30 June 2016.

Subscribe to our Daily Newsletter?

Would you like to receive our daily news to your inbox?