Redflex Holdings
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Redflex Holdings provides vehicle monitoring and enforcement services for government, police, and traffic departments globally.


Redflex operations

Redflex operates primarily in Australia and the United States of America, and was listed on the
Australian Securities Exchange Australian Securities Exchange Ltd or ASX, is an Australian public company that operates Australia's primary securities exchange, the Australian Securities Exchange (sometimes referred to outside of Australia as, or confused within Australia as ...
in January 1997. Redflex Holdings consists of two distinct companies; Redflex Traffic Systems Pty. Ltd. covering Australia and global operations and Redflex Traffic Systems Inc. covering the US market. The company works with partners in other countries, such as ChinaTel Group in the
People's Republic of China China, officially the People's Republic of China (PRC), is a country in East Asia. It is the world's most populous country, with a population exceeding 1.4 billion, slightly ahead of India. China spans the equivalent of five time zones and ...
. Redflex is based in
South Melbourne South Melbourne is an inner suburb in Melbourne, Victoria, Australia, 3 km south of Melbourne's Central Business District, located within the City of Port Phillip local government area. South Melbourne recorded a population of 11,548 at t ...
where it runs its systems engineering operation as well as its system integration and research and development programs. In 2011, Redflex was the subject of a failed million
hostile takeover In business, a takeover is the purchase of one company (the ''target'') by another (the ''acquirer'' or ''bidder''). In the UK, the term refers to the acquisition of a public company whose shares are listed on a stock exchange, in contrast to ...
bid by the
Macquarie Group Macquarie Group Limited () is an Australian global financial services group. Headquartered and listed in Australia (), Macquarie employs more than 17,000 staff in 33 markets, is the world's largest infrastructure asset manager and Australia' ...
and
Carlyle Group The Carlyle Group is a multinational private equity, alternative asset management and financial services corporation based in the United States with $376 billion of assets under management. It specializes in private equity, real assets, and pri ...
. Opposition to traffic enforcement cameras owned by Redflex has resulted in their removal in some American cities in
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and
California California is a U.S. state, state in the Western United States, located along the West Coast of the United States, Pacific Coast. With nearly 39.2million residents across a total area of approximately , it is the List of states and territori ...
.


Bribery investigations

In late 2010, Redflex executives were implicated in a bribery investigation in
Chicago (''City in a Garden''); I Will , image_map = , map_caption = Interactive Map of Chicago , coordinates = , coordinates_footnotes = , subdivision_type = Country , subdivision_name ...
, Illinois. Following up on a letter from a
whistleblower A whistleblower (also written as whistle-blower or whistle blower) is a person, often an employee, who reveals information about activity within a private or public organization that is deemed illegal, immoral, illicit, unsafe or fraudulent. Whi ...
, the ''
Chicago Tribune The ''Chicago Tribune'' is a daily newspaper based in Chicago, Illinois, United States, owned by Tribune Publishing. Founded in 1847, and formerly self-styled as the "World's Greatest Newspaper" (a slogan for which WGN radio and television ar ...
'' reported that a Redflex consultant had been making improper payments to a City of Chicago transportation official, John Bills, who was responsible for overseeing the awarding of contracts for the installation and operation of Chicago's widely hated red light camera system. The consultant, Marty O'Malley, who was a long time friend of Bills hired to oversee the Chicago contract, had received in commissions for the contract which had provided approximately million in revenue for Redflex. A two-year internal investigation conducted by Redflex reported in October 2012 that it had found only one instance of an inappropriate expenditure: a two-star hotel stay at the
Days Inn Days Inn is a hotel chain headquartered in the United States. It was founded in 1970 by Cecil B. Day, who opened the first location in Tybee Island, Georgia. The brand is now a part of the Wyndham Hotels and Resorts, headquartered in Parsippan ...
for Bills, paid for by the consultant, who was subsequently sent for anti-bribery training. The Chicago contract is the company's largest in North America. With 384 cameras it provides 13% of Redflex Holdings' worldwide revenue.Kidwell, Davi
3 more Redflex execs out as fallout continues for city's red light camera firm
''
Chicago Tribune The ''Chicago Tribune'' is a daily newspaper based in Chicago, Illinois, United States, owned by Tribune Publishing. Founded in 1847, and formerly self-styled as the "World's Greatest Newspaper" (a slogan for which WGN radio and television ar ...
'' 2 March 2013
After the Chicago Tribune found additional evidence of improprieties in the relationship between Redflex executives and consultants and Chicago officials. Redflex hired a "former Chicago inspector general, David Hoffman" to lead a new investigation. On 8 February 2013, Redflex received notification from the City of Chicago's Department of Procurement Services that it will "not be considered a responsible vendor for the new RFP for red light cameras that the City intends to issue in the near future." In response, Redflex Holdings chairman of the Australian Board of Directors Max Findlay, board member Ian Davis and the company's top sales executive resigned after being blamed for the company's problems in Chicago.Largest Red Light Camera Program In World Faces Widened Corruption Probe
thenewspaper.com 11 February 2013
Hoffman's report, delivered to the Redflex board in February 2013, found that Redflex had provided Bills with vacations and other gifts paid for by the expense account of Redflex Executive Vice-President Aaron Rosenberg. Hoffman also found that Redflex's president had knowledge of the arrangement and had lied to Chicago's administration about the extent of it.Kidwell, Davi
Red light camera firm admits it likely bribed Chicago official
Chicago Tribune The ''Chicago Tribune'' is a daily newspaper based in Chicago, Illinois, United States, owned by Tribune Publishing. Founded in 1847, and formerly self-styled as the "World's Greatest Newspaper" (a slogan for which WGN radio and television ar ...
2 March 2013
On 20 February, Redflex terminated Rosenberg and filed a lawsuit against him alleging "dishonest and unethical conduct".Kidwell, Davi
Red-light camera firm fires VP, sues him over Chicago scandal
Chicago Tribune The ''Chicago Tribune'' is a daily newspaper based in Chicago, Illinois, United States, owned by Tribune Publishing. Founded in 1847, and formerly self-styled as the "World's Greatest Newspaper" (a slogan for which WGN radio and television ar ...
22 February 2013
In a 1 March email addressed to all employees, Redflex Holdings chief executive officer and President Robert DeVincenzi, who took over the company in September 2012, announced the resignations of three top executives in its
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headquarters: former President & CEO Karen Finley; Redflex's General Legal Counsel Andrejs Bunkse and Chief Financial Officer Sean Nolen. The bribery investigation and ensuing events caused trading in Redflex shares to be halted twice. In 2012, the company reported a net profit of $21.3 million; On 11 February 2013 Redflex announced the figure would be adjusted to million due to legal costs which, after taxes of million are paid, would likely result in the company posting a loss. In 2015, the
Federal Bureau of Investigation The Federal Bureau of Investigation (FBI) is the domestic intelligence and security service of the United States and its principal federal law enforcement agency. Operating under the jurisdiction of the United States Department of Justice, ...
and the
Internal Revenue Service The Internal Revenue Service (IRS) is the revenue service for the United States federal government, which is responsible for collecting U.S. federal taxes and administering the Internal Revenue Code, the main body of the federal statutory ta ...
brought charges of bribery and fraud against former Redflex CEO Karen L. Finley of Cave Creek Arizona, to which she pleaded guilty to a one-count information charging her with conspiracy to commit federal programs bribery and honest services wire and mail fraud. Finley admitted to a scheme that funnelled campaign contributions to elected officials in
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and
Cincinnati Cincinnati ( ) is a city in the U.S. state of Ohio and the county seat of Hamilton County. Settled in 1788, the city is located at the northern side of the confluence of the Licking and Ohio rivers, the latter of which marks the state line wit ...
to either obtain or continue the contracts to supply photo red light enforcement. On 19 October 2016, she was sentenced to fourteen months of confinement for the scheme.


References

{{reflist Companies listed on the Australian Securities Exchange Companies based in Melbourne Technology companies established in 1997 1997 establishments in Australia