Former Redflex exec claims rampant bribery practice - WFSB 3 Connecticut

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Former Redflex exec claims rampant bribery practice

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Redflex Traffic Systems Redflex Traffic Systems
PHOENIX (CBS5) -

It's a war of words between Phoenix-based Redflex Traffic Systems and a former executive.

In 2012, the company came under fire for a multi-million dollar bribery scheme that helped land Redflex a contract for a red light camera program with the city of Chicago.

According to the Chicago Tribune, the company blamed its top salesman, sacking him and then suing him.

Aaron Rosenberg, who said he took the fall, accuses the company of using bribes to land contracts in many states including Arizona.

The Chicago Tribune reports Rosenberg has come back swinging with a counter lawsuit.

In February of 2013, Redflex Traffic Systems filed a civil lawsuit in Maricopa County Superior Court against Rosenberg, its former executive vice president.

According to the Chicago Tribune, the company blamed him for a $2 million bribery scheme that helped the company land the Chicago deal, one it eventually lost.

The lawsuit is seeking damages for Rosenberg's alleged wrongdoings.

In October of 2013, Rosenberg field a countersuit.

Some of the claims include defamation and intentional infliction of emotional distress.

The Chicago Tribune reports Rosenberg claims Redflex made him a "scapegoat" to "cover the company's long standing practice of providing government officials with lavish gifts and bribes."

Rosenberg claims this tactic was used to attempt to secure contracts in at least 13 states, including Arizona.

Redflex released the following statement Friday afternoon:

"Redflex Traffic Systems denies the allegations in the counterclaim which are from Aaron Rosenberg, a former executive vice president, terminated for violating company policies and procedures. Redflex will aggressively defend itself against the allegations as well as prosecute its claims against the former executive. We are committed to transparency and honesty in our business practices. Our focus continues to be on providing best in class customer service and technology to our clients to make their communities safer."

Redflex confirmed it has contracts with 10 cities in Arizona, including Phoenix, Chandler, El Mirage, and Paradise Valley.

Most of those cities told CBS 5 News, they use standard request for proposals (RFP) when deciding to award a contract.

Some of the factors include cost, operational considerations and experience.

In Rosenberg's countersuit, he also claims he is cooperating in an ongoing federal investigation into Redflex.

CBS 5 News called Rosenberg's Phoenix attorney, James Burr Shields II, but was told he would not comment on the case.

 Copyright 2014 CBS 5 (KPHO Broadcasting Corporation). All rights reserved.

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