PHOENIX - Aaron Rosenberg, a former executive at Redflex Traffic Systems Inc., who is being sued by the company for misappropriation of funds, has filed a counterclaim in which he claims Redflex bribed "dozens of municipalities" in 14 states, including Arizona.
Redflex, an Australian company with its U.S. headquarters in Phoenix, was, until October 2013, the company that provided the speed and red-light cameras in Prescott Valley. It has also at various times supplied camera systems to Chandler, El Mirage, Eloy, Paradise Valley, Phoenix, Show Low, Sierra Vista, Star Valley, Superior, and Surprise, as well as the Arizona Department of Transportation.
The court documents, filed in Maricopa County Superior Court, do not detail which of the cities or towns are alleged to have been offered bribes, or if they were offered to others.
Prescott Valley Town Manager Larry Tarkowski said no one in town government was ever offered a bribe.
"We did our own internal review," he said. "This was (asked) of staff and elected officials... and I've not gotten the (full) results yet, but preliminarily, there was absolutely nothing" offered to anyone in PV government in return for considering Redflex.
The company's Chicago traffic enforcement contract was canceled after the Chicago Tribune began looking into bribes allegedly paid to a city employee in charge of the Redflex contract.
When that scandal became public, Redflex fired six top executives, including Executive Vice President Rosenberg, and then sued him, alleging that he misappropriated company funds.
The company claims he filed "misleading and disguised reimbursement requests for personal and other inappropriate expenses."
In his counterclaim, Rosenberg said that he was a "scapegoat" who was set up to take the fall for a company practice of "providing government officials with lavish gifts and bribes." Rosenberg also said he provided information to local and federal investigators and to an outside attorney who was investigating Redflex.
A statement issued by the company said, "Redflex Traffic Systems denies the allegations in the counterclaim. Redflex will aggressively defend itself against the allegations as well as prosecute its claims against (Rosenberg). 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."
Rosenberg's attorney, James Burr Shields, declined comment for this story.