12 INVESTIGATES: Company challenges city auditor findings - NBC12 - WWBT - Richmond, VA News On Your Side

12 INVESTIGATES: Company challenges city auditor findings

RICHMOND, VA (WWBT) -

A red light camera company dragged into the middle of a Richmond investigation is challenging the auditor's findings.

American Traffic Solutions attorneys is calling the investigation "shoddy" and asking the city auditor to immediately correct the records and notify media.

Last week, City Auditor Umesh Dalal issued a letter to Richmond's Chief Administrative Officer Byron Marshall validating the Redflex traffic camera contract with the city.

In that letter, the auditor also raised questions about how the Redflex contract came about.

In the letter, Dalal wrote that it appears two companies bid to bring the red light cameras to the River city: Redflex and American Traffic Solutions. The auditor's office claims American Traffic Solutions is actually a subsidiary of Redflex. He wrote that the company was essentially, "competing against itself to provide an appearance of a competitive" process.

In a letter sent over the weekend to the Dalal, ATS attorney's argue there is "absolutely no connection between the two companies."

You can read the letter here: http://ftpcontent4.worldnow.com/wwbt/PDF/Relationship_of_ATS_to_Redflex.pdf

An NBC12 search of online records, including SEC filings could not connect the two companies. They both operate in Arizona. One is public and one is private. But numerous online articles claim the two companies are competitors.

We contacted Redflex, who denied the allegation and said American Traffic Solutions is a major competitor. Spokesperson Jody Ryan says they company was formed after several executives broke away from Redflex.

"I can assure you we are not connected to Redflex in any way shape or form," said Charles Territo for American Traffic Solutions. "Outside the fact that we are both in the road safety camera industry, the connection between ATS and Redflex is as distant as Richmond, VA is from Richmond, California."

Dalal told NBC12 he received the letter and has reached out to American Traffic Solutions asking the company to substantiate its claims.

Copyright 2013 WWBT NBC12.  All rights reserved.

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