Archive for January 30th, 2009
Italy: Red Light Camera Makers Arrested for Fraud
Red light cameras shut down across Italy in massive fraud scandal involving 109 public officials and contractors.
Red light cameras are shut down across Italy as the largest ever government investigation into the illegal use of photo enforcement expands. Carabinieri yesterday placed the inventor of the “T-Red” brand of red light camera, Stefano Arrighetti, 45, under house arrest. Another 63 municipal police commanders; 39 mayors and other public officials; and red light camera distributors including Kria, Ci.Ti.Esse, Maggioli, Traffic Technology and Open Software are under investigations. Documents and automated ticketing machines have been seized from 54 municipalities.
Motorist complaints about being trapped at camera-equipped intersections with short yellow signal durations sparked the inquiry. Verona Preliminary Investigations Judge Sandro Sperandio ordered police on January 24, 2008 to seize T-red devices in Tregnago, and the case soon spread across the country to other cities and towns under contract with photo ticketing companies.
Criminal charges of forgery and fraud are based on four basic complaints, many of which represent common practices in the United States. First, municipalities are accused of shortening yellow times to boost profit. Although not binding, Ministry of Transportation guidelines recommend a minimum yellow of 3 seconds for intersections with a posted speed of 50km/h (31 MPH), 4 seconds for 60 km/h (37 MPH) and 5 seconds for 70km/h (43 MPH). Many cameras were placed at high-speed intersections with yellow times as short as 3 seconds. In the US, photo enforcement advocates modified signal timing guidelines beginning in 1985 to promote the use of shortened yellow timing without running into legal troubles.
Second, investigators found that municipal police never reviewed the camera fines. Instead, the tickets went straight to private companies like Ci.Ti.Esse which affixed scanned electronic signatures of police officials before mailing the citations, in violation of Italian law. Camera companies in the US also affix digital signatures to citations that have often never been reviewed by police officials.
The third charge involves fraudulent type approval of the red light camera device. Arrighetti’s company, Kria, is accused of having only the T-Red’s camera approved by the Ministry of Transportation, not the electronic control hardware that determines who receives a ticket. The same charge has been leveled against Redflex, the Australian company that operates US red light and speed camera systems.
The fourth and most damaging charge involves contracting irregularities. A municipal police commander who helped a red light camera system go from 500,000 Euros in fines in 2005 to $1 million Euros in 2007 received a 2000 Euro (US $2580) bonus from a private company. The no-bid contracts offered to the companies that operate the systems with a per-ticket compensation of 35 percent of each fine issued, while common in the US, violate Italian contracting statutes.
Motorists who have already received fines may apply to the courts to have them canceled.
Online Vehicle History Database Opens for Consumers
Today at 9 a.m., two AAMVA, and DOJ-approved, vendors began making available to consumers the online vehicle histories of over 70 percent of the nation’s registered vehicle population. This online network, known as the National Motor Vehicle Title and Information System (NMVTIS), will help protect consumers from automobile fraud crimes and provide law enforcement with 21st century tools to investigate theft, and other vehicle-related crimes.
For the first time, consumers have real-time access to a vehicle’s brand history, odometer data and basic vehicle information. Consumers will be redirected to the current state of record to access the full title record if available.
As the NMVTIS operator, AAMVA has worked collaboratively with the U.S. Department of Justice, who has oversight over this system, to bring this consumer-friendly technology to fruition.
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Department of Justice National Motor Vehicle Title Information System
News Items
- California, New York, Pennsylvania, currently provide data, but restrict NMVTIS from releasing data to consumers (see map above).
- NMVTIS Final Rule published on Friday, January 30, 2009
- U.S. Department of Justice Press Release
- National Motor Vehicle Title Information System (NMVTIS) Participation Program (FY 2009 Competitive Grant Announcement) (Applications are due February 12, 2009)
What Is NMVTIS?
Established by federal law in 1992, the National Motor Vehicle Title Information System (NMVTIS) is a U.S. Department of Justice (DOJ) system that is operated on behalf of DOJ by the American Association of Motor Vehicle Administrators (AAMVA).
NMVTIS is an electronic system that enables users to access automobile titling information, including brand history and certain historical theft data. A “brand” is a descriptive label assigned to a vehicle by a state that identifies the vehicle’s current or prior condition, such as “junk,” “salvage,” or “flood.” By capturing into one system specific pieces of information from state motor vehicle titling agencies, automobile recyclers, junk and salvage yards, and insurance carriers, NMVTIS protects states and consumers from title fraud, keeps stolen vehicles from being retitled, and makes it more difficult for criminals to conceal stolen vehicles for criminal purposes.
NMVTIS is necessary and crucial to:
- Protect consumers from fraud and unsafe vehicles.
- Aid law enforcement efforts to reduce crime, specifically crimes involving vehicles, including vehicle theft rings, violent crimes, drug crimes, financial crimes, smuggling, and fraud.
- Allow state motor vehicle titling agencies to instantly and reliably verify a vehicle’s title before issuing a new title, and facilitating the electronic exchange of information between states, which improves titling efficiency and reduces fraud.
NMVTIS is important because:
- 1.3 million vehicles are stolen each year.
- Auto fraud is a profitable business that burdens states and consumers.
- Auto theft alone costs consumers and insurance companies nearly $8 billion per year.
- Only 63 percent of vehicles reported stolen are recovered.
- Approximately 570,000 vehicles were affected by the 2005 hurricanes. These vehicles have been targets for vehicle title fraud (”brand washing”).
- Creation of false vehicle identification numbers (”VIN Cloning”) is a growing trend.
- Brand washing occurs regularly. Experian Automotive reported that in the first six months of 2008 there were more than 185,000 titles that were initially branded in one state, and then transferred and re-titled in a second state in a way that resulted in a purportedly clean title.
- A clear link has been demonstrated between auto theft and major crimes, violent crime, organized crime, and transnational criminal activity.
Currently 27 states participate or contribute to NMVTIS (view a map of participating states), with 10 others currently working towards participation. All states are required to be fully participating on or before January 1, 2010.
NMVTIS provides consumers and others with vehicle information such as:
- Current and previous state of title.
- Title issue date.
- Most recent odometer reading.
- Any brand(s) applied to the vehicle.
- Date the brands were applied.
- Any auto recycler or junk or salvage yard history for the vehicle.
- Any insurance company salvage determination (including “total loss”) history for the vehicle.
For specific information on what data is made available and the NMVTIS privacy policy, please go to the Privacy Policy.
Where implemented, NMVTIS has already produced results, including time and cost savings, reductions in consumer wait time, decreases in motor vehicle thefts, improved recovery rate of stolen vehicles, increased ability to identify cloned vehicles before title issuance, and improved investigative abilities.
Currently, there are approximately 300,000,000 VINs in NMVTIS and over 40,000,000 brands included.
Web Site Disclaimer and Notice
The information contained in this web site is intended for general informational purposes only. The web site does not attempt to cover every provision of the Anti-Car Theft Act (the Act) or its regulations. Users are encouraged to consult the Act and its regulations for a full and official listing of the legal requirements. Although this web site attempts to provide you with accurate and reliable information, to the extent that there may be any inconsistency between the information on this site and the provisions of the Act or regulations, the latter prevail.
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