From the newspaper.com - Millions of dollars paid by motorists in red light camera and speed camera fines end up in the pockets of a handful of individuals. In the United States, American Traffic Solutions (ATS) is responsible for about 41 percent of the nation's photo enforcement business, but as a private company its dealings are well concealed from public scrutiny. Based on a review of documents marked "confidential -- attorneys' eyes only," the ATS leadership team has reaped significant personal profit in a short amount of time. "I paid through sweat equity of becoming a member of the leadership, and I made a financial investment in the company," former Wall Street analyst Adam Draizin explained in a December 3, 2009 deposition discussing his joining ATS in May 2004.
Draizin's contribution was $500,000 for which he earned an share equal to that of the company's other three partners. That investment paid off in a big way when Goldman Sachs became the largest shareholder in 2008 with a 30 percent stake. Draizin, John Petrozza, Adam Tuton, James Tuton each share an equal 16.7 percent stake. James Investment (Robert Alpert) held a 3 percent share. Goldman paid $58 million for its slice of the automated ticketing industry, of which $45 million was invested in the company. The original four partners pocketed $3,250,000 each -- a six-fold return for Draizin, a Harvard Business School graduate. Goldman retains significant influence over the business. The deal required that ATS change from a subchapter S corporation to a C corporation, that Goldman representatives sit on the ATS board of directors and that the board meet on a quarterly basis. More here
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