Top RI Politico's Company Sued in Federal Court for Fraud Tied to Speed Camera Contract and Lobbying

Top RI Politico's Company Sued in Federal Court for Fraud Tied to Speed Camera Contract and Lobbying

Richard Dugan's company has been sued in federal court by the speed camera company Conduent. Dugan has been a political force for a long time in Rhode Island.

Conduent has had a contract with the City of Providence and other cities and has been paid tens of millions in fees over the past five-plus years.

Conduent is a global company with 56,000 employees and is headquartered in New York. It sold the division that held the contracts with the Rhode Island cities to a Canadian firm, Modaxo.

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The suit filed in federal district court on Thursday alleges fraud by Dugan's company.

 

For years, Dugan, via his company Tarred, did “lobbying” work for Conduent and its preceding company to get and retain the city of Providence’s multimillion traffic camera contract.

 

Dugan is the son of legendary State House powerbroker Bill Dugan, who served as Governor J. Joseph Garrahy’s chief of staff. Garrahy served as governor for four terms from 1977 to 1985.

 

The younger Dugan has been a major political donor to politicians in Providence and statewide over the years — everyone from Rhode Island Attorney General Peter Neronha to former Speaker Gordon Fox to Providence Mayor Brett Smiley.

 

In total, Dugan has donated nearly $100,000 to federal, state, and local candidates.

 

 

 

Alleged Violations of Agreement

 

According to the suit, Dugan failed to comply with ethics requirements. "Pursuant to the Amended Agreement, Tarred represented and warranted that it would comply with all federal, state, and local laws, ordinances, rules, and regulations “applicable to this Agreement and the Parties’ business operations, including, but not limited to, applicable … ethics, lobbying, …laws and regulations.”

 

It is alleged, however, that he did not. 

 

According to the City of Providence's registry of lobbyists, Dugan does not appear in the database that tracks back to 2017.

 

“Conduent and Tarred [Dugan’s company] entered an Amended and Restated Consulting Agreement as of July 25, 2017… While the Prior Agreement was in force, Tarred’s principal, Dugan, provided lobbying services to assist Conduent’s predecessor in obtaining a contract (“Red Light Contract”) with the City of Providence (“City”).”

 

The lawsuit states, “During the Term of the Amended Agreement, Tarred would be paid a fixed monthly payment in return for services provided. However, if the City “reduces the compensation to Conduent for providing Conduent Providence Work under the contracts with Conduent, and such reduction is not the result of the fault or negligence of Conduent, then [Tarred’s] compensation under this Agreement shall be equitably adjusted.”

 

Further, the lawsuit alleges:

 

- Tarred intentionally misrepresented the Consulting Services it would provide.

- Tarred did not intend to provide the Consulting Services set forth in the Amended Agreement.

- Tarred has intentionally misrepresented the Consulting Services it allegedly provided.

- Conduent reasonably relied on Tarred’s intentional misrepresentations in entering the Amended Agreement and issuing payment to Tarred.

- Conduent has been financially harmed by Tarred’s intentional and fraudulent misrepresentations.

 

 

The company, in its lawsuit, is asking the court “that the Court enter judgment in favor of Conduent and against Tarred as follows:

 

a) Declaring that the Amended Agreement is unenforceable;

b) Declaring that the Amended Agreement is subject to termination based on Tarred’s failure to register as a lobbyist;

 

• Declaring that Tarred’s right to compensation under the Amended Agreement, if any, is subject to equitable adjustment;
• Declaring that Tarred has no right to receive compensation from Conduent based on the Red Light Contract;
• Declaring that Tarred has no right to receive compensation from Conduent based on the Parking Contract;

 

f) Declaring that Tarred has no right to receive compensation from Conduent Amended Agreement;

g) Declaring that the Amended Agreement is rescinded;

h) Awarding restitution to Conduent in an amount equal to all amounts paid to Tarred under the Amended Agreement;

i) Awarding compensatory damages to Conduent in excess of $75,000.

 

 

The Speed Camera Launched in Providence

 

The contract has generated tens of millions for the company since the program was first launched by former Providence Mayor Jorge Elorza and Council President John Igliozzi. 

 

The two said in announcing the program in January of 2018 that the program would make the city safer.

 

“Ultimately, this is about keeping families safe, especially in areas with many children around,” said Elorza. “Tragedies can be prevented with innovative solutions and that's exactly what these cameras do.”

 

“Public safety is a priority for our neighborhoods and our children. This initiative will make our city safer and raise the quality of life for all,” said Councilman John J. Igliozzi, who helped sponsor this initiative in his role as Chair of Finance. Today, Igliozzi is acting chief of staff and legal counsel to Peter Alviti at the Rhode Island Department of Transportation.

 

Dugan did not respond to repeated requests for comment at the time of publication.

 

EDITOR'S NOTE: This story was updated at 12:56 PM