Former Redflex CEO pleads guilty to corruption in Chicago’s red-light camera contracts

The former chief executive officer of Chicago’s first red-light camera vendor has pleaded guilty to a federal bribery charge. As the CEO of Redflex Traffic Systems, Karen Finley funnelled cash and other personal financial benefits to City of Chicago official John Bills and his friend Martin O’Malley, knowing that the payments would help persuade the city to award red-light camera contracts to Redflex, according to a plea agreement. The benefits included golf trips, hotels and meals, as well as hiring th
Enforcement / August 21, 2015
The former chief executive officer of Chicago’s first red-light camera vendor has pleaded guilty to a federal bribery charge.

As the CEO of 112 Redflex Traffic Systems, Karen Finley funnelled cash and other personal financial benefits to City of Chicago official John Bills and his friend Martin O’Malley, knowing that the payments would help persuade the city to award red-light camera contracts to Redflex, according to a plea agreement.  The benefits included golf trips, hotels and meals, as well as hiring the city official’s friend as a highly compensated contractor for Redflex, according to the plea agreement.

The plea agreement states that the benefits flowed over a nine-year period, from 2003 to 2011, during which time the city expanded the digital automated red light enforcement program by awarding millions of dollars in contracts to Phoenix-based Redflex.

Finley pleaded guilty to one count of conspiracy to commit bribery in a federal program.  US District Judge Virginia Kendall scheduled a sentencing hearing for 18 February 2016.  Finley faces a maximum sentence of five years in prison, a maximum fine of US$250,000 or twice the gross gain or gross loss from the offence, and mandatory restitution.

Bills, who retired from the city in 2011, was indicted on nine counts of mail fraud, three counts of wire fraud, three counts of federal program bribery, three counts of filing a false federal income tax return, and one count each of extortion and conspiracy to commit federal program bribery.  He has pleaded not guilty and is scheduled to proceed to trial in January 2016.

O’Malley, 74, of Worth, pleaded guilty in December to one count of conspiracy to commit bribery in a federal program.  No sentencing date has been set.
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