Skip to main content

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
August 21, 2015 Read time: 2 mins
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.

For more information on companies in this article

Related Content

  • Small toll agency adopts big city thinking
    December 5, 2014
    Andrew Bardin Williams looks at a novel option for new toll road authorities. While somewhat politically controversial, outsourcing has gained traction in the business world as a model worth investigating for its efficiency and cost saving benefits. Lean start-ups tend to employ independent contractors instead of full-time employees in an effort to remain flexible and avoid costs associated with pensions, retirement places, health insurance, office space and benefit packages.
  • Court rules former Uber driver was an employee
    September 11, 2015
    Ride-hailing company Uber has lost another legal round in the dispute over whether its drivers are independent contractors or employees, an issue that threatens the core of the ride-hailing company's business model, says Reuters. The California Employment Development Department (EDD) recently determined that a former Uber driver in Southern California was an employee, not an independent contractor as the company has claimed and as such was entitled to employee benefits. The decision was upheld twice on a
  • US adopts automated enforcement… gradually
    March 4, 2014
    The US automated enforcement market is in rude health as the number of systems and applications continues to grow and broaden. Jason Barnes reports. Blessed and cursed – arguably, in equal measure – with a constitution which stresses the right to self-expression and determination, the US has had a harder journey than most to the more widespread use of automated traffic enforcement systems. In some cases, opposition to the concept has been extreme – including the murder of a roadside civil enforcement offici
  • Ukraine turns to ITS to cope with traffic increases
    June 9, 2015
    With increasing road fatalities the Ukrainian government is planning to introduce ITS technology in 2016-2017. Eugene Gerden finds out more. The government of Ukraine is considering a massive introduction of ITS in the national system of traffic during the period 2016-2017, according to a recent statement by the Ukrainian Ministry of Transport. According to the Ukrainian government, implementation of the project is an acute need, as in recent years the number of road accidents in Ukraine has significantly