Red-light camera firm pays Chicago $20 million to settle bribery case

Cyrus Farivar
A red light camera is located at La Brea Ave. and Santa Monica Blvd. in Los Angeles.
Glenn Koenig / Getty Images News
Embattled red-light camera vendor Redflex has agreed to pay $20 million to the City of Chicago as part of its recent deal with federal prosecutors.
The formal settlement comes less than two months after the Department of Justice and Redflex reached a "non-prosecution agreement," one in which Redflex would not be prosecuted in exchange for paying restitution and damages. At the time, Redflex also agreed to pay $100,000 to the city of Columbus, Ohio to settle similar allegations.
Starting in 2003, Redflex secured major contracts worth hundreds of millions of dollars in the Windy City. In 2012, the Chicago Tribune revealed allegations that the city’s deals with the company were not entirely above board. The mayor later booted the company out of the city, giving Xerox a similar red-light camera contract.
Federal investigators began looking into Redflex itself, as well as Karen Finley, the then-CEO of its American subsidiary.
Eventually, prosecutors brought charges against Finley, as well as Chicago transportation official John Bills, who helped steer the contract with the city. The DOJ also targeted the "bagman" of the operations, Martin O’Malley, who helped funnel money to Bills. Both Finley and O’Malley pleaded guilty and are currently serving relatively short prison sentences—Bills took his case to trial, lost, and was sentenced to 10 years in prison.
According to the Chicago Tribune, Michael Finn, the new American CEO, said in a statement that the deal marked a "new beginning" for the company. "Over the last four years, we took the actions every responsible company would have chosen and enhanced our compliance management, training and oversight functions," he said.
The company’s first payment of $5 million is due March 20, 2017.
Red-light camera firm pays Chicago $20 million to settle bribery case Reviewed by Bizpodia on 00:22 Rating: 5

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