Chicago scandal leads to shake-up at red-light camera firm

The chairman of the Australian company behind Chicago's red-light program resigned this week and trading in the company's stock was suspended amid an intensifying investigation into allegations of corruption in its Chicago contract.

Redflex Holdings Ltd. announced the extraordinary actions just days after board members were briefed by an outside legal team hired to examine ties between the company's U.S. subsidiary and the city official who oversaw its contract, a relationship first disclosed in October by the Tribune.

In a brief statement Thursday to the newspaper, the company also revealed for the first time that it is sharing information with law enforcement authorities.

The internal probe found that company executives systematically courted former city transportation official John Bills with thousands of dollars in free trips to the Super Bowl and other sporting events, sources familiar with the investigation told the Tribune. The company also hid the extent of the improper relationship from City Hall after the newspaper's reporting last year forced Redflex to partially reveal its ties to Bills, sources said.

The internal probe and a parallel investigation by city Inspector General Joseph Ferguson are also raising more questions about the company's hiring of a longtime Bills friend who received more than $570,000 in company commissions as a customer service representative in Chicago, the sources said.

http://www.chicagotribune.com/news/local/ct-met-chicago-red-light-investigation-0208-20130208,0,379202.story