FEDS: Ex-City Official Took Bribes in Exchange for Steering Red Light Camera Contract

A retired City of Chicago official who managed the city’s red light camera program for nearly a decade was arrested Wednesday on charges that he had allegedly accepted cash and personal benefits totaling hundreds of thousands of dollars.

John Bills, 52, of Chicago, was charged with one count of federal program bribery in a criminal complaint that was filed Tuesday and unsealed yesterday in federal court.

The charge alleges that Bills steered $124 million in city contracts to Redflex Traffic Systems, to establish, operate and expand the program, according to the criminal complaint.

Bills appeared Wednesday before U.S. Magistrate Judge Maria Valdez in federal court. Among the bribes the retired city manager reportedly received were cash, a $177,000 Arizona condominium and other forms of payment, all funneled from Redflex through an unnamed source identified in the complaint as “Individual A,” the feds said.

Bills worked for the city 32 years up until his retirement in 2011. According to the federal complaint, between 2003 when the city awarded Phoenix-based Redflex its initial contract, and 2012, Bills received cash and checks from Individual A, which he used to pay off loans for his retirement party and the catering bill for another party, and other personal expenses that Bills and his family had accumulated, using various methods of payment.

The original $25 million contract between the city and Redflex to install and maintain 136 speed camera systems throughout the city, as well as reviewing and processing violations.

As assistant transportation commissioner, Bills was a voting member of the city’s evaluation committee charged with reviewing requests for proposals. During this time, Bills is alleged to have engineered a plan to ensure a favorable outcome for Redflex with another confidential source cooperating with the FBI.

According to the complaint, at a celebratory dinner in June 2003, Bills dropped hints to the confidential source indicating he wanted his palm greased for helping Redflex win the Chicago contract.

In 2008, the city awarded two separate no-bid contracts totaling $99 million that boosted the city’s total number of red light cameras to 384. By 2010, Chicago had the largest red light program in the nation.

During this time, the unsealed complaint said, Bills’ personal expenses and debts were taken care of by Individual A, which included the purchase of a used Mercedes Benz for $12,500. An FBI affidavit claims there were few cash withdrawals from Bills’ bank account to support the personal expenditures.

The Chicago Tribune identifies “Individual A” as Martin O’Malley, and the Redflex’s ex-vice president of sales, Aaron Rosenberg, as the “cooperating source.”

Rosenberg, who has been granted immunity, has reportedly been blowing the lid on bribes the company allegedly paid to Bills, who sniffed around for a payout to help Redflex win Chicago’s red light camera contract in 2002, the Tribune reported.

The Tribune recounts a secret meeting by Redflex executives at which Bills was present, in their fight to win the city’s business.

Bills faces a maximum penalty of 10 years in prison and a $250,000 fine if convicted.