In late 2010, Redflex executives were implicated in a bribery investigation in
Chicago, Illinois. Following up on a letter from a
whistleblower, the
Chicago Tribune reported that a Redflex consultant had been making improper payments to a City of Chicago transportation official, John Bills, who was responsible for overseeing the awarding of contracts for the installation and operation of Chicago's widely hated red light camera system. The consultant, Marty O'Malley, who was a long time friend of Bills hired to oversee the Chicago contract, had received in commissions for the contract which had provided approximately million in revenue for Redflex. A two-year internal investigation conducted by Redflex reported in October 2012 that it had found only one instance of an inappropriate expenditure: a two-star hotel stay at the
Days Inn for Bills, paid for by the consultant, who was subsequently sent for anti-bribery training. The Chicago contract is the company's largest in North America. With 384 cameras it provides 13% of Redflex Holdings' worldwide revenue. After the Chicago Tribune found additional evidence of improprieties in the relationship between Redflex executives and consultants and Chicago officials. Redflex hired a "former Chicago inspector general,
David Hoffman" to lead a new investigation. Hoffman's report, delivered to the Redflex board in February 2013, found that Redflex had provided Bills with vacations and other gifts paid for by the expense account of Redflex Executive Vice-President Aaron Rosenberg. Hoffman also found that Redflex's president had knowledge of the arrangement and had lied to Chicago's administration about the extent of it. On 20 February, Redflex terminated Rosenberg and filed a lawsuit against him alleging "dishonest and unethical conduct". In a 1 March email addressed to all employees, Redflex Holdings chief executive officer and President Robert DeVincenzi, who took over the company in September 2012, announced the resignations of three top executives in its
Phoenix, Arizona headquarters: former President & CEO Karen Finley; Redflex's General Legal Counsel Andrejs Bunkse and Chief Financial Officer Sean Nolen. In 2012, the company reported a net profit of $21.3 million; On 11 February 2013 Redflex announced the figure would be adjusted to million due to legal costs which, after taxes of million are paid, would likely result in the company posting a loss. On 19 October 2016, she was sentenced to fourteen months of confinement for the scheme. ==References==