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Retired Chicago official charged with bribery in city's red-light program

John Bills, 52, a retired Chicago official who managed one of the nation's largest red-light camera programs, leaves the federal building after an initial hearing in Chicago, Wednesday, May 14, 2014, after his arrest by federal authorities. Bills is accused of accepting hundreds of thousands of dollars in cash, an Arizona condominium and other gifts to steer $124 million in city contracts to Phoenix-based Redflex Traffic Systems, Inc. (AP Photo/Sun-Times Media, Kevin Tanaka) MANDATORY CREDIT, MAGS OUT, NO SALES

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John Bills, 52, a retired Chicago official who managed one of the nation's largest red-light camera programs, leaves the federal building after an initial hearing in Chicago, Wednesday, May 14, 2014, after his arrest by federal authorities. Bills is accused of accepting hundreds of thousands of dollars in cash, an Arizona condominium and other gifts to steer $124 million in city contracts to Phoenix-based Redflex Traffic Systems, Inc. (AP Photo/Sun-Times Media, Kevin Tanaka) MANDATORY CREDIT, MAGS OUT, NO SALES

CHICAGO - Federal authorities Wednesday arrested a retired Chicago official who managed one of the nation's largest red-light camera programs, accusing him of accepting hundreds of thousands of dollars in cash, an Arizona condominium and other gifts to steer $124 million in city contracts to Phoenix-based Redflex Traffic Systems Inc.

After allegedly fixing a key commission vote to secure an initial $25 million deal, John Bills, now 52, attended a celebratory dinner and made clear it was time for him to be paid by Redflex for delivering the contract, a 28-page complaint says.

Chicago awarded that contract to Redflex in 2003 and signed others later for the city's first red-light enforcement program, which uses cameras to automatically record and ticket drivers who run red lights. After 32 years with the city, Bills retired in 2011 as managing deputy commissioner of the transportation department.

The latest accusation of bribery is just another page in a long, ignominious history for Chicago and Illinois. Multiple Chicago city council members have been convicted of corruption, and the state's previous two governors — one Democrat and one Republican — were also convicted on corruption-related charges.

At an initial hearing in Chicago Wednesday, Bills was led in by marshals in handcuffs. But after asking if he understood he was charged with one count of bribery, the U.S. magistrate judge agreed to release him pending trial. If convicted, he faces up to 10 years in prison.

Outside court, defence attorney Nishay Sanan said his client never took bribes from anyone. He said Redflex faced legal troubles elsewhere and was trying to make Bills "the scapegoat."

"They are trying to cover themselves," he said.

The complaint says the money that went to Bills may have originated with Redflex, but it does not accuse the company of wrongdoing. In a statement released by company spokeswoman Jody Ryan, Redflex pointed the finger at previous employees, saying it has drawn "a line between our past and today's Redflex."

The complaint portrays Bills as walking his contact through how the payoffs could be made. The unnamed contact — who made a salary, bonuses and commissions from Redflex — withdrew around $650,000 between 2006 and 2011. The withdrawals corresponded to pricey purchases by Bills, including for a Mercedes-Benz, the complaint says.

During the process of selecting a company for the initial contract, the complaint describes how Bills tossed Redflex photographs that came out badly while showing mainly poor test shots for the other company vying for the contract.

In a filing to regulators in Australia, Redflex, which is owned by an Australian company, said it examined allegations that the company's payments to a Redflex consultant in Chicago had been passed to an unnamed city official who ran the city's red-light camera program and that the company had paid for the official's vacation expenses. The city official was not identified.

The company's first examination of the allegations concluded they were without merit, the regulatory filing said.

But another examination found the allegations had merit, saying the arrangement between the Chicago official, consultant and Redflex will likely be considered a bribe by authorities.

A former sales executive of Redflex who was fired by the company said in a court filing as part of a lawsuit in Phoenix that the company gave bribes and gifts to government officials in dozens of municipalities in 13 states: California, Washington, Arizona, New Mexico, Texas, Colorado, Massachusetts, North Carolina, Florida, New Jersey, Tennessee, Virginia and Georgia.

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