Redflex: We know Australian authorities are investigating dirty Chicago deal

Things keep getting worse for Redflex, the embattled Australian red-light camera vendor.

On Monday, the company told its investors that it is “aware” that the Australian Federal Police (AFP) has begun an investigation into its activities related to the former botched contract with the city of Chicago.

As Redflex wrote in its brief statement:

The Company is cooperating with the AFP and is assisting them with their investigation. The Company does not intend to make any further announcements about the investigation until such time as the AFP’s activities have concluded or other material developments occur involving the Company. As a result of an independent internal investigation and resulting uncovered misconduct, more than two years ago Redflex announced extensive and decisive changes to its North American leadership and including significant improvements in its compliance processes and tools.

Earlier this month, a federal jury in Chicago found a former city transportation official guilty on all 20 counts of mail and wire fraud, bribery, extortion, conspiracy, and tax evasion charges. John Bills, who was the managing deputy commissioner at the Department of Transportation, helped steer a lucrative city contract to Redflex. Bills’ bagman (Martin O’Malley) and the then-CEO (Karen Finley) of the US subsidiary have both pleaded guilty on related federal corruption charges.

After the Chicago Tribune began to investigate possible corruption, Chicago selected Xerox ACS to replace Redflex as its new red-light camera operator in 2013. Since then, Redflex has suffered financially, dubbing North America a "low/no-growth market.”