Australian red light camera company Redflex has been rocked by more US legal troubles, with its former chief executive of North American operations pleading guilty to bribery charges in Ohio.
Karen Finley was already facing 16 counts, including mail fraud, bribery and conspiracy to commit bribery, for a separate $US2 million ($A2.56 million) bribery scandal involving a Chicago official.
Federal prosecutors in Ohio revealed on Friday they had gone after 55-year-old Finley for an eight-year bribery and fraud scheme involving politicians in the cities of Cincinnati and Columbus.
The Melbourne-headquartered, Australian Securities Exchange-listed Redflex has suffered a slump in business in the US since the scandals became public.
Earlier this month Redflex pointed to "challenging" market conditions in the US when announcing a previously forecast $A10 million full-year 2015 operating loss would balloon to an estimated $A17 million to $A18 million loss.
According to the Ohio plea agreement, Finley and others, including another unnamed Redflex executive, used a consultant to pay more than $US70,000 in election campaign contributions to elected public officials.
The payments were made with the understanding the politicians would assist Redflex in winning or retaining contracts, including a red light enforcement contract with the City of Columbus, according to the agreement.
Finley also allegedly admitted she, along with co-conspirators, concealed the true nature and source of the payments.
According to emails allegedly obtained by prosecutors, when Finley was told certain Cincinnati and Columbus officials wanted $US30,000 for election campaigns she replied: "WOW that is a big handout. Is this how our local city handles campaign financing - now I understand the 'order of protection' for our friends".
Finley, of Cave Creek, Arizona, faces a maximum five-year prison term, but under the agreement, any jail sentence will run concurrently with any term in the Chicago case.
Finley is expected to plead guilty to the Chicago charges on August 11.
The scheme in Chicago helped Redflex secure $US124 million in contracts in the city, making it the red light camera capital of the US, prosecutors said.
Chicago mayor Rahm Emanuel cancelled the city's Redflex contract in 2013 while Columbus turned off its cameras in March.
Finley was Redflex's North American chief executive from late 2005 through to February 2013 and vice- president of operations from 2001 until she was promoted to chief executive.
Share
