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Ex-CEO of red-light firm faces corruption charges

By WTOP Staff

MICHAEL TARM
Associated Press

CHICAGO (AP) — A former executive of a Phoenix-based company was indicted on public corruption charges Wednesday in an ongoing federal investigation in Chicago of one of the nation’s largest red-light camera programs.

Karen Finley, 54, the CEO of Redflex Traffic Systems Inc. until 2013, is accused of funneling nearly $600,000 in cash and other benefits to a retired Chicago official for his help in landing the firm $124 million in city contracts.

Chicago awarded its first contract to Redflex in 2003 and the signed others later for the city’s first red-light enforcement program. It uses cameras to automatically record and ticket drivers who run red lights.

The ex-city official, 52 year-old John Bills, was charged in May with one count of bribery. In the new indictment, the longtime transportation department official faces additional charges, including extortion and filing false income tax returns.

Finley, of Cave Creek, Arizona, was charged with multiple counts of fraud and bribery, as well as one count of conspiracy to commit bribery. A conviction on just one count of fraud carries a maximum 20-year prison term.

Finley was not arrested and will be arraigned later. A message seeking comment left at a residential telephone number for Finley in Cave Creek was not returned.

After Bills was arrested and then released pending trial in May, his lawyer, Nishay Sanan, said his client never took bribes from anyone, and he described Bills as a “scapegoat.”

It’s just the latest in a long line of public corruption cases for Illinois, where the state’s previous two governors — one Democrat and one Republican — were convicted on corruption-related charges.

The U.S. attorney in Chicago said the red-light prosecutions illustrated his office’s commitment to rooting out corruption.

“We will attack alleged public corruption from every angle,” Zachary Fardon said Wednesday in a written statement.

Also named in Wednesday’s indictment is Martin O’Malley, 73, of Worth, a former Reflex company liaison. He faces one bribery count for allegedly passing much of his $2 million Redflex compensation to Bills. There was no public phone listing for O’Malley.

Court documents say that the money that went to Bills may have originated with Redflex, but federal authorities have not accused the company itself of wrongdoing.

In a statement emailed on Wednesday, Redflex said that it made “aggressive leadership changes” last year that have helped it draw a “distinction between our past and present.”

“Redflex has cooperated fully with the investigative authorities while maintaining the integrity of our customer programs,” the statement said.

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Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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