Sunday, January 17, 2016

THE RED LIGHT OF CLOUT GOES ON TRIAL IN CHICAGO: TWO LONG HELD THEORIES ON THE REDFLEX CAPER

1/17/16

Now that the Redlfex/John Bills red light camera trial is underway, yours truly feels compelled to remind his readers that he has been following this story since the Chicago Tribune broke it in October, 2012.   In my first post on the story, dated 10/18/12 (which I have reproduced below as an appendix of sorts, to my last post on the issue, dated 8/21/14, also reproduced, and linked, below), I concluded, in a rather shameless plug for my books, with

A minor figure in this drama loses his job for accepting $500 in accommodations from a city vendor.   The vendor keeps its current contract but can’t bid on a new one, though the city Inspector General is investigating the case. 

It looks like there is more to this story and that there are more important people involved than Messrs. Bills and O’Malley.   How likely is it that larger heads will roll?   For a hint, take a look at my two novels of Chicago politics, The Chairman, A Novelof Big City Politics and The Chairman’s Challenge, A Continuing Novel of BigCity Politics.

In a 5/18/14 post, also reproduced and linked below, I outlined my by then general theory on this case, which remains intact.   Since this theory is outlined extensively in the 5/8/14 post below, I won’t repeat it here but will encapsulate it, to wit…

John Bills, for all his talents and abilities, was not big enough to steer a 9 figure contract to anybody, let alone an out of state (out of the country, really) outfit with few, if any, ties to the city.  So either…

·         Someone higher up was in on it.   As I said in the 8/21/14 post…

As I’ve said ad nauseam, going back to the dawn of the Redflex caper, if anything has the potential to bring down some very big people in Chicago, it is this scandal.  Clearly, the feds aren’t going through all this time and expense to put John Bills, a deputy managing commissioner of the Chicago Transportation Department and a precinct captain (albeit a very good and important precinct captain) for Mike Madigan’s 13th Ward Regular Democratic Organization, away.  

This “someone else was in on it” seems to be the operative theory among denizens of the Chicago media.

Or…

·         A more intriguing, and, as far as I have seen, unique to yours truly, theory…John Bills used his considerable persuasive powers, as demonstrated by his many years as a star precinct captain in Mike Madigan’s organization, to convince the Redflex suits that he did have the power to steer such a huge contract.   What did the Redflex people know?   They were from out of town, naïve concerning the ways of the politics of our town.   They hadn’t read my books.  Maybe Mr. Bills convinced them that a deputy managing commissioner had the kind of clout they were looking for.

Sure, it took, er, courage, on Mr. Bills part to pull off such an act, if this second theory is true.   What if, after his taking all that consideration from Redflex, Redflex lost the contract?   But Mr. Bills is no dummy; he probably had determined that Redflex was highly likely to get the contract anyway.  But, more importantly, if Redflex didn’t get the contract, so what?   What was Redflex going to do…sue him?   I can hear it now… “Your honor, we bribed this guy because he promised he was our man to get the contract.   Then we didn’t get it.  He owes us and we demand payment.”   The idea is absurd.   So what were they going to do?   Threaten Mr. Bills?   Someone like John Bills has probably been threatened by scarier people than a bunch of suits in Arizona.

At any rate, enjoy the below posts.   The first is my 5/18/14 post, which goes into greater detail on my still operative theory.   The second is my 8/21/14 post, my last on this issue.   Attached to that is my 10/18/12 post, my first on this issue.  The many others I posted between these two have been omitted for brevity.  And, in yet another shameless plug, if you want to gain some searing insight into how things are done around Chicago, see my two books, The Chairman, A Novel of Big City Politics and The Chairman’s Challenge, A Continuing Novel of Big City Politics.   The people at Redflex probably wished they saved themselves perhaps millions, and maybe some hard time, by spending a few bucks on my books.






REDFLEX:  COULD JOHN BILLS HAVE PULLED THIS OFF (NEARLY) ALONE?

5/18/14

Few people have written as extensively or for as long as I have on the Redflex scandal and the man currently in the middle, John Bills, former deputy managing commissioner of the Chicago Transportation Department, and, more importantly and perhaps saliently in this case, a precinct captain the 13th Ward Democratic Organization run by the guy who runs the show in Illinois politics, House Speaker Mike Madigan.  See my piece of a few days ago, THE REDFLEX SAGA:  THE GIFT THAT KEEPS ON GIVING FOR CHICAGO POLITICAL JUNKIES and the posts to which it will refer you.

My, and most people’s, operative theory is that Mr. Bills didn’t have the clout to muscle Chicago’s red light camera contract to Redflex; recipients of hundred million dollar plus contracts don’t get decided by deputy managing commissioners. Thus, even though Mr. Bills is alleged to have accepted hundreds of thousands of dollars in bribes to grease the Redflex contract, somebody higher up, and I don’t mean mysterious “consultant” Marty O’Malley, another 13th Ward luminary, had to be involved.

As we learn more about Mr. Bills, however, an alternative theory comes to mind.  

It’s difficult to become, and even more difficult to remain, a captain in Mike Madigan’s 13th Ward Organization.   The more highly educated, the “better” types around town (the type of people who form Mayor Rahm Emanuel’s core of support, for instance) might scoff at the likes of Mr. Bills.  Why, he isn’t a lawyer or an investment banker; he didn’t even go to college.  He doesn’t live in a trendy neighborhood on the north side; what could he possibly know?   But Mr. Bills and his former ward soldiers are smart, tough guys who work very hard to get out the vote and do what needs to be done, by just about any means necessary.  They might not belong the right clubs, in the estimation of Emanuel enthusiasts, but, for them, belonging to the 13th Ward (or any number of other ward organizations) Democratic Organization, and thus having access to the perks that go with membership, will do.   For readers of my novels, think of the fictional Jack Salewski.

Among this group of elite street level politicos, Mr. Bills was apparently among the best.   He not only carried his precinct handily, he helped (Some say always for a price, but that’s not the point here.) his fellow captains carry their precincts.  He raised money prodigiously for the Ward Organization, even if by leaning on those in his employ at the city.  His fellow captains, if reports are to be believed, may think Mr. Bills had the tendency to tell a tall tale and exaggerate his connections and achievements, but nobody had anything but the greatest respect for his ability at his job, which was, at its core, to produce for Mike Madigan.   That Mr. Bills started out of high school as a street lamp repairman and wound up as a deputy managing commissioner making nearly $140,000 is testimony to his ability.

It’s not crazy to postulate that a guy with Mr. Bills’ ability, his gift of gab, his reported affability and ability to tell an engaging, if exaggerated tale, might have been able to convince the people at Redflex that he indeed had what he didn’t have:  the genuine power to steer the red light camera contract to whomever could come up with enough largesse to satisfy John Bills.   Remember, the Redflex people were, and are, from out of town.  They hadn’t read my books and don’t know how things work in this town.  Yeah, maybe they’re smart, but perhaps they are only book smart and not street smart like John Bills.   Maybe he could indeed convince these ingénues that he was the guy they had to mollify, he was the guy they had to take care of, to grease this contract through.

Notice my extensive use of the words “maybe” and “perhaps.”  Yours truly is certainly not arguing that this case stops at John Bills, that there are no higher-ups involved.  I still think someone higher up has to be involved.  But the more I read and hear about John Bills, the more I think that it is unwise to completely dismiss the possibility that John Bills single-handedly, or with the help of only Marty O’Malley, pulled the wool over the gullible eyes of the big shots at Redflex.

Further, while it is hard to admit this, I would, in a perverse way, applaud such an outcome.  As a fellow South Sider (Note:  You can take the boy out of the South Side, but you can’t take the South side out of the boy.  Never, by the way, have truer words been uttered.), though a nearly completely apolitical one, I would find it somehow laudable that a street guy like John Bills could have hornswoggled the suits at Redflex.


See my two books, The Chairman, A Novel of Big City Politics and The Chairman’s Challenge, A Continuing Novel of Big City Politics, for further illumination on how things work in Chicago and Illinois politics. 



MY LATEST…AND MY FIRST…POSTS ON REDFLEX AND JOHN BILLS:



THE REDFLEX SAGA:  WHAT DO MARTY O’MALLEY AND A CANARY HAVE IN COMMON?

8/21/14

The man whom I referred to as “mysterious “consultant” Marty O’Malley” has decided to cooperate with the feds in their ongoing investigation of Redflex’s nine figure red light camera contract with the city of Chicago.  (See my posts on this issue going back to October, 2012; the first, on the now defunct Rant Political, is reproduced below, following this piece.)   Mr. O’Malley was indicted in connection with l’affaire Redflex earlier this month, along with former Redflex USA CEO Karen FinleyJohn Bills, the former city official most intimately connected with the Redflex affair, was also indicted with Ms. Finley and Mr. O’Malley; in Mr. Bills’ case, that was his second indictment in connection with the case.   Mr. O’Malley, who faces five years in the hoosegow, is expected to plead guilty as part of his deal with the feds.

As I’ve said ad nauseam, going back to the dawn of the Redflex caper, if anything has the potential to bring down some very big people in Chicago, it is this scandal.  Clearly, the feds aren’t going through all this time and expense to put John Bills, a deputy managing commissioner of the Chicago Transportation Department and a precinct captain (albeit a very good and important precinct captain) for Mike Madigan’s 13th Ward Regular Democratic Organization, away.   And it would seem that a deputy managing commissioner is not in a position to have much influence over a contract the size of Redflex’s red light camera contract, at least not in Chicago.  But do read my 5/18/14 post (REDFLEX:  COULD JOHN BILLS HAVE PULLED THIS OFF (NEARLY) ALONE?, Rant Lifestyle); in it, I outline a plausible scenario under which Mr. Bills could have acted alone:  perhaps Mr. Bills, a man of powerful persuasion skills and, reportedly, figurative cajones the size of church bells could have convinced the naïve suits at Redflex that yes, indeed, he did have the power to make things happen.  The smart money, though, has to be on Mr. Bills being something of a pissant in this whole caper.  The feds seem to think so and would like to get to the real decision makers.

So Mr. Bills seems to be the ball game here.  Does he risk going away for a long, long time with both Mr. O’Malley and former Redflex Executive VP of sales, Aaron Rosenberg, cooperating against him?   Theoretically, both Mr. Bills and Ms. Finley could go away for life.   What, or who, would a man give in exchange for his life?




A further note, which might not mean anything but is still interesting:

When the first reports of the Redflex tale emerged, the Tribune reported Marty O’Malley was a member at St. Bede Parish, on 82nd and Kostner (just a few blocks from one of my favorite pizza places, Vito and Nick’s, or Nick & Vito’s, which is easier to say but not quite official.  I have to say that, based on our last few visits to this south side institution, Vito & Nick’s is a little off its game; perhaps it has something to do with the place’s having been on Diners, Drive-Ins, and Dives, but I digress.), as was and, supposedly is, John Bills.   These two guys living in the same parish, as I explained in a lesson the social mores of my species (i.e., south side Irish Catholic), made Mr. O’Malley’s claim that he didn’t know John Bills until they started working on the Redflex deal highly suspect.  Now it is reported that Mr. O’Malley lives in Worth, a suburb several miles southwest of the 13th Ward, outside the borders both of  St. Bede and, obviously, of Mike Madigan’s 13th Ward.   Does this give Mr. O’Malley’s “I didn’t know the guy until we started working on Redflex” argument any more credibility?   Maybe.

But maybe not.   Worth is clearly not in Mike Madigan’s ward and is not in his 22nd state House district.  But that doesn’t mean that Mr. O’Malley, though living in Worth, is not a parishioner at St. Bede.  We, for instance, belong to a parish in my old neighborhood even though we don’t live anywhere near the church.  Perhaps Mr. O’Malley once lived in St. Bede, has moved to Worth, but prefers to go to church, and maybe remain otherwise active, in his old parish.  This is very common behavior among us south side Irish types. 

More saliently for this case, Mr. O’Malley doesn’t live in the 13th Ward but is active, at least financially, in its politics; he, according to the Tribune’s story back in October, 2012, admits to contributing $1,000 in 2007, $1,500 in 2009. and another $1,500 in 2010 to Mr. Madigan’s political operations.  Remember, too, that Mr. Madigan’s influence emanates throughout the whole state, but its intensity increases as one nears his 13th Ward base of operations.  He is especially entrenched in the southwest suburbs, like Worth and Oak Lawn, where many of his former 13th Ward and 22nd District constituents and their adult children have moved as part of the white flight that has characterized the southwest side of the city over the last few decades.

Given their possible, though admittedly stretched, parish connection and their much more likely 13th Ward connection, it remains highly doubtful that Mr. O’Malley’s contention that he didn’t know John Bills until they started working together on Redflex is true.  Now, the Tribune is describing Mr. O’Malley as Mr. Bills’ “longtime friend,” so who knows where this perhaps trivial aspect of the story is going?   It has been a long time, one supposes, since the Redflex contract was won in 2005 and even longer since the maneuvering began for this contract.  But from the perspective of guys the vintages of Messrs. Bills and O’Malley (53 and 74, respectively) and yours truly (somewhere between those two), nine or so years seems like the blink of an eye.
NOTE:   WE HAVE SINCE LEARNED, AT THE BILLS TRIAL, THAT MESSRS. BILLS AND O’MALLEY MET NOT IN CONNECTION WITH 13th WARD POLITICS OR THOUGH THE NORMAL COURSE OF PARISH CAMARADERIE.  ACCORDING TO MR. O’MALLEY’S TESTIMONY, THEY MET AT AN ALCOHOLICS ANONYMOUS MEETING.   SINCE IT’S IMPERTINENT TO ASSUME THAT MR. O’MALLEY WAS PERJURING HIMSELF, LET’S ASSUME THAT’S TRUE.  THAT ASSUMPTION DOES LITTLE, IF ANYTHING, TO MODIFY THE CASE OR MY THINKING ON IT.   MQ 1/17/16


See my two books, The Chairman, A Novel of Big City Politics and The Chairman’s Challenge, A Continuing Novel of Big City Politics, for further illumination on how things work in Chicago and Illinois politics. 





MY FIRST POST ON THE REDFLEX DEAL, as promised above:

REDFLEX TRAFFIC SYSTEMS AND CHICAGO POLITICS:   TRUTH NEARLY AS INTRIGUING AS FICTION

10/18/12

The City of Chicago has just scratched the surface in the malodorous dealings of Redflex Traffic Systems, Inc., which supplies the city with red light cameras.   Redflex has been barred from bidding on the city’s upcoming speed camera system after having paid a hotel bill for a city purchasing agent and covered up this indiscretion for two years. Redflex continues to be the vendor for red light cameras for at least the time being.  The background story of Redflex and its dealings with the powers that be in Chicago politics is, typically, murky but, er, interesting.

Redflex Traffic Systems was among several companies bidding for the red light camera contract in Chicago back in the early part of last decade; it won the contract in 2005.   The city official in charge of overseeing the contract was (Get this title; talk about bureaucracy!)  Managing Deputy Commissioner of the Department of Transportation John Bills.  John Bills was, and is, a substantial figure Illinois House Speaker, Chairman of the Illinois Democratic Party, and Ward Committeeman Mike Madigan’s 13th Ward Regular Democratic Organization, serving as a registrar, or the guy who supervises collection of signatures on candidate petitions, for Mr. Madigan.   One supposes that Mr. Bills is also a precinct captain for Mr. Madigan, but I can’t verify that.   Mr. Bills also lives in St. Bede Parish on the southwest side, which is also Mike Madigan’s parish.   I HAVE SINCE LEARNED THAT MR. MADIGAN DOES NOT LIVE IN ST. BEDE AND THAT MR. BILLS IS, OR WAS, A PRECINCT CAPTAIN FOR MIKE MADIGAN. THIS KNOWLEDGE, TOO, CHANGES LITTLE, IF ANYTHING, REGARDING THE CASE.  MQ, 1/17/16

Redflex just happened to hire as its “consultant” on the red light camera project one Marty O’Malley, who also lives in St. Bede.   Mr. O’Malley claims no affiliation with Mike Madigan’s organization, but admits to contributing $1,000 in 2007, $1,500 in 2009. and another $1,500 in 2010 to Madigan’s political operations.   These contributions were made possible largely by the commissions Mr. O’Malley earned on the red light camera sales, but more on that later.   Mr. O’Malley denies having known Mr. Bills, or Mr. Madigan, before he and Mr. Bills started working together on the camera project.   Mr. O’Malley’s not having known Mr. Bills is plausible, given their ages; Mr. O’Malley is 72, Mr. Bills is 51.   But, for those of you unfamiliar with the mores of the southwest side, one’s parish is a big thing; it often is the center of many of one’s activities, spiritual and otherwise.

As it turns out, Redflex won the contract and Mr. O’Malley, who denies that he used political clout or geographical proximity to either Mr. Bills or Mr. Madigan when interviewing for the consultant job, got a commission of $1,500 per camera, more, according to Mr. O’Malley, than he was expecting.  His total payday came to $570,000.   Some of that, as we learned above, made its way into Mike Madigan’s political coffers.  Mr. Bills denies playing any role in getting Redflex the contract; Mr. Madigan, as far as I know, has not been asked if he had any role in this deal.

There was a small fly in the ointment.  It seems that, according to Mr. Bills, he was in Arizona for a Cubs pre-season game (That a guy from St. Bede would have any interest in a Cub game makes this story suspicious on its face; perhaps Mr. Bills was going to root for the opposition, thus adhering to a proud south side tradition, but I digress.) and didn’t have a hotel reservation.  He called a Redflex executive (Redflex has offices in Phoenix.) to see if he could help out.  Redflex booked him a room in a luxury hotel and the bill somehow never found its way onto Mr. Bills’ credit card, which he didn’t notice for quite some time.   For this minor transgression, and for two years of covering it up, Redflex is banned from bidding on the speed camera contract.   Mr. Bills also retired from his Managing Deputy Commissioner of the Department of Transportation job last summer after 32 years of working for the city.  No one has said Mr. Bills' retirement and the Redflex problems are related, but who’s kidding whom?

And it gets better…

Since these shenanigans have taken place, Mr. Bills has been appointed by “reform” Cook County Board President Toni Preckwinkle to a position on the Cook County Employee Appeals Board.  This position is part time and pays part time ($35 grand a year), but includes health benefits.  The Appeals Board has long been known as a receptacle for hacks who have somehow run afoul of either the law or the vicissitudes of the voting booth.  Ms. Preckwinkle will not say whether Mike Madigan recommended Mr. Bills for the job.

So…

A minor figure in this drama loses his job for accepting $500 in accommodations from a city vendor.   The vendor keeps its current contract but can’t bid on a new one, though the city Inspector General is investigating the case. 

It looks like there is more to this story and that there are more important people involved than Messrs. Bills and O’Malley.   How likely is it that larger heads will roll?   For a hint, take a look at my two novels of Chicago politics, The Chairman, A Novel of Big City Politics and The Chairman’s Challenge, A Continuing Novel of Big City Politics.


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