In situations like this, I think the person at the top of the chain that told employees to perform the illegal installations should be arrested and charged. On top of that, the company should be fined into bankruptcy. If the directors knew about it any companies they're involved with shouldn't be allowed to conduct future business in the municipality (or state).
Sometimes low tech solutions work pretty well. And since the cameras are under contract to the city, on city poles, I doubt there’s anything the feds can do.