"In an email from Spence to Snyder on Sept. 26, Spence tells Snyder that he can present the bills to the utility department “since the Grand Jury specifically investigated your actions as the Chair of the USB"
Portage mayor asking city to pay his attorney fees
Joyce Russell joyce.russell@nwi.com, (219) 762-1397, ext. 2222
NWI Times
10112016
PORTAGE — Mayor James Snyder has submitted two claims to the city’s Utility Services Board to pay more than $93,000 in attorney fees in defense of a 2-year-old federal investigation.
The request for reimbursement for the legal fees also could indicate that the investigation by the FBI is over.
Snyder has been under investigation by the FBI for more than two years. Agents have subpoenaed hundreds of records from city hall, the utility services department and the city’s street department as well as interviewed dozens of city employees.
In September 2014, agents visited the street department requesting information on the purchase of automated garbage trucks in 2012.
In July of that year, the agency visited the city’s Utility Services Department and requested documents about Snyder’s travel expenses for a city economic development trip to Europe.
FBI agents also requested copies of his campaign finance records and reports, and last year they requested meeting minutes from Portage FOP Lodge 145.
The Times received the latest information Monday after filing a Freedom of Information Act request on Oct. 3, asking for copies of checks written by the Utility Services Board between Sept. 20 and Sept. 30. Included in that information were checks made payable to the Chicago law firm of Winston and Strawn for $87,389 and to Portage law firm Dogan & Dogan for $6,118.
The checks, dated Sept. 26 were made out to the law firms and sent directly to their bank for automatic deposit, according to a statement from the city.
According to the statement, the law firms cannot take the checks directly from the utility department because the department is not their client, and will return the money. When the money is returned, the department will issue payment directly to Snyder. The statement said the payments were for “legal invoices pertaining to the Federal Investigation of James Snyder that started in his role as chairman of the Utility Service Board.”
Neither of the checks issued on Sept. 26 were approved by the Utility Services Board. Board attorney Katrina Spence and city Director of Administration Joe Calhoun said that was a mistake, but did not say who was responsible for sending the checks without board approval. They said the checks should not have been mailed to the law firms until the expenses had been reviewed by the Utility Services Board.
The Utility Services Board will meet Wednesday afternoon with Snyder’s claims on its agenda.
Wants second opinion
One member is not so sure he’s going to approve the claims.
Mark Oprisko, board member and City Council president, will be out of town for Wednesday’s meeting and will ask the board to table action on the claims until he returns and has a chance to do some research.
Oprisko said he wants to know how much of the investigation has to do with Snyder’s personal business.
“I want to see the bills. I want to get a second opinion. I want to try and contact the federal prosecutor and find out where the investigation is,” he said.
The board already approved payments to local attorney Kevin Milner for legal fees for Assistant Street Department Superintendent Randy Reeder and for Snyder’s administrative assistant Amanda Lakie. In January, the board approved claims of $4,125 for Lakie and $7,375 for Reeder. In September, a second claim for Reeder for $8,375 was approved.
Neither Spence nor Calhoun anticipate additional requests for reimbursements will be made to the department.
Only official duties covered
Spence said the reimbursement is legal under Indiana law. The code, 36-1-17-3(b), states that an officer or employee of a unit or municipal corporation may apply for reimbursement “if the grand jury fails to indict the officer or employee and the acts investigated by the grand jury were within the scope of official duties of the officer or employee.” In an email from Spence to Snyder on Sept. 26, Spence tells Snyder that he can present the bills to the utility department “since the Grand Jury specifically investigated your actions as the Chair of the USB ...”
Susan Gordon, of the Indiana State Board of Accounts, said while the law does allow for the reimbursement, it must be proven the fees covered only the part of the investigation pertaining to his professional duties. Gordon said it is likely to toss up a “red flag” when the department’s financial statements are audited by the state.
Gordon said paying a claim without board approval is not allowable unless specifically addressed by a city ordinance. Portage Ordinance 2-109 addresses bills that can be paid without board approval. Attorney fees are not included on the list.
Spence and Calhoun said they didn’t know if all of the legal fees cover the investigation of Snyder in his official capacity, or if it would cover any investigation into his personal business, a local mortgage company.
Spence said that is something the board will have to discuss.
The request for reimbursement may mean the end of the more than two-year investigation; the funds can only be paid “if the grand jury fails to indict,” according to the law.
“That is what we have been led to believe,” said Spence.
Snyder did not immediately return telephone, text or email messages.
