01292018 - News Article - Tow operator testifies about alleged bribe to Portage mayor

Tow operator testifies about alleged bribe to Portage mayor
Chicago Tribune
January 29, 2019
https://www.chicagotribune.com/suburbs/post-tribune/news/ct-ptb-snyder-trial-day-nine-st-0129-story.html

A tow operator cooperating with the FBI said he always wanted to get on the towing lists of Region communities honestly.

In Portage, the tow operator testified Tuesday that he needed to pay a bribe.

On the ninth day of trial, federal prosecutors began presenting evidence that Portage Mayor James Snyder allegedly sought $12,000 from Scott Jurgensen, of Samson’s Towing, who was cooperating with the FBI, and John Cortina, of Kustom Auto Body in Portage, to get them a spot on the city’s towing list.

Jurgensen’s testimony about the alleged bribe was followed Tuesday by the mayor’s brother, Porter County Assessor Jon Snyder, who wound up providing information to the FBI after being alarmed by the alleged towing deal.

Jurgensen said he began cooperating with the FBI in 2013, “because I didn’t pay bribes,” Jurgensen said.

Snyder was indicted in November 2016 and charged with allegedly violating federal bribery statutes. Federal prosecutors say the mayor allegedly solicited money from Cortina and “Individual A” and gave them a towing contract for Portage.

Snyder has pleaded not guilty to the charges, according to court documents.

Cortina, who was indicted alongside the James Snyder, pleaded guilty to a charge that he paid bribes to Snyder to get a spot on the tow list. Cortina is expected to cooperate with federal investigators against Snyder, according to court documents.

Jurgensen said he first met with James Snyder in 2014 and was told to talk to Cortina. He said he then went to meet Cortina.

“He felt he was close to the mayor and he could get us on that list, Jurgensen said.

Defense attorney Jackie Bennett Jr. asked if Jurgensen had ever given donations to other officials’ campaigns.

Jurgensen said he’s given donations to political figures.

Bennett asked if it was Jurgensen’s understanding that the two checks Cortina delivered were a bribe.

“Yes,” Jurgensen said.

Bennett said that’s only based on what Cortina told Jurgensen, and that he never discussed the transaction with the mayor.

Assistant U.S. Attorney Philip Benson asked about a phone call that Jurgensen recorded between Cortina and Snyder on the day the $12,000 was ready.

Jurgensen said Cortina told the mayor it was “Christmas time.”

Jurgensen said after the FBI raided Cortina’s tow yard in November 2016, and the indictments were announced, he was removed from Portage’s tow list.

Jon Snyder, said that Cortina, who he described as a longtime friend, began talking to him about getting on the city towing list.

“I just didn’t like it,” Jon Snyder said. “I tried to tell him to stop talking about it.”

Jon Snyder, who was already under federal investigation related to his personal business, said he didn’t want to get involved in any towing business and went to the FBI.

“I had enough going on in my life, I didn’t need another investigation,” Jon Snyder said.

In October, Jon Snyder pleaded guilty to a charge of failing to supply information to the IRS, and agreed to provide the FBI with information about his brother, including making undercover recordings.

Jon Snyder, as owner of Shoreline Appraisals Inc., allegedly failed to give the IRS an “Informational Return 1099 Form,” which is a requirement for non-employees who received more than $600 in payments during a calendar year, according to court documents.

Jon Snyder and Shoreline Appraisals allegedly failed to file the document for “Person A,” who was paid more than $5,000 in 2013, according to court documents.

Defense attorney Jayna Cacioppo asked if Jon Snyder was threatened by the federal government to cooperate with the FBI because of his tax charge.

“You didn’t feel threatened by the government?” Cacioppo asked.

“I did not feel threatened by the government,” Jon Snyder said.

Cacioppo asked about $5,000 Cortina loaned Jon Snyder.

John Snyder said it was a loan to help cover his legal expenses at the time.

Jon Snyder said he had paid half that amount back.

Cacioppo asked about claims Cortina also helped Jon Snyder buy a Mustang and got him wholesale pricing, and about work that he had done at Kustom Auto Body.

“He went and looked at it,” Jon Snyder said of the Mustang deal.

Before prosecutors moved onto the alleged towing bribery scheme, they wrapped up testimony on a second bribery count that claimed the Snyder steered a city contract to one firm and netted himself a $13,000 kickback.

Prosecutors say that when Snyder first ran for mayor, he told residents he planned to automate Portage’s trash pickup, but would up allegedly steering contracts for $712,882.50 and another for $425,355 to Great Lakes Peterbilt, which was then owned by Robert and Steve Buha.

Great Lakes Peterbilt is now owned by a different firm.

After getting those contracts, prosecutors said Great Lakes Peterbilt gave Snyder a check for $13,000 payable to his shell company, which state records showed had been dissolved.

Defense attorneys say that Snyder used his experience in offering health insurance to city employees through the Affordable Care Act, and making technology upgrades to advice Great Lakes Peterbilt about making similar changes.

Mike Matusak, of Pozzo Truck Centers, said his company would supply the truck chassis in partnership with other body companies to submit bids to Portage. Matusak said Pozzo sells Mack and Volvo trucks.

Assistant U.S. Attorney Jill Koster asked if Matusak offered to demomonstrate a truck’s features.

Matusak said he met with the assistant streets superintendent and was told he didn’t need to bring a truck.

“You get the sense it’s a waste of time,” Matusak said.

James Snyder is also charged with obstructing or impeding the IRS, according to court documents.

01292019 - News Article - FBI informant takes stand in Portage mayor's corruption case

FBI informant takes stand in Portage mayor's corruption case
NWI Times
January 29, 2019
https://www.nwitimes.com/news/local/crime-and-courts/fbi-informant-takes-stand-in-portage-mayor-s-corruption-case/article_684f1d35-5df5-575e-be1b-a5b9c81359b6.html

HAMMOND — Scott Jurgensen said he took up the FBI on its offer to become a confidential informant because he wanted "to do the right thing."

Jurgensen, a former Merrillville police officer turned tow truck company owner, took the stand Tuesday morning in Portage Mayor James Snyder's public corruption trial.

Snyder is charged with two counts of bribery and one of tax obstruction. One bribery account alleges Snyder took $12,000 from John Cortina, who partnered with Jurgensen, to get on Portage's tow list.

Cortina pleaded guilty earlier this month to paying Snyder the bribe and is expected to be a government witness in the case.

Jurgensen said he first approached Snyder about getting on Portage's tow list in May 2014. During that meeting in Portage City Hall, Jurgensen testified Snyder directed him to Cortina, who owns Kustom Auto Body. Cortina had partnered with another tow company, Ambassador Towing, but Ambassador was being removed from the city's list, leaving Cortina without a partner.

Cortina provided storage yard and payment collection services to the tow companies.

"James Snyder told me Cortina meant a lot to him, and it was best to go through Cortina," Jurgensen testified under questioning by Assistant U.S. Attorney Philip Benson.

Jurgensen said he had not previously met Cortina, but knew of him. He said he stopped by Cortina's business one day to discuss the partnership.

"He (Cortina) felt he was close to the mayor, and he could get us on the tow list," Jurgensen testified.

Jurgensen said he gave Cortina $6,000 toward the $12,000 bribe, which was paid to Snyder in January 2016. Jurgensen said he received the tow contract from Portage in August 2016 and towed within the city until November 2016 when FBI agents issued search warrants on Cortina's property. Cortina and Snyder were indicted on Nov. 17, 2016.

01292019 - News Article - UPDATE: Jon Snyder agreed to wear wire in brother's public corruption case, jurors told

UPDATE: Jon Snyder agreed to wear wire in brother's public corruption case, jurors told
NWI Times
January 29, 2019
https://www.nwitimes.com/news/local/crime-and-courts/update-jon-snyder-agreed-to-wear-wire-in-brother-s/article_684f1d35-5df5-575e-be1b-a5b9c81359b6.html

HAMMOND — Jon Snyder had been cooperating with the FBI since 2012, but he didn't bring the agency information about his brother until a mutual friend began talking about an alleged bribe for towing scheme.

That mutual friend was John Cortina, who, until earlier this month was Portage Mayor James Snyder's co-defendant in an allegation that Cortina paid James Snyder $12,000 to get on the city's tow list. Cortina pleaded guilty this month to paying James Snyder the alleged bribe.

Jon Snyder, Porter County assessor, testified for less than two hours Tuesday afternoon against his brother as members of their family sat in the audience and watched.

"I had enough going on in my life and didn't want another investigation," Jon Snyder explained as to why he went to the FBI in 2015 to tell agents about the alleged bribery scheme. He didn't know at the time his brother was already being investigated on the allegation and that another confidential informant had been wearing a wire to collect incriminating evidence.

What was going on in Jon Snyder's life at the time included an investigation by the IRS into his own financial doings and an investigation into his county office over allegations that someone in the office was fixing assessment appeals.

Jon Snyder pleaded guilty to a misdemeanor tax count late last year. In return, he agreed to testify against his brother. He will be sentenced late next month.

Jon Snyder, who, during cross examination by one of his brother's attorneys, was painted as being ungrateful for everything James Snyder had done for his family and as someone who was looking for a way out from his own tax problems, said he didn't initially begin wearing a wire to collect evidence. That came about six months later.

Jon Snyder's direct testimony under questioning by Assistant U.S. Attorney Philip Benson was quick, lasting less than an hour Tuesday during the ninth day of his brother's public corruption trial.

He outlined his reasons for contacting the FBI and his relationship with Cortina. He authenticated a binder full of transcripts from the secret recordings, expected to be played for the jury sometime later in the trial.

Relationship with brother
Jayna Cacioppo, one of James Snyder's six attorneys attending the trial, asked Jon Snyder about his support in James Snyder's political campaigns as well as James Snyder's support in Jon's. She asked about times James Snyder went grocery shopping or allegedly lent Jon Snyder money.

"Most of the time you were informing on James, he was helping out with all your children?" Cacioppo asked.

Jon Snyder recalled some of the incidents, but he denied others happened. He told jurors he had borrowed money from his brother, but paid it back, and that his brother owed him money.

"You were threatened by the government" to turn on James Snyder, Cacioppo asked. When Jon Snyder denied the allegation, she countered that the information had come from his father, Bruce, who has been at the trial each day since its start.

"Are you calling your father a liar?" Cacioppo asked.

"Yes. He told me he wouldn't be in the courtroom today," Jon Snyder answered. "I was not threatened by the government. I thought long and hard before I went to the FBI."

Tow company informant
Prior to Jon Snyder's testimony, Scott Jurgensen, a confidential informant who also wore a wire recording conversations regarding the alledged tow for pay charge, took the stand.

Jurgensen, a former Merrillville police officer turned tow truck company owner, said he took up the FBI on its offer to become a confidential informant because he wanted "to do the right thing."

Cortina pleaded guilty earlier this month to paying Snyder the bribe and is expected to be a government witness in the case.

Jurgensen said he first approached Snyder about getting on Portage's tow list in May 2014. During that meeting in Portage City Hall, Jurgensen testified Snyder directed him to Cortina, who owns Kustom Auto Body. Cortina had partnered with another tow company, Ambassador Towing, but Ambassador was being removed from the city's list, leaving Cortina without a partner.

Cortina provided storage yard and payment collection services to the tow companies.

"James Snyder told me Cortina meant a lot to him, and it was best to go through Cortina," Jurgensen testified under questioning by Assistant U.S. Attorney Philip Benson.

Jurgensen said he had not previously met Cortina, but knew of him. He said he stopped by Cortina's business one day to discuss the partnership.

"He (Cortina) felt he was close to the mayor, and he could get us on the tow list," Jurgensen testified.

Jurgensen said he gave Cortina $6,000 toward the $12,000 bribe, which was paid to Snyder in January 2016. Jurgensen said he received the tow contract from Portage in August 2016 and towed within the city until November 2016 when FBI agents issued search warrants on Cortina's property. Cortina and Snyder were indicted on Nov. 17, 2016.

Due to the weather, the trial has been recessed until 9 a.m. Friday.

01282019 - News Article - Truck bidder says he thought Portage process didn't look right

Truck bidder says he thought Portage process didn't look right
Chicago Tribune
January 28, 2019
https://www.chicagotribune.com/suburbs/post-tribune/news/ct-ptb-snyder-trial-day-eight-st-0128-story.html

A company that aimed to win a Portage contract for garbage trucks knew something was not right when no one from the city would look at the equipment he planned to offer.

The eighth day of Portage Mayor James Snyder’s trial, federal prosecutors continued showing how the bid process for garbage trucks was allegedly rigged for one firm and reportedly netted the mayor a $13,000 payout. Defense attorneys have said there was nothing questionable about the bid process and it was all done above board.

Greg Dadlow, of Pyramid Equipment, said ahead of the bids for the garbage trucks in 2013 he wanted to let someone from the city’s streets department test his equipment but they said they already knew what they wanted.

Dadlow’s company submitted four bids for the trucks, each with a Mack chassis and either a Wayne or Bridgeport body. Those four bids were among the lowest, Dadlow said, and one was roughly $60,000 less than the company that won the contract.

“Sometime you don’t believe that could just be overlooked,” Dadlow said.

Snyder’s defense says those bids did not meet the specifications, which called for a Peterbilt chassis, a McNeilus body, a Cummins engine and a 150-day delivery date.

Assistant U.S. Attorney Jill Koster asked why Dadlow submitted a bid if those items were specifically included in the specs.

Dadlow said he went through all the specs and in his proposal detailed how his equipment met the same requirements and even noted what differed between the machines.

Koster asked, as an example, if not having a McNeilus body automatically disqualified the Pyramid bid.

“No, it does not,” Dadlow said.

Dadlow said, in his experience, that municipalities will consider something besides the specs if the price is significantly different.

Prosecutors say that when Snyder first ran for mayor, he told residents he planned to automate Portage’s trash pickup, but wound up allegedly steering contracts for $712,882.50 and another for $425,355 to Great Lakes Peterbilt, which was then owned by Robert and Steve Buha.

Great Lakes Peterbilt is now owned by a different firm.

After getting those contracts, prosecutors said Great Lakes Peterbilt gave Snyder a check for $13,000 payable to his shell company, which state records showed had been dissolved.

Defense attorneys say that Snyder used his experience in offering health insurance to city employees through the Affordable Care Act, and making technology upgrades to advise Great Lakes Peterbilt about making similar changes.

It was the questionable bidding process that prompted Steve Charnetzky, Portage’s former streets superintendent, to raise the issue to the FBI.

On the witness stand, Charnetzky said he had heard that the mayor’s office and the assistant streets superintendent say the contract was going to Great Lakes Peterbilt

Defense attorney Jackie Bennett Jr. said that Charnetzky testified that he was not involved in the bidding process for the garbage trucks and had no knowledge of what was submitted.

“Your statement about something illegal and unlawful is simply your opinion,” Bennett said.

Snyder was indicted in November 2016 and charged with allegedly violating federal bribery statutes. Federal prosecutors say the mayor allegedly solicited money from John Cortina, of Kustom Auto Body, and “Individual A” and gave them a towing contract for Portage. Snyder received an additional bribery indictment for alleged accepting $13,000 in connection with a Board of Works contract.

A third charge alleges Snyder obstructed or impeded Internal Revenue Service laws.

Snyder has pleaded not guilty to the charges, according to court documents.

Cortina, who was indicted alongside the mayor, pleaded guilty to a charge that he paid bribes to Snyder to get a spot on the tow list. Cortina is expected to cooperate with federal investigators against Snyder, according to court documents.

01282019 - News Article - UPDATE: Truck competitor says Portage bid process 'irregular,' 'unusual' in garbage truck purchase

UPDATE: Truck competitor says Portage bid process 'irregular,' 'unusual' in garbage truck purchase
NWI Times
January 28, 2019
https://www.nwitimes.com/news/local/crime-and-courts/update-truck-competitor-says-portage-bid-process-irregular-unusual-in/article_189ad855-bd7c-5e24-8ac9-eee823d89fe8.html

HAMMOND — Greg Dadlow said he was "kinda shocked" when Portage turned down a chance to try out one of his company's automated trash trucks.

"It kinda bothered me they did not want, did not need a demo," Dadlow, who worked at Pyramid Equipment of Rolling Prairie, Indiana, at the time, testified Monday afternoon in Portage Mayor James Snyder's public corruption trial.

Dadlow said the process was "unusual" and "irregular."

Dadlow said his company offered four of the six lowest bids in the first round of trash truck purchases by the city in 2013. The contract for three trucks instead went to Great Lakes Peterbilt of Portage. Great Lakes Peterbilt's bid was nearly $60,000 higher than that of Pyramid Equipment.

Snyder is facing two counts of bribery and one of tax obstruction in the trial in U.S. District Court. One of the bribery counts alleges Snyder took a $13,000 bribe from Great Lakes Peterbilt in exchange for two contracts, totaling five trucks from the company.

Dadlow said his bid didn't meet the specifications for either the brand of chassis or body in the bid, but that, in his experience, sometimes a large cost reduction would outweigh the variations in the bid.

After the bids were open, Dadlow said he approached Assistant Street Department Superintendent Randy Reeder, who had been designated the point man in the city's switch to automated trash trucks, and offered the use of a demonstration truck to help sell his product.

Dadlow said an email to Reeder went unanswered and then a sales call and the offer of the demonstration truck was refused.

"Randy Reeder told me they knew what they were going to go with," he said, adding Reeder told him his company wasn't going to get the contract before the Board of Works officially voted.

Dadlow's testimony in the eighth day of the trial followed the second day of testimony from former Street Superintendent Steve Charnetzky, who first approached the FBI in September 2013 to alert them of possible wrongdoing by Snyder.

Under cross-examination Monday morning, Snyder's lead attorney said wrongdoing didn't cause the FBI to open an investigation into his client's activities, but, instead, a former employee scorned.

"Your feelings got hurt because you didn't have input in that process?" attorney Jackie Bennett asked Charnetzky Monday morning.

"Slight," Charnetzky replied.

Charnetzky testified last week he went to the FBI because he believed the bidding process for the garbage trucks was being done illegally, among other allegations.

Charnetzky told the jury he was left out of the bidding process, which was unusual considering his tenure as street superintendent and experience of more than 30 years on the job. Charnetzky testified Snyder gave the job to Reeder, and that at one point during the bid process, Reeder told him the mayor wanted Great Lakes Peterbilt to get the contract, no matter the price of their trucks.

Bennett questioned Charnetzky about the bidding process, timeline of his reporting and meetings with the FBI, and the reasons for Charnetzky's termination in January 2016.

01282019 - News Article - Snyder's lawyer: 'Hard feelings' spurred probe into Portage mayor's alleged wrongdoing

Snyder's lawyer: 'Hard feelings' spurred probe into Portage mayor's alleged wrongdoing
NWI Times
January 28, 2019
https://www.nwitimes.com/news/local/crime-and-courts/snyder-s-lawyer-hard-feelings-spurred-probe-into-portage-mayor/article_189ad855-bd7c-5e24-8ac9-eee823d89fe8.html

HAMMOND — Portage Mayor James Snyder's lead attorney said wrongdoing didn't cause the FBI to open an investigation into his client's activities, but, instead, a former employee scorned.

"Your feelings got hurt because you didn't have input in that process?" attorney Jackie Bennett asked longtime former Portage Street Department Superintendent Steve Charnetzky Monday morning.

"Slight," Charnetzky replied.

Bennett continued his cross-examination of Charnetzky Monday morning in day eight of Snyder's public corruption trial in U.S. District Court.

Charnetzky approached the FBI in September 2013 to allege wrongdoings against Snyder, including the steering of garbage truck bids toward Great Lakes Peterbilt, a Portage truck dealership.

Snyder allegedly took a $13,000 bribe from the company in exchange for the city's purchasing five automated garbage trucks from the company.

It is one of two bribery charges the two-term mayor is facing. The second involves accepting a bribe to place a company on the city's tow list. Snyder also is charged with tax obstruction.

Charnetzky testified last week he went to the FBI, because he believed the bidding process for the garbage trucks was being done illegally, among other allegations. Charnetzky told the jury he was left out of the bidding process, which was unusual considering his tenure as street superintendent and experience of more than 30 years on the job.

Charnetzky testified Snyder gave the job to his assistant, Randy Reeder, and that at one point during the bid process, Reeder told him the mayor wanted Great Lakes Peterbilt to get the contract, no matter the price of their trucks.

Bennett began cross-examining Charnetzky Friday and continued Monday.

Bennett questioned Charnetzky about the bidding process, timeline of his reporting and meetings with the FBI, and the reasons for Charnetzky's termination in January 2016.

01262019 - News Article - Portage mayor's defense pushes back against rigged bids, bribery allegations on 6th day of trial

Portage mayor's defense pushes back against rigged bids, bribery allegations on 6th day of trial
Chicago Tribune
January 26, 2019
https://www.chicagotribune.com/suburbs/post-tribune/news/ct-ptb-snyder-trial-day-six-st-0125-story.html

Defense attorneys for Portage Mayor James Snyder on Thursday sought to cast doubt on allegations that he accepted a bribe to award a city contract for garbage trucks.

On the sixth day of Snyder’s public corruption trial, defense attorneys questioned an FBI agent about a deal to sell garbage trucks to the city in 2013 that allegedly netted the mayor a $13,000 kickback. Attorneys aimed to show that there was nothing questionable about the deal, but federal prosecutors continued to point out that a fix was in.

Defense attorney Jayna Cacioppo asked about the bids for the first round of garbage trucks, which Great Lakes Peterbilt, then owned by Robert and Steve Buha, won.Cacioppo said that firm was the lowest and most responsive bidder.

Cacioppo pointed out that nine firms with lower bid amounts did not meet the specifications the city asked for, which included a Peterbilt chassis and a McNeilus body. She said the bid also sought a Cummins engine but many bidders proposed trucks with Volvo engines.

Assistant U.S. Attorney Jill Koster asked Eric Field, a supervisory special agent with the FBI, what companies the city asked to design the bid specs.

Field said Peterbilt and McNeilus.

Cacioppo said during the second round of bids, the city saw a chance to save money with a 2012 chassis sitting on the lot. She asked if Field knew of any differences between the models besides the size of the transmission.

Field said the transmission and the emissions standards.

“Was that purchase in accordance with the invitation to bid that was issued by the city?” Koster asked.

“No,” Field said. He said the 2012 model-year truck was not the manufacturer’s current production model.

Prosecutors say that when Snyder first ran for mayor, he told residents he planned to automate Portage’s trash pickup, but would up allegedly steering contracts for $712,882.50 and another for $425,355 to Great Lakes Peterbilt.

Great Lakes Peterbilt is now owned by a different firm.

After getting those contracts, prosecutors Great Lakes Peterbilt gave Snyder a check for $13,000 payable to his shell company, which state records showed had been dissolved.

Federal prosecutors this week began going over the bribery charge, with jurors hearing testimony that Snyder never disclosed he received income from a company doing business with the city, and that the FBI could not find documentation that justified the payment.

Prosecutors Thursday played a series of clips from an FBI interview with Snyder at city hall where they asked about the garbage truck contracts, and Snyder, in the recordings, denied any wrongdoing.

“He’s had to win the bids,” Snyder said on the recording. “I had nothing to do with that process.”

Snyder also told the FBI during that interview his contract with Great Lakes Peterbilt was for consulting services about health care and technology matters.

During that interview, Snyder said that the income would have to be disclosed in an annual filing.

Koster said even after being interviewed by the FBI that income was never disclosed.

“Correct,” Field said.

Cacioppo said there’s no evidence that the $13,000 was a bribe.

“No, that’s not correct,” Field said.

Cacioppo said the FBI was “extremely focused” on making a case against Snyder.

Field said the FBI was trying to determine if any criminal activity took place.

Snyder was indicted in November 2016 and charged with allegedly violating federal bribery statutes. Federal prosecutors say the mayor allegedly solicited money from John Cortina, of Kustom Auto Body, and “Individual A” and gave them a towing contract for Portage. Snyder received an additional bribery indictment for alleged accepting $13,000 in connection with a Board of Works contract.

A third charge alleges Snyder obstructed or impeded Internal Revenue Service laws.

Snyder has pleaded not guilty to the charges, according to court documents.

Cortina, who was indicted alongside the mayor, pleaded guilty to a charge that he paid bribes to Snyder to get a spot on the tow list. Cortina is expected to cooperate with federal investigators against Snyder, according to court documents.

Power in the courtroom flickered before going out Thursday morning.

“The government’s on shutdown,” Judge Joseph Van Bokkelen said, before recessing the jury until the courtroom’s equipment restarted.

Van Bokkelen said the outage was caused by a NIPSCO issue.

01252019 - News Article - Bid process 'was being done illegally,' former Portage official told FBI

Bid process 'was being done illegally,' former Portage official told FBI
NWI Times
January 25, 2019
https://www.nwitimes.com/news/local/crime-and-courts/bid-process-was-being-done-illegally-former-portage-official-told/article_490ebf40-b4d5-5034-85b2-9c15d7893ad6.html

HAMMOND — The bid process for new garbage trucks was rigged, former Portage Street Superintendent Steve Charnetzky told jurors in Mayor James Snyder's public corruption case.

Charnetzky told the jury his opinion of Snyder began to change when the mayor cut him out of the process to develop bids for new automated garbage trucks. He said Snyder appointed his assistant, Randy Reeder, to the task.

The garbage trucks are the center of one of the bribery charges. Snyder is accused of taking $13,000 from Great Lakes Peterbilt, a truck dealership, in return for steering the bids to that company.

"I felt the bid process was being done illegally, and I didn't want it to tarnish the department or myself," Charnetzky told jurors Friday about why he reached out to the FBI.

Charnetzky told jurors he had 31 years of experience on the department, 20 as superintendent. He said he had been responsible for drawing up bid specifications numerous times in his tenure. In each instance, he said, he would form a committee of workers who used the piece of equipment to draw up the bids.

In previous testimony this week, FBI Special Agent Eric Field testified Reeder used bid specifications from Peterbilt and McNeilius, a truck body manufacturing company, to formulate the bids.

Charnetzky said Reeder told him he was directed to award the bid to Great Lakes Peterbilt "regardless of how high the bid is."

Charnetzky said Snyder also told him to begin "writing up" head mechanic John Beck to lay a case to fire Beck because Beck was causing problems over the garbage truck bids.

Charnetzky also authenticated audiotapes of a meeting he secretly recorded. In the meeting, City Attorney Gregg Sobkowski questioned Reeder about the development of the bid specifications.

Charnetzky voted for Portage Mayor James Snyder twice before asking the FBI to investigate Snyder.

"I'm not really a politician. I feel I vote for the best man or woman," Charnetzky told jurors in the seventh day of Snyder's public corruption case.

Less than two years after Charnetzky voted for Snyder the second time and after Snyder returned Charnetzky to the job of street superintendent, Charnetzky was one of two men who alerted the FBI to Snyder's possible wrongdoings in September 2013. That contact led to the FBI opening the investigation into Snyder in November 2013 and resulted in Snyder being indicted in November 2016 on two charges of bribery and one count of tax obstruction.

City Councilman Pat Clem, D-2nd, was reported as the second man who approached the FBI with information to launch the investigation.

01252019 - News Article - Feds reveal they had evidence that Portage Mayor James Snyder committed mortgage fraud, but didn't pursue charges

Feds reveal they had evidence that Portage Mayor James Snyder committed mortgage fraud, but didn't pursue charges
Chicago Tribune
January 25, 2019
https://www.chicagotribune.com/suburbs/post-tribune/news/ct-ptb-snyder-trial-new-allegations-st-0127-story.html

Federal prosecutors have said they had enough evidence to charge Portage Mayor James Snyder with additional crimes but did not pursue the case.

Comments and testimony during Snyder’s public corruption trial indicated that federal authorities not only had enough evidence to warrant charges of bribery and obstructing the IRS, but admitted the mayor may have been involved with another alleged crime.

Eric Field, a supervisory special agent with the FBI, said investigators looked into possible mortgage fraud, and found evidence that it had occurred.

Assistant U.S. Attorney Jill Koster said investigators had enough evidence to charge Snyder with mortgage fraud but used their discretion not to prosecute.

Jayna Cacioppo, one of Snyder’s defense attorneys, decried the comment as “highly prejudicial.”

Throughout the first seven days of Snyder’s trial, federal prosecutors have tried to show a jury a pattern of schemes the mayor allegedly came up with to hide assets from the IRS and solicit a $13,000 kickback by steering garbage truck purchases to one business.

Defense attorneys have sought to discredit the allegations, which they called “lies,” and detail how the FBI spent years looking into allegations made by political opponents in search of a way to charge Snyder.

Snyder was indicted in November 2016 and charged with allegedly violating federal bribery statutes. Federal prosecutors say the mayor allegedly solicited money from John Cortina, of Kustom Auto Body, and “Individual A” and gave them a towing contract for Portage. Snyder received an additional bribery indictment for alleged accepting $13,000 in connection with a Board of Works contract.

A third charge alleges Snyder obstructed or impeded Internal Revenue Service laws.

Snyder has pleaded not guilty to the charges, according to court documents.

Cortina, who was indicted alongside the mayor, pleaded guilty to a charge that he paid bribes to Snyder to get a spot on the tow list. Cortina is expected to cooperate with federal investigators against Snyder, according to court documents.

Field testified last week that the investigation into Snyder began in 2013 when the Merrillville office received two anonymous reports about the mayor’s conduct.

Snyder’s defense attorneys have tried to show that federal investigators were “extremely focused” on drumming up charges against the mayor, but an FBI agent revealed that they did turn up other potential criminal misconduct.

“You didn’t actually know what you were looking for did you?” Cacioppo asked. She said that the initial report did not turn out being credible.

Cacioppo said the FBI seized emails from the mayor’s personal and government account; emails from his assistant; and emails from the assistant streets superintendent. Cacioppo said the FBI threatened to prosecute the mayor’s brother if he didn’t wear a wire to gather evidence against Snyder.

Cacioppo said the FBI had hundreds of subpoenas and search warrants in attempts to gather evidence against Snyder. She said they got bank records of Snyder and his businesses; and sought records from Sam’s Club, Best Buy, Talbots, the mayor’s church and even a soccer club.

Field said it is the FBI’s duty to investigate all allegations, and determine if any criminal activity took place.

01252019 - News Article - Before inspiring FBI corruption probe, ex-official voted twice for Portage's Mayor Snyder

Before inspiring FBI corruption probe, ex-official voted twice for Portage's Mayor Snyder
NWI Times
January 25, 2019
https://www.nwitimes.com/news/local/crime-and-courts/before-inspiring-fbi-corruption-probe-ex-official-voted-twice-for/article_490ebf40-b4d5-5034-85b2-9c15d7893ad6.html

HAMMOND — Steve Charnetzky voted for Portage Mayor James Snyder twice before asking the FBI to investigate Snyder.

"I'm not really a politician. I feel I vote for the best man or woman," Charnetzky told jurors in the seventh day of Snyder's public corruption case.

Less than two years after Charnetzky voted for Snyder the second time and after Snyder returned Charnetzky to the job of street superintendent, Charnetzky was one of two men who alerted the FBI to Snyder's possible wrongdoings in September 2013. That contact led to the FBI opening the investigation into Snyder in November 2013 and resulted in Snyder being indicted in November 2016 on two charges of bribery and one count of tax obstruction.

Charnetzky took the stand Friday shortly before U.S. District Court Judge Joseph Van Bokkelen broke for lunch. He was expected to testify Friday afternoon in regard to secret audio recordings he made of meetings prior to leaving his job in December 2016.

Earlier this week, FBI agent Eric Field identified Charnetzky as one of the people who originally alerted the FBI. 

During the testimony, Assistant U.S. Attorney Jill Koster played one of the audiotapes for jurors of a meeting between Charnetzky, Assistant Street Superintendent Randy Reeder and City Attorney Gregg Sobkowski. They discussed the development of bid specifications for new city garbage trucks.

One of Snyder's bribery charges alleges he took $13,000 from Great Lakes Peterbilt, a local truck dealership, in return for the purchase of some $1 million in garbage trucks.

Snyder's attorneys objected to the tapes, but Van Bokkelen allowed them to be played contingent on Charnetzky testifying to their authenticity.

01252019 - News Article - Prosecutors say Snyder lacked credentials to justify $13K payment

Prosecutors say Snyder lacked credentials to justify $13K payment
Chicago Tribune
January 25, 2019
https://www.chicagotribune.com/suburbs/post-tribune/news/ct-ptb-snyder-trial-day-seven-st-0126-story.html

Federal prosecutors on Friday showed that Portage Mayor James Snyder could not have acted as a consultant to justify a $13,000 check they say is an alleged bribe.

During the seventh day of Snyder’s trial, federal prosecutors asked witnesses about what qualifications a person would need to be considered to consult on health care issues or technology, seeking to establish that the Portage mayor met none of them. Snyder has said that he did legitimate consulting to justify a $13,000 payment that prosecutors say is an alleged bribe.

Defense attorneys say that Snyder used his experience in offering health insurance to city employees through the Affordable Care Act, and making technology upgrades to advise Great Lakes Peterbilt about making similar changes.

Prosecutors say that when Snyder first ran for mayor, he told residents he planned to automate Portage’s trash pickup, but wound up allegedly steering contracts for $712,882.50 and another for $425,355 to Great Lakes Peterbilt, which was then owned by Robert and Steve Buha.

Great Lakes Peterbilt is now owned by a different firm.

After getting those contracts, prosecutors said Great Lakes Peterbilt gave Snyder a check for $13,000 payable to his shell company, which state records showed had been dissolved.

Assistant U.S. Attorney Jill Koster asked Randall Evans, deputy commissioner of the Indiana Department of Insurance, about what would require someone to get a license for health care consulting.

Koster asked if someone accepts money from a corporation in exchange for health care advice if they are considered a consultant per state law.

“Yes, they are,” Evans said.

If someone accepts money from a corporation to give advice on the Affordable Care Act or health care benefit for union and non-union employees, does that require a license, Koster asked.

Evans said they would need a license.

Koster asked if Evans found any records that Snyder ever had or even applied for a health care consulting license.

Evans said no records were found.

Defense attorney Vivak Hadley asked about the law’s definition of a health care consultant, and pointed out that it says the advice must be about a particular policy.

Grant Andres, of the Idea Group, said he had worked on technology upgrades for Portage, and had a few meetings with Snyder.

Andres said Snyder had a general knowledge of technology.

“He’s not a technical individual, no,” Andres said.

Koster asked Andres if he thought Snyder was qualified.

“I would not hire him as an IT consultant,” Andres said.

Josh Pagel, an IT professional, said he worked on a review of the city’s technology infrastructure, and made recommendations about possible improvements.

Koster asked if Pagel found Snyder had a highly technical knowledge.

“Not at all,” Pagel said.

Defense attorney Neal Brackett asked if Pagel was a licensed consultant or had other credentials.

“No, there’s not a requirement,” Pagel said.

Snyder was indicted in November 2016 and charged with allegedly violating federal bribery statutes. Federal prosecutors say he allegedly solicited money from John Cortina, of Kustom Auto Body, and “Individual A” and gave them a towing contract for Portage. Snyder received an additional bribery indictment for alleged accepting $13,000 in connection with a Portage Board of Works contract.

A third charge alleges Snyder obstructed or impeded Internal Revenue Service laws.

Snyder has pleaded not guilty to the charges, according to court documents.

Cortina, who was indicted at the same time as Snyder, pleaded guilty to a charge that he paid bribes to Snyder to get a spot on the tow list. Cortina is expected to cooperate with federal investigators against Snyder, according to court documents.

01242019 - News Article - Questioning of alleged $13K payoff to Portage mayor begins

Questioning of alleged $13K payoff to Portage mayor begins
Chicago Tribune
January 24, 2019
https://www.chicagotribune.com/suburbs/post-tribune/news/ct-ptb-snyder-trial-day-four-st-0123-story.html

If $13,000 paid to Portage Mayor James Snyder for work he did through a private company for a city contractor was legitimate, federal prosecutors Tuesday questioned why it wasn’t disclosed.

Federal prosecutors began presenting evidence to back up a bribery charge during the fourth day of Snyder’s trial, asking another top-ranking Portage elected official about legally required disclosures that the mayor and others have to fill out.

Prosecutors say that when Snyder first ran for mayor, he told residents he planned to automate Portage’s trash pickup, but wound up allegedly steering contracts for $712,882.50 and another for $425,355 to Great Lakes Peterbilt.

After getting those contracts, prosecutors said Great Lakes Peterbilt gave Snyder a check for $13,000 payable to his shell company, and the city wound up with older trucks than what was asked for.

The defense has said nothing was wrong with the bidding process for the garbage trucks and that Snyder did contract work for Great Lakes Peterbilt, through his company SRC, to warrant the payment for services rendered.

Portage Clerk-Treasurer Chris Stidham, who recently announced he’d seek the Democratic nomination for mayor in the May primary, said that elected officials and city department heads must submit a statement of economic interest, and among the disclosures are if that person has received any compensation from a city contractor or an entity in the queue for city business.

Assistant U.S. Attorney Jill Koster said her office asked Stidham to supply those forms from 2012 to the present.

Koster said Snyder’s disclosure forms from 2014 listed nothing, and a 2013 form listed $250 for lodging and another $75 for meals from Circle R Electric.

Koster pointed out two city initiatives on health care and technology that both Stidham and the mayor were a part of. She said in both instances the city had outside consultants help evaluate the city’s needs and make recommendations.

Koster asked if after the health insurance project if Stidham felt qualified to consult on health care.

“No,” Stidham said.

Koster asked what he thought of Snyder acting as a health care consultant after attending those same meetings.

“We were all relying heavily on the consultant,” Stidham said.

Defense attorney Jackie Bennett Jr. began questioning Stidham’s relationship with a former city contractor, and if any of that was disclosed.

Bennett asked about a series of payments made to three companies, which at the time were run by the woman, who is now the clerk-treasurer’s wife. Bennett noted in sum more than $50,000 was paid to those companies in 2015 and 2016.

Stidham said those payments were for bookkeeping and bank reconciliation services.

Stidham said his department has its own budget, and he is permitted to hire contracts and make purchase if they are under certain amounts. Stidham said a small purchasing policy applies to the whole city.

Koster asked if after their marriage if any more payments went to any of those companies.

“No,” Stidham said.

Koster said the forms say to list any income or gifts to that person or any dependent. She asked if prior to his marriage if any payments went to him or any dependents.

“No,” Stidham said.

During testimony earlier Tuesday, Koster pointed out that the bids for the garbage trucks were sent directly to the mayor’s office, and after it was approved Stidham had to ask for a copy of the tabulations for what was submitted.

Bennett asked if Stidham had heard any complaints about the bidding process.

“No vendor has complained to me directly,” Stidham said.

Peyton Harrell, a director of network development for Peterbilt Motors Company in Texas, testified that federal emissions standards changed in 2013, and earlier models would not meet those thresholds. Harrell said that change would not prevent a local dealer from selling those trucks.

Defense attorney Vivak Hadley said Peterbilt is a well-regarded American company, and routinely wins state and local bids for its trucks. Hadley asked if he thought it made sense Peterbilt won the bid as the most responsive and lowest priced.

“Lowest priced would surprise me,” Harrell said.

Koster asked about one particular truck that Great Lakes Peterbilt had on its lot for about two years that wound up being sold to the city.

“Do you agree that on Friday, Dec. 12, 2013, that vehicle was not the same as the manufacturer’s current production model?” Koster asked.

“It was not the same,” Harrell said.

Snyder’s trial started last week as federal prosecutors aimed to paint the mayor as someone who allegedly came up with schemes to obstruct the IRS, bilked $13,000 from a Board of Public Works contract for trash trucks, and netted $12,000 by getting a company a spot on Portage’s tow list. The defense has said the charges against Snyder are lies.

Testimony last week began going through the obstructing the IRS charge, detailing for a jury how Snyder allegedly submitted paperwork to settle his business and personal tax debt but did not give a full picture of his finances.

The defense has said that Snyder was only trying to deal with issues related to his failing mortgage company and did not aim to obstruct the IRS. The defense said that Snyder paid all of his personal income tax debt and is still making timely payments on what is owned by his mortgage company.

Snyder was indicted in November 2016 and charged with allegedly violating federal bribery statutes. Federal prosecutors say the mayor allegedly solicited money from John Cortina, of Kustom Auto Body, and “Individual A” and gave them a towing contract for Portage. Snyder received an additional bribery indictment for alleged accepting $13,000 in connection with a Board of Works contract.

A third charge alleges Snyder obstructed or impeded Internal Revenue Service laws.

Snyder has pleaded not guilty to the charges, according to court documents.

Cortina, who was indicted alongside the mayor, pleaded guilty to a charge that he paid bribes to Snyder to get a spot on the tow list. Cortina is expected to cooperate with federal investigators against Snyder, according to court documents.

01242019 - News Article - Trucking firm picked up part of tab for Snyder's Austrian trip, jury told

Trucking firm picked up part of tab for Snyder's Austrian trip, jury told
NWI Times
January 24, 2019
https://www.nwitimes.com/news/local/crime-and-courts/trucking-firm-picked-up-part-of-tab-for-snyder-s/article_3ebbd4d5-8a8d-5039-8041-47393b30d799.html

HAMMOND — City Councilman Pat Clem's suspicion that a local trucking firm was helping pay for Portage Mayor James Snyder's European vacation raised eyebrows at the FBI.

Clem, D-2nd, was identified during the Republican mayor's trial in U.S. District Court on Thursday as the second person who entered the FBI’s Merrillville office in September 2013 and requested an investigation into Snyder's alleged wrongdoings.

Under cross-examination by Snyder’s defense attorney, Jayna Cacciapo, FBI agent Eric Field confirmed Clem and former Street Superintendent Steve Charnetzky brought information to the FBI alleging, among other things, that Great Lakes Peterbilt had paid a substantial portion of Snyder’s trip to Austria.

That wasn’t the only accusation made against Snyder, said Field, adding another allegation was that two city employees were working on city time for Snyder’s personal mortgage company.

Field testified that while some of the information didn’t pan out and result in charges, the allegations that the trucking firm financed some $5,000 of the mayor’s trip led to discovering a $13,000 check from Great Lakes Peterbilt to Snyder for consulting services.

Field continued his direct testimony Thursday morning on the alleged $13,000 bribe from Stephen and Robert Buha in return for two contracts totaling about $1 million for five garbage trucks.

During cross-examination by Cacciapo, Field said there was nothing wrong with some of Snyder’s activities.

Cacciapo asked Field about the legality of holding golf outings, taking political donations and hosting a mayoral ball.

“There’s nothing wrong with that?” she asked Field.

“No,” he replied each time.

Cacciapo also questioned Field as to whether the investigation was politically motivated, considering both Clem and Charnetzky are Democrats and both supported Snyder’s opponent in the 2015 mayoral election. Charnetzky had previously supported Snyder in the 2011 election and was rehired by Snyder as his street superintendent in 2012.

Snyder was indicted in November 2016 on charges of felony bribery, extortion and tax dodging counts, which carry long prison terms if he is convicted.

The trial continued Thursday afternoon.

01232019 - News Article - FBI tip, secret tape from Portage mayor's appointee fueled corruption probe, jury told

FBI tip, secret tape from Portage mayor's appointee fueled corruption probe, jury told
NWI Times
January 23, 2019
https://www.nwitimes.com/news/local/crime-and-courts/fbi-tip-secret-tape-from-portage-mayor-s-appointee-fueled/article_f27a6af0-1869-5404-8453-37c60eef095f.html

HAMMOND — Former Portage Street Superintendent Steve Charnetzky walked into the FBI office in Merrillville, providing a tip that helped launch a three-year probe into possible wrongdoings by Portage Mayor James Snyder, a federal jury was told Wednesday.

Charnetzky also provided the FBI secret recordings of a meeting between himself, the city's attorney and the point person involved in the development of garbage truck bids which are at the center of one of the three charges Snyder's facing at trial.

The initial tip led to a more than three-year investigation resulting in a November 2016 three-count indictment against Snyder including two counts of bribery and one of tax obstruction.

FBI Supervisory Special Agent Eric Field spent Wednesday morning on the stand in U.S. District Court in the fifth day of Snyder's public corruption trial.

"Two individuals came in and provided me with information," Field recounted as he told of the beginning of the investigation in September 2013. 

Later, in questioning by assistant U.S. Attorney Jill Koster, Field named Charnetzky as one of the two individuals who stepped into the FBI's Merrillville office that day.

Charnetzky had worked as street superintendent for 16 years before he was replaced by then Mayor Olga Velazquez in 2008. Charnetzky had run against Velazquez in the 2007 Democrat mayoral primary. Snyder, a Republican, rehired Charnetzky, who had been a political supporter of Snyder, in 2012. Charnetzky retired from the city in January 2016.

An audio tape, secretly recorded by Charnetzky was conditionally entered into evidence Wednesday. The recording was a conversation primarily between City Attorney Gregg Sobkowski and assistant Street Superintendent Randy Reeder on the development of specifications for new automated trash trucks.

One of the bribery charges against Snyder alleges he took a $13,000 bribe from Stephen and Robert Buha, brothers who owned Great Lakes Peterbilt in Portage at the time. The brothers have since sold the dealership.

Prosecutors allege Reeder, under the direction of Snyder, steered the bids towards Great Lakes Peterbilt. The city purchased five automated trucks from them in 2013 for about $1 million.

Defense attorney Jayna Cacioppo objected to the introduction of the audiotape, saying Koster had not laid sufficient foundation to authenticate the tape.

U.S. District Judge Joseph Van Bokkelen conditionally accepted the tape on the consideration Charnetzky be called to testify at a later date to authenticate the recording.

In the recording, Sobkowski is heard questioning Reeder as to how he developed the specifications for the bids.

Reeder is heard saying various vendors brought trucks to the city to look at. 

"We came up with a general idea of what we wanted, and then I approached these two companies and asked they give us the specs," Reeder is heard saying, referring to Great Lakes Peterbilt and McNeilus, a Minnesota-based company that manufactures truck bodies.

"You kinda combine those two together to come up with specs for our garbage trucks?" Sobkowski asked.

"Yes," Reeder answered.

Reeder is also heard saying they put a 150-day delivery time frame in the bid because he had asked both companies beforehand if they could make that deadline and they said yes.

Peterbilt received the contract for the three trucks during the first round of bidding in early 2013, but was not the lowest bidder. Their price, $712,882, was some $59,000 higher than the lowest bid received, but were the only ones to meet the 150-day deadline.

Field also testified the Buha brothers made donations to Snyder, between 2012 and 2013, of about $11,000 for Snyder's mayoral ball, golf outing and to help pay for a trip for Snyder and his wife to Austria, Germany and Croatia. At the same time, Field testified, the company was struggling financially and Stephen Buha took $250,000 from his retirement account to keep the company afloat.

Field testified the check to Snyder for consulting fees went to a nonexistent company, SRC Consulting, just one week after Snyder signed a purchase order for the purchase of two more trucks from the company in January 2014.

01232019 - News Article - FBI says it couldn't find reason for $13k payment to Portage Mayor James Snyder

FBI says it couldn't find reason for $13k payment to Portage Mayor James Snyder
Chicago Tribune
January 23, 2019
https://www.chicagotribune.com/suburbs/post-tribune/news/ct-ptb-snyder-trial-day-five-st-0124-story.html

An FBI agent testified Wednesday that he found no documentation to show that Portage Mayor James Snyder did work to justify a $13,000 payout.

Eric Field, a supervisory special agent with the FBI, took the stand Wednesday and said that during his more than three-year investigation into Snyder, he failed to turn up documents that explained why Great Lakes Peterbilt paid the mayor $13,000 after being awarded two Portage contracts for garbage trucks.

Field said he asked Great Lakes Peterbilt for any documents explaining the consulting services Snyder provided, including invoices, work product or logs of hours worked.

Assistant U.S. Attorney Jill Koster asked if Field received any of that material.

“No,” Field said.

Koster asked if he sought those records from the mayor and if he received them.

“No, we did not,” Field said.

Prosecutors say that when Snyder first ran for mayor, he told residents he planned to automate Portage’s trash pickup, but wound up allegedly steering contracts for $712,882.50 and another for $425,355 to Great Lakes Peterbilt.

After getting those contracts, prosecutors said Great Lakes Peterbilt gave Snyder a check for $13,000 payable to his shell company, and the city wound up with older trucks than what was asked for.

Field said that Snyder’s SRC Properties and SRC Marketing companies were administratively dissolved in 2013, according to state records.

The Great Lakes Peterbilt check was sent to SRC after it was disbanded, Field said.

Field said the investigation into Snyder began in September 2013 when two people went to the FBI with information. Field said one of those was the then superintendent of the streets department who mentioned the Great Lakes Peterbilt deal.

Documents and testimony presented during the trial show that Snyder reportedly directed Randy Reeder, the assistant superintendent of the streets department, to prepare the bid specs for the garbage trucks. Field said that Reeder reportedly reached out the Great Lakes Peterbilt and another firm to get their thoughts on what to ask for.

Reeder reportedly also asked Peterbilt and the other firm what time frame the city should seek for truck deliver, according to evidence presented in court, and they both thought 150 days was reasonable.

Koster pointed out that Great Lakes Peterbilt was the only firm that could meet the 150 day delivery requirement. She said that nine other bidders had a lower price for the trucks than Great Lakes Peterbilt.

The Board of Works accepted the Great Lakes Peterbilt bid and rejected the others for not being responsive.

Snyder was indicted in November 2016 and charged with allegedly violating federal bribery statutes. Federal prosecutors say the mayor allegedly solicited money from John Cortina, of Kustom Auto Body, and “Individual A” and gave them a towing contract for Portage. Snyder received an additional bribery indictment for alleged accepting $13,000 in connection with a Board of Works contract.

A third charge alleges Snyder obstructed or impeded Internal Revenue Service laws.

Snyder has pleaded not guilty to the charges, according to court documents.

Cortina, who was indicted alongside the mayor, pleaded guilty to a charge that he paid bribes to Snyder to get a spot on the tow list. Cortina is expected to cooperate with federal investigators against Snyder, according to court documents.

01222019 - News Article - Bribery charges now are focus in Portage mayor's trial

Bribery charges now are focus in Portage mayor's trial
NWI Times
January 22, 2019
https://www.nwitimes.com/news/local/crime-and-courts/bribery-charges-now-are-focus-in-portage-mayor-s-trial/article_6de9e5cf-8839-5af7-9810-843edae0d601.html

HAMMOND —As the focus of Portage Mayor James Snyder's public corruption trial moved Tuesday from tax obstruction to bribery, his defense team attempted to paint the case as politically motivated. 

Snyder's 2016 indictment alleges he took a $13,000 bribe in return for steering more than $1 million in city contracts to Great Lakes Peterbilt for garbage trucks.

When defense attorney Jackie Bennett cross-examined Portage Clerk-treasurer Chris Stidham, questioning turned to what Bennett called "political intrigue" in the case.

"It is politically in your best interest if Snyder doesn't run again," Bennett said, referring to Stidham's run this year for Snyder's seat as mayor. Stidham is a Democrat, and Snyder is a Republican.

Snyder contends the $13,000 to Great Lakes Peterbilt was a payment for health care and internet technology consulting services he did for the Portage company.

Assistant U.S. Attorney Jill Koster questioned Stidham about the city's bidding process, and in particular, two rounds of bids for automated trash trucks.

Koster also questioned Stidham about the city's use of consultants for health care insurance and internet technology services.

Stidham testified the city hired consultants for both services and Snyder infrequently participated in committee meetings or other discussions involving the two subjects.

Stidham said he was surprised when Snyder allegedly told him Snyder was acting as a health care consultant for an outside company. He also testified Snyder had no knowledge beyond an "average person" of internet technology.

Koster also questioned Stidham filing financial disclosure forms by both Snyder and Assistant Street Department Superintendent Randy Reeder.

That questioning turned on Stidham during the cross-examination by Bennett, who asked Stidham about payments he made to three companies owned by his now-wife during 2015 and 2016. The couple were married in 2016.

Bennett said Stidham paid his then-girlfriend $50,000.

Stidham said he hired her at the time to do bookkeeping-type duties, including bank reconciliation services for his department. Stidham said that information wasn't on his own financial disclosure because the two were not married at the time.

Stidham also testified he made the payments under the city's small purchases policy, just like any other department head. He said it is not uncommon for him to hire outside contractors to help with that sort of work, and he no longer hired his now wife after their marriage in August 2016.

The only other witness Tuesday was Boyton Harrell, director of dealer network development for Peterbilt in Denton, Texas.

Harrell was questioned about the financial stability of Great Lakes Peterbilt during the time of the garbage truck purchases. The company was owned then by Robert and Steve Buha. They have since sold the company.

Harrell said the local dealership was having performance issues and was in poor financial shape for four or five years, owing the company a significant amount of money for the purchase of trucks.

Both Stidham and Harrell were also questioned about the bid specifications and whether one truck in particular met those specifications.

The specifications were drawn up with Reeder as the point person, but upon consultation with others, Stidham testified.

The bid specifications called for new, unused "current production" models.

Harrell testified one of the trucks, referred to as vehicle 412, was not a current model when sold to the city. It was a model year 2012. A new truck sold to the city in 2013 would have been a model year 2014.

Harrell said one difference between the two model years was the truck's engine. The 2012 model would have contained a 2010 emissions engine while the 2014 model would have had a 2013 engine designed to follow more strict emissions standards.

The trial will continue for a shortened day on Wednesday at 9 a.m. U.S. District Court Judge Joseph Van Bokkelen said the trial will recess at noon on Wednesday. He did not specify the reason for the shortened day.