Prosecutors probe Portage Mayor James Snyder's tax documents, income disclosures as trial continues
Chicago Tribune
January 16, 2019
https://www.chicagotribune.com/suburbs/post-tribune/news/ct-ptb-snyder-trial-day-three-st-0117-story.html
Federal prosecutors Wednesday laid out how Portage Mayor James Snyder allegedly failed to disclose information to the IRS as part of a scheme to avoid paying tax debt.
During the third day of Snyder’s trial, federal prosecutors worked through voluminous tax documents and campaign records to show the jury how the mayor allegedly hid assets from the IRS as the federal agency aimed to collect on his personal and business debt.
Judge Joseph Van Bokkelen recessed the trial until next Tuesday, and federal prosecutors will continue presenting evidence.
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 noted that Snyder paid all of his personal income tax debt and is still making timely payments on what is owned by his mortgage company.
Assistant U.S. Attorney Philip Benson questioned Gerard Hatagan, a special enforcement program revenue agent with the IRS, about the tax debt Snyder aimed to settle and the information he allegedly failed to disclose.
Benson asked about a January 2010 employment agreement with GVC, a mortgage company, and if that was listed by Snyder in forms to settle his debt.
“It was not,” Hatagan said.
Benson showed a W-2 form that showed GVC paid Snyder $141,891.27 in gross wages in 2010.
Hatagan said Snyder represented to the IRS that he had no wages.
In documents seeking a settlement owned by First Financial Trust in 2011, Benson pointed out that not only did Snyder allegedly fail to disclose him employment with GVC, he did not list income from SRC, a company Snyder ran.
Benson said invoices show that SRC was billing the mortgage company for services and getting paid.
Hatagan said information on income from SRC should have been included.
Two sets of those documents were shown to the jury Wednesday: one that the IRS had that was missing two pages, and another from Snyder’s accountant that was complete.
Defense attorney Neal Brackett said based on what Snyder made as mayor and as the head of a city board wouldn’t account for all the salary listed on the IRS form.
Brackett asked if the agent knew if the income line on the form included Snyder’s wages from the mortgage company.
Hatagan said he does not believe that based on the information represented on the form.
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 allegedly accepting $13,000 in connection with a Board of Works contract.
A third charge alleges Snyder obstructed or impeded internal revenue laws.
Snyder has pleaded not guilty to the charges, according to court documents.
Cortina, who was indicted alongside the mayor, last week 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.
No comments:
Post a Comment