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.
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