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.