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.
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