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.
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