Hearing set on Portage mayor's claims his rights were violated during federal corruption probe
NWI Times
April 26, 2018
http://www.nwitimes.com/news/local/crime-and-courts/hearing-set-on-portage-mayor-s-claims-his-rights-were/article_95ace816-1f6b-53c6-a753-1aadadf4a276.html
HAMMOND — A hearing to determine whether indicted Portage Mayor James Snyder's rights have been violated will be held May 10.
U.S. District Court Judge Joseph Van Bokkelen set the in-person hearing for 10:30 a.m. in his courtroom.
In a motion filed by Snyder's defense team on Feb. 28, they claimed that federal investigators and prosecutors unfairly reviewed emails that should be considered attorney/client privilege.
The motion claims those emails contained several confidential communications between Snyder and his former defense attorney Thomas Kirsch II, now U.S. attorney for the Northern District of Indiana. Kirsch has recused himself from the case, which now is being managed by the U.S. attorney's office in Chicago.
A practice known as a "taint team," made up of prosecutors and law enforcement agents, was put in place to screen the communications to protect Snyder's rights and determine which of the documents should not be viewed by the prosecution.
Snyder contends the process failed and the failure to keep the alleged attorney/client privilege emails out of view of investigators and prosecutors violated his Sixth Amendment rights to a fair trial.
Van Bokkelen held a hearing on the issue March 15. The judge said he didn't see a "smoking gun" in the emails the defense is complaining about, but he is too unfamiliar with the 4-year-old investigation to determine what information is and isn't important. He directed both sides to file additional briefs to prove their case.
The filing of those briefs led to additional claims by Snyder's defense attorney, Jackie M. Bennett, of Indianapolis, that prosecutors had not been forthcoming in providing information on the email review process. Bennett filed a motion requesting the courts to compel the prosecution to provide that information. The court has not yet ruled on that motion.
Snyder was indicted in November 2016 on counts of bribery and tax evasion. His trial has been set for June 4.
Portage mayor accuses government of lying, hiding facts in latest filing in his corruption case
NWI Times
April 23, 2018
http://www.nwitimes.com/news/local/crime-and-courts/portage-mayor-accuses-government-of-lying-hiding-facts-in-latest/article_ab74fe96-f0bb-5d33-b589-acb8af5e16ea.html
HAMMOND — Portage Mayor James Snyder's defense team is accusing the U.S. attorney's office of lying and keeping secret information necessary for his defense.
In a filing in Snyder's public corruption case on Sunday in U.S. District Court in Hammond, Snyder's lead attorney, Jackie M. Bennett of Indianapolis, argues federal prosecutors have "repeatedly misrepresented material facts" regarding the issue of whether prosecutors have viewed attorney/client privileged emails and whether viewing those emails have prejudiced Snyder.
The issue over Snyder's email and his contentions that his rights have been violated will be decided without a hearing. According to court documents filed Monday, "all parties" agreed during a teleconference Monday that no hearing will be necessary to decide the motion regarding the email.
The response filed Sunday defends Snyder's second motion to compel discovery last week, which contends prosecutors have not provided requested information regarding the email review process.
Bennett contends the process to filter the emails failed and, not only have prosecutors viewed confidential emails, but also have changed their stories several times regarding that process and whether the emails have been viewed.
Snyder claims both his Sixth and Fourth Amendment rights have been violated and seeks either the indictment against him be dismissed or the current prosecution team be disqualified.
"Snyder's attempt to understand the government's privilege filter has been hampered not only by the government's reticence regarding what procedures it had in place to protect Snyder's constitutional rights, but also the government's ever-changing description of the filter process," according to the latest filing.
"These changing representations bear directly upon fundamental matters of whether some agents have viewed or been exposed to every email," the filing continues, adding "the government's story never improves; instead, in each case the emended representation shows or suggests that the problems previously identified by Snyder are worse than originally known."
Snyder, who was indicted in November 2016, is pleading not guilty to bribery charges related to city towing vendor and public works contracts, along with tax evasion charges related to his private business.
Portage mayor, City Council reach agreement over fate of Utility Service Board after protracted dispute that included a lawsuit
NWI Times
April 20, 2018
http://www.nwitimes.com/news/local/govt-and-politics/portage-mayor-city-council-reach-agreement-over-fate-of-utility/article_f36bee0b-9773-5599-8870-87b76ee62dda.html
PORTAGE — The City Council and Mayor James Snyder have reached an agreement on how to end their dispute over the legality of the Utility Service Board.
The stipulated agreement was approved by the City Council late Friday afternoon and will be entered into the courts, canceling a hearing scheduled for Monday morning.
Snyder brought a lawsuit against the City Council about two months ago, claiming they were acting in opposition to state law and the USB was improperly formed.
The City Council, which took over the USB just over a year ago, claiming Snyder was inappropriately using funds from the utility department to lease cars and attempted to spend $93,000 of the department's money to pay his personal legal fees, believed the board was acting properly.
In essence, the agreement calls for the council to create separate stormwater and sanitary sewer boards, which operated in the city prior to 2010 when the two boards were combined into one Utility Service Board.
The council will likely create those boards at its May 1 meeting, said City Council Attorney Ken Elwood, adding the board will not have any authority until the process is completed to dismantle the USB.
"They will begin the process to discuss how to unwind the USB and go back to the two boards," Elwood said, adding it must be done in a "reasonable" amount of time.
Once the negotiations on how to dismantle the USB are completed, Elwood said, the council will vote on the final package and transfer authority to the re-created Sanitary Board and Storm Water Management Board.
The agreement also states that the USB will not take any actions outside the day-to-day operation, current stormwater fees will be collected and increased revenue from those fees will be impounded until the USB is dissolved.
Elwood said if negotiations break down and an agreement cannot be reached in that reasonable time, the matter will return to the courts.
The agreement, Elwood said, does not say who is right or who is wrong.
"We still believe our position is correct," Elwood said.
"It is what we have been trying to do since Dec. 5," said Snyder, contacted after the meeting. "The agreed order gets the City Council to follow the law. It is good for Portage."
"I think this is in the best interest of all the parties," said City Council President Mark Oprisko, adding a continued legal battle would be costly with taxpayers paying for both sides. "I think the people who are going to benefit are the taxpayers of Portage."
Hearings will be held on two matters in Snyder corruption case
NWI Times
April 20, 2018
http://www.nwitimes.com/news/local/crime-and-courts/hearings-will-be-held-on-two-matters-in-snyder-corruption/article_375491fc-11ed-5ac1-8ac7-ef401e16fff3.html
HAMMOND — Hearings will be held in two matters pertaining to Portage Mayor James Snyder's public corruption case.
The date of the hearings will be set during a teleconference with all parties on Tuesday, according to U.S. District Court documents.
The court has agreed to hold a hearing on the potential conflict of interest issue regarding Kevin Milner, the attorney representing Snyder's co-defendant on one of the charges, John Cortina of Portage. Milner asked for the hearing as he also represented other potential witnesses in the Snyder case.
A hearing will also be held on Snyder's motion to compel federal prosecutors to turn over information requested in an April 12 letter. Snyder's defense has requested information on the "taint team" procedure used to cull through hundreds of emails to declare whether or not the emails are attorney/client privilege.
Snyder has requested the charges be dropped or the prosecution team be dismissed because he contends prosecutors viewed privileged emails and violated his Sixth Amendment rights to a fair trial.
Snyder, who was indicted in November 2016, is pleading not guilty to bribery charges related to city towing vendor and public works contracts, along with tax evasion charges related to his private business. Cortina was indicted for allegedly paying Snyder $12,000 to be put on the city's tow list.
The trial is set for June 4.
Battle over Portage mayor's emails continues in federal court filings
NWI Times
April 19, 2018
http://www.nwitimes.com/news/local/crime-and-courts/battle-over-portage-mayor-s-emails-continues-in-federal-court/article_755ce058-ec8b-5d70-85b7-c0f743c103ac.html
HAMMOND — Federal prosecutors in the public corruption case of Portage Mayor James Snyder say information Snyder is seeking is "not relevant" for a judge to determine if a group of emails are attorney/client privilege.
In the third filing in the case this week, federal prosecutors answered a motion filed Monday by Snyder's defense team.
Snyder's motion asks the U.S. District Court to compel prosecutors to turn over information requested from the assistant district attorney in an April 12 letter regarding the government's review process of Snyder's emails.
"The information Defendant seeks is not relevant to any defense or other admissible issue at trial, however. As already explained, it also is not relevant or essential to the Court’s determination of his pending motion. To the extent Defendant seeks the information because he believes it will help him challenge the propriety of the email search warrants, the government has addressed that argument, too. Simply put, Defendant has failed to establish that he is entitled to the information he seeks and, accordingly, Defendant’s motion to compel should be denied," reads the response to Snyder's motion.
Snyder has asked the indictments be dropped or the prosecution team be dismissed because of the alleged violation involving the emails.
Snyder, who was indicted in November 2016, is pleading not guilty to bribery charges related to city towing vendor and public works contracts, along with tax evasion charges related to his private business. His trial is set for June 4.
Chicago Daily Herald
April 18, 2018
http://www.dailyherald.com/article/20180418/news/304189906/
PORTAGE, Ind. -- An indicted northwest Indiana mayor hasn't proved that the handling of case-related emails warrant dismissing his corruption charges, according to a federal prosecutor.
Portage Mayor James Snyder recently filed a motion to have bribery and tax evasion charges dismissed because trial attorneys saw emails he said were protected by attorney-client privilege and contained information about work product and legal strategy. Snyder also previously asked for the prosecution team's dismissal.
Snyder and his attorney haven't illustrated how the email situation infringes on Snyder's constitutional right to a fair trial, said Jill Koster, assistant U.S. attorney. She said there's no evidence the emails were privileged and the defense hasn't shown any resulting prejudice.
"Even if defendant were able to meet his burden, he cites no support for the proposition that indictments ought to be dismissed or prosecution teams disqualified when attorney work-product is revealed," Koster said.
Snyder's lawyer, Jackie M. Bennett Jr., filed a motion Monday asking the U.S. District Court to compel prosecutors to turn over information about the government's review process of the emails.
The government filed a response that same day alleging the defense is starting a "fishing expedition" with such information inquiries.
Snyder was indicted in November 2016. He pleaded not guilty last year to bribery related to city towing vendor and public works contracts, and tax evasion charges related to Snyder's private business. His trial is scheduled for June 4.
Snyder is a Republican who was elected to his second term as Portage mayor in 2015.
The Democratic former sheriff of neighboring Lake County, John Buncich, was sentenced in January to more than 15 years in prison for a related case of accepting tens of thousands of dollars in bribes from towing businesses.
Prosecutor opposes Portage mayor's bid to dismiss charges
Indiana Lawyer
April 18, 2018
https://www.theindianalawyer.com/articles/46750-prosecutor-opposes-portage-mayors-bid-to-dismiss-charges
A federal prosecutor says an indicted northwest Indiana mayor hasn’t proven his corruption charges should be dismissed because of how case-related emails were handled.
Portage Mayor James Snyder recently filed a motion to have bribery and tax evasion charges dismissed because trial attorneys saw emails he says were protected by attorney-client privilege. Snyder had also previously asked that the prosecution team be dismissed.
Assistant U.S. Attorney Jill Koster said Snyder and his attorney haven’t illustrated how the email situation infringes on Snyder’s constitutional rights. She said there’s no evidence the emails were privileged, and the defense hasn’t shown any resulting prejudice.
Snyder’s lawyer filed a motion Monday asking the U.S. District Court to compel prosecutors to turn over information about the government’s review of the emails.
Indicted Portage mayor responds in latest volley of briefs in federal court
NWI Times
April 17, 2018
http://www.nwitimes.com/news/local/crime-and-courts/indicted-portage-mayor-responds-in-latest-volley-of-briefs-in/article_bf873d1c-f9d6-5a94-82d9-cdfe20b34277.html
HAMMOND — Attorneys for indicted Portage Mayor James Snyder say despite the federal government issuing 120 subpoenas, having investigated every aspect of his life and "aggressive employment" of wired surveillance, they still aren't answering questions crucial to his defense.
Late Monday, Jackie M. Bennett Jr., of Indianapolis, filed yet another motion in the public corruption case.
The motion asks the U.S. District Court here to compel prosecutors to turn over information Bennett requested from the assistant district attorney in an April 12 letter regarding the government's review process of Snyder's emails.
Snyder's response is the latest filing in the battle between Snyder's defense team and the U.S. attorney's office over whether two to three dozen emails seized by the government during the investigation are covered by attorney/client privilege. Snyder has claimed the emails they consider deal with work product and/or legal strategy slipped through the prosecution's review process and were unfairly seen by investigators and prosecutors, violating Snyder's Sixth Amendment right to a fair trial.
Snyder, who was indicted in November 2016, is pleading not guilty to bribery charges related to city towing vendor and public works contracts, along with tax evasion charges related to his private business. His trial is set for June 4.
Snyder has asked the indictments be dropped because of the alleged violation or that the present prosecuting team be dismissed.
Government prosecutors have countered Snyder's claims, saying the emails in question are not attorney/client privileged and, even if they were, they do not unfairly prejudice his case.
In the government's latest filing, also on Monday, prosecutors also accused the defense of a going on a "fishing expedition" in regards to the inquiries.
"The government is wrong; the information sought is directly related to a topic the Court has instructed the parties to brief, and Snyder cannot fairly be expected to brief or explain that issue while the government keeps it conduct in secret," according to the brief filed by Bennett.
The motion goes on to outline the history of the requests and of the battle over the email issue. It requests the court to order prosecutors to answer Snyder's questions by Wednesday.
Prosecutors: 'No support' to dismiss Portage mayor's corruption charges
April 17, 2018
Post-Tribune
http://www.chicagotribune.com/suburbs/post-tribune/news/ct-ptb-snyder-motion-dismiss-response-st-0418-story.html
A federal prosecutor is arguing that indicted Portage Mayor James Snyder has not proved that the handling of emails warrants the dismissal of the corruption charges he faces or the disqualification of the trial team.
Assistant U.S. Attorney Jill Koster on Monday said Snyder and his defense attorney, Jackie Bennett Jr., have failed to show how emails they say were subject to attorney-client privilege but seen by trial attorneys is grounds to dismiss the charges against the Portage mayor for infringing on his constitutional rights.
“… Even if defendant were able to meet his burden, he cites no support for the proposition that indictments ought to be dismissed or prosecution teams disqualified when attorney work-product is revealed,” Koster said in her response.
Koster said there’s been no evidence that the emails in question were privileged, according to court documents, and that the defense has not shown any prejudice as a result of those communications being viewed by the trial team.
The allegations against the prosecutors say email communications between Snyder, defense attorney Thomas Dogan, and Thomas Kirsch II, who was then the mayor’s defense attorney before being appointed as U.S. attorney, were seized in 2015, according to court documents.
Judge Joseph Van Bokkelen has not ruled on the email issue, and during a march hearing said it did not appear any of the communications looked like a “smoking gun.”
Kirsch has recused himself from Snyder’s case, according to court documents, and U.S. attorney for the Northern District of Illinois would oversee and manage local prosecutors handling the case.
Snyder and John Cortina, of Kustom Auto Body in Portage, were charged in November 2016 with allegedly violating a federal bribery statue. Federal prosecutors said the mayor allegedly solicited money from Cortina 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, and allegedly obstructing internal revenue laws.
Snyder and Cortina both pleaded not guilty to the charges, according to court documents.
During the discovery process for Snyder’s trial, Bennett said it was found that documents reviewed by the prosecutors contained confidential attorney-client material, according to court documents. Bennett said federal investigators used a “taint team” to review the email communication seized, according to court documents, but that review failed to shield all privileged communications from the trial team.
Bennett said when the defense received the emails quarantined by federal investigators for being privileged, several of those were also found in possession of the trial team.
“It is now beyond dispute, the government’s trial team has admitted it viewed communications that the taint team had previously deemed confidential,” Bennett wrote. “Worse, the subject matter of those privileged communication relates directly to core allegations charged in the indictment.”
Koster said it appears that versions of those documents were marked as both privileged and non-privileged, according to the motion, but those discrepancies do not change the fact those communications should not be shielded.
“…Any such errors by the government do not rise to the level of a violation of the defendant’s constitutional rights and certainly not a violation that warrants dismissal of the indictment, especially where defendant still has not explained how he has been prejudiced by the government’s actions,” Koster wrote.
Prosecution in Snyder corruption case pushes for answers on emails
NWI Times
April 16, 2018
http://www.nwitimes.com/news/local/crime-and-courts/prosecution-in-snyder-corruption-case-pushes-for-answers-on-emails/article_2e895cc5-c533-5035-bcc0-6519ddeb026d.html
HAMMOND — The prosecutors in Portage Mayor James Snyder's federal corruption case say in their latest filing that the court has sufficient information to make a decision to move the case forward.
In the filing Monday in U.S. District Court, they also accuse Snyder of a "fishing expedition" serving no relevant purpose in demanding the government answer numerous questions regarding the email review process.
The government response is the latest filing in the battle between Snyder's defense team and the U.S. attorney's office over whether two to three dozen emails seized by the government during the investigation are covered by attorney/client privilege. Snyder's attorney, Indianapolis-based Jackie M. Bennett, has claimed the emails they consider deal with work product and/or legal strategy slipped through the prosecution's review process and were unfairly seen by investigators and prosecutors, violating Snyder's Sixth Amendment right to a fair trial.
Snyder, who was indicted in November 2016, is pleading not guilty to bribery charges related to city towing vendor and public works contracts, along with tax evasion charges related to his private business. His trial is set for June 4.
Snyder has asked the indictments be dropped because of the alleged violation or that the present prosecuting team be dismissed.
"Critically, defendant's new claims do not change the two questions this court need answer to resolve the defendant's motion," reads the latest filing, adding those questions are whether the emails are privileged and, even if they are, has Snyder been sufficiently prejudiced to warrant his requested dismissal.
"Defendant has failed to show that any of the disputed documents reveal defense counsel's thoughts or strategies," according to the brief.
"Defendant filed versions of these exhibits publicly, raising the question whether he has waived any privilege and protection he previously contended they deserve," the prosecution continues.
The brief also contends that Snyder has "repeated his demand that the government answer numerous interrogatories regarding its review process." That, prosecutors say, is a "fishing expedition."
At a hearing in March, a federal judge said he needed more information to decide whether government investigators mishandled email evidence seized from Snyder. At that time, the judge said he did not see a "smoking gun" in Snyder's claims. Since then, both sides have filed briefs supporting their claims.
Judge could probe potential conflicts in corruption case against Portage tow operator
Post-Tribune
April 11, 2018
http://www.chicagotribune.com/suburbs/post-tribune/news/ct-ptb-cortina-corruption-conflicts-motion-st-0412-story.html
A federal judge may have to decide if any potential conflicts of interest exist that could affect the case against a tow operator indicted alongside Portage Mayor James Snyder.
Defense attorney Kevin Milner and Assistant U.S. Attorney Jill Koster filed a motion Tuesday asking Judge Joseph Van Bokkelen to set a hearing to decide on whether precautions should be taken since John Cortina, of Kustom Auto Body in Portage, is represented by an attorney who previously worked for witnesses that could testify in the corruption case.
The motion said Milner’s prior representation of potential witnesses could affect Cortina’s right to an attorney free of conflicts, according to court documents, but the defendant could file a waiver with the court.
Milner previously represented several Portage municipal employees and the former owners and employees at Great Lake Peterbilt, according to the motion, and federal prosecutors may call one or more of those people as witnesses during the trial.
“The government has since communicated with Mr. Milner about this issue and Mr. Milner has informed the government that, after reviewing this case completely, he has determined that there is no reason he will need to cross-examine any of his prior clients,” the motion said.
Snyder and Cortina were charged in November 2016 with allegedly violating a federal bribery statue. Federal prosecutors said the mayor allegedly solicited money from Cortina 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, and allegedly obstructing Internal Revenue Service laws.
Snyder and Cortina both pleaded not guilty to the charges last year, according to court documents.
The trial for Snyder and Cortina is tentatively set to start in June, according to court documents.
On Monday, Snyder filed a motion to dismiss the charges against him, saying that the case was compromised after prosecutors were able to view privileged communication between the mayor and his defense attorneys.
UPDATE: Portage mayor files motion to dismiss public corruption probe due to handling of emails
Apr 10, 2018 - Updated 6:45PM
http://www.nwitimes.com/news/local/crime-and-courts/update-portage-mayor-files-motion-to-dismiss-public-corruption-probe/article_369bded0-efe7-5927-b5a1-e61c6e9d0f77.html
HAMMOND — In the most recent brief filed in the public corruption case of Portage Mayor James Snyder, Snyder is claiming the violation of his Sixth Amendment right to a fair trial is worse than he initially believed.
Snyder, who asked the present prosecution team be dismissed because they had viewed what should have been attorney-client privileged emails, is now asking the court to dismiss his three-count indictment entirely.
According to the motion filed Monday, Snyder knew only that roughly three dozen emails sent between him and his former attorney, Thomas Kirsch II — including several in which they discussed sensitive aspects of their legal defense strategy — came into the possession of the trial team.
According to the motion, more recent court-compelled discovery disclosures have confirmed Snyder’s suspicion that "the government’s left hand had no idea what its right hand was doing."
Snyder, who was indicted in November 2016, is pleading not guilty to bribery charges related to city towing vendor and public works contracts, and tax evasion charges related to his private business. His trial is set for June 4.
The 25-page brief filed in U.S. District Court by Snyder's Indianapolis-based attorney Jackie M. Bennett Jr. alleges four emails that earlier had been determined to be privileged also appeared in a group that were not considered privileged.
"... the government's taint team had designated as privileged certain Snyder emails that inexplicably were then passed, or otherwise made their way, to the government's trial team," and were used as evidence for over two years, according to the brief.
In another example cited by Bennett, other emails, which the defense believed had been determined as privileged, were used during grand jury testimony in an attempt to impeach a witness, one of Snyder's former employees in his private mortgage company.
In addition, the newest brief argues some emails that included other city employees are privileged, despite the prosecution's claim a third party recipient disqualifies the emails for that designation. Bennett argues the city employees included in those emails had played an "integral role" in developing the bidding procedure for the purchase of garbage trucks, which is at the center of one of the indictments.
The brief now contends there are at least 35 emails in question that are client-attorney work product and should have been quarantined and not viewed by the federal prosecution team.
The filing also goes on to allege the entire process the government team used to filter out potentially privileged emails was "either a failure by the government to endeavor in good faith to analyze whether certain communications were constitutionally protected, or a negligent or incompetent failure to have done so."
Bennett also claims Snyder's Fourth Amendment rights were violated in the seizure of his multiple email accounts.
At a hearing in March, a federal judge said he needed more information to decide whether government investigators mishandled email evidence seized from Snyder.
U.S. District Court Judge Joseph Van Bokkelen said then he did not see obvious indications the government took an impermissible look into Snyder's defense strategies. Prosecutors filed their briefs on the matter March 26 with Snyder's response being filed Monday.
UPDATE: FBI raids Lake County sheriff's offices; searches may have Porter ties
NWI Times
November 10, 2016 - 8:30PM
http://www.nwitimes.com/news/crime-and-court/fbi-raids-lake-sheriff-department/article_677e5038-f0f5-5da3-85da-0222e1f28c3a.html
CROWN POINT — The FBI and Indiana State Police raided the Lake County Sheriff's Department and were parked outside the sheriff's home early Thursday.
A number of FBI agents and state police investigators entered the offices of Lake County Sheriff John Buncich at the Lake County Government Center, 2293 N. Main St., about 9:30 a.m.
They left early Thursday afternoon with several boxes of documents they loaded into an FBI panel truck.
Indiana State Police and federal investigators' cars, both marked and unmarked, were parked late Thursday morning outside Buncich's Crown Point home. FBI Special Agent Bob Ramsey, who appeared outside the sheriff's home, declined to comment further.
Ramsey and Ryan Holmes, a spokesman for the U.S. attorney's office, said federal authorities were serving search warrants on the county sheriff. Holmes declined to comment on what documents are being sought or who is being targeted.
Sources within county government said investigators were looking into rumors of bribery involving towing vendors and police, and were looking for towing contracts and campaign finance reports.
Simultaneous raid
At the same time that federal agents were raiding the Lake County sheriff’s office, several members of the Indiana State Police and the U.S. Department of Treasury shut down Kustom Auto Body, 5409 U.S. 6, Portage, in an apparent raid Thursday morning.
John Cortina, owner of Kustom Auto Body, said his business was not the target of Thursday morning's raid.
Cortina said the agents were seeking information on Sampson Towing, a Merrillville-based business that leases storage space in his back lot.
Police vehicles blocked the entrance to the business. Police could be seen going in and out of the building. The treasury agent referred all questions to a department spokesperson, who did not return calls.
FBI order all to leave building
In Lake County, Dean Delisle told The Times he was in the Sheriff's Bureau of Identification, where police records are held, to obtain a copy of an accident report when agents and state police walked into that office and ordered everybody, including the sheriff's employees, to leave.
"They were taking pictures of everything," Delisle said. He said sheriff's employees appeared upset as they were preparing to leave.
A source within county government said 38 federal and state agents were inside the Lake County Sheriff's Department. Another source said all employees in the sheriff's office building were ordered to leave.
Federal agents then fanned out to the Lake County Voter Registration and Election offices, where campaign finance records are kept, and the Lake County E-911 offices, which keeps records of police radio communications, to serve subpoenas for documents.
Buncich's campaign finance reports indicate he received more than $9,000 in contributions in 2014 and 2015 from several towing and auto firms in Crown Point, Gary, Highland, Hobart, Merrillville, St. John and Whiting.
The elections board office and E-911 offices were allowed to remain open and continue operating.
Mark Back, a spokesman for the sheriff issued a statement 2:43 p.m. Thursday, which said: "The Lake County Sheriff's Department is cooperating with our federal law enforcement partners and fully assisting the FBI with their inquiry. Regular Sheriff's Department operations are continuing. We assure the citizens of Lake County that their safety remains our top priority. There was no interruption of police duties."
Back said the sheriff's department continued to function through the day. "Employees were asked to at least step away from their desks while the FBI were completing their inquiry and look for whatever they were looking for," Back said.
As to what the FBI was looking for or removed from the sheriff's department, "You would have to ask the FBI," Back said. He said Buncich was continuing to perform his duties as sheriff.
Buncich could not be reached for comment and was not seen Thursday outside his home.
The county sheriff's department has had agreements with as many as eight towing firms who police use to remove abandoned cars from accident and arrest scenes.
EDITORIAL: Snyder skipped propriety in legal fees matter
NWI Times
The Times Editorial Board
Updated October 17, 2016
http://www.nwitimes.com/news/opinion/editorial/editorial-snyder-skipped-propriety-in-legal-fees-matter/article_ef3ccac0-722c-5b0d-84a0-7cc547755c26.html
It’s the type of mistake, innocent or not, that paints an undesirable portrait of local government.
Portage Mayor James Snyder and other city officials owe their ratepayers an apology for putting the cart before the public discussion horse while attempting to pay his legal bills following an FBI probe of Snyder’s practices.
At issue are checks cut from the funds of the Portage Utility Service Board, of which Snyder is chairman, to pay for Snyder’s legal fees in the long-running federal probe.
On Sept. 26, Snyder directed the board’s secretary/treasurer to cut two checks totaling more than $93,000 to two law firms that represented him during the probe.
The mayor did so even though the payments weren’t discussed, much less voted upon in a public forum, by the Portage Utility Service Board.
In fact, the board didn’t vote to approve those payments until Oct. 12 — after the law firms already had returned the money, having determined they were improperly paid by a public utility rather than their actual client, Snyder.
Snyder seeking to have the board cover his legal expenses isn’t what’s wrong in this situation.
State law allows for a government body to cover such expenses if an official involved in a possible criminal probe isn’t indicted by a grand jury or if “the acts investigated by the grand jury were within the scope of official duties of the officer or employee.”
In short, if there’s proof the federal probe uncovered no wrongdoing by Snyder, his fees should be covered by the utility board under state law.
However, the public deserved an appropriate procedure to be followed before those checks were cut.
A discussion and vote in a public meeting should have occurred first, and that didn’t happen.
Snyder, and any public official, should realize the sacred confidence they must keep with voters regarding fiscal propriety. Northwest Indiana has seen too many cases of abuse over the years, and we’re frankly sick of flippant handling of public money.
Factor into that history that Snyder’s checks were cut because of a federal probe into his activities, and it’s not hard to see why a public discussion and board vote should have occurred prior to release of these payments.
Snyder is now doing the right thing.
He’s asking for the board to consider reimbursing him for legal expenses following a future public discussion and vote.
It’s unfortunate a course correction was necessary.
It’s unfortunate a course correction was necessary.
Portage mayor's request for attorney fees remains up in the air
NWI Times
10122016
http://www.nwitimes.com/news/local/govt-and-politics/portage-mayor-s-request-for-attorney-fees-remains-up-in/article_540a6f7b-b3ff-5aa4-929a-9be5a8f1c005.html
The members never even discussed the matter during their monthly meeting Wednesday.
The board did approve claims that included two checks to Mayor James Snyder’s attorneys totaling over $93,000. However, that money has been returned to the utility.
Snyder, who chairs the utility board, didn’t answer many questions.
He said he intends to submit claims to get reimbursed for the legal fees, but wants board vice chairman Mark Oprisko to return and have a discussion before he submits any claims.
Oprisko, who is out of town, objected to the claims, saying earlier this week he wanted time to conduct research before approving anything. He wanted the issue tabled until he returned.
Last month Snyder submitted claims to pay the firms of Winston and Strawn of Chicago and Dogan and Dogan of Portage totaling just over $93,000. The checks were cut and distributed to the law firms before they were approved by the board. The firms said they could not accept the checks because they were from the utility and the utility is not their client. The money was returned to the utility this week.
State law allows Snyder to seek reimbursement of the legal fees “if the grand jury fails to indict the officer or employee and the acts investigated by the grand jury were within the scope of official duties of the officer or employee.”
Asked Wednesday if that means he has been cleared of any potential charges during the nearly three-year investigation, Snyder said he couldn’t comment.
“I can’t answer that either. We have several legal people looking at it,” Snyder said. “We are going to get through it and do the right thing.”
Snyder did say he approached the utility because the investigation started with a trip he took to Austria using the utility’s credit cards. The investigation expanded, however, with FBI agents delivering several subpoenas for various financial records, including the purchase of garbage trucks. The FBI interviewed dozens of city employees.
“As a board member, I don’t know enough about it,” said James Hazzard, adding he only learned of the situation Monday when he picked up the claims docket and saw the two claims to the two attorneys.
“I want to know the exact statute and how it reads,” Hazzard said, before making any decision.
Member Marci Kunstek said she trusts the board’s attorney “to walk us through the decision,” adding she would have no problem reimbursing Snyder’s legal fees if that was the recommendation.
Snyder submits $93K bill for legal fees to Portage
Michael Gonzalez
Post-Tribune
10102016
http://www.chicagotribune.com/suburbs/post-tribune/news/ct-ptb-portage-legal-fees-st-1011-20161010-story.html
Anyone or any business that pays user fees for sewer or storm water sewer service in Portage may also be on the hook for paying legal bills related to a federal investigation of Mayor James Snyder.
The seven-member Portage Utility Services Board, whose majority is made of mayoral appointees, is expected to consider reimbursing Snyder's $87,389.75 in legal expenses from Chicago law firm Winston and Strawn and $6,118.75 in expenses from Portage-based law firm Dogan and Dogan, as part of its claims, or bills that have been paid. Snyder serves as the board's chairman.
Boards often pile up bills in their claims sections and vote them up or down as part of consent agendas. Individual items rarely come up for discussion or a separate vote.
City Council President Mark Oprisko, who is the vice chair of the utilities board, said he encourages the board to table a vote on the reimbursement until members can get more information on Snyder's request.
"It's awful hard to get two bills that total more than $90,000 without having all the facts," said Oprisko, who is out of town and will not attend Wednesday's meeting. "I want to see what the bills were, dates, hours and I want to go a step further.
"Was there anything found that the mayor did that was illegal as far as the utility end or the city end? (Snyder) keeps saying there's nothing there, but I'd sure like to see some proof of that before the board cuts a check for more than $90,000."
Snyder could not be reached for comment Monday.
The board also will consider paying $8,375 in legal expenses for Randy Reeder, assistant superintendent of the streets department, and Amanda Lakie, the mayor's secretary, though the amount of her legal expenses were not in the claims list.
Director of Administration Joe Calhoun said both employees were called before grand juries for the investigation.
According to Calhoun, federal officials began looking into a trip Snyder took to Austria after an invitation from Fronius, an Austrian-based manufacturer of solar panel technology, whose U.S. headquarters is in Portage.
The company did not pay for the trip, Calhoun said.
Snyder used his utility board-issued credit card to take the trip and later asked political supporters who contributed to a political action committee to reimburse the utility board for expenses related to the trip.
"It was kind of an economic development-type trip that many government officials often take about implementing new things and bringing new jobs to the city," Calhoun said.
Calhoun said the trip caught the attention of federal investigators.
In 2013, federal officials began an investigation related to the Austria trip, Calhoun said, but that could not be verified by federal officials Monday, a federal holiday.
Snyder hired the law firms when the investigation began, Calhoun said.
The utilities board issued a statement Monday indicating state law allows the board and other governmental entities to pay for legal expenses of board officers related to work done for the board.
Because Snyder went to Austria to represent the utilities board, the board can pay for his legal expenses related to the investigation, Calhoun said.
Calhoun also said Snyder has been paying his legal bills for the three years of the investigation, and he had reason to believe the investigation concluded without an indictment.
"(Snyder) wanted to make sure he went through the process and waited until (the investigation) had reached this level of conclusion," Calhoun said. "Obviously, at this point, (Snyder) feels there's a level of conclusion, and thats why he submitted the bills at this point."
Portage mayor asking city to pay his attorney fees
NWI Times
10102016
http://www.nwitimes.com/news/local/govt-and-politics/portage-mayor-asking-city-to-pay-his-attorney-fees/article_fd8a6355-de84-52c0-8c01-07a3d9514554.html
PORTAGE — Mayor James Snyder has submitted two claims to the city’s Utility Services Board to pay more than $93,000 in attorney fees in defense of a 2-year-old federal investigation.
The request for reimbursement for the legal fees also could indicate that the investigation by the FBI is over.
Snyder has been under investigation by the FBI for more than two years. Agents have subpoenaed hundreds of records from city hall, the utility services department and the city’s street department as well as interviewed dozens of city employees.
In September 2014, agents visited the street department requesting information on the purchase of automated garbage trucks in 2012.
In July of that year, the agency visited the city’s Utility Services Department and requested documents about Snyder’s travel expenses for a city economic development trip to Europe.
FBI agents also requested copies of his campaign finance records and reports, and last year they requested meeting minutes from Portage FOP Lodge 145.
The Times received the latest information Monday after filing a Freedom of Information Act request on Oct. 3, asking for copies of checks written by the Utility Services Board between Sept. 20 and Sept. 30. Included in that information were checks made payable to the Chicago law firm of Winston and Strawn for $87,389 and to Portage law firm Dogan & Dogan for $6,118.
The checks, dated Sept. 26 were made out to the law firms and sent directly to their bank for automatic deposit, according to a statement from the city.
According to the statement, the law firms cannot take the checks directly from the utility department because the department is not their client, and will return the money. When the money is returned, the department will issue payment directly to Snyder. The statement said the payments were for “legal invoices pertaining to the Federal Investigation of James Snyder that started in his role as chairman of the Utility Service Board.”
Neither of the checks issued on Sept. 26 were approved by the Utility Services Board. Board attorney Katrina Spence and city Director of Administration Joe Calhoun said that was a mistake, but did not say who was responsible for sending the checks without board approval. They said the checks should not have been mailed to the law firms until the expenses had been reviewed by the Utility Services Board.
The Utility Services Board will meet Wednesday afternoon with Snyder’s claims on its agenda.
Wants second opinion
One member is not so sure he’s going to approve the claims.
Mark Oprisko, board member and City Council president, will be out of town for Wednesday’s meeting and will ask the board to table action on the claims until he returns and has a chance to do some research.
Oprisko said he wants to know how much of the investigation has to do with Snyder’s personal business.
“I want to see the bills. I want to get a second opinion. I want to try and contact the federal prosecutor and find out where the investigation is,” he said.
The board already approved payments to local attorney Kevin Milner for legal fees for Assistant Street Department Superintendent Randy Reeder and for Snyder’s administrative assistant Amanda Lakie. In January, the board approved claims of $4,125 for Lakie and $7,375 for Reeder. In September, a second claim for Reeder for $8,375 was approved.
Neither Spence nor Calhoun anticipate additional requests for reimbursements will be made to the department.
Only official duties covered
Spence said the reimbursement is legal under Indiana law. The code, 36-1-17-3(b), states that an officer or employee of a unit or municipal corporation may apply for reimbursement “if the grand jury fails to indict the officer or employee and the acts investigated by the grand jury were within the scope of official duties of the officer or employee.” In an email from Spence to Snyder on Sept. 26, Spence tells Snyder that he can present the bills to the utility department “since the Grand Jury specifically investigated your actions as the Chair of the USB ...”
Susan Gordon, of the Indiana State Board of Accounts, said while the law does allow for the reimbursement, it must be proven the fees covered only the part of the investigation pertaining to his professional duties. Gordon said it is likely to toss up a “red flag” when the department’s financial statements are audited by the state.
Gordon said paying a claim without board approval is not allowable unless specifically addressed by a city ordinance. Portage Ordinance 2-109 addresses bills that can be paid without board approval. Attorney fees are not included on the list.
Spence and Calhoun said they didn’t know if all of the legal fees cover the investigation of Snyder in his official capacity, or if it would cover any investigation into his personal business, a local mortgage company.
Spence said that is something the board will have to discuss.
The request for reimbursement may mean the end of the more than two-year investigation; the funds can only be paid “if the grand jury fails to indict,” according to the law.
“That is what we have been led to believe,” said Spence.
Snyder did not immediately return telephone, text or email messages.
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