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Mayor defends Portage SUV purchases
Chicago Tribune
December 28, 2017
http://www.chicagotribune.com/news/ct-ptb-portage-snyder-suv-st-1229-20171228-story.html
The Portage Board of Works approved the purchase of two new sports utility vehicles from a local auto dealership Wednesday, but the move fell flat for Common Council President Mark Oprisko and others at City Hall.
The board approved buying two 2018 Ford Explorers from Lakeshore Ford, in Burns Harbor, for $65,786, pending legal review by the city attorney. The move came after Oprisko used a travel policy passed by the city council in October to strip Mayor James Snyder and Economic Development Director Andy Maletta of their city-owned SUVs last month.
During the meeting, Clerk-Treasurer Chris Stidham, who has announced his intention to run for mayor in 2019, asked about the process city officials used in securing the quotes from Lakeshore.
According to Stidham, any quotes should've been received by city officials by Dec. 15. The Lakeshore quote had a handwritten receipt date of Dec. 12, but there was no date of receipt on a quote from Connor's Chrysler Dodge Jeep Ram, in Chesterton, which quoted two similar vehicles at $68,794.
Also, City Hall sources and Oprisko insisted Snyder has been using the Ford Explorer officially purchased Wednesday "for at least two weeks," and Oprisko complained Snyder has offered "zero communication" with the council on big ticket purchases, such as buying the vehicles.
Snyder called his critics' comments "senseless," and he insisted he has been using a number of city-owned vehicles and "loaner cars," including a newer model, while Ford Explorer owned by the parks department.
Snyder had leased a 2016 Chevy Tahoe for about $866 a month, while Maletta's leased 2016 Ford Expedition ran about $750 a month, officials said.
When asked if Wednesday's board purchase needed to be approved by the city council, Snyder said, "This board (of Works) purchases vehicles all the time."
New U.S. attorney has a veteran award-winning staff of trial lawyers to go after corrupt politicians and violent street gangs
NWI Times
Updated Dec 24, 2017
http://www.nwitimes.com/news/local/crime-and-courts/new-u-s-attorney-has-a-veteran-award-winning-staff/article_f6f0bd39-5520-5b09-b6df-8040d15b5207.html
HAMMOND — U.S. Attorney Thomas Kirsch II recently acknowledged he is coming into office this year with a skilled staff of attorneys he intends to use to prosecute violent and white-collar criminals.
It's also an award-winning staff.
Kirsch said the team of assistant U.S. attorneys for the Northern District of Indiana and agents of the FBI and ATF regularly win awards from the U.S. Department of Justice as well as other federal agencies for their work on public integrity cases, crimes against children and violations involving fish and wildlife cases, national parks and other environment-related cases.
They are most celebrated for the prosecution of local chapters of violent street gangs.
Kirsch said they received a commendation from the High Intensity Drug Trafficking Administration and won the Assistant Attorney General's Award of Distinguished Service for the prosecution of more than 40 individual members of the Latin Kings.
They also won the Assistant Attorney General’s Exceptional Service Award for work on the Imperial Gangsters case.
Much of this work was accomplished in recent years under former U.S. Attorney David Capp, who told The Times earlier this year his office teamed up with local authorities to investigate gang-related homicides to take more than 80 members of the Latin Kings and Imperial Gangsters off the streets in the last five years.
The Latin Kings and Imperial Gangsters are criminal organizations with thousands of members across the United States and overseas.
Chicago has been a traditional power base of the Latin Kings. Their Southeast Chicago regional leadership consider Gary, Hammond and East Chicago part of their turf.
The Imperial Gangsters chapters in East Chicago engaged in murder, assault and narcotics trafficking across Northwest Indiana.
Capp stepped down in March, and President Donald Trump nominated Kirsch as his replacement in July; the U.S. Senate confirmed Kirsch in October.
Kirsch had served previously as an assistant U.S. attorney here from 2001 to 2008, focusing on white-collar crime investigations as well as the successful prosecution of numerous elected and appointed public officials.
Kirsch said an investigation into public corruption involving public towing contracts, begun under Capp, remains active under his administration.
That investigation already has resulted in the conviction of former Sheriff John Buncich, Timothy Downs, the former sheriff's second-in-command, and William Szarmach, a Lake Station towing firm owner.
A U.S. District Court jury found Buncich guilty Aug. 25 of accepting bribes from William Szarmach and an undercover FBI informant seeking lucrative county police towing assignments.
A federal grand jury last month charged former Merrillville Town Councilman Thomas Goralczyk, 51, of Merrillville, with taking a bribe from a federal police informant in exchange for a vehicle towing contract. He is scheduled to plead guilty Jan. 31.
Portage Mayor James Snyder has pleaded not guilty and is awaiting trial on bribery, extortion and tax evasion charges related to the towing investigation.
Federal towing investigation in Northwest Indiana yielded conviction, new indictment in 2017
Post-Tribune
December 22, 2017
http://www.chicagotribune.com/suburbs/post-tribune/news/ct-ptb-federal-towing-investigation-st-1224-20171222-story.html
Former U.S. Attorney David Capp at the end of 2016 warned Northwest Indiana officials that more was coming from a federal investigation into towing.
"You know who you are and we know, currently, who some of you are," Capp said. "And we are coming after you."
The efforts of the FBI's multi-year towing investigation came to bear in 2017 with now former Lake County Sheriff John Buncich's Aug. 26 conviction and a new indictment against former Merrillville Councilman Thomas Goralcyzk, who pleaded guilty the same day the case was unsealed.
Buncich, in his second consecutive term as sheriff, resigned immediately. Buncich, 71, also held the office for two terms in the 1990s.
The U.S. Attorney's Office could not confirm or deny if the investigation was ongoing.
The FBI's investigation into potential pay-to-play towing began in 2012, according to testimony in federal court during Buncich's trial. FBI agents spoke with Scott Jurgensen, owner of Samson's Towing in Merrillville, and asked why he didn't get more towing work.
"You don't pay, you're not going to tow," Jurgensen said, during his testimony.
The investigation first looked at town officials in Merrillville and Schererville, according to testimony, but did not lead to any charges at that time.
The first charges came in late 2016 and were levelled at Buncich and Portage Mayor James Snyder.
Buncich, former Chief Timothy Downs and William Szarmach, of C.S.A. Towing, were named in a multicount indictment in November 2016 alleging a towing scheme where the sheriff accepted bribes in the form of thousands of dollars in cash and donations to his campaign fund, Buncich Boosters, according to court records.
Downs pleaded guilty in December and resigned his position at the Lake County Sheriff's Department, according to court documents. Szarmach pleaded guilty in July — a week before the trial started.
Federal prosecutors, during closing arguments, told jurors that Buncich abused his elected position to solicit bribes from tow operators, but defense attorneys say it was the FBI that paid an informant to make a crime happen.
Assistant U.S. Attorney Philip Benson said, during closing arguments, Buncich is heard on the recordings wanting to get the $85,000 back that he invested in his campaign and the evidence shows he sought to recover that money from tow operators.
"You now know that he was absolutely serious about getting that money back because you saw how he got it," Benson said.
Defense attorney Larry Rogers said, during closing arguments, the sheriff had a stellar reputation among law enforcement and the community until the government began its investigation.
"The government has systematically set out to paint the sheriff as a bad person," Rogers said.
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 allegedly accepting $13,000 in connection with a Board of Works Contract, and allegedly obstructing internal revenue laws.
Snyder pleaded not guilty to the charges, according to court documents, and is tentatively scheduled for a January trial. Attorneys for Snyder and Cortina have asked the court to move the trial to June, according to court documents, but a judge has not ruled on the request.
Snyder will have a new attorney on his team. Thomas Kirsch, who was nominated to be the new U.S. Attorney for the Northern District of Indiana, stepped aside from the Snyder case when he was confirmed by the Senate in October.
In the wake of the Buncich conviction, the U.S. Attorney's Office indicted Goralczyk in November saying he accepted two vehicles and other items from "Individual A" to help secure a Merrillville towing contract.
The charges allege that Goralczyk "did knowingly and corruptly solicit demand, accept and agree to accept" a 2000 Jeep Grand Cherokee; a 2008 Ford Focus; four new camper tires; and free storage for a motorcycle from "Individual A" in return for a towing contract from Merrillville, according to court documents.
Goralczyk allegedly presented false bills of sale to the Indiana Bureau of Motor Vehicles for the Jeep Grand Cherokee, which he obtained for $400 though the value was in excess of $2,500, and for the Ford Focus, which he accepted for free though it was valued in excess of $5,000, according the U.S. Attorney's Office.
"I obtained both of these vehicles for my own personal gain, in exchange for my promise to engage in official conduct by using my influence and power as a Merrillville town councilman to obtain a Town of Merrillville towing contract for the FBI 'cooperating individual's' towing company," Goralczyk said, in the plea agreement.
Sentencings for Buncich and Goralczyk are scheduled for January, according to court documents.
Statment from Portage Mayor James Snyder
Portage Mayor James Snyder seeks another continuance in federal corruption trial
NWI Times
November 28, 2017
http://www.nwitimes.com/news/local/porter/portage/portage-mayor-james-snyder-seeks-another-continuance-in-federal-corruption/article_e88ddca7-6f2a-5f4f-8d0e-a0b6faa0c76a.html
Statement from Portage Mayor James Snyder, who has been indicted on federal bribery and tax charges. His trial is set to begin in January:
"There are distinct differences between the two cases, I have never taken cash; all of contributions are recorded accurately and holding an elected official accountable for the intent of a donor would indict all elected officials who are not independently wealthy and have to raise funds to get their message out.
The prosecutor's own arguments against the sheriff prove my defense and in no way complicated my case; it enforces my innocence.
I have been transparent, cooperative and honorable in my conduct with the federal government. My family, my staff and the City continue to prosper under this cloud and we are grateful to the outpouring of goodness we have received."
Portage Mayor James Snyder seeks another continuance in federal corruption trial
NWI Times
November 28, 2017
http://www.nwitimes.com/news/local/porter/portage/portage-mayor-james-snyder-seeks-another-continuance-in-federal-corruption/article_e88ddca7-6f2a-5f4f-8d0e-a0b6faa0c76a.html
PORTAGE — Mayor James Snyder is seeking another continuance in his federal corruption trial.
In a filing Monday in the U.S. District Court in Hammond, Snyder, via his attorney Jackie Bennett, of Indianapolis, has asked the trial be pushed back to no sooner than June 4.
According to the filing, the latest request to delay the trial includes a conflict with Bennett's schedule and the need for adequate time to prepare for the trial.
Snyder chose Bennett as his new attorney early last month after his former attorney, Thomas Kirsch, was confirmed as U.S. attorney for the Northern District of Indiana.
Snyder and co-defendant John Cortina had been set to go to trial on Jan. 29. The trial had originally been set for January 2017, but Snyder and Cortina have received several other continuances.
According to the most recent filing, Bennett writes that the government does not object to the requested continuance for Snyder due to his change in attorney, but will file a separate response to any continuance requested by Cortina.
Snyder was indicted on Nov. 18, 2016, on two counts of bribery and one count of tax evasion. Cortina also was indicted at the same time on one count of bribery.
Snyder is alleged to have corruptly solicited and received two checks totaling $12,000 from Cortina in exchange for a towing contract in the city of Portage, according to information from the U.S. Department of Justice. Cortina is charged with corruptly offering those checks to Snyder.
Snyder is also charged with a second violation of the federal bribery statute. That count alleges that between Jan. 1, 2012, and Jan. 10, 2014, Snyder corruptly solicited and agreed to accept a bank check in the amount of $13,000 in connection with Board of Works contracts, a Redevelopment Commission project and other considerations, according to federal documents.
The final charge against Snyder alleges obstruction of internal revenue laws. This count alleges a scheme, undertaken by Snyder between January 2010 and April 2013, to obstruct and impede the Internal Revenue Service’s collection of personal taxes he owed and payroll taxes owed by his mortgage business.
Federal investigators question a Portage business's tax break
NWI Times
Updated Nov 25, 2017
http://www.nwitimes.com/news/local/crime-and-courts/federal-investigators-question-a-portage-business-s-tax-break/article_a48774b8-152d-5ce7-853c-1318695ebc3f.html
PORTAGE — A recent federal inquiry may center on a significant tax break a local business received several years ago.
FBI and IRS agents visited Portage Township Assessor Alta Neri last week to ask questions about SRH LLC, which previously owned a multiacre real estate parcel at 5900 Southport Road on which Great Lakes Peterbilt trucks has been doing business for more than 20 years.
While the federal agents didn't serve a subpoena for records, they did ask about routine practices of the township assessor's office and took copies of documents related to a decision to reduce SRH's property tax assessments.
Neri said a tax representative for SRH filed appeals of its 2011-12 assessments.
She said properties usually are assessed at values, for taxing purposes, that follow the local real estate market. On this appeal, they used an alternate method of measuring the firm's business income and arrived at a lower value.
"We honestly did our job," she said. Neri was the chief deputy assessor at the time. She was elected assessor in 2014.
Neri said the documents federal investigators asked questions about are confidential.
But public records kept by the Porter County assessor's office indicate the assessment of SRH's parcel was reduced in value by at least 35 percent — to $1.6 million from $2.5 million in 2011, and to $1.6 million from $2.6 million in 2012.
Neri said that reduction accounts for SRH's 2012 tax bill dropping by nearly $22,992. The Porter County treasurer's office records indicate SRH's taxes went to $42,170 from $65,162.
Stephen Buha, listed as SRH's president in state business records, said this week no federal agents have questioned him about what he considers to be a routine tax appeal. "I was the president who filed it, but I didn't do it personally. I cannot speculate what this is about."
Valparaiso attorney Russell Millbranth, who has represented SRH, said he is baffled. "People quite often find their assessment is steep. There are a lot of companies that perform appeals of tax matters."
Spokespersons for the FBI, IRS and the U.S. attorney's office in Hammond declined to comment, saying federal law prohibits them from commenting on investigations.
Neri said she suspects the federal inquiry may be connected to the long-running investigation of Portage Mayor James Snyder, who is awaiting trial next year on bribery, extortion and tax evasion charges the U.S. attorney's office filed a year ago.
Snyder is pleading not guilty to all counts. Reached Wednesday by text message, the mayor said he would respond but did not. His defense attorney could not be reached for comment.
Business records kept by the Indiana secretary of state indicates SRH was first organized as a limited liability company in January 2003 and has remained active.
SRH's principal office was listed at the Southport Road address until 2015 when it moved to the Valparaiso residence of Robert Buha, who is listed as the company's secretary.
County records indicate the property at Southport Road sold in 2015 to Larson Properties LLC for $5.3 million. Neri said that will require her office to readjust the property's value upward in future tax cycles.
In September 2014, FBI agents visited Portage's street department and requested documents related to the purchase of automated garbage trucks from Great Lakes Peterbilt, Clerk-Treasurer Christopher Stidham said at the time.
City Attorney Gregg Sobkowski also had confirmed the FBI issued a subpoena at the time for all bid packages received by the city for garbage trucks purchased from 2012 to the present.
In August 2015, FBI agents visited the offices of Porter County Assessor Jon Snyder to inquire about property tax appeals from 2012 and 2013. The county assessor is a brother of the Portage mayor.
FBI and IRS visit Portage Township assessor seeking tax appeal records
NWI Times
Nov 17, 2017
http://www.nwitimes.com/news/local/porter/fbi-and-irs-visit-portage-township-assessor-seeking-tax-appeal/article_390ed5d4-6985-55d4-8a3b-e24b00c9cb75.html#utm_source=nwitimes.com
PORTAGE — Agents with the FBI and IRS visited the Portage Township assessor's office Tuesday afternoon seeking tax appeal records involving the Great Lakes Peterbilt property at 5900 Southport Road in Portage, according to the assessor.
The agents were interested in an appeal involving SRH LLC, which had owned the property during 2011-12, Assessor Alta Neri said.
The office was working on compiling the requested files Friday afternoon, she said.
Federal agents visited other offices in Portage over the past several years leading up to the November 2016 indictment of Mayor James Snyder.
Snyder, a Republican in his second term, is charged with bribery, extortion and tax evasion. He has pleaded not guilty and is awaiting trial, which is set to begin in Hammond district court on Jan. 29.
During a visit to the city's street department in September 2014, FBI agents requested documents related to the purchase of automated garbage trucks from Great Lakes Peterbilt, Clerk-treasurer Chris Stidham said at the time.
City Attorney Gregg Sobkowski had also confirmed the FBI issued a subpoena at the time for all bid packages received by the city for garbage trucks purchased from 2012 to the present.
Portage ends 'lavish' leases for mayor, economic develop director vehicles
NWI Times
Nov 16, 2017
http://www.nwitimes.com/news/local/porter/portage-ends-lavish-leases-for-mayor-economic-develop-director-vehicles/article_b795f9bb-096d-55d9-a0e1-2256018916ec.html
PORTAGE — Mayor James Snyder and the city's economic development director are going to be downsizing the city vehicles they drive after a decision to end leases on a 2016 Chevrolet Tahoe and 2016 Ford Expedition.
The Utility Services Board last week approved terminating both leases. Snyder, in an email to city officials Thursday morning, said the two vehicles are parked and ready to be picked up by the leasing company. When contacted Thursday, Snyder declined further comment.
The issue of the leased vehicles has been debated by city officials for some time, but last week at a USB meeting, Chairman Mark Oprisko motioned for Snyder to "send back" the two vehicles to the leasing company.
"The cost of the vehicles is so lavish," Oprisko said Thursday, adding he brought up the issue because "enough is enough" and the USB has been trying to get things in order since the City Council took it over in March from Snyder's leadership.
The USB has been paying $3,624 per month for the lease of the Tahoe, two Expeditions and two Ford Explorers. The Tahoe, which Snyder drove, cost $860 per month; the Expeditions were $750 per month and the Explorers $470 per month, according to city records. The second Expedition was driven by the former city administrator and the two Explorers are driven by USB superintendents.
Clerk-treasurer Chris Stidham confirmed the cars had been parked Thursday and said he has contacted the leasing company to pick them up.
Stidham said that doesn't mean Snyder and Economic Development Director Andy Maletta, who drove one of the Expeditions, won't be driving city-owned or -leased vehicles. After meeting with Snyder on Thursday afternoon, Stidham said replacement vehicles will be acquired. He is uncertain if they will be purchased or leased.
"No one is saying they shouldn't have vehicles, but they should be appropriate vehicles," said Stidham.
Stidham said the Expedition driven by the former city administrator, who resigned in February, had been sitting in the city hall parking lot until last month when the USB terminated the lease. The lease termination cost the USB about $5,000, he said, adding terminating the lease early and paying the cost was less expensive than continuing the lease. There were four years left on the leases.
Dem, GOP considering plans for 2019 Portage mayoral race Chicago Tribune
November 03, 2017
http://www.chicagotribune.com/suburbs/post-tribune/news/ct-ptb-portage-mayor-st-1105-20171104-story.html
Two elected officials in Portage have begun making plans to run for mayor, even though they will not face voters for another two years.
Clerk-Treasurer Chris Stidham, a Democrat, and Councilman John Cannon, R-4th, confirmed they have formed exploratory committees for mayoral runs.
Mayor James Snyder, a Republican who won reelection to the office in November 2015, has not commented on his plans.
Snyder was indicted on public corruption charges in November 2016 and faces a January trial date.
If Snyder is convicted and forced from his seat, the Porter County Republican Party will name his replacement until the election the following year.
Cannon and Stidam recently took different approaches to describing their plans, though both acknowledged they were getting off to very early starts.
"I think it's clear the current administration is done," Stidham said. "It's highly unlikely (Snyder) runs for reelection and even less likely he wins, so the time is right, now, for me to look at it.
"There's a lot of things I want to get done."
Cannon listed a number of "wins" for the city in the past several years.
"I have a record I can run on," Cannon said. "I actually represent people in a district and got something done for them. Promises kept."
Stidham said confidence in Snyder is waning, while Cannon repeatedly said the mayor "has high approval ratings" in the community.
"My only issue with James Snyder is, for every good thing he's done, there's been two or three bad things that go along with it," Stidham said. "If we didn't have that, we'd be a lot farther along, but there's no doubt he's done some good things for the city."
Cannon, who described himself as an ally and friend of Snyder's, acknowledged the indictment as one reason he plans on running, saying "there's some heavy legal stuff going on" in the city.
EDITORIAL: New federal prosecutor setting right tone in first days on the job
NWI Times
The Times Editorial Board
Oct 13, 2017
http://www.nwitimes.com/opinion/editorial/editorial-new-federal-prosecutor-setting-right-tone-in-first-days/article_d3deb57f-a433-520e-bea0-896507480d4f.html
New Hammond-based U.S. Attorney Thomas L. Kirsch II has big shoes to fill in continuing the office's tradition of battling public corruption and violent street gangs.
On Tuesday, about 36 hours after being sworn into office, Kirsch began giving clear public signs he's up to the task.
Speaking to a lunch gathering of the Crown Point Rotary Club, Kirsch vowed to make white collar crime — most notably, government corruption cases in Northwest Indiana — a top priority.
This mirrors a needed check and balance on a plague of public corruption, against which the U.S. attorney's office has won more than 70 felony convictions since the 1980s.
Kirsch, a Munster native and Schererville resident, has the pedigree to prove it.
Though he most recently was a Chicago-based attorney, including presiding over federal criminal defense cases, Kirsch also is a former longtime assistant U.S. attorney with the Hammond office.
During that time, one of his prime focuses was the prosecution of public corruption cases. In fact, as he noted at the Rotary luncheon Tuesday, the last public corruption indictment he won before leaving the office came in 2008 against politically connected Gary businessman Jewell Harris.
Harris ultimately was convicted of fraud and money-laundering charges for double-billing Gary during the 2001 construction of the U.S. Steel Yard baseball stadium.
Beyond Kirsch's proven pedigree in prosecuting public corruption is an apparent strong ethical compass.
After Tuesday's luncheon, Times Editorial Page Editor Marc Chase asked Kirsch how his office planned to handle the prosecution of indicted Portage Mayor James Snyder going forward.
Snyder faces a January trial for felony bribery and tax-related charges.
Until recently, Kirsch had been the retained private defense attorney for Snyder. Now he heads the office prosecuting his former client.
Kirsch had the correct response to Chase's question.
"I don't know how the office is handling it, and I don't want to know," he said. Kirsch has completely recused himself from any and all actions involving the case.
It's the right thing to do in an important Region criminal prosecution.
Kirsch has set a tone of ethics that should serve as an example for other government offices throughout our Region.
We wish him well as he seeks to continue a strong tradition of justice, which often is one of the only meaningful checks on our local systems of government.
New U.S. attorney for Northern Indiana says public corruption 'a significant priority'
NWI Times
Oct 11, 2017
http://www.nwitimes.com/news/local/crime-and-courts/new-u-s-attorney-for-northern-indiana-says-public-corruption/article_729f329b-26c6-5d0f-a085-56d596997060.html
About 36 hours after being sworn in as the Region's new U.S. attorney, Thomas L. Kirsch II told a Crown Point civic group public corruption will remain a big target in his office's crosshairs.
Kirsch spoke to a lunch gathering of the Crown Point Rotary on Wednesday, talking about what his office has done in the past and will continue to do "as long as I'm U.S. attorney."
Kirsch said prosecution of public corruption has been a significant priority in the Region and "will absolutely continue to be."
Although the U.S. attorney's office is particularly suited to tackle white-collar crimes, including public corruption, Kirsch said 50 percent of the Hammond-based office's cases involve violent crime.
Kirsch said one of his priorities will be an enhanced version of a 2001 U.S. Department of Justice initiative, Project Safe Neighborhoods — a comprehensive gun and gang violence reduction program. The initiative "vigorously" prosecutes crimes in the most violent locations and targets the most violent offenders, he said.
Kirsch said his office will continue to prosecute firearms cases — mostly involving felons arrested in possession of firearms.
"Last year we prosecuted almost 150 federal firearms cases," he said. "That's a lot."
Kirsch said drug cases make up 25 percent of their workload. About 50 percent of those involve heroin, while 30 percent are methamphetamine related, he said.
Kirsch, of Schererville, grew up in Munster and attended Indiana University and, later, Harvard Law School.
Kirsch served as an assistant U.S. attorney here from 2001 to '08. He focused on white-collar investigations and prosecutions, including the prosecution of numerous elected and appointed public officials.
Kirsch said the last public corruption indictment over which he presided before leaving the office was that of Jewell Harris Sr., a politically connected Gary resident who was convicted of fraud and money laundering during a 2008 trial. Harris' charges included a double-billing scheme to overcharge the city of Gary during the 2001 construction of the U.S. Steel Yard baseball stadium.
Kirsch practiced law in Chicago until the U.S. Senate confirmed his appointment last week.
In private practice, one of Kirsch's clients was indicted Portage Mayor James Snyder, who faces trial in January on federal bribery and tax-related charges.
Following Wednesday's luncheon, Kirsch told The Times he would be completely divorced from the office's handling of Snyder's ongoing prosecution to avoid any conflicts of interest.
"I don't know how the office is handling it, and I don't want to know," he said.
President Donald Trump nominated Kirsch in July to oversee criminal prosecutions for the U.S. District offices of Hammond, South Bend, Fort Wayne and Lafayette. The U.S. District of Northern Indiana comprises 32 counties.
Thomas Kirsch II is sworn into office as U.S. Attorney for Northern Indiana
NWI Times
Oct 10, 2017
http://www.nwitimes.com/news/local/crime-and-courts/thomas-kirsch-ii-is-sworn-into-office-as-u-s/article_b3088f01-d567-5717-9d92-71d261728ef5.html
HAMMOND — Thomas L. Kirsch II officially started work Tuesday as the U.S. Attorney for the Northern District of Indiana.
U.S. District Court Judge Joseph Van Bokkelen administered the oath of office to Kirsch early Tuesday in Van Bokkelen's courtroom in Hammond.
Van Bokkelen hired Kirsch as an assistant U.S. Attorney in 2001, a few months after VanBokkelen himself was sworn into office as U.S. Attorney. VanBokkelen left in 2007 to become a federal judge.
Kirsch is a Schererville resident who practiced law in Chicago until the U.S. Senate confirmed his appointment last week.
President Donald Trump nominated Kirsch in July to oversee criminal prosecutions for the U.S. District offices of Hammond, South Bend, Fort Wayne and Lafayette. The U.S. District of Northern Indiana comprises 32 counties.
Kirsch replaces Clifford Johnson, who has been serving as acting U.S. attorney since former U.S. Attorney David Capp's departure in March. Kirsch served as an assistant U.S. attorney here from 2001 to 2008. He focused on white collar investigations and prosecutions, including the prosecution of numerous elected and appointed public officials.
He received his bachelor's degree from Indiana University in 1996 in economics and political science, with honors, and a law degree from Harvard University.
Portage Mayor James Snyder chooses Indianapolis attorney to represent him in federal case - Statement from Portage Mayor James Snyder
NWI Times
October 06, 2017
http://www.nwitimes.com/news/local/porter/portage-mayor-james-snyder-chooses-indianapolis-attorney-to-represent-him/article_9f885a46-1616-511b-b550-cb33b8330328.html
Statement from Portage Mayor James Snyder, who has been indicted on federal bribery and tax charges. His trial is set to begin in January:
"There are distinct differences between the two cases, I have never taken cash; all of contributions are recorded accurately and holding an elected official accountable for the intent of a donor would indict all elected officials who are not independently wealthy and have to raise funds to get their message out.
The prosecutor's own arguments against the sheriff prove my defense and in no way complicated my case; it enforces my innocence.
I have been transparent, cooperative and honorable in my conduct with the federal government. My family, my staff and the City continue to prosper under this cloud and we are grateful to the outpouring of goodness we have received."
Portage Mayor James Snyder chooses Indianapolis attorney to represent him in federal case
NWI Times
10062017
http://www.nwitimes.com/news/local/porter/portage-mayor-james-snyder-chooses-indianapolis-attorney-to-represent-him/article_9f885a46-1616-511b-b550-cb33b8330328.html
PORTAGE — Mayor James Snyder has named an Indianapolis attorney to take over as lead attorney in his defense in his federal corruption case.
Jackie M. Bennett Jr., of Taft Stettinius & Hollister, will replace Thomas L. Kirsch II as Snyder's new attorney, according to documents filed in federal court. Kirsch was confirmed earlier this week as the next U.S. attorney for the Northern District of Indiana.
Snyder, a Republican in his second term, was indicted in November 2016 on charges of bribery, extortion and tax evasion. He has pleaded not guilty and is awaiting trial, which is set to begin in Hammond district court on Jan. 29.
According to Bennett's biography on the Taft Stettinius & Hollister website, Bennett represents individuals and corporations in cases expected to go to trial.
"His practice concentrates in the areas of commercial, civil and white-collar criminal litigation, as well as regulatory investigations by state and federal agencies. Jackie has experience and expertise in matters involving internal corporate investigations, corporate governance, securities regulation, foreign corrupt practices, patent infringement, environmental crimes and an array of contract and business tort actions," according to the website.
Prior to entering private practice in Indianapolis, Bennett was a federal prosecutor for 14 years. He served in the Office of Independent Counsel Kenneth W. Starr from 1995 to 1999, the last two years as the principal deputy in charge of the OIC’s Washington, D.C., operations, supervising day-to-day operations, according to the website.
He served as senior advisor to Starr on investigative and prosecutorial aspects of several matters, including the impeachment referral of former U.S. President William Clinton. In that regard, he was one of three prosecutors selected by Starr to conduct the grand jury questioning of Clinton. Bennett also played a principal role in several trials during the Arkansas phase of the Whitewater investigation, including the 1996 fraud and conspiracy trial resulting in the convictions of Arkansas Gov. Jim Guy Tucker and former Madison Guaranty Savings & Loan owners Jim and Susan McDougal, according to the website.
Requests for comment from Snyder and Bennett were not immediately returned Friday morning.
Indicted Indiana mayor hires ex-Clinton prosecutor as lawyer
WNDU-TV
October 06, 2017
http://www.wndu.com/content/news/Indicted-Indiana-mayor-hires-ex-Clinton-prosecutor-as-lawyer-449837683.html
PORTAGE, Ind. (AP) - A northwestern Indiana mayor facing federal bribery charges has hired as his new defense attorney a former top prosecutor in the 1990s investigation of President Bill Clinton.
Indianapolis lawyer Jackie Bennett Jr. is now representing Republican Portage Mayor James Snyder. Bennett was a top deputy to Independent Counsel Kenneth Starr, whose investigation led to Clinton's impeachment over the cover-up of his affair with White House intern Monica Lewinsky.
The Northwest Indiana Times reports Snyder had been represented since his November 2016 indictment by Thomas Kirsch II, who won Senate confirmation this week as the new U.S. attorney for northern Indiana.
Snyder is charged with accepting money in exchange for towing contracts in his Porter County city. Snyder denies any wrongdoing and has a trial scheduled to begin in January.
Senate OKs Thomas L. Kirsch II as U.S. attorney for the Northern District of Indiana
NWI Times
Oct 3, 2017
http://www.nwitimes.com/news/local/crime-and-courts/senate-oks-thomas-l-kirsch-ii-as-u-s-attorney/article_2f2e7534-33dd-5436-b75d-da6a6b6690e0.html
HAMMOND — The U.S. Senate confirmed Thomas L. Kirsch II on Tuesday night as the next U.S. attorney for the Northern District of Indiana.
The Senate Judiciary Committee last week endorsed Kirsch's nomination, a Schererville resident with law offices in Chicago, Jay Kenworthy, a spokesman for U.S. Sen. Todd Young, R-Ind., said.
Kenworthy said Kirsch was confirmed with a voice vote by the full Senate.
Senators Todd Young and Joe Donnelly issued a joint statement Wednesday afternoon applauding Kirsch's confirmation.
"Tom is a well-qualified attorney who has garnered broad support from both sides of the aisle. He approaches the law thoughtfully and will bring a wealth of experience to this role. He will serve Hoosiers in the Northern District well," they stated.
President Donald Trump nominated Kirsch II in July to oversee criminal prosecutions for the U.S. District offices of Hammond, South Bend, Fort Wayne and Lafayette. The U.S. District of Northern Indiana comprises 32 counties.
Kirsch repalces Clifford Johnson, who has been serving as acting U.S. attorney since former U.S. Attorney David Capp's departure in March.
Kirsch is a partner with the Chicago law firm of Winston & Strawn LLP, where his practice focuses on litigation and investigations.
Kirsch served as an assistant U.S. attorney here from 2001 to 2008. He focused on white collar investigations and prosecutions, including the prosecution of numerous elected and appointed public officials.
He received his bachelor's degree from Indiana University in 1996 in economics and political science, with honors, and a law degree from Harvard University.
Kirsch was still listed as one of two defense lawyers representing Portage Mayor James Snyder, who faces federal bribery charges he solicited money from a local businessman to put him on the city's towing list.
Kirsch appeared with Snyder at his initial court hearing and arraignment Nov. 18. Snyder, a Republican in his second term as mayor of the largest city in Porter County, is pleading not guilty and awaiting trial, now scheduled to begin Jan. 29.
Senate confirms new U.S. attorney for Indiana's northern district
Post Tribune
October 04, 2017
www.chicagotribune.com/suburbs/post-tribune/news/ct-ptb-new-us-attorney-confirmed-st-1005-20171004-story.html
The U.S. Senate has confirmed a Schererville attorney as the new U.S. attorney for Indiana's northern district.
Thomas Kirsch II, most recently a partner at Winston and Strawn, LLP., in Chicago was confirmed as the U.S. attorney for the Northern District of Indiana by the Senate Tuesday, according to Sen. Todd Young, R-Ind. Kirsch will fill the vacancy left by former U.S. Attorney David Capp, who led the Northern District for 8 years.
Before joining Winston and Strawn, Kirsch was an assistant U.S. attorney and worked in the Justice Department's Office of Legal Policy. Kirsch attended Indiana University and Harvard Law School.
Kirsch currently represents Portage Mayor James Snyder, who was indicted in November on corruption charges, according to court records.
Capp, who worked in the U.S. Attorney's Office for more than 30 years, submitted his resignation in March per the request of President Donald Trump's administration, even though he planned to retire in June, according to a press release. Trump nominated Kirsch in July.
Clifford Johnson, a first assistant U.S. attorney, has served as the interim U.S. attorney.
The Senate last week confirmed Joshua Minkler, of Zionsville, to serve as the U.S. attorney for the Southern District of Indiana.
MARC CHASE: Snyder should get used to turned backs
NWI Times
September 24, 2017
http://www.nwitimes.com/opinion/columnists/marc-chase/marc-chase-snyder-should-get-used-to-turned-backs/article_f74ebdc3-578d-5934-95be-11952e61c3a4.html
Portage Mayor James Snyder seems to believe some leaders in his county aren't taking his plans — or even his stature as mayor — seriously.
He undoubtedly knows why but has yet to face the truth of the matter.
Three letters — FBI — sum it all up.
Few Region political leaders will say this outright, but the reason is clear:
Snyder is ensnared in the web of a felony bribery indictment spun by federal prosecutors, FBI agents and perhaps Snyder's own behavior — a jury must decide that last point — and is unlikely to be taken seriously by anyone.
Conventional wisdom dictates that folks don't forge alliances with those under the shadow of a federal criminal indictment. By now, most of us know Snyder faces felony charges in Hammond federal court for allegedly taking bribes to arrange for favorable towing contracts.
Indeed, he's presumed innocent unless proven guilty.
Time and again, in the political corruption vortex that is Northwest Indiana, we've all seen how such federal indictments have ended.
Region federal prosecutors have a perfect record of conviction in the government corruption sphere, with more than 70 public officials or politically connected vendors being convicted of felonies against taxpayers since the 1980s.
But Snyder still seems to question why some folks won’t embrace his proposals.
In a public statement that ran as a guest commentary Friday in The Times, Snyder decried Porter County commissioners for turning their backs on his city's proposal to build a new county government annex building in downtown Portage.
He pointed to a study he says bolsters his city's position that a brand new downtown facility would be cheaper than renovating the county's existing Portage annex on Willowcreek Road south of U.S. 6 and would spur economic development.
"Instead of reading and debating the study, commissioners chose to call it names, threaten its author, refer to my federal indictment and disparage all Portage elected leadership," Snyder wrote.
The problem is the blame-game here can stop with Snyder.
Sure, commissioners have their own plan — a sensible one from what I can tell. They want to renovate the existing annex building, which has a sound, usable structure but needs to be modernized, including expanded courtroom space.
Good government dictates maintenance of viable buildings already within the holdings of a government unit. Commissioners have conducted their own study and dispute that a new building could be constructed, with all features they desire or need, more cheaply than a renovation of the existing structure.
The commissioners also have something else going for them.
Credibility.
None of the three commissioners — Jeff Good, Laura Blaney and Jim Biggs — are under federal indictment.
Snyder is.
So even if his study's numbers are correct, no legitimate government leaders are going to want to work with him or forge allegiances.
The smart ones won't want to be seen with him or associate with him, even if there's merit to the policies or plans he seeks.
Right or wrong, this is the reality Snyder refuses to face.
It's why several of my past columns and Times editorials have implored him to resign rather than dragging his city through the embarrassment and uncertainty of a mayoral felony indictment.
Snyder has made a conscious decision to remain in office pending trial, and that's his right.
But then he shouldn't act astonished when seeking dialogue with other government leaders who show him nothing but their backs.
UPDATE: County official to Portage: Joint building project is 'dead' idea
NWI Times
September 06, 2017
www.nwitimes.com/news/local/porter/portage-officials-aren-t-giving-up-on-gettingcounty-city/article_b347e4a2-9e51-57b3-8960-c321d4ab184a.html
PORTAGE — The idea of a joint county/city building in Portage is dead, according to one Porter County official.
"It is dead. It would have never worked anyway," Porter County Commissioner Jeff Good, R-Center, said Wednesday morning after learning city officials here are trying to resurrect an effort to construct a new city/county building in Portage's downtown.
At Tuesday night's City Council meeting, Portage officials attempted to revive the idea, including having a consultant report on a recently completed cost/benefit analysis that concluded the project would be a good financial move by both the city and county.
City Council President Mark Oprisko, D-at-large, said Tuesday night the two sides have to get past "internal bickering" and do what's best for the residents.
He also said he had set up a meeting with Good next week.
Good said Wednesday morning that isn't true. He talked to Oprisko "for a few seconds" recently, but never set up a meeting.
He also disputed the accuracy of the report.
"The study was tainted. SEH never contacted us. They never got numbers from us," said Good. The property where the city would like the new building constructed is also not adequate for the county's needs, he said.
The idea of a joint building was dashed for good about two weeks ago when the county commissioners and County Council initiated a multimillion-dollar bond issue which would include money to renovate the North Porter County Annex on Willowcreek Road south of U.S. 6.
"The county made a decision to do their own thing. It has nothing to do with politics," said Good.
"We plead with the county to put aside all political, personal differences and think of all the citizens," said Andy Maletta, the city's economic development director, at Tuesday's meeting.
Maletta said the city's plan to construct a building on five acres between the city's police and fire stations on Central Avenue would save the county money in the long run by sharing services with the city. He also said the location would drive traffic to the city's newly developed downtown and that the location would not only better serve residents of Portage, but Chesterton, Porter and Burns Harbor as well.
Dan Botich, senior economic development professional of SEH, presented the cost-benefits analysis Tuesday night. The analysis looked at three scenarios, including renovating the county and city building, each entity constructing separate new buildings and entering the joint venture.
"It determines if the investment is sound, feasible and justified. It does not take into account the political decisions," said Botich.
The analysis determined it would be cost beneficial to the county to enter the joint project by spending less than the projected $10 million to renovate the present building.
However, said Botich, more importantly, it would open up the 13 acres on Willowcreek Road, the city hall site and surrounding area to additional development opportunities, spurring economic development and bringing more tax dollars into both the county and city.
The city has pledged a $9 million to $12 million investment, including purchasing the present county building, donating the five-acre site, constructing a parking garage and committing $5 million for construction of the new building.
Portage officials aren't giving up on getting county/city building in its downtown
NWI Times
September 06, 2017
www.nwitimes.com/news/local/porter/portage-officials-aren-t-giving-up-on-getting-county-city/article_b347e4a2-9e51-57b3-8960-c321d4ab184a.html
PORTAGE — Officials here aren't giving up on convincing their county counterparts to construct a new city/county building on five acres downtown.
City Council President Mark Oprisko, D-at-large, said Tuesday night the two sides have to get past "internal bickering" and do what's best for the residents.
Mayor James Snyder has been trying to convince members of the Porter County Council and Commissioners to join the city and construct a new building on Central Avenue since he took office more than five years ago.
That idea seemed dashed about two weeks ago when the county bodies initiated a multi-million dollar bond issue which would include money to renovate the North Porter County Annex on Willowcreek Road south of U.S. 6. The county vote came despite a last-minute effort by the city to produce a cost-benefit analysis to county officials on why it would be better for the groups to join in constructing a new building that would serve the county and serve as a new city hall.
At Tuesday's City Council meeting, the issue was brought up again.
Oprisko said he has a meeting with Porter County Commissioner Jeff Good, R-Center, next week.
"We plead with the county to put aside all political, personal differences and think of all the citizens," said Andy Maletta, the city's economic development director.
Maletta said the city's plan to construct a building on five acres between the city's police and fire station on Central Avenue would save the county money in the long run by sharing services with the city. He also said the location would drive traffic to the city's newly developed downtown and that the location would not only better serve residents of Portage, but Chesterton, Porter and Burns Harbor as well.
In addition, by constructing the joint building, said Maletta, it would open up the land now housing the county building and city hall for additional economic development.
Dan Botich, senior economic development professional of SEH, presented the cost-benefits analysis Tuesday night. The analysis looked at three scenarios, including renovating the county and city building, each entity constructing separate new buildings and entering the joint venture.
"It determines if the investment is sound, feasible and justified. It does not take into account the political decisions," said Botich.
The analysis determined it would be cost beneficial to the county to enter the joint project by spending less than the projected $10 million to renovate the present building.
However, said Botich, more importantly, it would open up the 13 acres on Willowcreek Road, the city hall site and surrounding area to additional development opportunities, spurring economic development and bringing more tax dollars into both the county and city.
The city has pledge a $9 million to $12 million investment, including purchasing the present county building, donating the five-acre site, constructing a parking garage and committing $5 million for construction of the new building.
"We know the odds of getting this done are against us," said Clerk-Treasurer Chris Stidham, asking how the building would ensure continued economic development in the city's downtown.
Botich said it is a matter of demographics, using the building as an anchor and drawing not only employees of the county, but visitors to the new building to the downtown and to nearby retail and commercial businesses.
Commissioner: Porter County won't negotiate with indicted Portage mayor
Post-Tribune
August 29, 2017
www.chicagotribune.com/suburbs/post-tribune/news/ct-ptb-portage-county-plan-st-0830-20170829-story.html
The Porter County Commissioners will not negotiate with indicted Portage Mayor James Snyder over a plan to partner for a combined city/county building in the city's new downtown district, an official said.
Commissioner Jim Biggs, R-North, said in the days after the county council approved a $30 million bond for capital upgrades in the county, including expansion and renovation of the existing North County Annex on Willowcreek Road, that commissioners won't consider Portage's proposal for two reasons: financial feasibility and the November indictment of Snyder on federal charges of allegedly violating federal bribery statutes and obstructing Internal Revenue Service laws. Snyder has pleaded not guilty and is expected to go to trial early next year.
Snyder deferred comment on the matter to Economic Development Director Andy Maletta and Portage City Council President Mark Oprisko, D-At large.
Biggs, who pointed out that he is a Portage native, said county officials met with Portage officials about the proposal and determined that the most financially feasible option was for the county to upgrade the building it already owns in Portage.
He also said commissioners won't negotiate with a public official under indictment.
"The proposal cannot be accomplished without the cooperation of that city's mayor, and I'm not going to do it," Biggs said, adding the county's relationship with Snyder has been riddled with controversies, including over placement of the county's new animal shelter, and county officials have learned "that there is no negotiating with him."
"I am totally sympathetic to Portage officials that they have this shroud of uncertainty having over city government but it's there nonetheless," he continued.
City and county officials have been talking for three years about the possibility of a new county annex along Central Avenue, Oprisko said, calling the commissioners' response "pretty sad and pretty pathetic."
"Obviously I've wasted a lot of energy and dialogue," he said, adding city officials wanted to bring more development to the emerging downtown. "Portage has never had a downtown. This is a big thing for us."
City officials aren't asking for a handout from the county, he said, but for county officials to listen to them.
"It's all about Snyder," he said. "It comes down to Snyder but it's really sad because the city of Portage has more than 40,000 residents."
The County Council approved the bond issue on Aug. 22, and it includes spending $10 million to renovate and expand the North County Annex.
"I think it's at least worth vetting," said Maletta.
Portage would have committed $5 million intended for remodeling of its city hall to the project and the city's redevelopment commission would have purchased the county's building on Willowcreek, officials said. The city also offered to build a parking garage, and the redevelopment commission proposed donating the land for the combined building.
Commissioners and council members received an outline of the proposal and a letter supporting it from Maletta the evening before the council meeting.
"It wasn't malicious. It wasn't mean to anybody," Maletta said of the letter. "I even said in there that we are in support of them passing the bond."
The city of Portage paid the consulting firm SEH to put together the proposal at the request of the council, Maletta said, adding that Snyder purposefully removed himself from the matter so it wouldn't be volatile.
Portage officials were dismayed by video of the segment of the meeting on the bond issue, which is available on YouTube, and the reaction of commissioners, Maletta said, adding he didn't know if Snyder's indictment was a good enough excuse not to pursue a partnership.
"It's not fair to all of us working here to make (Portage) a better place," he said.
During the council meeting, Councilman Jeremy Rivas, D-2nd, said he understood the pause among commissioners about dealing with Snyder, given the mayor's legal concerns.
Rivas said his fellow elected officials know how he feels about Snyder; in the weeks after Snyder's indictment, Rivas issued a statement requesting the mayor's resignation.
Still, he wanted commissioners to at least consider Portage officials' request for a partnership because good things could come out of it.
"The entire population of Portage has not been indicted," Rivas said.
Portage mayor also facing charges on Lake County sheriff's conviction: 'It enforces my innocence'
Post Tribune
August 24, 2017
www.chicagotribune.com/suburbs/post-tribune/news/ct-ptb-snyder-response-buncich-st-0825-20170824-story.html
Portage Mayor James Snyder, indicted in November for allegedly soliciting money for towing contracts, said there are differences between his case and that of Lake County Sheriff John Buncich, who was convicted Thursday on public corruption charges.
In a prepared statement in response to Buncich's conviction on federal counts of wire fraud, honest services wire fraud and bribery, Snyder said there are distinct differences between the two cases and the prosecutor's arguments in the Buncich case in fact re-enforce Snyder's innocence.
"I don't think that the Sheriff Buncich conviction will affect the Mayor Snyder trial in any way," said Thomas Dogan, a Portage attorney who is part of Snyder's legal team.
"Any cash the mayor has ever had given to him has been properly represented in his campaign reports," Dogan said, adding Snyder had a professional treasurer to keep track of his campaign donations.
Snyder, like Buncich, entered a plea of not guilty after he was charged with John Cortina, of Kustom Auto Body in Portage, with violating a federal bribery statute.
Federal prosecutors said at the time that Snyder allegedly solicited money from Cortina, a local towing operator, and "Individual A" and gave them a towing contract for Portage.
Snyder also received a bribery indictment for allegedly accepting $13,000 in connection with a board of works contract and allegedly obstructed Internal Revenue Service laws.
In his statement, Snyder said that unlike Buncich, he has never taken cash and all of his campaign contributions are recorded accurately. Federal prosecutors showed video recordings of Buncich accepting cash during his trial, and also offered testimony that he received cash contributions that did not appear on his campaign finance reports.
"Holding an elected official accountable for the intent of a donor would indict all elected officials who are not independently wealthy and have to raise funds to get their message out," Snyder said.
In his statement, Snyder said Assistant U.S. Attorney Philip Benson's arguments against Buncich prove his own defense and in no way complicate his case.
"It enforces my innocence," Snyder said. "In order to gain a conviction the prosecution would have to argue a complete double standard from their own arguments against the sheriff."
Dogan said Snyder is alluding to the fact that informants testified in the Buncich case that in their minds, they were paying bribes, "and in the mayor's case, that certainly would not support a conviction."
Snyder goes on to say in his statement that he has been "transparent, cooperative and honorable" in his conduct with the federal government and the city of Portage.
"My family, my staff and the city continue to prosper under this cloud and we are grateful to the outpouring of goodness we have received," he said.
Snyder and Cortina are scheduled to go on trial in January.
Portage mayor says his public corruption case is different than Sheriff Buncich
NWI Times
Aug 24, 2017
www.nwitimes.com/news/local/crime-and-courts/portage-mayor-says-his-public-corruption-case-is-different-than/article_cb977ec2-72a8-5f8d-81ec-d86840d5ea18.html
Portage Mayor James Snyder, who faces federal corruption and bribery charges, said there are distinct differences between his case and the one that led to Thursday's public corruption conviction against Lake County Sheriff John Buncich.
"I have never taken cash; all of contributions are recorded accurately and holding an elected official accountable for the intent of a donor would indict all elected officials who are not independently wealthy and have to raise funds to get their message out," Snyder said in a prepared statement requested by The Times.
"The prosecutor's own arguments against the sheriff prove my defense and in no way complicated my case; it enforces my innocence," he said.
"I have been transparent, cooperative and honorable in my conduct with the federal government," Snyder said. "My family, my staff and the city continue to prosper under this cloud, and we are grateful to the outpouring of goodness we have received."
Snyder's federal trial is set for Jan. 28 before U.S. District Court Judge Rudy Lozano.
He was indicted in November and has pleaded not guilty to felony counts of bribery, extortion and tax dodging, which carry long prison terms if he is convicted.
Snyder is accused in the bribery count of corruptly soliciting and receiving $12,000 from tow truck operator John Cortina in return for providing Cortina with a towing contract with the city. Cortina is charged with corruptly offering those checks to Snyder.
Snyder is also charged with corruptly soliciting and agreeing to accept a bank check in the amount of $13,000 in connection with Portage Board of Works contracts, a Portage Redevelopment Commission project and other consideration.
The third charge accuses Snyder of obstructing and impeding the Internal Revenue Service’s collection of personal taxes he owed and payroll taxes owed by his mortgage business, First Financial Trust Mortgage LLC.
UPDATE: Sheriff John Buncich guilty
U.S. Attorney keeps perfect record on public corruption cases
NWI Times
August 24, 2017
nwitimes.com/news/local/crime-and-courts/update-sheriff-john-buncich-guilty-u-s-attorney-keeps-perfect/article_8f97728a-ee8c-5fde-bb22-1a3ac62fce39.html
HAMMOND — A U.S. District Court jury has found Lake County Sheriff John Buncich guilty on all six counts of wire fraud, honest services wire fraud and bribery.
The jury came back to the courtroom at 10:05 a.m. after deliberating for four hours Wednesday night and one hour this morning.
Buncich is free on bond until his sentencing on Dec. 6, when he faces lengthy prison time. He is also immediately removed from office.
Buncich displayed no emotion when his verdict was read in open court Thursday morning. Some of his supporters in the audience appeared shocked and grief stricken.
Bryan Truitt, one of Buncich's defense attorneys, said he didn't agree with the verdict and would be preparing an appeal. Buncich declined comment outside the courthouse in Hammond.
Larry Rogers, another of Buncich's attorneys, argued Wednesday night to the jury the government entrapped Buncich by giving him tens of thousands in cash uninvited and selectively editing dozens of hours of audio and video recordings to make Buncich look his worst.
The defense offered no video of its own.
Buncich took the daring step of answering the charges by testifying over three days of the trial. He insisted he was legitimately raising campaign contributions and didn't manipulate towing assignments to reward the largest donors.
But he couldn't explain away images of his grabbing and pocketing large wads of cash taken surreptitiously by the FBI and their undercover agent, Scott Jurgensen, a former Merrillville police man and towing firm owner.
Assistant U.S. Attorney Philip Benson told jurors Wednesday night, "Does this look like a campaign contribution? He was taking money for doing his job. It's time to hold him responsible."
US ATTORNEY IMPROVES RECORD
Acting United States Attorney Clifford Johnson states that “The United States Attorney’s Office will continue to vigorously prosecute public officials who use their public office as means for personal enrichment. All citizens deserve public officials who work for the public interest and not their own interest.”
W. Jay Abbott, Special Agent in Charge of the FBI's Indianapolis Division, said "Public officials who abuse their positions for personal financial gain at the expense of the taxpayers will not be tolerated. The FBI and our federal, state, and local partners will continue to aggressively pursue those across Indiana who corrupt their office for self-serving motives.
Johnson added, "Also instrumental in these investigations are the honest and patriotic citizens who come forward and assist in uncovering the truth as was the case in Lake County."
John Dull, who has been county attorney for several decades, said Thursday the U.S. Attorney's office has won all of the public corruption cases it has prosecuted against elected public officials since the 1970s. He said most of them pleaded guilty rather than risk trial.
'SAD SAGA' ENDS
Mike Repay, president of the Lake County Board of Commissioners, issued a statement Thursday afternoon that said, "This is the end of a sad saga for the people of Lake County, who put their trust in John Buncich to enforce the law and remain accountable to the public."
"John Buncich violated the public trust with his actions. It will not only cost him his freedom, it adds another black mark against Lake County," Repay said.
Repay added the Board of Commissioners offer their full support to Lake County Chief of Police Matt Eaton who will supervise the sheriff's department until a caucus of Lake County Democratic precinct committeemen and vice committeemen elect a new sheriff next month.
The investigation of the sheriff began with a wide-ranging FBI investigation of local government towing contracts when they recruited Jurgensen who took up towing after he retired after 20 years as a Merrillville police officer.
He testified on the first day of trial he was frustrated that he couldn't get a contract from the department he had served for so long because he wouldn't pay bribes.
Jurgensen said he was one of about a dozen who had received towing contracts from the sheriff's department. He said he didn't have to pay to get on the list, but Downs, a longtime friend, approached him on behalf of the sheriff to buy campaign fundraising ticket.
STATEMENT FROM PORTAGE MAYOR JAMES SNYDER
Statement from Portage Mayor James Snyder, who has been indicted on federal bribery and tax charges. His trial is set to begin in January:
"There are distinct differences between the two cases, I have never taken cash; all of contributions are recorded accurately and holding an elected official accountable for the intent of a donor would indict all elected officials who are not independently wealthy and have to raise funds to get their message out.
The prosecutor's own arguments against the sheriff prove my defense and in no way complicated my case; it enforces my innocence.
I have been transparent, cooperative and honorable in my conduct with the federal government. My family, my staff and the City continue to prosper under this cloud and we are grateful to the outpouring of goodness we have received."
VIDEO EVIDENCE
The FBI wired Jurgensen and gave him buy money to give to Downs. The later arrested Downs and forced his cooperation with their undercover investigation. Downs carried a video camera into the sheriff's office in 2015 to deliver campaign crash.
Jurgensen video taped two meetings with the sheriff in which cash changed hands.
Buncich's lawyers criticized FBI tactics for paying Jurgensen $130,000 over a five-year period.
They suggested Downs was unbelievable as a witness because he pocketed some of the money he collected for the sheriff.
They characterized as a drunk William "Willie" Szarmach, a Lake Station towing owner who pleaded guilty to paying the sheriff kickbacks and who testified as government witness.
Benson answer was to replay for jurors the video tapes.
An FBI video surveillance recording of: Buncich's second-in-command Timothy Downs delivering $7,500 July 15, 2015, to Buncich in the sheriff's office.
An FBI video surveillance recording of Buncich leaning into Szarmach's tow truck and Jurgensen giving Buncich $2,500 April 22, 2016, in the parking lot outside of Delta Restaurant in Merrillville.
An FBI video surveillance recording of Jurgensen giving Buncich $2,500 on July 21, 2016, in the parking lot outside of Delta Restaurant in Merrillville.
FBI surveillance photographs of a meeting Sept. 2, between Jurgensen and Buncich in which Jurgensen gives the sheriff $7,500.
Benson said of the sheriff, "He never thought anyone would see that. If you didn't see it. You wouldn't believe it."
Benson praised Jurgensen's courage. "Think about the guts it took for Mr. Jurgensen to do this to himself and his business and family. What does he get for it? He's called a liar on the witness stand. Its hell to be a cooperator."
Defense lawyers argued the sheriff never delivered more lucrative towing to Jurgensen or Szarmach despite their political contributions.
Benson disagreed, but said it was illegal for the sheriff to take the money and make such promises regardless of the outcome. Even if the sheriff rips them off, its still a crime."
Schererville lawyer nominated for U.S. attorney
Post-Tribune
July 14, 2017
http://www.chicagotribune.com/suburbs/post-tribune/news/ct-ptb-us-attorney-nominee-st-0715-20170714-story.html
President Donald Trump nominated a Schererville attorney Friday to become the next U.S. attorney for the Northern District of Indiana.
Thomas Kirsch, now a partner at Winston and Strawn, LLP., in Chicago is one of the two potential U.S. attorneys nominated by the president, according to an announcement from Sen. Todd Young, R-Ind. Kirsch, if confirmed, will fill the vacancy left by former U.S. Attorney David Capp, a long-time federal prosecutor who led the Northern District of Indiana for eight years.
"Tom has a great legal mind and is a fearless litigator who has shown a willingness to take on powerful interests," said Young, in a statement. "I have no doubt he will continue the laudable work done by David Capp over the last decade."
Kirsch, 43, was unavailable for comment Friday.
Prior to joining Winston and Strawn, Kirsch was an assistant U.S. Attorney in the Northern District of Indiana. Kirsch attended Indiana University and Harvard Law School.
"We're always happy to see our local talent rise to the top," said Adam Sedia, president of the Lake County Bar Association and an associate at Hoeppner Wagner and Evans, Merrillville.
Kirsch currently represents Portage Mayor James Snyder, who was indicted in November on public corruption charges, according to court records.
Capp, who worked in the U.S. Attorney's Office for more than 30 years, submitted his resignation in March per the request of the Trump administration, even though he planned to retire in June, according to a press release. In March, Attorney General Jeff Sessions sought resignations for the U.S. attorneys appointed under former President Barack Obama, the Associated Press reported.
Clifford Johnson, a first assistant U.S. attorney, is serving as the interim U.S. Attorney.
The president also nominated Joshua Minkler, of Zionsville, to serve as the U.S. Attorney for the Southern District of Indiana.
UPDATE: Schererville's Kirsch named new U.S. Attorney
NWI Times
Jul 14, 2017
http://www.nwitimes.com/news/local/schererville-s-kirsch-named-as-new-u-s-attorney/article_a918f0b8-de46-5165-aa04-6eeb6ba6d9ca.html
HAMMOND — President Donald Trump has nominated a Schererville man to be the next U.S. Attorney for the Northern District of Indiana.
Republican U.S. Sen. Todd Young congratulated Thomas L. Kirsch II, of Schererville, who will oversee criminal prosecutions for the U.S. District offices of Hammond, South Bend, Fort Wayne and Lafayette. The U.S. District of Northern Indiana comprises 32 counties.
Kirsch will replace Clifford Johnson, who has served as acting U.S. Attorney since David Capp's departure in March. His nomination is subject to confirmation by the U.S. Senate.
Kirsch is currently a partner with the Chicago law firm of Winston & Strawn LLP, where his practice focuses on litigation and investigations.
Kirsch served as an assistant U.S. Attorney here from 2001 to 2008. He received his bachelor's degree from Indiana University in 1996 in economics and political science, with honors, and a law degree from Harvard University.
Kirsch currently is defense lawyer for Portage Mayor James Snyder, who on Nov. 16 was indicted on charges he solicited money from a local businessman to put him on the city's towing list. Snyder is a Republican in his second term as mayor of the largest city in Porter County. His federal corruption and bribery trial has been pushed back to January.
Neither Snyder nor Kirsch, who was out of his law office Friday afternoon, could be reached for comment.
Young today praised the nomination of what he termed an extraordinarily qualified Hoosier.
"Tom has a great legal mind and is a fearless litigator who has shown a willingness to take on powerful interests. I have no doubt he will continue the laudable work done by David Capp over the last decade," Young said.
Capp said Friday, "I think it's an excellent choice. Tom is a very experienced litigator. I worked hand in hand with him for about seven years. He has great judgment. I never hesitated to assign him our most complex case whether it was violent crime or public corruption.
"Tom will be well-received by everyone in the U.S. Attorney's office, law enforcement, the judiciary, the defense bar. He is a great choice," Capp said.
The biography on the law office's website states he focused as an assistant U.S. Attorney here on white collar investigations and prosecutions, including the prosecution of numerous elected and appointed public officials.
He also handled complex high-profile white collar investigations, prosecuted many jury trials, and briefed and argued numerous appeals before the U.S. Court of Appeals.
He has prosecuted offenses in numerous areas including: mail and wire fraud; honest services fraud; tax fraud; bank fraud; health care fraud; conspiracy; extortion; money laundering; racketeering; obstruction of justice; perjury; and gangs and narcotics.
For one year, Kirsch also served as counsel to the assistant attorney general at the U.S. Department of Justice, Office of Legal Policy. While in Washington, D.C., he assisted in developing legislative and policy proposals in corporate crime, violent crime and counter-terrorism.
MARC CHASE: Portage needs clean break from Snyder
NWI Times
Marc Chase marc.chase@nwi.com, (219) 662-5330
Jul 2, 2017
http://www.nwitimes.com/news/opinion/columnists/marc-chase/marc-chase-portage-needs-clean-break-from-snyder/article_14931464-42fc-57d0-a5cb-fa7d71e8b293.html
Sometimes independence is all about a clean break from the smoldering wreckage of failed relationships.
Many of us have been in that very place in life, desperately attempting to salvage a deteriorating connection only to realize the relationship can't be saved.
Responsible adults move on, hopefully with some decorum. The delusional or selfish cling to the remnants of what was, continuing to perpetuate the chaos and venom of a bad union.
This is precisely the crossroads at which criminally indicted Portage Mayor James Snyder and his city seem to find themselves right now.
On this Independence Day weekend, Portage sure could use a clean break from Snyder, who's clearly determined to cling to his elected office while dragging his city's name and processes through the mud.
After a federal grand jury indicted Snyder on bribery charges related to his mayoral office and towing contracts in November, I implored him to resign.
So did The Times Editorial Board.
Though he's due a fair trial in court that's yet to occur, the strain of operating under the shadow of such felony allegations have made the business of leading a city an incredibly stifling environment.
Much like a failing marriage, it's manifested itself in all sorts of city administration chaos and incivility lately.
At recent public meetings, in the throes of a city debate regarding the mayor's proposed city employee salary ordinance, Snyder has exchanged verbal jabs with other city leaders unbecoming a municipal chief executive.
He's been quoted as calling one councilman a "fat liar," and there even were reports of physical chest bumping in the heat of some arguments.
Though the ordinance issues appear to have been finally ironed out last week, it took a couple of meetings with uncivil verbal sniping to get there.
The conflicts are symptoms of a greater illness.
The longer Snyder clings to his mayoral office to collect his municipal paycheck, the worse we can expect these outbursts to become.
Aside from the clear psychological strain a felony federal indictment can place on the human psyche is the shroud of mistrust any public official would face from their peers, employees and the public. In the case of the salary ordinance, how does a mayor retain credibility in setting the level of city employees' pay when he's accused of illegally enriching himself through public office.
Such mistrust would come naturally. By the time a federal indictment is handed down in Hammond federal court, a grand jury already has considered evidence which it believes warrants criminal charges.
We also know the track record of the local U.S. attorney. The office just doesn't lose public corruption cases. More than 70 Region public officials or their politically connected contractor friends have learned this in felony convictions since the mid-1980s.
His criminal charges notwithstanding, Snyder has exhibited in the past an affinity for Portage and its residents.
Many of the men and women of our nation's 13 original colonies also once held an affinity for their native host nation of England.
But irreconcilable differences emerged, and the biggest clean break in American history occurred when our nation declared independence from England on July 4, 1776.
It didn't stop King George from attempting to force a continued marriage with the colonists via war. We all know the king's side lost the Revolutionary War, and our great nation was born.
Loose historical metaphors aside — and Snyder is no king — the Portage mayor should spare his city the madness of King George and walk away.
But if he won't, Portage should keep its chin up, avoid as much chaotic contact with Snyder as possible and prepare for the inevitable day of independence when Snyder and his shroud of impropriety no longer hang over the city.
Portage mayor's trial pushed back to January
NWI Times
June 29, 2017
http://www.nwitimes.com/news/local/porter/portage-mayor-s-trial-pushed-back-to-january/article_fa5874dd-49d2-529f-abcb-6ecf26146a2c.html
In a ruling filed Thursday in the U.S. District Court Northern District, Magistrate Judge John E. Martin granted a continuance requested by both Snyder, his co-defendant John Cortina and federal prosecutors earlier this month.
The original request, however, had asked to postpone the trial until October.
The ruling sets the trial for Jan 29, 2018 before District Court Judge Rudy Lozano. The deadline for filing pretrial motions has been extended to Sept. 15, 2017. A final pretrial conference is scheduled for Jan. 12.
The latest continuance, which will push the trial date back a year from its original scheduled date, was sought because of the large amount of discovery, including "hours of undercover recordings and hundreds of pages of documents" under review by the defense and the expectation of additional material forthcoming from the government.
In granting the request, Martin wrote it was necessary for "the parties to review the voluminous discovery and because of the complexity of the trial."
Snyder, a Republican who is in his second term, was indicted Nov. 16. Charges allege he solicited money from Cortina in order to put Cortina on the city's towing list.
Portage mayor's trial moved to January
Post Tribune
June 28, 2017
http://www.chicagotribune.com/suburbs/post-tribune/news/ct-ptb-portage-mayor-trial-delay-st-0626-20170628-story.html
A federal judge delayed the trial for Portage Mayor James Snyder and a city tow operator, who were both indicted on corruption charges last year.
The U.S. Attorney's Office and defense attorneys for Snyder and John Cortina, of Kustom Auto Body in Portage, petitioned the court to move the trial back to October, citing the volume of material still needed to be reviewed to prepare for the court proceedings, according to court documents.
Magistrate Judge John Martin wrote, in his order, that failing to grant the continuance would not allow the attorneys time to prepare for trial.
Martin scheduled the trial to start in January 2018.
"The discovery already tendered includes hours of undercover recordings and hundreds of pages of documents, all of which is still under review by defense counsel," the motion to continue read. "Additionally, more materials will be forthcoming from the government."
Snyder and Cortina were charged in November with allegedly violating a federal bribery statue. Federal prosecutors said Snyder allegedly solicited money from Cortina and "Individual A" and gave them a towing contract for Portage.
Snyder received an additional bribery indictment for allegedly 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 has been continued twice already, once in January and again in March, according to court documents.
Another continuance sought in Snyder bribery, corruption trial
NWI Times
June 13, 2017
http://www.nwitimes.com/news/local/crime-and-courts/another-continuance-sought-in-snyder-bribery-corruption-trial/article_b6e9bd7b-6cc6-5182-9abd-76c81df35a5e.html
In documents filed in U.S. District Court Tuesday, both the U.S. attorney's office and defense attorneys for Snyder and his co-defendant John Cortina, are asking the trial now be pushed back until Oct. 23. After originally scheduled to begin in January, it was initially continued until April and then July 23 before the latest request.
"The discovery in this case, which is being tendered on a rolling basis and is not yet complete, is voluminous. The discovery already tendered includes hours of undercover recordings and hundreds of pages of documents, all of which is still under review by defense counsel," reads the motion, which adds "more materials will be forthcoming from the government."
The motion adds that the attorney for the government needs additional time to produce discovery and the defendants need "substantial additional time" to review the documents.
Snyder, a Republican who is in his second term, was indicted Nov. 16. Charges allege he solicited money from Cortina in order to put Cortina on the city's towing list.
Portage council meeting ends in 'chaotic mess'
NWI Times
June 07, 2017
http://www.nwitimes.com/news/local/govt-and-politics/portage-council-meeting-ends-in-chaotic-mess/article_147c7439-c87d-5db9-8e91-ce6d6f3fd0e3.html
"It was a chaotic mess and unprofessional on everyone's side," City Council President Mark Oprisko, D-at large, said Wednesday. "I felt bad that it went on."
Near the end of the meeting, council members began to talk about the continuing, and sometime contentious, issue of collective bargaining and a proposed salary ordinance for nonunion employees.
Council member Sue Lynch, D-at large, said she was upset the salary ordinance had been taken off the agenda. She also said she was upset that contracts had not been reached with three employee bargaining groups, blaming the city's negotiating team.
Lynch's comments were followed by others, including comments from council member Liz Modesto, D-1st District, who said Mayor James Snyder had threatened earlier in the evening that if the council did not approve the salary ordinance, he would not approve union contracts.
Snyder had left the meeting early to attend his son's birthday party, but was contacted by staff about the discussion and returned to the meeting.
"I thought it was very deceitful and cowardly they brought it up knowing I wasn't there and that the staff wouldn't be able to answer the questions. When I heard about it, I went to the meeting," he said.
Clerk-Treasurer Chris Stidham said when Snyder returned, he attempted to clear the front row of audience seats to have his department chairs take the seats, but shouting continued between the council and mayor. Stidham said Snyder was attempting to take the gavel from Oprisko when the council quickly voted to adjourn the meeting.
Councilman Pat Clem,D-2nd District, said as he started walking away from the meeting hall, Snyder confronted him, calling him a "coward" and a "fat coward."
The confrontation continued as the two walked down the stairs into the lobby of the building at the same time people were leaving a concert.
Clem said Snyder continually bumped him, called him names and made accusations. Snyder said Clem "chest bumped" him and used foul language. He denied touching Clem. Snyder admitted to using the word "coward" several times.
The two were separated twice by police officers who were at the meeting.
Clem said Snyder also confronted him in the parking lot before leaving.
Snyder said he let his emotions get the better of him and, in hindsight, probably shouldn't have returned to the meeting.
"I was not being emotional for me. It is important that I defend the hard-working people that hold this community together," said Snyder, adding he reached out to Clem on Wednesday.
"Me and Pat will figure it out," he said.
"I was embarrassed that the public witnessed what occurred last night, from both sides," said council member Collin Czilli, D-5th District.
Both he and council member John Cannon, R-4th District, voted against adjourning the meeting Tuesday, saying they wanted to hear Snyder out.
"Collin and I will sit down with the mayor and try to work out an arrangement," Cannon said about moving forward.
Oprisko said he hopes the issue of contract negotiations and the salary ordinance will be resolved in the next couple of weeks and believes the council can work together.
"We will get through it. It was a bad night. We've had a lot more good nights," Snyder said.
Salary ordinance discussion gets heated in Portage
Post-Tribune
June 07, 2017
http://www.chicagotribune.com/suburbs/post-tribune/news/ct-ptb-portage-council-argument-st-0608-20170607-story.html
A relatively routine Portage Common Council meeting Tuesday night collapsed into name-calling, finger-pointing, a sudden adjournment, accusations of grandstanding and intervention by police.
After hosting officials from U.S. Steel, who appeared before the council to discuss the April 11 toxic spill from their Midwest plant, the council turned to discussion of a salary ordinance for city workers, an issue that was a late addition to the meeting agenda.
Some council members complained about what they apparently viewed as Mayor James Snyder's mishandling of employee salaries during the discussion.
Snyder, excused himself from the meeting before the steel plant officials began speaking to attend a family function, but returned after receiving text message updates from staffers on the council's heated discussion of the salary ordinance.
As he re-entered the meeting hall, Snyder asked for the front row of audience chairs and ordered department heads attending the meeting to fill those seats. Several council members erupted with charges Snyder was "grandstanding" and trying to take over the council meeting, and they successfully called for a voice vote to adjourn the meeting.
Snyder called for the council to remain as several council members, including Liz Modesto, D-1st, and Patrick Clem, D-2nd, continued to accuse Snyder of grandstanding as they left the room. Snyder then called Clem a "coward."
"The situation is it just escalated," Snyder said Wednesday. "I probably shouldn't have gone back to the meeting, but this is not about me and my reputation. Its about the hard-working people of Portage who work every day and about them getting the compensation they deserve, and I'm gonna be passionate about it."
Snyder continued to discuss the ordinance with union officials and council members as they spilled into the hallway and down the stairs at Woodland Park's Sycamore Hall.
Clem, who physically towers over the mayor, and Snyder continued their debate as the group left the building, with Clem telling Snyder to meet "in my neighborhood" as Snyder ridiculed Clem for his weight and body size.
Once outside, the argument continued and the two elected officials got face-to-face. Snyder accused Clem of "chest-bumping" him.
Moments later, a Portage Police officer helped defuse the situation by separating the men.
"I was attacked by the City of Portage mayor calling me names, in public, saying that I'm nothing but a big, fat coward, and he repeatedly calling me coward," Clem said. "I don't wanna be the bad guy, but I think (Snyder) owes everyone in that room and our city's constituents an apology."
Even after they were separated, the dispute continued, Clem and Snyder said. Snyder approached Clem and two other council members in the parking lot, sparking another intervention by police officers.
"You had two men who were passionate about their issues who had a dispute," Snyder said. "Yes, it reflects poorly on the city, but we've had a few of those bad nights. I wish it hadn't happened, but the city's going to be all right, and we'll get through this."
MARC CHASE: Culture of acceptance abets cycle of public corruption
NWI Times
April 07, 2017
http://www.nwitimes.com/news/opinion/columnists/marc-chase/marc-chase-culture-of-acceptance-abets-cycle-of-public-corruption/article_7e48ab5e-9382-5aa3-97b6-e8a353bea454.html
It's not just the old adage of history repeating itself, which it clearly often does. Nothing is more true in the lexicon of Region political corruption than everything old being new again in the 70-plus public corruption felony convictions since the 1980s.
But drilling down into why the same common themes of bribery, fraud, extortion and self-enriching theft rear their ugly heads in our local government offices decade after decade requires some uncomfortable self realization.
Much of it emanates from a culture of acceptance, aided by the patronage notions of continuing to serve the leaders, who hand out jobs to county residents or their families.
We all should be reminded of the putrid cycle of corruption illustrated in the case of former Calumet Township Trustee Mary Elgin, who is expected to formally plead guilty to felony fraud charges Monday in Hammond federal court.
History repeating itself
Elgin and her son Steven Hunter filed the plea agreements in federal court late last month but await a formal acceptance of the pleas by a federal judge.
In those agreements, Elgin admits she extorted campaign contributions from her government employees and required them to work — on the government time clock — to further her re-election bid.
Hunter's plea agreement acknowledges he distributed his mother's campaign fundraising tickets, which township employees were required to sell or buy as conditions of their employment.
If any of these tunes sound familiar, you no doubt remember some of the golden oldies of Region public corruption.
In the 1980s, former Lake County Commissioner and then Sheriff Rudy "Bart" Bartolomei was criminally indicted, in part, for shaking down government employees for campaign contributions. He also was implicated in a scheme to inflate custodian fees at the Lake County Government Center that manifested themselves in bribes paid back to Bartolomei and other public officials.
Bartolomei ultimately pleaded guilty to two felony counts in federal court, was sentenced to 28 months in prison and became a federal witness against other corrupt politicos.
Culture of acceptance
Former congresswoman turned Gary city clerk Katie Hall took her own turn at the government employee shakedown game.
Hall served in the U.S. House between 1981 and 1985, then left Congress and become Gary city clerk.
Hall and her daughter, Junifer, were convicted of public corruption charges in 2003.
Hall has since died, but a culture of acceptance continues to follow her.
Each year, her namesake Katie Hall Education Foundation Inc. sponsors the Katie Hall Public Service Awards Luncheon. Region and national dignitaries regularly accept self-congratulatory awards from the foundation.
The foundation likes to celebrate that Hall was one of the congressional leaders who helped make Martin Luther King Jr.'s birthday a national holiday.
It's difficult to conceive, however, how King, a visionary leader in civil rights, would celebrate a Gary official found guilty of shaking down government employees.
The culture of acceptance doesn't stop with the Hall case.
Most Lake County residents remember former elected county Surveyor George Van Til.
He ultimately pleaded guilty to felony counts of wire fraud in Hammond federal court, and the circumstances harken political deja vu.
Van Til was indicted for compelling government employees to perform campaign work on taxpayer time. He also was accused of directing an employee to remove a government computer's hard drive to conceal his tracks.
The culture of acceptance reared its ugly head in the Van Til case, as well.
Ahead of Van Til's sentencing, his attorney submitted more than 100 pages worth of letters to the court in which dozens of political friends and allies — including sitting elected officials — carried water for Van Til as character witnesses.
In a "there but for the grace of God go I" move, officials including Indiana House Rep. Charlie Brown, D-Gary, and Highland Clerk-Treasurer Michael Griffin, wrote letters asking the court for leniency and essentially vouching for the character of a man who already had admitted to stealing from taxpayers.
Their support didn't stop with letters. A Times file photo shows Brown walking in solidarity with Van Til as the former surveyor exited the Hammond federal courthouse, having just pleaded guilty in the case. Griffin attended the same hearing to publicly show support for his friend.
Continuing cycle
The culture of acceptance also has elevated some public corruption felons to the ranks of sage advisers to sitting Region politicians.
Lake County political observers recognize Bob Cantrell as a longtime political operative, helping push proverbial buttons both behind and in front of the Region's political curtain.
Many also know Cantrell completed a federal prison term last year following a public corruption conviction for steering government contracts, and accepting kickbacks, while an employee of the North Township Trustee's office several years ago.
Cantrell had barely made it out of prison when he re-emerged in Lake County political circles, allying himself with sitting elected officials and even showing his face at the 2016 candidate filing deadline at the Lake County Government Center in Crown Point.
Unfortunately, many of Lake County's elected leaders, including Lake County Commissioner Mike Repay, have embraced Cantrell's political support in spite of the felon status.
Porter County isn't immune from the problem, either.
Last week, an earnest-looking Portage Mayor James Snyder bent over a map in his City Hall office while Portage High School students intently listened to the mayor explain upcoming city projects.
The students were participating in the annual Youth Government Day to learn about the way government is supposed to work. This particular scene, which exudes a veneer of wholesome learning, was captured for posterity in a published Times photo chronicling the event.
However, the image glosses over the very unwholesome reality that Snyder, though innocent unless proven guilty, is under federal indictment for allegedly accepting bribes in the awarding of city towing work.
Who's to blame?
In the end, who's to blame for the seemingly endless cycle?
The media? Public officials who serve as apologists for fellow officials who've been convicted of crimes against the taxpayer? The voters who keep electing people who perpetuate the cycle? The registered voters who may be disgusted with public corruption but don't even bother to vote?
How about apathetic citizens or disorganized parties of political opposition who don't run against the status quo incumbents?
It seems there's plenty of blame to go around in this cycle of political corruption, aided and abetted by a culture of acceptance.
The most important question is when will we all take a long, hard look in the mirror and decide what we can do to break the cycle.
US Attorney David Capp served with integrity and skill. A high bar has been set
Chicago Tribune
March 17, 2017
http://www.chicagotribune.com/suburbs/post-tribune/opinion/ct-ptb-editorial-us-attorney-st-0319-20170317-story.html
U.S Attorney David Capp's resignation last week came as no surprise, given President Donald Trump's upset victory in November. That's the political nature of the landscape when parties change in White House administrations.
Capp, a career prosecutor who intended to retire in June, leaves behind an impressive legacy of bipartisan service underlined by a fervent commitment to justice.
A 1968 Gary Lew Wallace graduate, Capp served as the region's top crime fighter since 2007, when his predecessor, Joseph Van Bokkelen, became a federal judge. Capp was sacked last week with 45 other U.S. attorneys by order of U.S. Attorney General Jeff Sessions.
Capp was serving as top deputy under Van Bokkelen when former president George W. Bush tapped him as interim U.S. attorney after Van Bokkelen's resignation. Former president Barack Obama took Capp's interim tag off in 2009 when he named him U.S. attorney for Indiana's Northern District, based in Hammond.
Before his appointment, Capp toiled 23 years under Republican and Democratic administrations showing no aversion to prosecuting corrupt Democratic politicians.
Capp led efforts such as Operation Lights Out and Operation Restore Public Integrity to root out crooked politicians who usually wound up as guests in federal prisons.
In recent years, Capp's office joined with local police, and agencies across the Illinois state line, to go after violent street gangs such as the Imperial Gangsters and Latin Kings, who operated primarily in Northwest Indiana.
Capp remained visible in the region, speaking to local groups about the work his office was doing to fight crime. Last year, he said the 56 members of the Latin Kings and Imperial Gangsters arrested by his office were responsible for 36 homicides.
Late last year, Capp announced stunning indictments against Lake County Sheriff John Buncich and Portage Mayor James Snyder on unrelated corruption charges tied to towing schemes. Those cases will now move forward after Capp departs.
Last year, former Lake Station mayor Keith Soderquist went to prison for improperly taking money from his campaign fund and the city's food pantry account to gamble at casinos.
Capp has also successfully prosecuted a host of Lake County Democratic elected officials including former East Chicago Mayor George Pabey, former Lake County surveyor George Van Til, former Lake County clerk Tom Philpot and former Gary city council members Ronier Scott and the late Marilyn Krusas.
Capp's departure comes sadly as the country is politically polarized and torn. Gary native Clifford Johnson, a federal prosecutor in South Bend, has been named interim U.S. attorney until Trump makes a permanent choice.
It's unclear who Trump might name to succeed Capp, but since the Jimmy Carter administration, the U.S. attorney appointee has come from Lake or Porter counties. U.S. Sen. Todd Young is leading the search.
Capp's successor has an illustrious blueprint to follow. The bar is set high. We hope the next U.S. attorney should be up to the challenge.
EDITORIAL: Successor should follow Capp's NWI justice model
NWI Times
March 15, 2017
http://www.nwitimes.com/news/opinion/editorial/editorial-successor-should-follow-capp-s-nwi-justice-model/article_6a9d29d2-56d0-57da-a02c-a84f27fcae9b.html
Politics may be affecting change at the helm of the Hammond-based U.S. attorney's office, but it shouldn't end a strong justice model maintained by the outgoing leader.
U.S. Attorney David Capp, a prosecutor in the office for 31 years and the office's leader for the past eight, announced his resignation last week.
He did so at the behest of U.S. Attorney General Jeff Sessions in the expected changing of the justice guard under new President Donald Trump.
It's normal for a new administration to appoint its own people to the ranks of U.S. Attorney and other government offices.
In reality, Capp had planned on stepping down later this year anyhow.
We also appreciate Trump's pledge to beef up the ranks of law enforcement and believe our local U.S. Attorney's office should receive all possible resources to continue a noble fight spearheaded by leaders including Capp.
Capp leaves a stalwart, no-nonsense model of hunting down and vanquishing both Northwest Indiana political corruption and violent street gangs that should be followed by his successor.
In his three decades either prosecuting criminals or leading the Hammond-based U.S. attorney's office, Capp has been party to dozens of cases involving public corruption.
The office has secured more than 60 convictions of government leaders or their politically connected contractors, largely for crimes against taxpayers, since the 1980s.
In recent years, under Capp's direct leadership, those convictions have included East Chicago political powerbroker Robert Cantrell, former Lake County clerk and coroner Thomas Philpot, former Lake Station Mayor Keith Soderquist, former East Chicago Mayor George Pabey and former Lake County Surveyor George Van Til.
Still other officials, including Lake County Sheriff John Buncich, Portage Mayor James Snyder and former Calumet Township Trustee Mary Elgin face future felony trials in alleged and unrelated public corruption schemes.
These cases were all crafted under Capp's eye for justice.
Like leading federal prosecutors before him, Capp was very familiar with the pattern of corruption and self enrichment that has plagued our Region's political process for decades.
He also has presided over the prosecutions — nearly all of which have led to convictions — of dozens of street gang members in various sweeping indictments.
Convictions in that category have included the imprisonment of Region gang kingpins and rank-and-file members for murder, racketeering, drug-dealing and conspiracy charges, making our cities and towns safer.
Capp leaves behind a commendable legacy of aggressively targeting some of our Region's most glaring shortcomings.
We thank Capp for his years of dedicated and highly effective service.
Whoever the Trump administration selects to replace Capp would do well to follow the tenets of his success.
U.S. Attorney David Capp resigns
Post-Tribune
March 12, 2017
http://www.chicagotribune.com/suburbs/post-tribune/news/ct-ptb-david-capp-resignation-st-0312-20170311-story.html
U.S. Attorney David Capp resigned Saturday from his position as northern Indiana's top prosecutor.
Capp, who has worked in the U.S. Attorney's office for more than 30 years, submitted his resignation per the request of President Donald Trump's administration, even though he planned to retire in June, according to a press release. Attorney General Jeff Sessions on Friday sought resignations for the U.S. attorneys appointed under former President Barack Obama, the Associated Press reported.
"It has been my greatest honor and privilege to serve all these years. The work we do in the United States Attorney's office has such an important positive impact on the citizens of northern Indiana," Capp said, in a statement.
President Barack Obama appointed Capp as U.S. attorney in 2009, though he had served as the office's interim chief since 2007 when former President George W. Bush tapped Van Bokkelen as a federal judge.
Capp, during his tenure with the federal prosecutor's office, took a hard stance again public corruption in the area. Serving under former U.S. Attorney Joseph Van Bokkelen, now a federal judge, Capp led major efforts to stop corruption, including Operation Lights Out and Operation Restore Public Integrity.
Under Capp, federal prosecutors recently leveled charges against Lake County Sheriff John Buncich and Portage Mayor James Snyder. Last year, his office successfully prosecuted former Lake Station Mayor Keith Soderquist and Soderquist's wife, Deborah.
As Capp, who joined the U.S. Attorney's office in 1885, announced charges against Buncich and Snyder in November, he issued a stern warning to other officials engaged in corrupt practices:
"You know who you are and we know, currently, who some of you are," Capp said. "And we are coming after you."
"And if any of you want to try to help yourself, time is running short," Capp said.
Aside from his crusade against public corruption, Capp also focused on fighting gang- and drug-related crime in Northwest Indiana.
"Some years ago I spoke one evening at a church in Gary.We had just made some arrests and closed down a drug operation in the neighborhood the church served," Capp said, in a statement. "Afterwards a gentleman came up to me, shook my hand, thanked me for our efforts and told me 'now my grandchildren can play in the yard again.'"
"That has always stuck with me and kept me focused on what our work is really about," Capp added."I hope that I have played a part in making more yards in the Northern District of Indiana safe for 'grandchildren to play in."
Capp is a 1968 graduate of Lew Wallace High School in Gary and the University of Wisconsin-Madison, according to his official biography. He received his law degree from Valparaiso University and was in private practice law for eight years, according to his official biography.
Fresh start for Portage utility board
Chicago Tribune
March 10, 2017
http://www.chicagotribune.com/suburbs/post-tribune/news/ct-ptb-portage-utility-st-0313-20170310-story.html
The City Council and Mayor James Snyder appeared to put a contentious February behind them as the council had its first meeting as the new Portage Utility Services Board.
The new board turned to Snyder, who remains as the utility's executive, for guidance, as Snyder promised an "open door" policy, and the new board also took care of routine utilities business March 7.
"I think the City Council's going to do a great job," said City Council President Mark Oprisko, who was elected chair of the utility board. "Let's move forward in a very kind, respectful way. The mayor is still in charge of the utility."
Snyder said he looked forward "to this board moving forward."
"I think it's a wonderful thing everyone here's involved," he added later, adding his office door "is always open."
Last month, the council voted to remove Snyder as a member of the utility board, eliminate his chairman's salary from the board, move the utility's finances to the Clerk-Treasurer's office, and, later, voted to take over the board. Soon after, the board responded by hiring an Indianapolis-based law firm against the council's actions.
The council agreed to keep Snyder on as the executive, with the $30,000 salary.
Along with electing Oprisko as its chairman, the board elected Councilman Scott Williams its vice-chair and replaced former board attorney Katrina Spence with Ken Elwood, of the law firm Rhame & Elwood.
Elwood also represents the City Council.
In its first act, the new board heard wide-ranging bids from four firms to install a sanitary sewer along an easement backing a single family home and five duplexes on the west side of Swanson Rd., south of Clem Road and north of a set of train tracks.
The bids ranged from a low of $146,429 from Grimmer Construction, of Highland, to $261,666 from Gough Construction, of Merrillville.
The homes along the stretch have relied on septic tanks, but those tanks are failing, and Porter County officials ruled they have to switch to Portage's sewer system, said City Engineer John Hannon.
"It's really a health issue we're dealing with," Hannon said.
The owners of the single family home and each of the duplex units, which total of 11 overall, will have to pay $2,250 to tap into the sewer system, officials said.
The board also scored a win in acquiring an important six-acre parcel north of City Hall, stretching eastward from Willowcreek Road. Holladay Properties, the company behind the Ameriplex properties and the upcoming Promenade at Founders Square, agreed to give the parcel to the city in exchanging for the board waiving a $350,000 tap-on fee tying the promenade to the city's sewer system.
The parcel is worth about $1.1 million, Snyder said. With the board's vote passing a resolution approving the exchange, the utility gets property it eventually would have had to acquire by eminent domain or by some other means, he added.
"Us being able to get (the parcel) this way is really a big deal for us," Snyder said.
Hannon also updated the board on the Robinswood sewer lift station. The board agreed to pay two claims on the $835,000 project, which should be complete "within a couple of weeks," Hannon said.
Portage council quashes using only official email for city business
NWI Times
March 09, 2017
http://www.nwitimes.com/news/local/govt-and-politics/portage-council-quashes-using-only-official-email-for-city-business/article_a54b933f-03bc-550c-885b-e62101beea50.html
PORTAGE — City officials here won't be required to use their official emails when conducting city business.
An ordinance sponsored by Councilman John Cannon this week requiring the use of city email accounts for elected and appointed officials was defeated along party lines.
Cannon, the lone Republican, said he proposed the ordinance to improve transparency in the city and to help provide an accurate historical record of city communication.
Cannon added it is much easier for the public to request copies of official emails if they are written on city email accounts.
Democrats, however, balked.
Councilman Pat Clem said he provides residents with his personal email address along with his telephone number and doesn't see why he should be limited to a city account.
Councilwoman Liz Modesto also said she thought the ordinance is unnecessary.
"If the government wants to see (our personal email) they will subpoena it," she said, adding it costs the city $10 per month for each city email account and if the council would use personal email, it would save the city money.
Modesto added that she has had problems with her city email account, which often goes down, making it difficult to communicate with residents.
"You are against it because you don't want transparency. We've talked about transparency at the last four meetings," Cannon said.
Councilman Collin Czilli said he would support the ordinance if it were amended to also include social media and other web-based sources of contact.
The amendment was defeated.
Mayor James Snyder supported Cannon's efforts, saying using city email makes them available to anyone who wishes to see them.
"I strongly disagree with what I'm hearing. The problem with personal email is that people will never know if you gave all the email up," said Snyder, adding it is his intention to archive all his city email correspondence when he leaves office to leave a record of city business for the future.
Portage mayor's trial continued to July
NWI Times
March 08, 2017
http://www.nwitimes.com/news/local/crime-and-courts/portage-mayor-s-trial-continued-to-july/article_a723684e-d260-5ae4-9783-897d55acf263.html
PORTAGE — A federal court judge granted a continuance in the trial of Mayor James Snyder and his co-defendant John Cortina this week.
Cortina's attorney, Kevin Milner, filed a motion on Monday asking for additional time to review government discovery documents and file pretrial motions. The motion was granted on Tuesday.
Snyder was indicted in November on two counts of bribery and one count of tax evasion. Cortina also was indicted in November on one count of bribery.
Snyder is alleged to have corruptly solicited and received two checks totaling $12,000 from Cortina, in exchange for a towing contract in the city of Portage, according to information from the U.S. Department of Justice. Cortina is charged with corruptly offering those checks to Snyder.
The trial, which initially was set to being in January, was pushed back until April 10. It now is set to begin July 24.
Police policies aim to curb towing abuses
NWI Times
March 08, 2017
The recent federal indictments of Portage Mayor James Snyder and Lake County Sheriff John Buncich concern allegations of inappropriate business dealings involving tow truck operators. The public corruption charges against both men include allegations that each personally profited financially, as well as politically, by showing favoritism to specific towing operators.
But police departments around the Region have policies in place designed to head off abuses by establishing guidelines and procedures to fairly distribute tow jobs.
"The tow firms are chosen for each case based on a set rotation and by jurisdiction," said Mark Back, spokesman for the Lake County Sheriff's Department.
The companies making the rotation list now are chosen outside the department by the Lake County Board of Commissioners, he said.
That policy stands in contrast to what a federal indictment alleges Buncich did. The government claims Buncich accepted bribes allegedly from towing firms for cash and campaign contributions.
Snyder is alleged to have corruptly solicited and received two checks totaling $12,000 in exchange for a towing contract in the city of Portage.
Policies to avoid such potential corruption vary by department.
Each of the police departments contacted had a similar approach in place with different rates of rotation.
The Valparaiso Police Department uses the same company for one month at a time, and the schedule is set in advance, said Sgt. Mike Grennes.
The eligible companies are selected by the city's board of works, he said, using standards that vary by community.
The LaPorte County Sheriff's Department divides its rotation list into the areas of Michigan City, LaPorte and south county, said Capt. Mike Kellems.
"When a deputy has a need for a wrecker, a request will be for one to be sent via radio," he said. "Dispatch checks the list and sends the next one on the list."
The Porter County Sheriff's Department also dispatches from a rotating list based on the area of the county, but its list is maintained by the sheriff, said Sgt. Jamie Erow.
The department dispatches tow trucks from its own list in emergency situations, during criminal calls and when motorists are unable to arrange a timely response, she said.
"Otherwise, the motorist may choose," Erow said.
The Griffith Police Department tows cars when "the drivers, the cars, or the issues prevent the vehicle from being removed from the scene such as arrest of the driver, when they are a traffic hazard, when they are in violation of town ordinance or state statute ... and when vehicles are being impounded due to investigation," said Public Information Officer Keith Martin.
Police fees
Portage is among the police departments contacted that requires tow companies to charge the same fee for services, said Chief Troy Williams.
Others who set the fees in advance include Porter County, Griffith and Valparaiso. Departments like Michigan City, Lake County and LaPorte County leave the pricing up to the individual companies.
Some local communities collect an additional fee for their own coffers, including Lake County, which charges an additional $75 per tow as determined by the Board of Commissioners, according to Back.
Portage charges a $50 impound fee that is paid to the Police Department, Williams said.
"The person then gets a release form from us and then goes to the tow company to get their vehicle and pay whatever fees may be assessed them," he said. "There are no monies paid to or from the tow company and the Police Department or city."
Griffith charges an additional $25 for non-arrest tows and $50 for arrest tows, Martin said.
Valparaiso charges a $25 administrative fee, Grennes said.
"It's not a huge money maker for the city," he said.
Steve Ridgeway, owner of Ridgeway Service in Griffith, estimated that only about one quarter of the tow companies in the area do tow work for police.
This type of work requires special training and equipment to maintain safety for everyone involved, he said. The special equipment includes wheel lifts, flat beds and dollies, which add up to an additional cost.
Being on a police rotation list also requires being available 24 hours a day, 365 days a year, Ridgeway said.
"I literally have been sitting down for Christmas dinner and have been called out," he said. "But you have to go. That's part of the job."
Ryan Sandberg, co-owner of Sandberg's Towing & Recovery of Valparaiso, which serves the city, Porter County and state police departments, said his company focuses nearly exclusively on police work when it comes to towing cars.
The tow trucks and operators can't be busy elsewhere when a police call comes in, he said.
"If a road is blocked, they're not going to wait an hour for a tow truck," Sandberg said.
Performance matters
Poor response times have resulted in tow truck companies being taken out of rotation at the Porter County Sheriff's Department, according to Erow.
Companies also have been dropped due to citizen complaints, unprofessionalism and not having proper equipment, she said.
"They understand and agree to what is outlined and understand that by not following policies, they are subject to removal from the list," Erow said.
The tow companies used by the Michigan City Police Department must pass an annual inspection conducted by the department's traffic commander, said Chief Mark Swistek said.
Despite the accusations pending against Buncich and Snyder, Ridgeway said he takes the responsibility of serving police very seriously.
"It's an honor and a privilege," he said.
Portage council overrides mayoral vetoes
NWI Times
March 07, 2017
http://www.nwitimes.com/news/local/govt-and-politics/portage-council-overrides-mayoral-vetoes/article_3241ec02-5db7-594c-9df0-166c81589c18.html
PORTAGE — The City Council has overridden mayoral vetoes on two ordinances that will affect the appointment of department heads.
At a Feb. 23 special meeting, the council approved the ordinances. Mayor James Snyder did not sign them within the allotted 10 days, in effect vetoing them.
One ordinance changed the titles of the Street Department superintendent and director of Public Safety to simply Street Department superintendent and director of Administration and Emergency Management to director of Emergency Management.
The second ordinance regarded department head oversight and stated a person couldn't serve as a department superintendent if they officially work for another department.
The two ordinances were approved after the resignation of Joe Calhoun as director of Administration and Emergency Management. Calhoun continued to be on the Fire Department's roster receiving salary and benefits through that department. The same is true for Joe Mokol, who serves as Street Department superintendent and director of Public Safety. Mokol is an employee of the Police Department.
Snyder asked the council to reconsider, saying losing Calhoun and now Mokol will hamper his ability to negotiate a union contract with the Street Department. Snyder said he will not be able to continue negotiations until a new street superintendent is hired.
"This will slow us down greatly," Snyder said.
"This is just one of your games," said Councilman Pat Clem, accusing the mayor of holding the negotiations hostage.
Council member Liz Modesto said the city attorney is at City Hall 20 hours a week to handle negotiations.
"I can't go into a room without a department head. I am simply asking for time. This was shoved down the people's throat," Snyder said.
Council President Mark Oprisko said the council has seen the dual roles for the two employees as an issue, but never brought it up until Calhoun resigned.
Councilman John Cannon voted Tuesday against overriding the vetoes.
The council's action left Mokol with a decision to make. He must either resign from the Police Department or as street superintendent.
Mokol said after the meeting he would not resign from the Police Department and anticipated he would be going back on patrol. He will be forced to resign as street superintendent.
"I don't want to retire yet. I love being a police officer," Mokol said.
Portage council limits Snyder's hiring powers, replaces board
Post-Tribune
March 03, 2017
http://www.chicagotribune.com/suburbs/post-tribune/news/ct-ptb-portage-new-ordinances-st-0301-20170303-story.html
Mayor James Snyder will continue to get his $30,000 salary as the former chairman of the Portage Utility Services Board, but the Common Council moved to replace that board and weaken Snyder's hiring powers in the city.
Snyder complained the council's move to prohibit him from choosing department heads from the fire and police departments — unless those appointments resign or retire from there respective departments — will "lock up" qualified candidates, and Snyder suggested at the city council meeting Thursday the moves were aimed at him but actually affected members of his administration.
Snyder cited the examples of former Director of Administration Joe Calhoun, who resigned last week, from the fire department and Sgt. Joe Mokol from the police department as his streets department superintendent.
"I think we've done really well in two cases," Snyder said of Calhoun and Mokol, later adding, "It seems like we're starting to fire scattershot."
Snyder, who normally is eager to speak to the media, declined to comment after the meeting, as did Mokol.
John Cannon, R-4th, voted against stripping Snyder of the hiring power, telling the council the move was the equivalent of "the council dictating to the executive branch," but he also declined comment after the meeting.
Councilman Scott Williams, D-3rd, said the council was "correcting a wrong that should've been corrected before.
"We're not targeting anyone," he said. "We're simply saying the individual, whoever that may be, has to make a choice" of job assignments.
Snyder can veto the ordinance, which the council can override, sign it or take no action, in effect passing the ordinance by "pocket veto."
The utility services board is a separate entity from the city, but the city council passes ordinances to determine the board's membership.
Two weeks ago, the council voted to prohibit mayors from sitting on the utility services board, which is made of four mayoral appointees and three from the council. The council also tried to strip Snyder of the $30,000 he gets as chair of the board, which is in addition to the $53,000 he makes as mayor.
Council members criticized Snyder's attempt last September to get the utility services board — and any resident or business that pays sewer rates — to pay more than $90,000 in legal fees he'd accumulated until then fighting a federal investigation.
Last November, Snyder was indicted on public corruption charges by federal prosecutors.
A week after the council tried to strip Snyder of his position and salary from the utility services board, Snyder convinced the board to hire Indianapolis-based law firm Faegre Baker and Daniels to represent the board against the city council, setting up what would have been an expensive legal battle for taxpayers throughout the city.
The council relented, passing an ordinance that adds $30,000 to Snyder's city salary. He now will receive one check every two weeks from the city, instead of two checks — one from the city and one from the utility services board.
But, the move to take over the utility services board means that the city council becomes the new board, and council members will not collect any additional wages for the new assignment.
Snyder still will have hiring power and some decision-making power in the utility department.
Portage council dissolves utility board; limits mayoral appointment
NWI Times
February 23, 2017
http://www.nwitimes.com/news/local/govt-and-politics/portage-council-dissolves-utility-board-limits-mayoral-appointment/article_31e7a47d-4e62-5023-b1fb-c9f37423ef11.html
PORTAGE — In a quick meeting the City Council dissolved the Utility Services Board, restored the mayor's salary and limited the mayor's ability to appoint department heads.
The only discussion was on an ordinance which was approved 5-1 that would prevent Mayor James Snyder from taking an employee out of the Police or Fire departments and appointing them to an administrative position.
Councilman John Cannon voted no and Councilman Collin Czilli abstained because his parents are city employees
Joe Calhoun, who resigned last week as director of administration and emergency services, was officially an employee of the Fire Department while he served as the mayor's second in command. Joe Mokol, director of road safety and street superintendent, is officially an employee of the Police Department. Both received salaries and benefits from those departments while serving in the administration.
City Council President Mark Oprisko said Calhoun's resignation prompted the City Council to propose the ordinance.
Council members Sue Lynch, Liz Modesto and Scott Williams all said they supported the decision with Lynch and Modesto saying they had questioned the legality of Calhoun's and Mokol's appointments from the beginning.
Snyder defended his choices to appoint both Calhoun and Mokol to the administrative positions, saying he thought both had done good jobs. He also accused the council of misdirecting their issues with him on department heads.
"The fire directed at me is now being directed at the department heads," said Snyder who would not comment after the meeting on whether or not he intended to veto the ordinance. He also requested the council to grandfather Mokol into his position. The council did not amend the ordinance.
If the new ordinance stands, Mokol, who also would not comment, will have to make a choice, either to remain as street department superintendent and resign from the Police Department or resign from the administrative position and return to the Police Department.
In addition, the council unanimously dissolved the Utility Services Board, replacing the board with themselves, at least temporarily. The ordinance allows for a review of the decision in six months.
USB member Marci Kunstek said she was "a little disappointed" at the council's action and had been honored to serve on the board. She added that she hopes the change will allow the city to move forward.
Member Mark Hasza agreed with the decision, saying the disagreement between the board and the council was doing nothing but increasing city legal fees.
The decision means that Snyder will not have any control over the Utility Services Board and its finances. He will maintain the authority to hire and fire employees.
The council also voted unanimously to "adjust" Snyder's salary. He previously received a $53,000 salary from the city and $30,000 salary from the USB. He will continue to receive the full $83,000, but only from the city's funds.
Portage Council eyes replacing city's utility board
Post-Tribune
February 21, 2017
http://www.chicagotribune.com/suburbs/post-tribune/news/ct-ptb-portage-ordinance-st-0222-20170221-story.html
The Portage Common Council may be getting into the sewer business, at least temporarily.
Council President Mark Oprisko, D-at large, said the council will hear an ordinance at a special meeting Thursday calling for the council to replace the Portage Utility Services Board.
Oprisko also said the council will consider dropping its charge to keep Mayor James Snyder from collecting $30,000 as the utility board's chair.
"We're not going to be the kind of people who are going to take a big stick and keep beating (Snyder) with it," Oprisko said. "But, I also think it's illegal (for Snyder) to even make the $30,000 on that board."
The council essentially will become the board for six months, leaving the door open for the utility board to become a citizens council again.
Snyder could not be reached for comment Tuesday.
In a special meeting nearly two weeks ago, the council voted to strip Snyder of the $30,000 salary after unanimously voting to remove him as a member of the utility services board two days earlier.
Snyder's position on the two ordinances affecting his role and salary on the board remained unclear Tuesday.
Oprisko said council members are open to taking over the utility board following concerns with Snyder's use of board funds. Oprisko, who is the utility board's vice chair, also said the mayor's efforts last September to get the utility board to pay $93,000 of legal expenses he incurred while under federal investigation riled council members.
Snyder was federally indicted on public corruption charges in November, a fact that hasn't been far from council members' minds in trying to take over the utility board.
Councilman Collin Czilli, D-5th, said he approves of the council, in effect, becoming the utility services board for six months or longer if necessary -- and now giving Snyder the $30,000.
"I hate that we have to (replace the utility board), but we've been put in a position where we need to have strong oversight of that board in order to feel like we know exactly what's going on with some of the actions the mayor's taken over at utilities," he said.
"And, as for the $30,000 salary, from the beginning, I think the actions we took to remove the mayor from the utility services board were never meant to be punitive, but they were meant to be corrective.
"To me, the mayor makes $83,000, with his utility services board money, and, I believe the mayor should continue to see the same pay he was receiving."
Portage mayor 'confident' he'll give speech in 2018
nwitimes.com
February 17, 2017
http://www.nwitimes.com/news/local/govt-and-politics/portage-mayor-confident-he-ll-give-speech-in/article_83b3c3b7-c060-594f-820b-0ec7d4f20318.html
PORTAGE — Without making direct reference to his upcoming federal trial or his recent battles with the City Council, Mayor James Snyder told a group Thursday that the city will weather the present "hurricane."
Snyder addressed a packed room at Woodland Park during his annual State of the City address hosted by the Greater Portage Chamber of Commerce. Snyder was indicted last November on bribery and tax evasion charges. His trial is set for April 10. Recently he has been battling with the City Council which is attempting to remove him as chairman of the Utility Services Board.
Departing from previous years' State of the City addresses, Snyder opened and closed the presentation and allowed his department heads to provide updates on their departments.
"Over the past year, we saw the wind shift," Snyder told the group, adding the wind had been at Portage's back, but the city was now "in the middle of a hurricane."
"With our foundations, we can weather this storm and we can lead with great confidence," he said before introducing Police Chief Troy Williams to give an overview of his department during the previous year.
Following presentations by Williams, Fire Chief Tom Fieffer, Street Department Superintendent Joe Mokol, Parks Superintendent Jenny Orsburn and Economic Development Director Andy Maletta, Snyder closed the presentation by telling the audience that 2017 is the year of confidence.
"We have been through battles before and the city has prospered," he said, adding that he, his wife and city staff are "very grateful for the confidence, support and well wishes" they have received in recent months.
"I have confidence that I will be here to deliver the 2018 State of the City address," Snyder said closing the presentation.
Portage administration director resigns over differences with mayor
nwitimes.com
February 17, 2017
http://www.nwitimes.com/news/local/govt-and-politics/portage-administration-director-resigns-over-differences-with-mayor/article_53a6e77f-6b32-50a9-9db4-30d43cfffa7d.html
PORTAGE — Director of Administration Joe Calhoun resigned this week over what he called differences in philosophies with Mayor James Snyder.
"It just came to a point where our leadership philosophies weren't meshing," Calhoun said. "It is my job to get on board or to get out of the way. I decided to get out of the way."
Calhoun added that he had recently been pulled into the investigation of Snyder by the FBI, saying he was interviewed by agents after Snyder was indicted in November. He wouldn't comment on the particulars of the interview.
Snyder appointed Calhoun to the position more than three years ago. A 17-year Portage firefighter, he was technically on special assignment from the department to take the job and could return to the department.
"It was a fantastic job. I do feel like a lot was accomplished to bring the departments together," he said, praising department heads for their efforts over the last three years to move the city forward.
"I can't say enough about their dedication. They came together and worked together. They were awesome to work with."
Calhoun was considered the second in command at City Hall, providing a link between departments and between departments and the mayor. He managed policies, aligned human resource policies and was involved in union negotiations with employee groups. He said those negotiations are not yet completed.
"Sometimes jobs in the public sector, especially the job Joe Calhoun had, can be more punishing than rewarding," Snyder said in an email statement. "Right now we are on the grueling end with five union negotiations, the federal intensity on myself, dozens of major projects and the council scrutiny."
"Joe is a great friend to me and Portage, his service has been relentless and he is one of the hardest working men I know. He is doing what is best for him and his family; what he has accomplished in Portage will change it for generations to come. All that I can say to Joe is 'thank you,'" Snyder said.
Calhoun said he wasn't sure of his future. He has had a conversation with Fire Chief Tom Fieffer about returning to the department. A merit lieutenant, Calhoun was serving as an assistant chief when he was appointed director of administration.
"I have resumes out throughout the country, and I am hoping something will come through," said Calhoun, adding it may be his time to retire from the department and to "move on" and leave Portage.
"Portage residents are receiving and will continue to receive the same high quality of service. All department heads are stepping it up a bit for now, and when the time is appropriate we will work on replacement," said Snyder.
Portage mayor abuses taxpayers' trust
Chicago Tribune
February 17, 2017
http://www.chicagotribune.com/suburbs/post-tribune/opinion/ct-ptb-editorial-snyder-st-0219-20170217-story.html
An indictment doesn't equate to guilt. That determination is left to a judge or a jury.
A federal indictment on corruption charges, however, is at the very least an embarrassment and a serious distraction if you're trying to run a city. By most ethical standards, it should inspire a careful, conservative profile, especially for a city's top-elected official.
Not so with Portage Mayor James Snyder, who's a clear winner over runner-up Lake County Sheriff John Buncich in the "outlandish actions by indicted public officials" category. While the performances don't rise to Hollywood's Academy Award-level, they're all too prevalent in the region.
In Buncich's case, he just wanted was his guns back. Federal agents confiscated his firearms after his arrest last year on corruption charges tied to a towing scheme. Buncich's attorney said the sheriff needed the weapons to perform his duties. The judge disagreed.
Snyder, meanwhile, makes Buncich's request seem reasonable.
He's embarked on a course of maintaining his innocence while enjoying perks at the expense of taxpayers. Snyder, a Republican, took his family and a security detail to Washington last month for President Donald Trump's inauguration. And, while some Portage residents struggle with monthly car payments and bills, Snyder drove a leased Chevrolet Tahoe to Washington that costs the city $800 a month. It's generously equipped with Sirius radio and OnStar.
If the trip wasn't enough to rankle folks, two police officers also drove a city vehicle to Washington because Snyder felt he and his family needed protection as they attended inauguration events. The need for security seems especially curious since Snyder's notoriety doesn't extend much farther than Porter County.
That trip seemingly was the last straw for Democrats who control the city council, which had been co-existing in a bi-partisan fashion with Snyder, who's in his second term as mayor. Together, the council and Snyder had pushed through improvements, including new police and fire stations and a needed renovation at City Hall.
Council members rightly became angered when they found out last year that Snyder attempted to pay a $93,000 legal bill with money from the Utility Services Board, which he chairs. The money was going to go to two law firms representing Snyder in connection with a federal investigation that resulted in bribery and obstruction charges in November. Both law firms returned the checks, saying they represented Snyder, not the utilities board.
Recently, the council moved to strip Snyder of his $30,000 salary and position as chairman of the Utility Services Board. At Snyder's direction, the board hired an Indianapolis law firm, which advised the council that removing Snyder violated state law. Undeterred, the council dumped Snyder. Council President Mark Oprisko warned it might pass an ordinance dissolving the Utility Services Board to save taxpayers from an expensive, lengthy lawsuit pitting the city against its own utilities board.
Clerk-Treasurer Chris Stidham called Snyder's acts "a pattern of disrespect for the taxpayers of Portage … it's just wrong," he said.
We couldn't agree more. A mayor facing federal indictment shouldn't be trekking off to a gala inauguration or charging taxpayers for his own legal troubles. The Portage City Council is safeguarding its taxpayers from Snyder's overreach, which has created a toxic atmosphere in a city with its pride and promise on the line.
Top Portage administrator resigns position
Post-Tribune
February 16, 2017
http://www.chicagotribune.com/suburbs/post-tribune/news/ct-ptb-portage-calhoun-resign-st-0217-20170216-story.html
Joe Calhoun, the city's director of administration and Portage Mayor James Snyder's top deputy, confirmed Thursday he is resigning effective Saturday.
Calhoun, who has coordinated the day-to-day operations of the city and utility services since 2014, said his work philosophy and the mayor's "just weren't meshing" and cited job-related stress for his departure, but Calhoun praised the administration's department heads.
"I've loved and cherished this job over the last three years, and I do honestly hope I've made some positive impressions on the city," Calhoun said. "I can't tell you how lucky I've been to work with those department heads. They do an incredible job of moving the city forward."
Last month, the FBI interviewed Calhoun, partly as a follow-up to Snyder's November federal indictment on public corruption charges.
"There's been a lot of job-related stress with all of this other stuff going on," Calhoun said of Snyder's legal woes.
Snyder did not return calls seeking comment Thursday.
Before becoming Portage government's virtual second-in-command, Calhoun rose through the ranks over 17 years to become assistant fire chief. Calhoun, whose work as administration director is considered a "special assignment," still is on the payroll at the fire station and, earlier this week, discussed "the possibility of returning to the ranks of the fire department," Chief Tom Feifer said.
Feifer said he had not received any official e-mails or other confirmation on Calhoun's resignation or plans to return to the fire department.
Calhoun said he loved his work with the fire department and may return someday, but he has begun looking outside of the city for his next step, calling it "a natural progression" in his career.
"It's probably best I move forward and move outside of City of Portage government," he said.
City Council President Mark Oprisko, D-at large, said Calhoun's departure will be "a huge loss for the city."
The council will keep the position's salary line item open, but the council also should have some say in who replaces Calhoun, Oprisko said.
"I pretty much begged (Calhoun) to stay, but the stress level of working in City Hall got the best of him, and I don't blame him," Oprisko said. "I don't want just some political crony or somebody that doesn't have enough experience to come in to that spot."
Along with running most of City Hall's operations, Calhoun has been thrust into difficult positions during his tenure. Last October, following revelations Snyder tried, in his role as chairman of the Portage Utility Services Board, to get the board to pay $93,000 in legal fees related to a federal investigation, the mayor put Calhoun and the utility services board attorney before local media to answer questions about the checks.
Snyder: Portage in a 'hurricane'
Post-Tribune
February 16, 2017
http://www.chicagotribune.com/suburbs/post-tribune/news/ct-ptb-portage-state-of-city-st-0217-20170216-story.html
Mayor James Snyder alluded to the legal and political storms wrapping around Portage during his annual State of the City address Thursday while encouraging the audience of Chamber of Commerce members to remain confident in the city.
Snyder also expressed hope he will beat a federal indictment last November on public corruption charges. Since then, Common Council members have called for his resignation and have voted to strip Snyder of his position as chairman of the utility services board and its $30,000 salary.
"We saw the winds shift like never before in Portage. We are now in a hurricane," Snyder began. "(2017) is the year that Portage is in a state of confidence. Portage will not only beat this storm, but we will be better as a result.
"This year, we have confidence our progress in Portage will continue," he told several hundred audience members. "And we have confidence I will be here to deliver the 2018 State of the City address."
Rather than deliver a speech lauding his administration's accomplishments last year, Snyder bookended presentations from his department heads on last year's events with brief comments of his own.
Economic Development Director Andy Maletta spoke of the "explosion" in new home starts, from nine starts in 2015 to 79 starts last year, and bringing new businesses -- including Monosol -- to Portage, while the police and fire chiefs spoke of improved services and new stations.
Parks Superintendent Jenny Orsburn praised her staff, which, she said, "has contributed significantly to the quality of life" of residents, and Streets Superintendent Joe Mokol lauded an increase in residents recycling and new time and money saving equipment.
Snyder listed accomplishments such as raising $60,000 for the Indiana-American water amphitheater at Founder's Square, an open air pavilion planned for the Portage Lakefront Park and the widening of Samuelson Road before calling on help from other city leaders.
"It's time for all of us to join together, both the city council and the mayor's office, to work toward this year of confidence," Snyder said.
Only two city council members, Sue Lynch, D-at large, and Scott Williams, D- 3rd, attended the address. Lynch, who last week called for Snyder's resignation, praised the work done by the city's department heads.
"What I heard today is we have some great department heads, and they're continuing to work hard together despite what is going on in the city," Lynch said. "As for (Snyder), he really didn't say much, but I think that was by intention."
Davich: Portage mayor should know image is everything in court of public opinion
Chicago Tribune
Jerry Davich
February 10, 2017
http://www.chicagotribune.com/suburbs/post-tribune/opinion/ct-ptb-davich-james-snyder-resignation-st-0213-20170210-story.html
Should Portage Mayor James Snyder step down from office while awaiting his public corruption trial in April?
Before you jump to a knee-jerk answer — I'm pretty sure all of us have one by this point — ask yourself why Snyder hasn't done it yet. Would it further tarnish his public image? Would it suggest guilt to city residents? Would it complicate his legal defense? Is it strictly about keeping his income, health insurance and other financial perks intact?
I don't think so.
Sure, those are all factors in his decision, but I believe Snyder is convinced he's innocent of all federal charges against him. Convinced. Nothing less.
"I am absolutely convinced that he believes that," said Portage City Councilman Collin Czilli (D-5th), who has called for Snyder's resignation along with several other city officials the past few weeks.
On Nov. 18, Snyder was formally charged with one count of tax evasion and two counts of bribery involving a local towing firm. Snyder pleaded not guilty, and he's been repeating that mantra since that day. I don't see him stepping down, even for the next two months, despite public outcry to do so.
Unlike those of us who either hope the mayor is innocent of these charges or that he will be found, or plead, guilty, Snyder acts assured he has done nothing wrong. Nothing. He has stated this publicly, and to me, and to other city officials.
Is this the common, even predicted, response from yet another Northwest Indiana public official indicted by the feds? Or is this the sad delusion of a man who may be serving prison time later this year? His supporters insist it's possible that Snyder has indeed been wrongly accused, and he will soon be exonerated of all charges.
And yes, presumed innocence until proven guilty is legally correct in our country, though many observers in this area have already presumed his guilt. It's easy to do in Northwest Indiana, where federal agents historically charge and convict public officials with an impressive success rate.
Snyder knows this, yet he insists he is not guilty of any wrongdoing.
Former Lake Station Mayor Keith Soderquist, who could easily serve as the poster child for modern-day public corruption, took a different tact after he and his wife Deborah were caught by the feds.
"They both knew they were guilty," said Kim Frizzell, the city's administrative assistant and a longtime city employee. "He essentially cased the joint during his time as a city councilman, learned how to manipulate people and using his terms as a training ground for public corruption later in his career. He had an agenda from early on."
The former eight-year city councilman pleaded guilty to improperly and illegally using money from his reelection campaign and the city's food pantry. The stolen funds were used for gambling at a casino boat, federal prosecutors said.
After deliberating only a few hours after an eight-day trial, a jury found Soderquist and his wife guilty. They were both sentenced to prison late last year.
Will the same fate be served to Snyder, who also is battling against public perception?
"My reputation is shot until I win, and I understand that," Snyder told me.
On Thursday, I heard from city residents who had just found out that Snyder drives a city-leased vehicle costing $866 a month. He also used this vehicle last month to drive his family to Washington D.C. to attend inauguration events for President Donald Trump. And he upgraded his hotel room on the taxpayers' dime.
"The fact that in 2016 we raised utility rates by 32 percent makes it look even worse," Czilli said.
Regardless whether you believe he should have attended this event with his family, or not, it simply looks bad for his public image. Then again, public image is not supposed to sway the verdict of his trial, scheduled for April 10. Just the facts, ma'am.
Czilli shared with me the Portage Utility Service Board paperwork filed for 2017 regarding Snyder's city-leased vehicle, a 2016 Chevy Tahoe. Snyder is one of several city officials with city-leased vehicles at their disposal, ranging in monthly cost from $613 to $779 for the five-year lease term.
"We also paid for Sirius XM and OnStar data in (Snyder's) vehicle," Czilli said.
To add context, it should be noted that the City Council voted unanimously for this fleet of vehicles after the general election in 2015. (Other municipalities in this area pay for similar city-leased fleets.) And it's likely that most Portage residents would never know about this contract if not for Snyder's indictment.
A federal indictment magnifies every move, every decision, every public comment. Everything he does is now under a microscope. Snyder knows this.
It's hard to believe after all these decades, all these indictments and all these convictions that a public official would dare commit a crime of any kind, even stealing a handful of paperclips.
Then again, it's not that hard to believe when you consider the human dynamics at work, the same universal dynamics that existed more than a century ago, corrupting so many others after they were elected into public office. Those damning attributes haven't gone away. Greed, ego, arrogance, the lust for power and a feeling of invincibility.
Does Snyder feel invincible against the charges against him? Should he show this attitude in public? Is this merely a reflection of how he genuinely feels in private? I don't know. Unlike his critics and political opponents, I'm not hoping for a guilty verdict in April. We've had too many public officials found guilty of corruption in this area.
But one thing is certain regarding public opinion about Snyder, and it was echoed publicly by U.S. District Court Judge James Moody at Soderquist's sentencing hearing.
"What the hell were you thinking?" he asked incredulously.
Portage council axes utility chairman's salary
NWI Times
February 10, 2017
https://www.google.com/search?q=Portage+council+axes+utility+chairman%27s+salary&oq=Portage+council+axes+utility+chairman%27s+salary&aqs=chrome..69i57.874366j0j7&sourceid=chrome&ie=UTF-8
That council action included the passage of an ordinance on Tuesday removing Snyder as chairman of the Utility Service Board.
Stidham spoke at length Thursday about his findings prior to the council passing a second companion ordinance deleting the $30,000 annual salary for the Utility Service Board chairman position currently received by Snyder. The ordinance also removes the salary for any future chairman.
Stidham, who graduated from Valparaiso University's law school in May, said he had reviewed the letter from Faegre Baker Daniels, the law firm appointed by Snyder after the Utility Service Board voted 5-1 on Wednesday to hire legal counsel to defend itself.
"Not surprisingly, the letter is based on misstated facts which resulted in gross distortions of the law. ... I offer this legal opinion not as attorney for the City Council but as clerk-treasurer only. I would strongly recommend following up with your council attorney for additional legal opinions," Stidham said.
The city's legal counsel didn't attend Thursday's meeting.
Snyder, who chaired the meeting on Thursday, offered little public comment during a meeting at which several council members asked for him to step down as mayor, including City Councilman Patrick Clem, D-2nd.
"I was raised to respect people, to be honest. I don't see that here. I'm going to ask you to resign," Clem said.
Snyder, who was indicted in federal court in November on three counts including bribery and tax evasion, faces an April 10 hearing.
After the meeting, Snyder said he has no intentions of stepping down as mayor.
Snyder offered the following statement in regard to action taken by the council:
"Members of the council passed, in haste, ordinances Tuesday night and tonight that clearly violate state law, despite being provided with legal advice to better inform their decision. The council action sets the stage for further legal battles which could be very costly and burdensome for the city. In the coming days, I will gather advice and contemplate possible options before taking action. As I give this careful consideration, I welcome the opportunity to have productive conversation with council members to determine if we can reach a more workable agreement."
Stidham, citing state laws, said the council does have the right to remove Snyder as chairman of the Utility Service Board.
Portage mayor loses $30K panel chairmanship in city council vote
Chicago Tribune
February 10, 2017
http://www.chicagotribune.com/suburbs/post-tribune/news/ct-ptb-portage-snyder-ordinance-st-0211-20170210-story.html
Council President Mark Oprisko, D-at large, who also is the vice chair of the Utility Services Board, also said the council may invoke the "nuclear option" — passing an ordinance eliminating the current Utility Services Board — and added that "we're not going to waste taxpayer dollars" on a potential lawsuit between the board and the city.
The salary amendment ordinance passed on a 6-0 vote, with Councilman John Cannon, R-4th, absent.
The advice from Faegre Baker and Daniels did not go over well with the council or Clerk-Treasurer Chris Stidham, who countered the law firm point by point, defending the council's decision to also strip Snyder of his position on the board.
The Utility Services Board, under Snyder's direction, voted to hire Faegre Baker and Daniels to represent the board against the council's moves to change the board's leadership. The law firm sent a two-page, double-sided letter to council members Thursday afternoon describing the controversial ordinances as violations of state law.
Council members claimed that hiring the law firm could cost the Utility Services Board more than $500 an hour, but Snyder said he had not yet signed the contract and did not know how much Faegre Baker and Daniels' work will cost the businesses and residents that use sewer service.
In a written statement he issued coinciding with the meeting, Snyder wrote that "the Council action sets the stage for further legal battles which could be very costly and burdensome for the city," but he also left the door open for a compromise and an opportunity to "reach a more workable agreement."
After the meeting, Snyder said he likely will veto the ordinance firing him and the other stripping him of the chair's salary "if they are invalid."
"If (the ordinances) are valid, then I have some decisions to make," he said.
Snyder has the option to veto the ordinances.
Earlier this week, the council passed a string of ordinances that appeared aimed at Snyder and his administration.
One ordinance prohibits Portage mayors from naming themselves to the Utility Services Board and moves the board's finances and budget responsibilities to the Portage clerk-treasurer.
By state law, mayors appoint the majority of utility services board members, with local councils, or legislative bodies, appointing a minority of board members. In Portage's case, a local ordinance calls for the mayor to appoint two Democrats and two Republicans.
Following tradition, Snyder appointed himself and three others to the board, and the board elected Snyder its chairman. The chairman earns a $30,000 salary, also by ordinance.
In September, a Utility Services Board employee sent two checks totaling $93,000 to two law firms, Dogan and Dogan of Portage and Winston and Strawn of Chicago, for representing Snyder in a federal investigation, but both firms returned the checks, insisting they represented Snyder as an individual and not the board.
The move riled Oprisko and other city officials, who claimed Snyder never consulted them on the payments.
City officials also have complained bitterly of Snyder's use of Utility Services Board funds.
While not illegal, many of those moves were inappropriate, Stidham insisted Thursday night, calling Snyder's actions "a pattern of disrespect for the taxpayers of Portage."
"It has nothing to do with legal or illegal, but it's just wrong," Stidham said.
Snyder tied the council's actions to his indictment last November on federal corruption charges, something the council has vehemently denied.
"I think you can imagine this isn't easy," Snyder told the audience. "I'm looking forward, and my family is looking forward — but hopefully things are dropped before we get to that point — to our day in court."
Legal help hired to sort out Portage ordinance to remove mayor from board
Chicago Tribune
February 09, 2017
http://www.chicagotribune.com/suburbs/post-tribune/news/ct-ptb-portage-utilities-snyder-st-0210-20170209-story.html
A day after the Portage City Council voted to remove Mayor James Snyder from the chairman's position on the Utility Services Board, the board on Wednesday hired Chicago-based law firm Faegre, Baker and Daniels to look into the matter.
Snyder later said he did not know how much the legal work will cost the board.
The action stems from Tuesday's City Council action, which not only removes Snyder from the Utilities Board, but also eliminates the $30,000 salary that comes with it. The move came after Snyder and City Council President Mark Oprisko debated a variety of topics, from Snyder's use of a board-leased SUV to comments made to local media.
The council was expected to vote Thursday night on a proposed ordinance to delete the $30,000 salary.
"I feel the ordinances are completely invalid," said Snyder, who handed out city letterhead with parts of a state statute prohibiting legislative bodies like city councils from eliminating or reducing elected officials' salaries in the same year those bodies pass such ordinances.
"It's very clear you can't punish a mayor by taking away his salary."
Last September, Snyder tried to get the board to use utility funds to pay $93,000 in legal fees to law firms representing Snyder in a federal investigation. The firms returned the checks, and the board has not returned to the issue since Snyder's indictment last November on public corruption charges.
The board is made of four mayoral appointments, including the mayor himself, and three council appointments, including Oprisko, who is the board's vice chair. Oprisko was the sole board member to vote against hiring the law firm.
Another council appointee, Mark Hasza, also approved hiring the law firm.
"I figured (Snyder) would do something like that because he needs the (chairman salary) to pay his bills," Oprisko said of Snyder's idea to hire an outside law firm. "I'll talk to the (city) council. We'll do what it takes to get (Snyder) off this board."
The on-record exchange between Oprisko and Snyder began when the mayor defended his use of a board-leased 2016 Chevrolet Tahoe, at a rate of $867 a month for five years. The agreement with Enterprise Fleet Management ultimately will save the board money in the long run, Snyder said.
Snyder dismissed criticism of his use of the vehicle as "commentary without fact and touted the importance of city leaders driving attractive, practical vehicles.
Oprisko described the lease as an "exorbitant" cost, and the exchange took off from there.
The men bounced across Snyder's indictment, the board's issue of $93,000 in checks for the federal investigation, the mayor's absence from Tuesday's city council meeting and Snyder's controversial trip to a mayor's conference and President Donald Trump's inauguration last month in Washington, D.C.
The board did complete some official business. City Engineer John Hannon, of Great Lakes Engineering, was awarded a raise of $15 an hour, raising his rate to $125 per hour for utility services work.
The new contract also gave raises to a project engineer, a senior designer and more staff.
Mayor's meeting absence brings critics, defenders
Chicago Tribune
February 09, 2017
http://www.chicagotribune.com/suburbs/post-tribune/news/ct-ptb-portage-mayor-absent-st-0212-20170209-story.html
Residents voiced a mixed bag of reactions for the City Council and for embattled Mayor James Snyder, who skipped the Tuesday council meeting.
Snyder later said he was visiting a friend in a hospital during the meeting, but immediately after the meeting, one of his staffers passed out written statements on city letterhead to local media.
The residents' comments seemed to show a city increasingly rattled by the contentious relationship between the mayor, the council and Clerk-Treasurer Chris Stidham.
"I feel there's an injustice here tonight," complained resident Edna Maturkanich, a regular at council meetings. "It's like you're roasting the mayor, and he isn't even here. It's like you guys were having a field day tonight. I know James Snyder, and I know he's innocent."
The council suspended rules requiring a second reading of an ordinance and voted to strip Snyder of his position on the Portage Utility Services Board and the chairman's job he holds. A second ordinance eliminating the position's salaries was expected to be heard again Thursday night, after Councilman John Cannon, R- 4th, voted against suspending the rules.
Other residents criticized the mayor for not showing up and for recent controversial actions, including a trip to Washington, D.C. where the mayor took two police administrators for a conference and the inauguration of President Donald Trump, mostly on the taxpayers' dime.
Last November, Snyder was indicted on federal public corruption charges.
Snyder, who left last month's council meeting about five minutes after opening the meeting, did not notify Council President Mark Oprisko, D-at large, or any other officials of his absence, Oprisko said.
"He's the chairman of this board," Oprisko said. "He should've had enough respect to call me or someone else on this board to get out of their seat and take over the meeting."
Immediately after the meeting, a Snyder staffer passed out a signed, written statement from the mayor dated Feb. 7. Snyder accused the council of "behaving in a way of presumption of guilt, which is the opposite of what America, Indiana and any decent citizen believes."
In the statement, Snyder also wrote his administration has "saved the City millions of dollars in waste, fixed more roads, buildings and infrastructure than any administration and have rejuvenated the pride in Portage."
Stidham said the council's actions had little to do with the indictment "and everything to do with" the mayor's efforts to pay his legal fees with utility services board funds last year.
Snyder's prepared statement also bothered Stidham.
"The council meeting happens at same time forever and ever and ever," Stidham said. "(Snyder) came for five minutes last month and left, and this month he didn't even bother to show up. Yet, the rest of the city's eight elected officials made it a priority. He should've been here doing his job"
Cannon, the only Republican on the council, who describes himself as a longtime friend of the Republican mayor, called said he and his colleagues have "aged 20 years in five days."
"This has been a tough night for me, but some things have to be done, because the public trust us to do a job," Cannon said.
UPDATE: Portage council, mayor continue arguing
NWI Times
February 08, 2017
http://webcache.googleusercontent.com/search?q=cache:JxDF7CoBGVcJ:www.nwitimes.com/news/local/govt-and-politics/update-portage-council-mayor-continue-arguing/article_455590fe-401e-525e-b26d-e91a520e6110.html+&cd=4&hl=en&ct=clnk&gl=us
PORTAGE — The City Council will meet in special session Thursday to complete what council President Mark Oprisko termed unfinished business regarding Mayor James Snyder.
The 8 p.m. meeting will be held at Woodland Park, 2100 Willowcreek Road.
The council is scheduled to vote on a proposed ordinance that deletes the $30,000 annual salary of the Utility Service Board chairman, a position that had been held by Snyder.
The council on Tuesday removed Snyder from that position.
Snyder said he plans to fight the city, noting the utility board voted 5-1 Wednesday to hire legal counsel to defend itself.
Snyder said state law protects him from the recent action by the council.
"My point is that there is a clear separation of power in the state constitution. They (the council) will be spending tens of thousands of dollars, and all they have to do is wait until my (federal) hearing is over," Snyder said.
Snyder was indicted in federal court in November on three counts including bribery and tax evasion. His trial is set for April 10.
The proposed ordinance to remove the salary attached to the position needs a second reading since it didn't receive unanimous approval when read on Tuesday, Oprisko said.
City Councilman John Cannon, R-4th, cast the only dissenting vote.
That change requires any future expenditures of the board to go before both the clerk-treasurer's office and the City Council, Oprisko said.
Oprisko said approval of the proposed companion ordinance will kill the $30,000 salary for the mayor.
"This (ordinance) will also delete the salary for any other board chairperson," Oprisko said.
The ordinance removing the mayor as Utility Service Board chairman was a way to put more checks and balances in place and to return finances back to taxpayers, Oprisko said.
Snyder has the option of vetoing both ordinances over the next 10 days, Oprisko said.
Council members gave two reasons for their actions regarding Snyder.
First, the mayor sought reimbursement for $93,000 of his personal legal fees prior to his indictment without seeking approval from the Utility Service Board.
Second, the council is also questioning reimbursement requests from Snyder after he took a recent trip to Washington, D.C., for a mayor's conference and to attend the presidential inauguration, taking two police administrators and his family.
Snyder traveled to D.C., on Jan. 16, to attend the U.S. Conference of Mayors winter meeting and the inauguration of President Donald Trump.
Council members, including Oprisko, have asked Snyder in recent days to step down as mayor.
Board votes to remove mayor from utility services board
Chicago Tribune
February 08, 2017
http://www.chicagotribune.com/suburbs/post-tribune/news/ct-ptb-portage-city-council-st-0209-20170208-story.html
The Portage City Council voted unanimously Tuesday to strip Mayor James Snyder of his position as chairman of the Portage Utility Services Board and will try again to remove the position's $30,000 salary in a special meeting Thursday.
The vote, however, leaves Snyder with several options to protect his position or to demonstrate agreement with the council.
As mayor, he can sign the ordinance into law, veto it or let it pass by "pocket veto," or letting 10 days elapse without taking any action.
The first ordinance prohibiting the mayor from holding a spot on the seven-member board passed easily after the council unanimously agreed to suspend the rules requiring a second reading and approve the ordinance. Snyder did not attend the meeting.
In a procedural move, Councilman John Cannon, R-4th, the sole Republican on the panel, forced the council to hold a special meeting to reconsider the salary ordinance that deletes the utility board chairman's salary.
An Indiana law prohibits legislative bodies from stripping an another elected official's salary or reducing that salary in the same year as such a vote may be taken.
Cannon said he is against the salary ordinance change and wants more time to determine if it conflicts with state statute, but City Council President Mark Oprisko, D-at large, scheduled a special meeting Thursday night to try to get the ordinance passed.
"I think there may be some conflict with the state statute," Cannon said of the vote to delete the salary. "Some things came about in the last few days I want to look into. Now we're going to have a meeting Thursday knowing I'm going to be out of town."
Cannon, who described himself as a longtime friend of the Republican mayor's, reiterated his support for the ordinance removing the mayor from the board, calling it "a sense of duty, of doing the right thing."
Snyder came under fire last September when a utility services board employee sent $93,000 in checks to Portage-based law firm Dogan and Dogan and Winston and Strawn, a Chicago law firm, to pay for legal expenses related to a federal investigation of Snyder.
Both firms returned the payments, indicating they represented Snyder as an individual and not the utility services board.
Oprisko led the move to block any payments from the board to the law firms and threatened to order an investigation into the moves.
In November, Snyder was indicted on federal public corruption charges unrelated to anything with the utility services board.
In a written statement delivered to media immediately after Tuesday night's meeting, Snyder accused the council of "behaving in a way of presumption of guilt," which Oprisko denied.
"I'm not saying (Snyder's) guilty, because you're innocent until proven guilty," Oprisko said. "However, when you look at the (legal expenses) situation with the utility services board, with (Snyder) as the chairman taking it upon himself to send two checks worth almost $100,000, if he was in the private sector, he'd be fired."
Snyder removed as chair of Portage Utility Service Board
NWI Times
February 07, 2017
http://www.nwitimes.com/news/local/porter/snyder-removed-as-chair-of-portage-utility-service-board/article_99c4d9de-7a82-533a-bb51-0a7710e06d49.html
PORTAGE — The City Council on Tuesday removed Mayor James Snyder from his job as chairperson of the Utility Service Board.
The pay, which is $30,000, will go back to taxpayers, City Council President Mark Oprisko said.
In addition, the budget of the Utility Service Board was replaced with the name "finances" with any future expenditures having to go before the clerk-treasurer's office and the City Council.
Oprisko said the ordinance, which was unanimously approved by the council, was a way to put more checks and balances in place and to return finances back to taxpayers.
"Myself and the City Council will do whatever it takes. We have your backs," Oprisko said.
Snyder, who wasn't at the meeting because he was at a Chicago hospital visiting a friend, issued a statement through a staff member.
The statement was as follows: "I intend to stay high while others go low. The facts in Portage government are that we have saved the city millions of dollars in waste, fixed more roads, buildings and infrastructure than any administration and have rejuvenated the pride in Portage. Council members are focused on normal city operations that will be approved and substantiated by the State of Board of Accounts. The council is behaving in a way of presumption of guilt, which is the opposite of what American, Indiana and any decent citizen believes."
Council members, who were applauded several times for their measure, said the action was due to two events. First, the mayor sought reimbursement for $93,000 of his personal legal fees prior to his indictment without seeking approval from the Utility Service Board. Secondly, Snyder took a recent trip to Washington, D.C., for a mayor's conference and to attend the presidential inauguration, taking two police administrators and his family.
Snyder was indicted on three counts in federal court in November including bribery and tax evasion. His trial is set for April 10.
Snyder, along with his wife and four children, traveled to Washington, D.C., on Jan. 16, to attend the U.S. Conference of Mayors winter meeting and the inauguration of President Donald Trump.
In addition to the Snyders, Police Chief Troy Williams and Assistant Chief Ted Uzelac Jr. and Uzelac's son also attended the conference and inauguration.
In a written answer to Clerk-Treasurer Christopher Stidham, Snyder denied "ordering" the administrators to attend the conference and inauguration. He said he "granted them permission" based on the content of the conference. He also denied collecting any reimbursement from the Utility Services Board.
Although many of those residents who attended the council meeting applauded the efforts of officials, at least one resident, Edna Maturkanich, questioned why officials had gone around the mayor's back.
"I feel like you are roasting the mayor and he wasn't even here. Isn't a person considered innocent until he goes before a court of law?" Maturkanich asked.
PODCAST: Byline - Fixing corruption's mark on NWI
Kale Wilk, Digital Producer
February 06, 2017
http://www.nwitimes.com/digital/audio/byline/podcast-byline---fixing-corruption-s-mark-on-nwi/audio_0372c6a9-083c-571e-80c3-ad00e4a2e6fa.html
Northwest Indiana politics, particularly in Lake County, has a rough history. It's marked by its highs, but also by its lows as civic leaders go down in history and besmirch the Region's reputation. Although their trials haven't started, Lake County Sheriff John Buncich and Portage Mayor James Snyder's recent indictments haven't helped the Region's perception. What is the fix for stopping the temptations in public corruption? Byline examines a mix of efforts at both the local and state levels as well as even the newspaper's role in making ethical decisions commonplace.
MARC CHASE: Distracting specter grows around Portage mayor
NWI Times
Feb 5, 2017
http://www.nwitimes.com/news/opinion/columnists/marc-chase/marc-chase-distracting-specter-grows-around-portage-mayor/article_f467452a-c13a-5ad0-8423-2338933dc9d5.html
Strong vision and hard, efficient work are the stuff of community growth and success — the qualities of solid leaders.
But those qualities can't elevate leaders — regardless of their past successes — beyond the specter of a felony indictment alleging personal enrichment and abuse of public trust.
Innocent or guilty, and he'll get his day in court at some point, Portage Mayor James Snyder is learning this social and legal truth the hard way.
The stifling stranglehold such accusations place on a leader continue to multiply in their effect on Snyder's ability to lead.
They will continue to do so until and unless he resigns or is exonerated of felonious wrongdoing.
It's a painful truth for many in Portage — and elsewhere in the Region — to consider given Snyder's many successes at the helm of the city's executive office.
Portions of our Region are blessed with an idyllic mix of industry, stunning natural lakefront and promising development.
In my 13-plus years living in Northwest Indiana, I've watched Portage become the epitome of all of these qualities.
Business and warehousing developments around the Bass Pro Shop off the interstate, along Central Avenue near City Hall and newer, cost-effective and aesthetically pleasing municipal buildings help define the Portage landscape.
The city's tax base, and therefore its residents, are the direct beneficiaries.
The Portage Lakefront and Riverwalk is a National Park Service facility made into an eye-popping recreational and natural wonder through the collective vision and funding of many entities.
Much of what we see in Portage is due, at least in part, to the strong vision of Mayor Snyder.
A desire to continue that vision is a major reason why Snyder says he won't resign office in the wake of the federal felony bribery indictment he faces.
Federal prosecutors allege he solicited self-enrichment through bribes paid by city towing contractors. Snyder also is accused of tax evasion.
Snyder continued to contend his innocence Friday when I met him for a tour of the city and an interview in his office.
Innocent or not — and I'm neither prosecutor nor judge — I've contended in the past that the shadow of the federal accusations are too great a distraction to city business. I've argued, as has The Times Editorial Board, that Snyder should step down and focus on his legal defense.
Evidence of this immense distraction grew evermore apparent earlier this week when controversy erupted over a recent taxpayer-funded trip Snyder and two top police officials took to Washington, D.C.
The primary purpose was Snyder's attendance at the United States Conference of Mayors, a staple and typically innocuous event attended by many mayors throughout the country.
Mayors and other municipal officials attend the conference to glean ideas of best practices they can then bring home with them.
Snyder told me he opted to bring police Chief Troy Williams and Assistant Chief Ted Uzelac Jr. with him because community policing topics were included on the conference agenda, and police acting as security for their respective mayors could attend the conference free of the $1,200 individual registration fee.
The conference was contiguous with President Donald Trump's inauguration, so Snyder and the two police officials attended that historic event as well.
None of the trip, on its face value, would have stirred much controversy had Snyder not been under the weight of a federal bribery indictment.
But he was and is.
Some Portage officials went on the attack last week, criticizing the mayor for seeking and receiving taxpayer reimbursement for a $539-per-night hotel suite, rather than a cheaper $429-per-night standard room, while he attended the conference.
Snyder said his staff booked the more expensive room because his wife and children traveled to D.C. with him, largely to witness the Trump inauguration.
It's a $110-per-night quibble that Snyder could easily have satisfied by knocking the difference off the amount he requested for reimbursement. After all, taxpayers shouldn't be expected to pick up the bill for the mayor's family to attend.
But he didn't. All told, Snyder was reimbursed $3,892.64 from city coffers, which included the cost of the nicer accommodations, the conference registration and valet parking.
It's not really the stuff of intense scandal, however. In fact, Snyder argues he could have charged the city a per diem for his meals but did not.
Portage Clerk-treasurer Chris Stidham also accused Snyder of taking along taxpayer-funded bodyguards by bringing along his police chief and assistant chief. Chief Williams and Assistant Chief Uzelac collectively rang up another $5,303.52 in hotel, travel and meal charges to be reimbursed by the city, documents provided by Snyder show.
Though they attended registration-free under the "security" clause of the event, it's easy to see why Stidham and other officials would get worked up over the city paying for non-mayors to attend a mayoral event.
Clearly, Snyder didn't need a security detail. The mayor, of course, argues his top cops benefited from connections made at the event and the topical nature of some of the event themes.
All of that may be true, just as Snyder may be innocent of the bribery charges he faces.
But he'll continue to face such intense scrutiny as long as he remains under indictment. This uncertain veil will choke out his ability to lead the way he otherwise could. It will continue to hang like an albatross around the necks of the mayor's staff and other city officials aligned with him.
Snyder acknowledged Friday the indictment is deeply affecting staff morale. How could it not?
Council members of both political parties recently implored the mayor to resign. Other entities have done so as well.
Regardless of the good he's done for Portage, it may be time for Snyder to listen.
Portage ordinance proposal targets salary of panel chair, currently held by Mayor Snyder
Post-Tribune
February 03, 2017 - 6:37PM
http://www.chicagotribune.com/suburbs/post-tribune/news/ct-ptb-portage-new-ordinance-st-0206-20170203-story.html
The Portage City Council is expected to hear an ordinance proposal Tuesday that would strip the chairman of the city's Utility Services Board of the position's $30,000 salary.
Mayor James Snyder is the current chairman.
The proposed ordinances also name the city's clerk-treasurer as the treasurer of the board. The clerk-treasurer would manage board funds and the checkbook while paying out expenses as ordered by the board, according to the proposals.
The proposals come a few months after Snyder upset many city officials by ordering board staff to send payments to two legal firms representing Snyder in a federal investigation that resulted in a public corruption indictment Nov. 18.
Snyder said the ordinances are "below humanity," and the mayor said he hopes to reach resolution before the ordinances go from the council floor to a court room floor.
"You can't lower the mayor's salary because you can starve a man out," Snyder said. "It's just very low. All of the individuals behind this, when I'm found innocent, which will be very shortly, will probably wish they didn't go this route."
He said he has legal help studying state law and the ordinances. He also dismissed claims the ordinances had nothing to do with his federal indictment last November on public corruption charges.
Snyder is a member of the board and appoints four of the seven members, with the council appointing the rest. The board typically appoints the mayor as its chairman with a $30,000 salary.
"It's one of the steps I think is necessary to bring back some credence back to the utility services board," said Council President Mark Oprisko, who is the board's vice chair.
Clerk-Treasurer Chris Stidham said the proposed ordinances are a direct result of Snyder's efforts last September to get the board to pay $93,000 in legal fees.
Snyder had not consulted any other board members or discussed the payments publicly up to that point. Oprisko called the attempt "an injustice."
In September, the board sent a $6,100 check to Portage-based legal firm Dogan and Dogan and almost $87,400 to Tom Kirsch, an attorney with Winston and Strawn. Both firms returned the checks, indicating they could not accept the checks from the board because they were representing Snyder as an individual.
At the time, Oprisko intervened to stop any reimbursements or payments related to the expenses.
"That was a pretty big deal," Stidham said.
The board also paid Snyder extra money as compensation for several city staff members who did work for the utility board outside of their normal duties.
The board and the City of Portage are two separate entities, but the City Council passes ordinances that affect leadership and other key elements of the board.
Stidham said he believes the ordinances, if passed, will pass legal muster as they are directed toward the board chairperson as an appointed official.
State law prohibits legislative bodies from eliminating or significantly reducing elected officers' salaries, which are set locally by salary ordinances.
Mayor's Washington trip, security detail rile city officials
Post-Tribune
February 03, 2017
http://www.chicagotribune.com/suburbs/post-tribune/news/ct-ptb-portage-mayor-inauguration-st-0205-20170203-story.html
When President Donald Trump was swearing the oath of office at last month's inauguration in Washington, Portage Mayor James Snyder was in attendance, along with his family and a security detail that included the police chief and assistant chief, records and interviews show.
Snyder, a Republican who's facing federal public corruption charges, capped off a week-long trip to a national mayor's conference in Washington D.C. by attending the inauguration. So far, the mayor has billed taxpayers at least $2,692 for travel and hotel, according to records and interviews.
The charges included a rented suite at the Capitol Hilton for $539 a night for four nights to accommodate his family, instead of the standard room rate of $429 a night, a difference of $110 without taxes and fees, records show. Police Chief Troy Williams and Assistant Chief Ted Uzelac also billed the city $429 per night for four and five nights respectively, according to records and interviews.
The Portage Utility Services Board, which Snyder chairs, reimbursed Snyder $2,692 to cover four out of the five nights he and his family spent at the hotel at the $539 a night rate. Snyder paid for the fifth night on his own.
"It's no problem taking your family, and it's no problem if they stay in the same hotel room, but the city shouldn't bear the additional expense," Portage Clerk-Treasurer Chris Stidham, a vocal opponent of the mayor's, said. "And, (staying for the inauguration), now it's gone from city business to personal business. Now, he was keeping security out there for his personal time, and that's where it really gets out of line."
A federal grand jury in November indicted Snyder on bribery and tax evasion charges.
Portage Council President Mark Oprisko and Councilman John Cannon, R-4th, recently visited Snyder in the mayor's office, where Oprisko asked Snyder to resign, claiming the mayor's federal indictment "cast a cloud" over the city, Oprisko said.
Snyder refused.
Stidham sent the City Council a letter criticizing Snyder for charging the city for the suite during the U.S. Conference of Mayors winter meeting, which took place Jan. 16-19 in Washington, D.C. Stidham also criticized Snyder for billing taxpayers the costs surrounding the Jan. 20 inauguration. The letter also questioned Snyder's decision to take along Williams and Uzelac as security.
Snyder's wife and four children accompanied him on what he called "a historic trip." On his Facebook page, Snyder said the "scrutiny of this trip is unwarranted and completely riddled with 'alternative facts' to paint a picture that is not accurate."
Stidham, the city's chief financial officer, combed through receipts from the January trip in his office, expressing frustration and calling on the council to pass ordinances that further clamp down on spending by city officials.
Stidham, a Democrat, insists Snyder should reimburse the city for the difference in his family's suite rate and for all of the police leaders' hotel expenses, with the latter costs totaling about $5,300. He also called the extra day for the inauguration "the mayor's personal business."
Snyder, however, said he did not intend to reimburse the city for the difference between his family's suite rental rate and the standard rate or for the officers' stay. Instead, he refused to charge the city a per diem, which would've come out more than that difference, he said.
Snyder also said a state agency can review the trip and decide what's right or wrong.
"If the State Board of Accounts sees it as a thing to be dealt with, we'll deal with it," he said.
Williams said he and Uzelac were following orders in attending the conference and inauguration, and they stayed close to the mayor and his family after coming up before the trip with a detailed operations plan on what they would do in Washington.
Williams also used the conference as a way to improve police operations back home, he said.
"We decided if we're going be there in this security capacity, let's also use the opportunity to network and find out what else other communities are doing," Williams said. "I think if somebody has a question about something, it's fair to ask that. From mine and the assistant chief's position, we were going there as a security detail."
Williams claimed he and Uzelac came in handy protecting the mayor while heading to an inaugural ball. As they approached an opening between two blockades and portable fencing, protesters began to envelop them, causing Williams to get physical with two of them while Uzelac ushered the mayor and his wife to safety, Williams said.
In his letter to the City Council, Stidham, who was sworn in as clerk-treasurer in 2012, the same time Snyder ascended to the mayor's office, called on the body to pass a travel policy ordinance that prohibits city officials' "use of police officers as personal bodyguards while traveling on city business," bans hiring private security firms for those trips, and clearly outlines policies for family travel and for extending travel past city business.
"It's sad we're to this point, but let's have an ordinance that makes it crystal clear our stance on these situations," Stidham said.
Snyder said some of the criticism "may be heartfelt," but he also said some of the criticism, especially from Stidham, was politically motivated Stidham also works for the law firm Rhame and Elwood, which holds a number of contracts throughout the city and the Portage schools.
Snyder said the "spat" with Stidham will not get in the way of city work.
"Any self-serving criticism of the mayor is not good for Portage," Snyder said Friday. "It's not good for its staff. I'm going to get through all this and I'm going to be a better person when I'm through all this."
Portage ordinance proposal targets panel chair's salary
Post-Tribune
February 03, 2017
http://www.chicagotribune.com/suburbs/post-tribune/news/ct-ptb-portage-new-ordinance-st-0206-20170203-story.html
The Portage City Council is expected to hear an ordinance proposal Tuesday that would strip the chairman of the city's Utility Services Board of the position's $30,000 salary.
Mayor James Snyder is the current chairman.
The proposed ordinances also name the city's clerk-treasurer as the treasurer of the board. The clerk-treasurer would manage board funds and the checkbook while paying out expenses as ordered by the board, according to the proposals.
The proposals come a few months after Snyder upset many city officials by ordering board staff to send payments to two legal firms representing Snyder in a federal investigation that resulted in a public corruption indictment Nov. 18.
Snyder said the ordinances are "below humanity," and the mayor said he hopes to reach resolution before the ordinances go from the council floor to a court room floor.
"You can't lower the mayor's salary because you can starve a man out," Snyder said. "It's just very low. All of the individuals behind this, when I'm found innocent, which will be very shortly, will probably wish they didn't go this route."
He said he has legal help studying state law and the ordinances. He also dismissed claims the ordinances had nothing to do with his federal indictment last November on public corruption charges.
Snyder is a member of the board and appoints four of the seven members, with the council appointing the rest. The board typically appoints the mayor as its chairman with a $30,000 salary.
"It's one of the steps I think is necessary to bring back some credence back to the utility services board," said Council President Mark Oprisko, who is the board's vice chair.
Clerk-Treasurer Chris Stidham said the proposed ordinances are a direct result of Snyder's efforts last September to get the board to pay $93,000 in legal fees.
Snyder had not consulted any other board members or discussed the payments publicly up to that point. Oprisko called the attempt "an injustice."
In September, the board sent a $6,100 check to Portage-based legal firm Dogan and Dogan and almost $87,400 to Tom Kirsch, an attorney with Winston and Strawn. Both firms returned the checks, indicating they could not accept the checks from the board because they were representing Snyder as an individual.
At the time, Oprisko intervened to stop any reimbursements or payments related to the expenses.
"That was a pretty big deal," Stidham said.
The board also paid Snyder extra money as compensation for several city staff members who did work for the utility board outside of their normal duties.
The board and the City of Portage are two separate entities, but the City Council passes ordinances that affect leadership and other key elements of the board.
Stidham said he believes the ordinances, if passed, will pass legal muster as they are directed toward the board chairperson as an appointed official.
State law prohibits legislative bodies from eliminating or significantly reducing elected officers' salaries, which are set locally by salary ordinances.
Portage officials scrutinize mayor's trip to conference, inauguration
Joyce Russell
NWI Times
Feb 1, 2017
http://www.nwitimes.com/news/local/crime-and-courts/portage-officials-scrutinize-mayor-s-trip-to-conference-inauguration/article_f7a2d3e4-ea9b-5227-bd2b-63bcc83bf6a0.html
PORTAGE — Portage officials are scrutinizing a trip Mayor James Snyder took recently to Washington, D.C.
Snyder, along with his wife and four children, traveled to Washington, D.C., on Jan. 16, to attend the U.S. Conference of Mayors winter meeting and the inauguration of President Donald Trump.
In addition to the Snyders, Police Chief Troy Williams and Assistant Chief Ted Uzelac Jr. and Uzelac's son also attended the conference and inauguration.
Clerk-treasurer Chris Stidham, in a letter to City Council President Mark Oprisko, said he has "grave concerns" about the trip.
Stidham accused Snyder of "ordering" Williams and Uzelac to attend the conference to act as Snyder and his family's "security detail."
"Why the mayor, who is not a national figure nor recognizable in a crowd in D.C., thinks he is entitled to taxpayer-funded bodyguards while he travels is beyond comprehension," said Stidham, adding he believes Snyder has a "lack of respect" for taxpayers' money. He is requesting Snyder reimburse the city the cost of the police administrators travel. He is also asking the City Council to tighten up its travel ordinance.
In addition, Stidham said Snyder upgraded his hotel room from a $429-a-night standard room to a $539-a-night suite and has received reimbursement from the Utility Services Board.
In a written answer to Stidham, Snyder denied "ordering" the administrators to attend the conference and inauguration. He said he "granted them permission" based on the content of the conference. He also denied collecting any reimbursement from the Utility Services Board.
Williams said he was told by the mayor that conference organizers were suggesting mayors bring their own security detail.
"On the surface, I didn't see any issues," said Williams, adding Uzelac traveled with the mayor's family, in a separate vehicle, on Monday and he drove to Washington on Tuesday. He said they attended the conference for free because they were working as the mayor's security detail. Williams said he and Uzelac attended several informative workshops ranging from social justice to the COPS grant program and he even spoke at one meeting hosted by Gary Mayor Karen Freeman-Wilson.
Williams said they escorted the mayor and his family to both the inauguration on Friday, Jan. 20 and the inaugural ball later that night. During their entry into the gala, Williams said, they were confronted with protesters and he and Uzelac provided protection for the Snyders during the incident.
Williams called it a "working conference" in which he and Uzelac put together a security packet before the trip. He said a number of mayors had security details and others did not.
Snyder, who is awaiting trial on three felony charges in federal court, said he would contact the State Board of Accounts for their opinion on whether he can seek reimbursement for attending the inaugural activities.
City Council President Mark Oprisko said he believes it is "morally and ethically wrong" for Snyder to seek reimbursement for himself and his family to attend the inaugural festivities.
"It is sad he took two of our leaders off the street. That's just not right. If he had safety concerns, he shouldn't have taken his wife, his family, he shouldn't have gone," he said.
Oprisko said he is waiting to see the bills, but does not believe the city should pay for his or his family's attendance at any inaugural activities.
Attempts to reach Snyder on Wednesday for comment were unsuccessful.
Portage City Council calls for resignation of mayor
By - Associated Press
Washington Times
Wednesday, February 1, 2017
http://www.washingtontimes.com/news/2017/feb/1/portage-city-council-calls-for-resignation-of-mayo/
PORTAGE, Ind. (AP) - The Portage City Council is calling for the city’s mayor to resign after he was charged with tax evasion and bribery in November.
Council President Mark Oprisko and Councilman John Cannon, the council’s lone Republican, met Monday with Republican Mayor James Snyder, The (Northwest Indiana) Times (http://bit.ly/2jVpjCh ) reported.
Oprisko said he told the mayor that if he chooses not to resign, he should just collect his salary and let the city move forward. He said the council will try to remove him as chairman of the Utility Services Board regardless of his decision.
“I basically told him how I feel, as well as the others, that it is time to resign. The focus is now more on the indictment and the charges than the city,” Oprisko said.
Four out of the five other council members said they agree with the request. The fifth, Pat Clem, was out of town.
Oprisko said they want the mayor to resign for several reasons, including recent spending trends and the mayor’s attempt to pay $93,000 of his personal legal fees prior to his indictment without seeking approval from the Utility Services Board.
Portage officials ask for indicted mayor's resignation
Post-Tribune
January 31, 2017 - 11:01AM
Portage City Council President Mark Oprisko has joined a growing list of city officials calling for Mayor James Snyder to resign in light of his federal indictment in November on public corruption charges.
Oprisko also said the council may consider ordinances to neutralize Snyder as chairman of the Portage Utility Services Board.
"It's in the best interests of every official and every resident for (Snyder) to step aside," Oprisko said Monday. "We have great department heads. Let the city run. Let us run it so we don't have to keep hearing about the indictment."
In an e-mailed statement, Snyder remained defiant, citing his "American Civil Rights" and the presumption of innocence, while acknowledging the indictment "is weighing heavily on Portage."
"No Resigning!" Snyder responded when asked if was going to resign. He also said Portage residents continue "receiving the great services they have come to expect, and those services will continue because of the hard work of the public servants working."
Oprisko, D-at large, and Councilman John Cannon, R-4th, met with Snyder in City Hall. Oprisko also said he is "considering different options" to remove Snyder from his position as chairman of the Portage Utility Services Board or weaken him in that spot.
Cannon, who described the discussion with Snyder as "spirited," said he is a longtime friend of Snyder's, but the November indictment may be a factor in where the city goes from here. Cannon said he did not "directly ask the mayor" to step down.
"I think Council President Oprisko and myself, we have real concerns about our city and if there's something holding our city back from growing and holding back all of the wonderful things this mayor has done, then we have to address that," Cannon said. "(Snyder) may not be able to continue to do the wonderful things he's done if there's a cloud hanging over him."
In November, Snyder and John Cortina, owner of a towing company in the city, were indicted. Snyder was charged with one count of tax evasion and two counts of bribery.
In a final 2016 annual campaign finance report, Citizens for Snyder, the mayor's campaign committee, reported receiving $2,000 in direct support from Cortina and a $10,000 loan from the businessman.
On the Hammond courthouse steps Nov. 18, the day he was indicted, Snyder's attorney, Thomas Kirsch, indicated they could prove Snyder received a loan from Cortina, not a bribe.
The campaign finance report also showed Citizens for Snyder gave $6,300 to the Committee to Elect John Cannon between March and August last year for Cannon's failed run for county commissioner.
Cannon defended the contribution as part of his efforts and Snyder's efforts to give Portage residents more say at the county level.
"I'm assuming at some point in time I'll be put in same light as mayor because of that relationship and our party," Cannon said. "The perception may be we're connected at the hip, and that's the farthest thing from the truth.
"Campaigns are not about the person running. It's about what we're going to do to better the citizens of Portage."
The City Council agreed on asking Snyder to resign, Oprisko said, and one member, Collin Czilli, D-5th, in a separate statement, said Snyder is innocent until proven guilty, but "if Mayor Snyder truly believes in Portage's future success, it is incumbent on him to resign his office, effective immediately."
Clerk-Treasurer Chris Stidham called for Snyder's resignation earlier in January.
"I think it's a powerful message the president of the City Council has joined my previous call for Mayor Snyder to step down," Stidham said Monday. "My call was based on the fact this indictment was an enormous distraction."
Snyder seemed to shock city officials last September when he asked the utility board to pay for his more than $90,000 in legal fees, to that point, related to the federal investigation.
Oprisko, who is the vice chairman of the board, said he immediately sought to stop the board from paying the expenses,.
The council president said he is exploring ordinances to remove the mayor's office from the utility board seat or deny Snyder compensation.
Portage council call for mayor's resignation
Joyce Russell
Jan 30, 2017
NWI Times
PORTAGE — The City Council here has called for the resignation of Mayor James Snyder.
Council President Mark Oprisko, a Democrat, and Councilman John Cannon, the council's lone Republican, met with Snyder on Monday afternoon for more than an hour.
"I basically told him how I feel, as well as the others, that it is time to resign. The focus is now more on the indictment and the charges than the city," said Oprisko, adding he has had reports from employees that the mayor's legal status is impeding their jobs.
"I told him if you are not going to resign, stay home and collect your salary and let the city move forward," said Oprisko, adding that if he doesn't resign, the council will propose an ordinance to remove him as chairman of the Utility Services Board.
Snyder was indicted on three counts in federal court in November including bribery and tax evasion. His trial is set for April 10.
Oprisko said there are several reasons why they are calling for the mayor's resignation, including recent spending trends, the effort by the mayor to pay $93,000 of his personal legal fees prior to his indictment without seeking approval from the Utility Services Board and, most recently, his trip to Washington D.C. for a mayor's conference and to attend the presidential inauguration, taking two police administrators and his family.
Council members Sue Lynch, Liz Modesto, Scott Williams and Collin Czilli all said they agreed with Oprisko's and Cannon's request of the mayor. Member Pat Clem was out of the area.
"I am standing behind the city council members in asking him to resign," said Lynch. "If he truly loves the city, he needs to do what is best for the city."
"I am 100 percent in support of President Oprisko's decision to approach the mayor and ask him to step down," said Williams. "I believe the morale has been affected to prevent the city from operating properly and it is the time the council stepped forward and made a stand."
Modesto said "it is not just one thing, it is a combination of things" that caused her to agree to seek Snyder's resignation, citing recent issues with the mayor's spending.
"I still believe what I said in my statement of Nov. 18 to be true, Mayor Snyder is innocent until proven guilty and deserves his day in court," said Czilli. "However, after two months of consideration, I have reached the conclusion that if Mayor Snyder truly believes in Portage’s future success, it is incumbent on him to resign his office, effective immediately."
The council's call for Snyder's resignation follows that of Clerk-Treasurer Chris Stidham.
Snyder gave a statement to The Times via email saying "When I signed my oath of office there was no clause giving up my American Civil Rights, including my presumed innocence. My rights and my oath of office are no different than Councilman Oprisko or Councilman Cannon’s rights. They are correct that this is weighing heavily on Portage and we are operating well under these circumstances. Residents of Portage are receiving the great services they have come to expect and those services will continue because of the hard work of the public servants working. My dedication to working with other City elected officials has not feigned and together Portage will see more big things accomplished. Any rash decisions are ill advised and detrimental to the future of Portage."
Portage mayor raises, spends more than $136,000 in campaign funds
Joyce Russell
NWI Times
January 24, 2017
PORTAGE — Mayor James Snyder's 2016 campaign spending doesn't pass the "stink test," according to two Hoosier political analysts.
Snyder, who was elected in 2015, raised in excess of $136,000 in campaign funding last year and spent it all in 2016, according to his campaign finance report.
Among the contributions to his campaign, outlined in the 2016 year-end report of receipts and expenditures of a political committee released Friday, was a $2,000 donation and $10,000 loan from his co-defendant in his federal bribery case.
John Cortina, who was indicted along with Snyder in November, has made donations to Citizens for Snyder for many years, said Snyder's campaign treasurer, Kenard Taylor. The donations support the Mayor's Roundtable, which brings other mayors to Portage for events.
"This year he also lent the campaign $10,000," Taylor said.
Practice not unusual for larger cities
While 2016 was not a mayoral election year, and Snyder has said he will not seek a third term as mayor, Taylor said it is not unusual for some politicians to raise funds in an off year.
"You'll find it goes both ways through the state. He went out and raised money for other candidates. He wants to help people who will promote Portage, help people who can help his community," said Taylor, who prepares campaign finance reports for other candidates as well.
Andrew Downs, director of the Michael Downs Center for Indiana Politics at Indiana University Purdue University Fort Wayne, said it would not be uncommon for a politician to raise and spend money in an off-election year — had Snyder not announced he wasn't running for re-election.
Usually, said Downs and Hoosier political analyst Brian Howey, that is saved for larger cities and higher state or federal offices.
And while some candidates raise funds on off years, Howey said he finds it unusual for a mayor of a city the size of Portage to do so.
Commingling accounts
Howey was more surprised by Snyder's use of campaign funds to pay personal expenses.
Those include paying his wife $12,000 for campaign management; $11,300 to Taylor for consulting and financial services; $8,300 in rent toward his campaign office, which is shared space with his personal mortgage company; $9,700 to his company SRC LLC for his campaign's share in office supplies, equipment or salaries; $5,000 to himself as a loan repayment and $3,851 to Google for advertisements and web promotion.
There also are campaign expenses involving Snyder's golf outing and additional fundraisers, Taylor said.
"I haven't heard of that kind of intermingle of funds since the 1996 Pence congressional campaign," Howey said. "It is highly irregular commingling personal and campaign accounts."
Downs said Snyder's expenses are likely legal, but "don't pass the stink test."
Snyder did donate $12,300 to various Republican candidates and to the county Republican organization. He also used $22,000 to pay attorney Thomas Kirsh, who is defending him in federal court.
That too is legal, Taylor said, because the investigation and indictment involves his position as mayor.
Downs was surprised that Snyder maintains a campaign office year-round and pays campaign workers, as well as rent. Downs said even Fort Wayne's mayor doesn't maintain such an office. Most candidates, particularly in a city the size of Portage, might have a storefront for a few months around the election and a cellphone for someone to take calls.
Remaining expenditures went to meals, travel, charitable donations and other incidentals.
As for donations, Snyder received 35 donations of $2,000 or more, many coming from companies that do business with the city, including the city engineer, city attorney and Allen's Lawn Care, which holds the city's landscaping contract; Holladay Properties, developers of AmeriPlex and the Founders Promenade development; Marina Shores at Dune Harbor, which received approval to offer the first residential tax abatements in the city; Midnight Blue Towing, which is on the city's towing list; the Pangere Corp., contractors for the new fire station, and SEH of Munster, which holds several design/engineering contracts with the city.
Snyder's committee ended the year more than $19,000 in debt, including the loan from Cortina and the remaining money owed himself. He did not return an email request for comment.
EDITORIAL: Buncich, Snyder selfishly hold posts
NWI Times
The Times Editorial Board
The Times Editorial Board
Updated: January 16, 2017
The Times recently reported that Lake County Sheriff John Buncich sought a continuance in his federal criminal case in which the county's top lawman faces felony bribery charges.
In court filings, Buncich argued he needed more time to prepare his defense against the criminal indictment in Hammond federal court.
If Buncich would do the right thing and resign now, he would have more time to focus on his criminal charges, which will only cause further distractions and obstacles to the important business of serving as sheriff.
We've argued this before, but it's worth restating.
Buncich and Portage Mayor James Snyder, who faces a separate and unrelated federal bribery case, both should resign and stop hauling their constituents through the legal distractions and drama.
Both men face unrelated felony bribery charges related to towing contracts under the stewardship of their respective public offices.
It’s only going to get worse the longer they wait to step down.
One of Buncich’s chief deputies already has pleaded guilty in the scheme and pledged to aid federal prosecutors.
In the meantime, how many local and federal law enforcement agencies will want to continue partnering — or funding — an agency run by a leader facing federal felony charges?
The Lake County Sheriff's Department, like other local police agencies, frequently relies on federal funds for various law enforcement initiatives, including overtime money for special patrols.
It's hard to fathom any branch of the federal government looking favorably on granting money to a police agency whose leader is operating under such a dark shroud.
In both the case of Buncich and Snyder, abdicating office, guilty or not, is the right thing to do for both government reputations and taxpayers.
Mounting a defense against federal criminal charges will take immense time, effort and attention. It's impossible to conceive of there being much time left to focus on the important duties they were elected to execute.
Federal grand jury indictments accuse both Buncich and Snyder of illegally enriching themselves via their public offices. It's a clear allegation of greed infecting government.
If they're interested in showing their intentions are pure — which their pleas of not guilty portend — they'll take the selfless act of resigning.
Right now, they're showing nothing by selfishness in refusing to abdicate.
Nearly two months have passed since these charges were leveled. Constituents and fellow government leaders should apply more pressure for these men to do the right thing and step down.
Portage mayor's trial delayed until April
NWI Times
Updated Jan 11, 2017
PORTAGE — Mayor James Snyder's federal trial on bribery and tax evasion charges has been postponed. The trial will now begin April 10.
Snyder's attorney filed a motion for a continuance last month saying his firm had not received discovery materials from the federal government as yet. That motion was unopposed by the federal prosecutors and granted this week by the courts.
Snyder was indicted on three separate charges in November following a more-than-two-year investigation by the FBI.
He was released on bond the same day. His trial, along with that of co-defendant John Cortina, had been scheduled to begin Jan. 23.
Officials dispute north county complex future
NWI Times
Updated Jan 11, 2017
PORTAGE — Porter County government is taking a close look at its north county government complex, which at nearly 40 years old is falling short of today's needs.
If it is determined a new building is needed for the courts and other government offices, it likely will be constructed at the same site south of U.S. 6 along the west side of Willowcreek Road, according to Porter County Commissioner Jeff Good, R-Center.
But Portage Mayor James Snyder said he would prefer to see a new county building sited farther north in the city's downtown area, between the new fire and police stations.
The downtown location would provide the city with a much-needed anchor for the downtown, while fueling economic development for the city and county, he said. Development occurred around the site of the current location, he said, but now that that has occurred, it would be a lost opportunity for the downtown to put a new building up at the same site.
Porter County Commissioner Jim Biggs, R-North, said he understands Snyder's point of view, but agrees that it makes more sense for the county as a whole to rebuild, if necessary, at the same site.
The county already owns the land, and it's more easily accessible than the downtown, he said. The current site is also where there is the most potential for growth, especially if Willowcreek Road is one day extended south to U.S. 30.
Snyder said the downtown location would be closer to the Duneland area and easily reached by the Indiana Toll Road.
The county could sell the valuable land that it now owns, and the city would be willing to look at all options to make the downtown site a reality, he said.
Push in Portage for transparency delayed
Post-Tribune
January 06, 2017
Proposed ordinances to make towing agreements and all other agreements subject to more scrutiny in Portage were delayed even as some city council members wanted them quickly passed in the wake of indictments of the mayor and a towing company owner.
Four council members tried to suspend the rules and get the measures passed on first reading, but Councilman John Cannon (D-4th) voted against rushing a final vote. He has said he is a life-long friend of the son of John Cortina, who was indicted in November along with Mayor James Snyder, and expects to be interviewed by federal authorities about the corruption charges.
"We need to have a little more discussion on this. It's not an emergency to get it done, we've waited all this time," Cannon said. "I believe the only reason it was brought up is because of other issues around the city."
When asked if those other issues were the indictments, Cannon said, "that could be part of it."
Snyder was charged with taking bribes from Cortina's towing company and with tax evasion. He opened the recent council meeting but left soon afterward, citing a scheduling conflict. Council President Mark Oprisko and member Elizabeth Modesto did not attend the meeting.
One proposal would move approval of towing agreements from the Portage police chief to the city's Board of Works. The agreements generally have no dollar amounts, as they are not contracts and require no city funds since drivers bear the costs of towing.
Clerk-Treasurer Chris Stidham said the towing measure would subject such agreements to more public scrutiny.
"It makes (towing agreements) more transparent and open to the public, given everything that's going on," he said.
Portage Police Chief Troy Williams agreed with the Board of Works having authority over approving towing agreements.
"Pretty much everything is the same, but (the ordinance) just adds another level of transparency," Williams said. "(The council) is leaving the managing and overseeing of towing agreements to the chief of the police department."
The council also discussed a second measure to have all agreements entered into by the city go to the Board of Works for approval, even if those agreements cost the city nothing. Such agreements include contracts, where city money is spent, and memoranda of understanding, or MOUs.
Councilman Collin Czilli (D-5th) tried to introduce an amendment to the proposed ordinance that would require the Board of Works, the Port Authority, the Parks and Recreation Departments and the Redevelopment Commission to notify the council of agreements and contracts they enter into, but he later withdrew it.
The two measures overlap and probably could be combined, Cannon said after the meeting.
The council tabled the city agreements policy ordinance for a February meeting.
Portage looking to toughen towing regulations
NWI Times
January 04, 2017
PORTAGE — The City Council is looking at two ordinances aimed at making city business more transparent.
One is aimed at tightening regulations regarding the use of towing companies and was suggested by Clerk-Treasurer Chris Stidham following the November indictment of Mayor James Snyder. One count of the federal indictment involves bribery and a local tow company.
"This whole thing originated with an email I sent to the council and (Police Chief) Troy (Williams) seeking clarification of the city's current tow policy," Stidham said. "At the December council meeting I asked the council to draft a stronger ordinance addressing this issue.
"The whole goal is to simply make the process public. Currently, it is all the discretion of the chief of police. I didn't even know what tow companies were on the list prior to the indictments. So at the very least with the new ordinance people will know when the tow companies change," Stidham said.
The present tow policy was developed by former Police Chief Mark Becker and modeled after the one used by the Porter County Sheriff's Department. It was maintained when Troy Williams was named chief five years ago.
Basically, the policy sets forth a procedure to get on the city's towing list and lists various requirements of a towing company and sets fees the towing company can collect. The city does not collect fees from the towing company. If the company meets the requirements, it is signed by the police chief.
The proposed ordinance, which was introduced Tuesday night at a council meeting, would require the agreements between the police chief and towing company to also be approved by the Board of Works. Snyder was present at the beginning of the council meeting, but excused himself due to a previous engagement and left before discussion on the proposed ordinance began.
The ordinance passed first reading, with Councilman John Cannon, R-4th, voting against it.
"We need more discussion on it. There is no emergency. We need to discuss it in front of a full council," Cannon said. Council members Mark Oprisko and Liz Modesto were absent.
The second ordinance, which was suggested by Oprisko, would require all agreements, contracts, memorandums of understanding, pacts or commitments except those made by the Parks and Recreation Board, Port Authority Board or Redevelopment Commission to also be approved by the Board of Works.
Councilman Colin Czilli introduced an amendment to the ordinance which would require copies of contracts from the four boards to be presented to the City Council for review.
After discussion the council tabled the ordinance, saying members needed greater clarification on documents included in the approval and review process.
EDITORIAL: Resolve to push out corruption, promote civility
The Times Editorial Board
Updated Jan 1, 2017
Looking ahead with hope is one of the greatest opportunities a new year provides.
If 2016 is any indication, the Region has much to look forward to.
Here are a number of things Northwest Indiana, its leaders and citizens should resolve to work toward or realize in 2017:
Losing the chip
Our Region is notorious for its "us against them" mentality when it comes to relations with Indianapolis, state leaders and just about any other neighboring state or region.
Let 2017 be the year when the collective chip on our shoulders diminishes.
Northwest Indiana enjoys the economic and social benefits of a world-class city to our north with a far more attractive tax rate than Chicago — or our Illinois neighbors as a whole.
The Region hotel industry is booming, home construction is strong and our opportunities for economic growth remain within reach.
We enjoy one of the most beautiful freshwater coastlines in the world, with all of the recreational and natural resource benefits.
Region leaders from Lake, Porter and LaPorte counties are beginning to click with the important notion of our connected borders, economies and the need to share resources and ideas.
We have nothing about which to feel inferior. Lose the chip.
Clean government house
Despite the growing number of Region positives, a strong negative remains in some government leaders who believe public service is synonymous with self-enrichment.
Region leaders and residents should resolve to press for the resignations of Lake County Sheriff John Buncich and Portage Mayor James Snyder in 2017.
Both men face felony criminal charges in Hammond federal court in separate bribery schemes.
Guilty or not — and both will have their days in court — Buncich and Snyder should be pressured to resign by fellow public officials and party leaders.
The shroud of their criminal cases will continue to damage the reputations of their respective political offices and constituencies.
Lake County Councilman Jamal Washington, who pleaded guilty earlier this month to battering his wife, also should be pressed to resign.
Washington pleaded guilty to a misdemeanor battery count, thus avoiding trial on the original felonies he faced in Porter County Criminal Court.
But our elected leaders shouldn't have the repugnant embarrassment of a battery conviction looming over local government.
Washington remaining on the council continues to send a message that battering women holds little consequence.
Commuter rail
The economic benefits of expanding the South Shore commuter rail line have been demonstrated time and again.
We know commuter rail expansion attracts young professionals and their families to communities. It also further connects existing residents with the jobs and social opportunities afforded by Chicago.
Communities not already fully on board with expanding the line to Dyer and double-tracking the Region line for speedier commutes should punch their tickets in 2017.
Civility Counts
This is a no-brainer.
Mocking people, calling them names or degrading them is bad social and political policy and shows poor character.
The Community Civility Counts initiative began as a partnership between the Gary Chamber of Commerce and The Times and has grown to a nationally recognized movement.
Resolve to strive for more civility in 2017.
It's a smarter, kinder and more thoughtful way of conducting ourselves.
If 2016 is any indication, the Region has much to look forward to.
Here are a number of things Northwest Indiana, its leaders and citizens should resolve to work toward or realize in 2017:
Losing the chip
Our Region is notorious for its "us against them" mentality when it comes to relations with Indianapolis, state leaders and just about any other neighboring state or region.
Let 2017 be the year when the collective chip on our shoulders diminishes.
Northwest Indiana enjoys the economic and social benefits of a world-class city to our north with a far more attractive tax rate than Chicago — or our Illinois neighbors as a whole.
The Region hotel industry is booming, home construction is strong and our opportunities for economic growth remain within reach.
We enjoy one of the most beautiful freshwater coastlines in the world, with all of the recreational and natural resource benefits.
Region leaders from Lake, Porter and LaPorte counties are beginning to click with the important notion of our connected borders, economies and the need to share resources and ideas.
We have nothing about which to feel inferior. Lose the chip.
Clean government house
Despite the growing number of Region positives, a strong negative remains in some government leaders who believe public service is synonymous with self-enrichment.
Region leaders and residents should resolve to press for the resignations of Lake County Sheriff John Buncich and Portage Mayor James Snyder in 2017.
Both men face felony criminal charges in Hammond federal court in separate bribery schemes.
Guilty or not — and both will have their days in court — Buncich and Snyder should be pressured to resign by fellow public officials and party leaders.
The shroud of their criminal cases will continue to damage the reputations of their respective political offices and constituencies.
Lake County Councilman Jamal Washington, who pleaded guilty earlier this month to battering his wife, also should be pressed to resign.
Washington pleaded guilty to a misdemeanor battery count, thus avoiding trial on the original felonies he faced in Porter County Criminal Court.
But our elected leaders shouldn't have the repugnant embarrassment of a battery conviction looming over local government.
Washington remaining on the council continues to send a message that battering women holds little consequence.
Commuter rail
The economic benefits of expanding the South Shore commuter rail line have been demonstrated time and again.
We know commuter rail expansion attracts young professionals and their families to communities. It also further connects existing residents with the jobs and social opportunities afforded by Chicago.
Communities not already fully on board with expanding the line to Dyer and double-tracking the Region line for speedier commutes should punch their tickets in 2017.
Civility Counts
This is a no-brainer.
Mocking people, calling them names or degrading them is bad social and political policy and shows poor character.
The Community Civility Counts initiative began as a partnership between the Gary Chamber of Commerce and The Times and has grown to a nationally recognized movement.
Resolve to strive for more civility in 2017.
It's a smarter, kinder and more thoughtful way of conducting ourselves.
Mixed year for GOP in Porter, LaPorte counties
NWI Times
December 29, 2016
It was a mixed year for Republicans in Porter and LaPorte counties.
While the GOP reclaimed control of the Porter County Council and the LaPorte County Board of Commissioners during the fall general election, they also saw one of their own — Portage Mayor James Snyder — indicted on federal bribery and obstruction charges.
Snyder, who has pleaded not guilty, said in a guest column in The Times earlier this month, "People who know me well, and even many who know me just in passing, are confident that there is no way the accusations leveled at me are true."
Nearly two weeks after Snyder was indicted, the FBI returned to interview Portage Police Chief Troy Williams, who said no members of his department were mentioned as being the subject of the continued investigation.
Porter County Republican Chairman Mike Simpson said Snyder is presumed innocent.
"I think he's done a marvelous job as mayor," Simpson said.
He said it's been an exceptional year for Republicans at the local, state and national levels, and that means exciting things are ahead at the county level.
"I think we're bringing a lot to the table in financial management and fiscal responsibility," Simpson said.
Dems lose council seat
Republicans won back control of the Porter County Council in November with the victory of newcomer Jeff Larson over Democrat incumbent Bob Poparad.
Republicans will have 4-3 control on the council come Jan. 1 and the advantage of Republicans maintaining a 2-1 majority on the Porter County Board of Commissioners.
Republican County Councilman Jim Biggs, who was elected to return as commissioner after being away for 16 years, said residents can expect to see some positive changes.
Biggs defeated Jeff Chidester, who heads up the county Democratic Party, to step into the post being vacated by fellow Republican John Evans.
Chidester said Hillary Clinton's big loss in Indiana had a trickle down effect on races statewide, including his own.
But he said Democrats lost only one seat at the county level (Poparad) and picked up a seat in the Statehouse.
"Overall, it's not as gloomy as some may think," he said.
County Commissioner Evans is retiring at the end of the year after 40 years of service to county government in that post and with the coroner's office.
Just a day after his peers bid him a fond farewell earlier this month, federal officials declined to say whether Evans remains a target of a criminal investigation.
The inquiry came from the Porter County Council after Evans asked to be reimbursed for $5,000 in legal fees associated with the investigation. The council was advised by its attorney that the law allows for elected officials to be reimbursed, but only if it is confirmed the investigation is over and no indictment is coming.
Changes in LaPorte County
Changes also appear to be in store in LaPorte County after Republicans took control of the LaPorte County Board of Commissioners.
Voters chose former County Councilman Richard Mrozinski, who recently switched from Democrat to Republican, over incumbent Democratic Commissioner David Decker.
Incumbent Democrat Dr. Vidya Kora was re-elected.
Decker was defeated just days after he was arrested and charged with leaving the scene of an accident for a fender bender in a county annex parking lot.
Decker felt what he called the “Trump Factor” had more to do with his defeat than his arrest.
LaPorte County Democratic Chairman John Jones said the two major parties have volleyed control of the commissioners' office back and forth every few years.
Jones voiced confidence in Mrozinski, with whom he had once served on the County Council.
"He was a good councilman then, and I expect he will bring good leadership to the commissioners as well," he said.
Shaw Friedman, once chairman of the LaPorte County Democratic Party, appears on his way out as county attorney, a position he’s held for the past four years.
Mrozinski has said he will propose a salary for the position and bidding out the job, a move he believes will save the county as much as $100,000 or more each year. Until now, the commissioners have made the appointment and the attorney was paid on an hourly basis.
Mike Gonder, the chairman of the LaPorte County Republican Party, was selected at a party caucus earlier this month to fill a vacancy on the board of commissioners.
Gonder will serve the remaining two years of the term of Mike Bohacek, a Republican from Michiana Shores recently elected to the state Senate.
County assessor Jon Snyder cries foul over location of tax hearing
NWI Times
Updated Dec 28, 2016
http://www.nwitimes.com/news/local/govt-and-politics/county-assessor-cries-foul-over-location-of-tax-hearing/article_dc725e43-7fa6-5c0f-ac78-9f5f5f9fefd6.html
VALPARAISO — Porter County Assessor Jon Snyder has taken legal action in hopes of stopping the state from making the unusual move of holding a hearing in Indianapolis for a Hebron apartment complex seeking to retain its tax exempt status.
"They've always been held up here," Snyder said of the hearings before the Indiana Board of Tax Review.
Why this one is being handled differently, he could not say and officials with the tax review board were not readily available Tuesday for comment.
Snyder, through attorney John Bushemi, filed a motion seeking to move the Jan. 18 hearing from the Indiana Government Center South in Indianapolis to the Porter County Administration Center in Valparaiso.
The hearing was triggered when the owners of the Misty Glen apartment complex in Hebron appealed the 2013 decision by the Porter County Property Tax Assessment Board of Appeals to withdraw the unit's tax exempt status. The three-member board agreed that the owners, Hebron-Vision LLC, failed to show it qualifies for the breaks through charitable efforts.
Snyder's motion says the rules of procedure "permit the hearing before an administrative law judge to be held in the county in which the property subject to the appeal is located, which in this case is Porter County."
Snyder said Tuesday, "In the spirit of transparency the taxpayers of Hebron should have the opportunity to attend this appeal hearing so that they can better understand how their tax bill is impacted by tax exemptions."
The nearly 11-year-old Hebron-Vision LLC company is listed with the state as being based in Indianapolis. A telephone message left for the registered agent was not immediately returned.
The five-building, 80-apartment complex at 99 Misty Lane was granted tax exempt status in 2009 by the Indiana Board of Tax Review.
"The taxpayers need to understand why, if they do it again," Snyder said.
Hebron-Vision LLC argues in its appeal the property is used to provide "safe, decent and affordable housing in a charitable manner for ... low-income and very low-income individuals and families."
"Through those acts, a benefit inures to the public sufficient to justify the loss of tax revenue," according to the appeal
Board of appeals member Nicholas Sommer had said the tax exempt status was pulled because there was no evidence presented during the March 2013 hearing of charitable or educational efforts on behalf of the apartment operators.
Hebron-Vision, which purchased the complex in September 2007, argued at the time it received the exemption that it offers services to tenants such as newsletters, referral programs, holiday parties, access to office equipment and free blood pressure screenings.
Sommer said the rental rates are compatible with the Hebron market and not significantly better than competing units, he said.
Property Tax Assessment Board of Appeals member Joe Wszolek said the operators evict residents who are unable to pay their rent.
Sommer said the evidence also showed Misty Glen is generating a profit, which is not being kept in Porter County.
Sandy Bickel, an Indianapolis attorney representing Hebron-Vision, said at the time the affordable housing provided at the complex probably will be lost if the tax exemption is removed.
She said it is very unusual for a county to initiate an effort like this to remove tax exemption granted by the state.
Feds won't confirm if Evans is still under investigation
NWI Times
Dec 21, 2016
http://www.nwitimes.com/news/local/govt-and-politics/feds-won-t-confirm-if-evans-is-still-under-investigation/article_295e665e-a52b-5177-8cc2-e497c121b878.html
"They've always been held up here," Snyder said of the hearings before the Indiana Board of Tax Review.
Why this one is being handled differently, he could not say and officials with the tax review board were not readily available Tuesday for comment.
Snyder, through attorney John Bushemi, filed a motion seeking to move the Jan. 18 hearing from the Indiana Government Center South in Indianapolis to the Porter County Administration Center in Valparaiso.
The hearing was triggered when the owners of the Misty Glen apartment complex in Hebron appealed the 2013 decision by the Porter County Property Tax Assessment Board of Appeals to withdraw the unit's tax exempt status. The three-member board agreed that the owners, Hebron-Vision LLC, failed to show it qualifies for the breaks through charitable efforts.
Snyder's motion says the rules of procedure "permit the hearing before an administrative law judge to be held in the county in which the property subject to the appeal is located, which in this case is Porter County."
Snyder said Tuesday, "In the spirit of transparency the taxpayers of Hebron should have the opportunity to attend this appeal hearing so that they can better understand how their tax bill is impacted by tax exemptions."
The nearly 11-year-old Hebron-Vision LLC company is listed with the state as being based in Indianapolis. A telephone message left for the registered agent was not immediately returned.
The five-building, 80-apartment complex at 99 Misty Lane was granted tax exempt status in 2009 by the Indiana Board of Tax Review.
"The taxpayers need to understand why, if they do it again," Snyder said.
Hebron-Vision LLC argues in its appeal the property is used to provide "safe, decent and affordable housing in a charitable manner for ... low-income and very low-income individuals and families."
"Through those acts, a benefit inures to the public sufficient to justify the loss of tax revenue," according to the appeal
Board of appeals member Nicholas Sommer had said the tax exempt status was pulled because there was no evidence presented during the March 2013 hearing of charitable or educational efforts on behalf of the apartment operators.
Hebron-Vision, which purchased the complex in September 2007, argued at the time it received the exemption that it offers services to tenants such as newsletters, referral programs, holiday parties, access to office equipment and free blood pressure screenings.
Sommer said the rental rates are compatible with the Hebron market and not significantly better than competing units, he said.
Property Tax Assessment Board of Appeals member Joe Wszolek said the operators evict residents who are unable to pay their rent.
Sommer said the evidence also showed Misty Glen is generating a profit, which is not being kept in Porter County.
Sandy Bickel, an Indianapolis attorney representing Hebron-Vision, said at the time the affordable housing provided at the complex probably will be lost if the tax exemption is removed.
She said it is very unusual for a county to initiate an effort like this to remove tax exemption granted by the state.
Feds won't confirm if Evans is still under investigation
NWI Times
Dec 21, 2016
http://www.nwitimes.com/news/local/govt-and-politics/feds-won-t-confirm-if-evans-is-still-under-investigation/article_295e665e-a52b-5177-8cc2-e497c121b878.html
VALPARAISO — Federal officials will not say whether Porter County Board of Commissioners President John Evans remains a target of an investigation.
The Porter County Council inquired about the status of the case after Evans, a Republican, approached the council earlier this month and asked to be reimbursed for $5,000 in legal fees associated with the investigation.
The law allows for elected officials to be reimbursed, but only if it is confirmed the investigation is over and no indictment is coming, Council Attorney Harold Harper has said.
Harper confirmed Wednesday that he spoke with David Capp, U.S. attorney for the Northern District of Indiana, who said a letter to the council will be forthcoming.
When contacted by Wednesday by The Times for comment, Evans said, "It is my understanding and confirmed by my attorney at the outset of the investigation that I was indeed the target. What they are not confirming is whether or not the investigation is over, but then again I'm told they never do."
Porter County Council President Dan Whitten said Wednesday he has seen this type of confirmation for clients he has represented in his private legal practice.
Evans is entitled to the reimbursement, he said, but not until there is confirmation the investigation is over.
"At this point, we are sort of in a holding pattern," he said.
Evans, whose term as a commissioner expires at the year's end, was honored Tuesday for 40 years of service to county government in that department and with the coroner's office.
State Rep. Ed Soliday, R-Valparaiso, presented Evans with Distinguished Hoosier recognition.
Republican Portage Mayor James Snyder was indicted last month on federal counts of felony bribery, extortion and tax dodging, which carry long prison terms if he is convicted. He pleaded not guilty.
Snyder requested reimbursement of his legal fees prior to his indictment.
The Porter County Council will not meet again unit January.
The Porter County Council inquired about the status of the case after Evans, a Republican, approached the council earlier this month and asked to be reimbursed for $5,000 in legal fees associated with the investigation.
The law allows for elected officials to be reimbursed, but only if it is confirmed the investigation is over and no indictment is coming, Council Attorney Harold Harper has said.
Harper confirmed Wednesday that he spoke with David Capp, U.S. attorney for the Northern District of Indiana, who said a letter to the council will be forthcoming.
When contacted by Wednesday by The Times for comment, Evans said, "It is my understanding and confirmed by my attorney at the outset of the investigation that I was indeed the target. What they are not confirming is whether or not the investigation is over, but then again I'm told they never do."
Porter County Council President Dan Whitten said Wednesday he has seen this type of confirmation for clients he has represented in his private legal practice.
Evans is entitled to the reimbursement, he said, but not until there is confirmation the investigation is over.
"At this point, we are sort of in a holding pattern," he said.
Evans, whose term as a commissioner expires at the year's end, was honored Tuesday for 40 years of service to county government in that department and with the coroner's office.
State Rep. Ed Soliday, R-Valparaiso, presented Evans with Distinguished Hoosier recognition.
Republican Portage Mayor James Snyder was indicted last month on federal counts of felony bribery, extortion and tax dodging, which carry long prison terms if he is convicted. He pleaded not guilty.
Snyder requested reimbursement of his legal fees prior to his indictment.
The Porter County Council will not meet again unit January.
Evans closes out 40-year career with strike of gavel
Post-Tribune
December 20, 2016 - 4:21PM
http://www.chicagotribune.com/suburbs/post-tribune/news/ct-ptb-porter-commissioners-meet-st-1222-20161220-story.html
Post-Tribune
December 20, 2016 - 4:21PM
http://www.chicagotribune.com/suburbs/post-tribune/news/ct-ptb-porter-commissioners-meet-st-1222-20161220-story.html
Board of Commissioners President John Evans said at the end of Tuesday's meeting that commissioners meetings throughout the year are recessed and it's only the last one of the year that's adjourned.
"Today," he said, gavel in hand, which he gave a loud thud, "we stand adjourned."
Dozens of department heads, fellow elected officials and supporters applauded and gave him a standing ovation.
After 40 years serving the county, including time in the coroner's office, as that office's chief deputy, and then as coroner, before Evans, R-North, was elected to four consecutive terms as a commissioner, Evans' career in public service came to an end with his last commissioners meeting.
He chose not to seek re-election; Jim Biggs, a Republican who represents District 1 on the County Council, won election to Evans' spot.
Well-wishers streamed through the meeting, thanking Evans after he conducted routine business for contracts, resolutions and other matters.
"I want to take a moment to thank you," said facilities director Matt Stechly, who was hired shortly after the start of the year, adding he'd appeared before the commissioners and the County Council numerous times. "Your leadership has been outstanding. You've allowed us to do a lot. It's been a tough year but you have a lot to be proud of."
State Rep. Ed Soliday, R-Valparaiso, presented Evans with a Distinguished Hoosier Award from Gov. Mike Pence. The plaque notes the honor is bestowed on individuals who "distinguish themselves through significant contributions to their communities," among other characteristics.
"It's a privilege to be before you today with mixed emotions. It's a lot of years you've been here and served our community well," Soliday said, joking that the only thing he would hold against Evans is that he and the late Ralph Ayres convinced him to run for office. "We're very, very proud of the work you've done here."
Evans, who owns and managed Edmonds and Evans Funeral Homes in Portage and Chesterton, announced in February he would not seek another term. At the time, he said he wanted to devote more time to his wife, Laurie Wehner-Evans, and noted the county's sound financial footing after significant budget challenges.
"I didn't think this day would ever get here," he said, thanking the people of Porter County and adding he saw people in the crowd he saw his first day with the county.
He said he's been overwhelmed the past couple of days by messages from supporters.
"You just show up and do what's right and people appreciate it," he said.
"Today," he said, gavel in hand, which he gave a loud thud, "we stand adjourned."
Dozens of department heads, fellow elected officials and supporters applauded and gave him a standing ovation.
After 40 years serving the county, including time in the coroner's office, as that office's chief deputy, and then as coroner, before Evans, R-North, was elected to four consecutive terms as a commissioner, Evans' career in public service came to an end with his last commissioners meeting.
He chose not to seek re-election; Jim Biggs, a Republican who represents District 1 on the County Council, won election to Evans' spot.
Well-wishers streamed through the meeting, thanking Evans after he conducted routine business for contracts, resolutions and other matters.
"I want to take a moment to thank you," said facilities director Matt Stechly, who was hired shortly after the start of the year, adding he'd appeared before the commissioners and the County Council numerous times. "Your leadership has been outstanding. You've allowed us to do a lot. It's been a tough year but you have a lot to be proud of."
State Rep. Ed Soliday, R-Valparaiso, presented Evans with a Distinguished Hoosier Award from Gov. Mike Pence. The plaque notes the honor is bestowed on individuals who "distinguish themselves through significant contributions to their communities," among other characteristics.
"It's a privilege to be before you today with mixed emotions. It's a lot of years you've been here and served our community well," Soliday said, joking that the only thing he would hold against Evans is that he and the late Ralph Ayres convinced him to run for office. "We're very, very proud of the work you've done here."
Evans, who owns and managed Edmonds and Evans Funeral Homes in Portage and Chesterton, announced in February he would not seek another term. At the time, he said he wanted to devote more time to his wife, Laurie Wehner-Evans, and noted the county's sound financial footing after significant budget challenges.
"I didn't think this day would ever get here," he said, thanking the people of Porter County and adding he saw people in the crowd he saw his first day with the county.
He said he's been overwhelmed the past couple of days by messages from supporters.
"You just show up and do what's right and people appreciate it," he said.
John Evans brings 40 years of county service to an end
NWI Times
December 20, 2016
http://www.nwitimes.com/news/local/govt-and-politics/john-evans-brings-years-of-county-service-to-an-end/article_f2fa0873-97b1-5458-886f-15874ade254b.html
NWI Times
December 20, 2016
http://www.nwitimes.com/news/local/govt-and-politics/john-evans-brings-years-of-county-service-to-an-end/article_f2fa0873-97b1-5458-886f-15874ade254b.html
VALPARAISO — John Evans, Porter County Board of Commissioners president, slammed down the gavel Tuesday afternoon, bringing an end not only to the group's last business meeting of the year, but also to four decades of service to county government.
"I didn't think this day would ever get here," Evans said.
Looking out on those who attended the meeting for business or simply to say goodbye, Evans reflected on how many of the faces were the same when he first took over as commissioner 16 years ago.
The funeral director and owner of the Edmonds & Evans Funeral Home and Heritage Cemetery had earlier been associated with the county coroner's office for 25 years. The Republican held the elected post of coroner for four terms.
"This is a guy who has never lost an election," Commissioner Laura Blaney, D-South, said when presenting Evans with a plaque of appreciation.
Evans also was presented Tuesday with a Distinguished Hoosier recognition from state Rep. Ed Soliday, R-Valparaiso.
"Indiana treasures individuals who give their time and talents out of an abiding sense of responsibility, commitment and concern for others," the plaque reads.
Soliday joked that he was not holding it against Evans that he and former state Rep. Ralph Ayres, R-Chesterton, had talked him into running for his Statehouse seat.
"We're very, very proud of the work you've done," Soliday said.
Earlier, during the business portion of the meeting, Mike Anton, who is the servicing agent for the county's health insurance plan, lauded Evans.
"It's been a pleasure to work with you," he said.
Evans said he has been overwhelmed by the outpouring of well-wishes he has received over the last several days. He read a short writing that spoke about doing good in the face of opposition and said that had been his intention.
"I didn't think this day would ever get here," Evans said.
Looking out on those who attended the meeting for business or simply to say goodbye, Evans reflected on how many of the faces were the same when he first took over as commissioner 16 years ago.
The funeral director and owner of the Edmonds & Evans Funeral Home and Heritage Cemetery had earlier been associated with the county coroner's office for 25 years. The Republican held the elected post of coroner for four terms.
"This is a guy who has never lost an election," Commissioner Laura Blaney, D-South, said when presenting Evans with a plaque of appreciation.
Evans also was presented Tuesday with a Distinguished Hoosier recognition from state Rep. Ed Soliday, R-Valparaiso.
"Indiana treasures individuals who give their time and talents out of an abiding sense of responsibility, commitment and concern for others," the plaque reads.
Soliday joked that he was not holding it against Evans that he and former state Rep. Ralph Ayres, R-Chesterton, had talked him into running for his Statehouse seat.
"We're very, very proud of the work you've done," Soliday said.
Earlier, during the business portion of the meeting, Mike Anton, who is the servicing agent for the county's health insurance plan, lauded Evans.
"It's been a pleasure to work with you," he said.
Evans said he has been overwhelmed by the outpouring of well-wishes he has received over the last several days. He read a short writing that spoke about doing good in the face of opposition and said that had been his intention.
EDITORIAL: E.C. lead crisis shows cost of corruption
NWI Times
The Times Editorial Board
Updated - December 19, 2016 - 12:00PM
A history of public corruption paved the way to East Chicago's lead contamination crisis, and now real lives are on the line.
Northwest Indiana is no stranger to kickbacks, bribes and political corruption convictions.
More than 60 public officials or their allies and preferred contractors have been convicted of various corruption charges in U.S. District Court in Hammond since the 1980s.
Right now, Lake County Sheriff John Buncich and Portage Mayor James Snyder face federal charges for bribery in separate towing schemes. Many more have been convicted of other public corruption crimes over the years.
In most of these cases, the crimes impacted taxpayers' wallets, often including the misuse of public funds or property for the personal gain of others.
Those elements were present in spades during the creation of East Chicago's West Calumet Housing Complex during the 1970s, as shown by the reporting of Times reporters Sarah Reese and Lauren Cross last week.
Resulting court testimony revealed the authority's director took more than $100,000 in kickbacks for helping steer various contracts related to the low-income housing project to friends and associates.
One of the alleged bribes was for demolishing a shuttered lead factory at the site.
It's unclear whether the bad actors associated with the complex's creation knew of the potential health risks.
But the stark reality in 2016, more than 40 years later, is a low-income housing complex that has exposed hundreds of residents, many of them children, to unsafe lead levels for decades.
The crisis has been well documented in The Times dating back to summer months.
The area is now seen as an imminent health emergency. More than 1,000 residents are being relocated, and untold health damage already has been done.
The history of the West Calumet neighborhood's creation through the fire and anvil of corruption reminds us all of an unacceptable price tag connected to unscrupulous, political greed.
The U.S. attorney's office in Hammond must continue to hunt down and weed out such elements that persist in today's political landscape.
Voters must demand, with a new and unified voice, the resignation of all who are implicated in such schemes.
Tax dollars and public resources aren't the only things at risk. Human well-being can hang in the balance.
The Times Editorial Board
Members of The Times Editorial Board are Publisher Christopher T. White, Editorial Page Editor Marc Chase, Editor Bob Heisse, Politics/History Editor Doug Ross and Managing Editor Erin Orr.
Portage mayor files for continuance in federal case
NWI Times
Updated - December 16, 2016
HAMMOND — Portage Mayor James Snyder is seeking a continuance in his federal corruption case.
In a motion filed this week, Snyder's attorney, Thomas Kirsch, asked the court to continue the deadline to file pretrial motions for 90 days or until March 16, 2017. Kirsch said they have not received discovery materials from the federal government as of this week. In addition, Kirsch writes that he has a previously set trial beginning Jan. 30.
The motion is not being opposed by federal attorneys. A hearing has not yet been set by the court.
Snyder was indicted Nov. 18 on bribery and tax evasion charges. He was released on bond the same day. His trial, along with that of co-defendant John Cortina, had been scheduled to begin Jan. 23.
GUEST COMMENTARY: Snyder should resign for good of Portage
NWI Times
Chris Stidham - Portage Clerk-Treasurer
Dec 15, 2016
http://www.nwitimes.com/news/opinion/columnists/guest-commentary/guest-commentary-snyder-should-resign-for-good-of-portage/article_77331fc1-6ece-56e9-900d-77194e9c9806.html
I write this as a fellow elected official and constituent of Portage Mayor Jim Snyder. Much has been said by residents and elected leaders alike about his recent indictment. Not wanting to respond in knee-jerk fashion, I have tried to be more deliberate in my response.
As an attorney, I believe absolutely that Jim Snyder is innocent until proven guilty. But I also know that a grand jury of at least 16 everyday citizens found there was enough evidence to justify that the accusations are probably true. That's what the federal grand jury said when it returned three indictments against Snyder.
I have spent countless hours since Snyder's indictment reflecting on the best way to keep Portage moving forward. This is a serious and solemn matter, which deserves thoughtful and careful consideration. I've taken a look at all sides of the issue, including Jim Snyder's, in reaching a sincere conclusion.
As elected officials, we are specially entrusted as the people's representatives. That means we are held to a higher standard than the average citizen. Our job is a position of trust and confidence like few others. When an indictment brings that confidence into question, it creates serious concerns as to the ability of that official to continue serving the people.
The question of Jim Snyder's tenure as mayor is not a question of his guilt. Nor is it about "piling on" or scoring political points. It's not even about what's best for him; it's actually about what's best for Portage.
So what is best for Portage? A mayor distracted by a federal indictment? A mayor distracted by the trial of his life? A mayor distracted by constant questions about ethics? Where any deal, purchase, or agreement made by the mayor is looked at with suspicion? Where the CEO of a potential new employer wonders if they should sit across the negotiation table with an indicted mayor?
Simply put, whatever you believe about the nature of the FBI's years long investigation or resulting indictment, it is a dark cloud that looms over every aspect of this government. And whether we like to admit it or not, the cloud brings devastating repercussions for the city and its progress. And that cloud hangs over Portage because of Snyder.
Only when the cloud is removed can the city begin healing. Only then can the public's faith in government be restored. Only then can that next new business looking at Portage have faith and confidence in its potential new home. Most importantly, only then can we know, without doubt, that our highest elected leader is above reproach.
There's no doubt that some great things have happened in Portage in the last five years. That's a testament to the city's leadership team and the amazing city employees who work so hard every day. And if we could only live in our past successes, then that might be enough to sustain our future. But instead we must always look to tomorrow and how we can make each new day better than the last.
Certainly, putting on a brave face and carrying on as mayor is what's best for Snyder. Sadly, my heart tells me it's not what's best for Portage. Snyder should resign as mayor so the heavy weight of his indictment no longer hangs on this great city.
Chris Stidham is clerk-treasurer for the city of Portage. The opinions are the writer's.
NWI Times
Chris Stidham - Portage Clerk-Treasurer
Dec 15, 2016
http://www.nwitimes.com/news/opinion/columnists/guest-commentary/guest-commentary-snyder-should-resign-for-good-of-portage/article_77331fc1-6ece-56e9-900d-77194e9c9806.html
I write this as a fellow elected official and constituent of Portage Mayor Jim Snyder. Much has been said by residents and elected leaders alike about his recent indictment. Not wanting to respond in knee-jerk fashion, I have tried to be more deliberate in my response.
As an attorney, I believe absolutely that Jim Snyder is innocent until proven guilty. But I also know that a grand jury of at least 16 everyday citizens found there was enough evidence to justify that the accusations are probably true. That's what the federal grand jury said when it returned three indictments against Snyder.
I have spent countless hours since Snyder's indictment reflecting on the best way to keep Portage moving forward. This is a serious and solemn matter, which deserves thoughtful and careful consideration. I've taken a look at all sides of the issue, including Jim Snyder's, in reaching a sincere conclusion.
As elected officials, we are specially entrusted as the people's representatives. That means we are held to a higher standard than the average citizen. Our job is a position of trust and confidence like few others. When an indictment brings that confidence into question, it creates serious concerns as to the ability of that official to continue serving the people.
The question of Jim Snyder's tenure as mayor is not a question of his guilt. Nor is it about "piling on" or scoring political points. It's not even about what's best for him; it's actually about what's best for Portage.
So what is best for Portage? A mayor distracted by a federal indictment? A mayor distracted by the trial of his life? A mayor distracted by constant questions about ethics? Where any deal, purchase, or agreement made by the mayor is looked at with suspicion? Where the CEO of a potential new employer wonders if they should sit across the negotiation table with an indicted mayor?
Simply put, whatever you believe about the nature of the FBI's years long investigation or resulting indictment, it is a dark cloud that looms over every aspect of this government. And whether we like to admit it or not, the cloud brings devastating repercussions for the city and its progress. And that cloud hangs over Portage because of Snyder.
Only when the cloud is removed can the city begin healing. Only then can the public's faith in government be restored. Only then can that next new business looking at Portage have faith and confidence in its potential new home. Most importantly, only then can we know, without doubt, that our highest elected leader is above reproach.
There's no doubt that some great things have happened in Portage in the last five years. That's a testament to the city's leadership team and the amazing city employees who work so hard every day. And if we could only live in our past successes, then that might be enough to sustain our future. But instead we must always look to tomorrow and how we can make each new day better than the last.
Certainly, putting on a brave face and carrying on as mayor is what's best for Snyder. Sadly, my heart tells me it's not what's best for Portage. Snyder should resign as mayor so the heavy weight of his indictment no longer hangs on this great city.
Chris Stidham is clerk-treasurer for the city of Portage. The opinions are the writer's.
Portage will move to eminant domain for park landmark
NWI Times
December 16, 2016
http://www.nwitimes.com/news/local/govt-and-politics/portage-will-move-to-eminant-domain-for-park-landrk/article_bb07281a-f0ff-5acc-9918-1bf08264d3ee.html
PORTAGE — City officials have approved starting eminent domain proceedings to gain ownership of Dombey Lake.
At the Redevelopment Commission this past week, City Attorney Gregg Sobkowski said the city got two appraisals for the property and made an offer for the average of the two, $141,100, to the property owner.
The offer was not accepted by the property owner, said Sobkowski.
The next step, which the commission approved by a 4-1 vote, was to authorize the Board of Works to begin eminent domain procedures. Member John Cannon voted against condemning the property.
The city intends to turn the 38 acres, which includes the 13-acre lake, into a west side neighborhood park. The lake itself is a barrow pit dug for material to be used during the construction of the Indiana Toll Road, but the east side of the property is sand dunes and woods.
The property was owned by J.B. Lawrence, a local businessman, and has been held in trust since his death.
In other business, the commission approved moving forward with the purchase of another parcel of property. The commission will offer owners of a 2.5-acre parcel on the west side of Stagecoach Road and U.S. 12 $250,000. In addition, the motion included authorizing the Board of Works to initiate eminent domain procedures if the owner did not take the offer.
The property is needed for the extension of Daniel Burnham Drive and development of the city's north side.
Porter County clerk catches $7,225 in bad checks
NWI Times
December 07, 2016
http://www.nwitimes.com/news/crime-and-court/porter-county-clerk-catches-in-bad-checks/article_5bb43850-88e5-55f0-b69c-29d60beba55f.html
VALPARAISO — A fraud prevention effort put in place by the Porter County Clerk's office paid off to the tune of more than $7,000 Wednesday.
Deputy Clerk Jacalyne Haney said the office caught five fraudulent checks written to the same person using numbers from the office's bank account.
The fraudulent checks were discovered during a regular evaluation done by Chase Bank, she said.
Porter County Clerk Karen Martin put the system in place to protect tax dollars following earlier fraud attempts.
The bad checks were reported Wednesday to police.
Deputy Clerk Jacalyne Haney said the office caught five fraudulent checks written to the same person using numbers from the office's bank account.
The fraudulent checks were discovered during a regular evaluation done by Chase Bank, she said.
Porter County Clerk Karen Martin put the system in place to protect tax dollars following earlier fraud attempts.
The bad checks were reported Wednesday to police.
County Council to ask status of FBI investigations
Chesterton Tribune
December 07, 2016
http://chestertontribune.com/Porter%20County/county_council_to_ask_status_of.htm
The Porter County Council on Tuesday tabled a request by County Commissioner John Evans, R-North, to be reimbursed $5,000 on legal fees he has incurred since the Federal Burau of Investigation has been looking at activities in Porter County Government.
The request appeared on the agenda as one in the series that the Commissioners submitted to the Council along with budget transfers for internet and telephone service fees, employee longevity and jail security payments.
Evans’ request specifically asks the Council’s approval to transfer $5,000 from salaries in the Commissioner’s General Fund budget to contractual services for legal fees.
Evans was not present during the meeting but had asked County Attorney Scott McClure to be there for the request. He told the Chesterton Tribune after the meeting that he earlier had contacted the Council’s attorney Harold Harper asking if he could make the request under Indiana Code 36-1-17-3.
Harper agreed that the law states that a public official “who is the target of a grand jury investigation may apply to the fiscal body of the unit or municipal corporation for reimbursement of reasonable and customarily charged expense incurred by the officer or employee resulting from the grand jury investigation, if the grand jury fails to indict the officer or employee and the acts investigated by grand jury within the scope of the official duties of the officer or employee.”
Evans said he had no further comment other than what is stated in the law.
Upon learning of the request, County Council President Dan Whitten, D-at large, asked that Harper see what role the Council has and contact the FBI to see if it is done investigating Evans.
“I think we need to know if the investigation is closed,” Whitten said and requested to table Evan’s request to the Council’s next regular meeting in January.
The FBI has made no recent indictments in Porter County Government. It did announce indictments last month for Portage Mayor James Snyder, as well as Lake County Sheriff John Buncich, on bribery charges and added that their investigations in Lake and Porter counties are continuing.
The Tribune has reported on several instances where the FBI has sought documents that are under the purview of the County Commissioners such as a wellness contract with Porter Health Systems signed in 2012 and other information regarding the County employee health care plan.
Observers also reported seeing FBI agents enter the Commissioners’ office one morning in June 2015 but no Commissioner would confirm or deny the reports.
Harper said he will attempt to get an answer from the FBI but wasn’t sure when it would respond.
McClure said he does not believe Evans has been reimbursed for any other legal fees. Any invoice would have to go through the County Auditor’s office, he said.
County Auditor Vicki Urbanik said the last reimbursement she knows of made to Evans was for lodging at a conference in 2013.
Evans will be ending his tenure as a county commissioner at the end of this month after not seeking reelection this year.
Rivas calls on mayor to resign
Meanwhile, Council member Jeremy Rivas, D-2nd, made a statement at the start of the Council’s regular meeting giving his opinion that Snyder should resign his office as the mayor of Portage.
Rivas represents Portage in his Council district and said it appears Snyder “has broken the public’s trust” after being indicted by the FBI on Nov. 17.
Snyder was charged with two violations of a federal bribery statute and a third charge alleging a scheme to obstruct Internal Revenue Laws. Rivas said he sympathizes with the residents of Portage who now have to endure “what could be a long, drawn-out trial.”
Having Snyder under indictment could make it difficult for him and other City officials to work on future projects with the County, Rivas said and gave various examples like remedying drainage issues on Willowcreek Rd., rebuilding the North County Complex and providing a place to bring animals with the new “no-kill” County Animal Shelter.
Snyder pled not guilty in federal court to all counts against him and has made statements to the press that he intends to fight the charges.
Portage Council addresses 'elephant in the room'
NWI Times
December 07, 2016
PORTAGE — After dealing with a series of updates to its ordinances, the City Council got down to what Councilman Mark Oprisko called “the elephant in the room.”
The “elephant” referred to federal charges against Mayor James Snyder for allegedly accepting bribes from a towing company. The charges were announced the Friday before Thanksgiving.
“There’s a dark cloud in the city as long as this continues," Clerk-treasurer Christopher Stidham said. "I remain focused on moving forward. That begins with a review of all our processes to be sure we are as transparent as possible. The council and Mark Oprisko and I have been working to improve the transparency as to the towing.”
“It’s been a tough month," Oprisko said. "I’ve exhausted a lot of hours talking to people in the city and outside. No one here has missed a beat at city hall during this period.”
Snyder hired attorneys Dogan and Dogan, of Portage, to advise him during the investigation, and Oprisko said the city should probably take the firm off the city payroll during this time as it could be a conflict of interest. Snyder promised to look at the issue and give him an answer soon.
Oprisko also asked City Attorney Gregg Sobkowski to provide a summary of all the litigation involving current and past employees as to what the claims are, when they were filed, what law firm is handling each one for the city and the amount of money the city has paid.
Joking that the request should probably take only a couple of days to complete, Oprisko added, “I just want to see where we’re at with these. There could be a conflict, and it should be addressed.”
During the public comment portion of the meeting, one resident called on the mayor to resign so the city could move on. Snyder then asked, “Does anyone else want to address the elephant in the room?”
Resident Robert Cook said, “The city has never looked better, and it is going in the right direction. The mayor is innocent until proven guilty, and to ask him to resign is just wrong.”
Snyder said, “You can imagine the toll this has taken on me and my family. I think you all know we’ve been as open as we can be (about the investigation). I’m at a severe disadvantage when I do that because everything I say can used against me in court.”
He praised the staff for continuing to do its work for the city, adding, “We will get through this and, when it is done, we will be better for it. The support I’m getting from the residents is very humbling. The negativity has been very small.”
Councilwoman Elizabeth Modesto thanked Snyder for his leadership and said, “I agree we will get through this no matter what the outcome.”
Commissioner Evans seeking reimbursement for fed investigation
NWI Times
UPDATED - December 06, 2016
VALPARAISO — The long-brewing federal investigation into various local units of government boiled over Tuesday among officials in Porter County.
The Porter County Council tabled a request Tuesday night from Porter County Commissioner President John Evans, R-North, to be reimbursed $5,000 for his legal costs associated with the investigation.
Earlier in the day, Porter County Councilman Jeremy Rivas, D-2nd, issued a statement calling on Portage Mayor James Snyder to resign following his indictment last month on federal public corruption charges.
Snyder wrote a guest column that appeared in Tuesday's issue of The Times maintaining his innocence.
"My conduct has never violated the law," he wrote.
Porter County Council President Dan Whitten, D-at-large, said he learned about Evans' request after noticing the unspecified item on Tuesday's council meeting agenda.
Whitten said he spoke with council attorney Harold Harper, who confirmed that the law allows Evans and other elected officials to request reimbursement. The county has the option of paying as long as it's confirmed the investigation is over and no indictment is coming, he said.
Whitten asked Harper to inquire about the status of the investigation with federal officials and report back to the group in January. Evans, who did not seek re-election, leaves office at the end of this month.
Evans, who had attended another county government meeting immediately prior to the council's session Tuesday night, did not stick around to watch the fate of his request.
When contacted following the council meeting, he referred to the state code involving reimbursements.
In response to a question from Rivas, Commissioner attorney Scott McClure, who represented Evans during the council meeting, said he did not believe the commissioners have provided any reimbursement on their own to Evans.
A call to step down
Rivas kicked off Tuesday's council meeting by reading the statement he released earlier in the day calling on Snyder to step down.
Rivas said Snyder has "broken the public's trust."
He cites several ongoing projects, such as drainage issues along Willowcreek Road, consideration of a new North County Government Complex, allowing Portage to bring their stray animals to the new Porter County Animal Shelter and a new public radio system — between the county and the city — as reasons for Snyder to resign.
"There’s a lot going on that we need to partner with the city. ... I don’t know how anyone can do that with a guy under indictment," Rivas said.
"I think we pride ourselves on quality of life, good government, and this flies in the face of it," Rivas said.
Snyder was charged last month before U.S. Magistrate Judge Paul Cherry on counts of felony bribery, extortion and tax dodging, which carry long prison terms if he is convicted. He pleaded not guilty.
Whitten said Snyder, like all citizens, deserves his day in court, and he hopes the allegations are not true.
But, if the allegations are true, and only Snyder knows for certain, he should resign, Whitten said.
Whitten said elected officials are trusted by the public to conduct the public's business.
"If you're committing public corruption, you betray that trust, and you should resign," Whitten said.
Portage City Council President Mark Oprisko, D-at large, said he has and will continue to work with Rivas and Whitten on issues like the North County Complex and animal shelter.
"I won’t let (the) mayor's indictment get in the way of our dialogue with the county," Oprisko said.
Oprisko called the indictment an "unfortunate situation," but said Snyder deserves his day in court.
"I’m just trying to move the city forward as best we can," Oprisko said. "I’m not going to drop the ball with county.”
Porter County Republican Chairman Michael Simpson said Snyder deserves his day in court and should remain in office.
"I see no reason for Mayor Snyder to resign," Simpson said.
"I don’t know why the County Council can’t work with Mayor Snyder," he said, suggesting Rivas concentrate his efforts on council financial issues instead of Snyder's legal problems.
Portage City Councilman John Cannon, R-4th, said he disagrees with Rivas' idea that it will be difficult to work with the city on these ongoing projects.
He said members of the City Council and County Council need to worry about the residents of Portage, "and to do the best we can for them."
Cannon declined to comment on whether Snyder should resign.
Snyder did not respond to a request for comment for this story.
UPDATE: Porter County councilman calls for Portage mayor to resign
NWI Times
UPDATED - December 06, 2016 - 7:00PM
PORTAGE — A member of the Porter County Council has called on Portage Mayor James Snyder to resign following his indictment on federal public corruption charges.
Jeremy Rivas released a statement Tuesday calling for Snyder to step down.
Snyder was charged last month before U.S. Magistrate Judge Paul Cherry on counts of felony bribery, extortion and tax dodging, which carry long prison terms if he is convicted. He pleaded not guilty.
Rivas, D-2nd, said in his statement that Snyder has "broken the public's trust."
He cites several ongoing projects, such as drainage issues along Willowcreek Road, consideration of a new North County Government Complex, allowing Portage to bring their stray animals to the new Porter County Animal Shelter and a new public radio system — between the county and the city — as reasons for Snyder to resign.
"There’s a lot going on that we need to partner with the city. ... I don’t know how anyone can do that with a guy under indictment," Rivas said.
"I think we pride ourselves on quality of life, good government, and this flies in the face of it," Rivas said.
Porter County Council President Dan Whitten, D-at-large, said Snyder, like all citizens, deserves his day in court, and he hopes the allegations are not true.
But, if they allegations are true, and only Snyder knows for certain, he should resign, Whitten said.
Whitten said elected officials are trusted by the public to conduct the public's business.
"If you're committing public corruption, you betray that trust, and you should resign," Whitten said.
Whitten said if someone is under federal indictment it makes it more difficult to have a bond of trust.
"I'm not going to say we're not going to do things to benefit the city of Portage, but we may have to change the way we do it," Whitten said. "We may have to work directly with the City Council."
Portage City Council President Mark Oprisko, D-at large, said he has and will continue to work with Rivas and Whitten on issues like the North County Complex and animal shelter.
"I won’t let (the) mayor's indictment get in the way of our dialogue with the county," Oprisko said.
Oprisko called the indictment an "unfortunate situation," but said Snyder deserves his day in court.
"I’m just trying to move the city forward as best we can," Oprisko said. "I’m not going to drop the ball with county.”
But Porter County Republican Chairman Michael Simpson said Snyder deserves his day in court and should remain in office.
GUEST COMMENTARY: I didn't break the law, will fight federal charges - Portage Mayor James Snyder
NWI Times
James Snyder
James Snyder
UPDATED - December 06, 2016 - 3:45PM
You can only imagine that the federal cloud of investigation I have been dealing with the last 2 1/2 years has been overwhelming. However, the investigation has not slowed the huge strides Portage has been making.
Most communities are devastated by such actions, but Portage has continued to thrive because many staff and residents work as normal and believe in my innocence.
Portage leaders, myself included, have striven to comply with the relentless investigation that has engulfed nearly every facet of the city and has touched my church, my wife and family, my supporters, my private business and just about any area of my life you can imagine.
Government agents have sifted through hundreds of thousands of documents, including city and personal emails, to find something they could call “breaking the law.” Even my pastor has been interviewed, and my tithes and offerings have been scrutinized.
This investigation has cost the federal government hundreds of thousands of dollars and will probably eclipse the $1 million mark in federal taxpayer resources.
Public corruption is serious, and as the mayor you have elected and entrusted to lead Portage, I believe that wholeheartedly. People who know me well, and even many who know me just in passing, are confident that there is no way the accusations levied at me are true.
It is important for Portage residents to know that concluding this matter will take some time and that I intend to fight — in every way — to protect my family, my name and the city I love.
My conduct has never violated the law.
Because Portage’s success is not because of any one person, the city will continue to see unparalleled success while we are under this dark cloud. I have the best staff a mayor could ask for, and I and Portage residents owe them a debt of gratitude.
The government’s allegations against me are only one side of the story.
I have no intention to quit and subvert democracy and the Constitution by which we all are governed. Thank you for your overwhelming support and prayers. Through all this, I still have faith in the system, a fair trial and the goodness of our God.
We all say we believe in “innocent until proven guilty.” There has never been a time in my life that I have clung to and believed that more than today.
James Snyder is the mayor of Portage. The opinions are the writer's.
Jeremy Rivas statement on James Snyder
NWI Times
December 06, 2016 - 3:30PM
December 06, 2016 - 3:30PM
Councilman to indicted Portage mayor: Resign
NWI Times
December 06, 2016 - 11:37AM
A Porter County official is calling for Portage Mayor James Snyder to resign in light of the federal indictment recently filed against him.
In a statement released Tuesday, Porter County Councilman Jeremy Rivas, D-2nd, whose district includes Portage, said the indictment could interfere with Snyder's ability to do business with the county on a number of fronts, including joining in on the county's new animal shelter, drainage issues on Willowcreek Road, consideration of building a new North County Government Complex, and upgrading the public safety radio system.
"Having a mayor under federal indictment for bribery and other charges makes it very difficult, if not impossible, for other elected officials and businesses to do business with him," Rivas wrote.
Snyder, who was indicted Nov. 18, has pleaded not guilty. He is charged with alleged bribery involving a towing contract for the city, and for allegedly obstructing tax laws by impeding the government collection of personal and payroll taxes owed by his mortgage business.
Snyder did not respond Tuesday to an email requesting comment.
In his statement, Rivas said, "If James Snyder truly cares for the residents of this great city, then he should step aside and immediately resign, focus on his family and trial, and allow the healing to begin."
Rivas said he released the statement, which he expected to present Tuesday evening to the County Council, because he represents the citizens of Portage.
"I was elected by the residents of Portage and I just think I'm giving them a voice," he said.
Portage currently has its own animal control officers and takes its animals to the Hobart Humane Society, the only city in the county without a contract with the county's animal shelter.
Despite months of negotiations, Portage has yet to sign a contract with the county to use the new shelter, which is scheduled to open June 1.
Snyder also has requested that county officials consider building a county annex along Central Avenue in the city's new downtown area.
"It's not been easy before this indictment to deal with him and this isn't going to help matters," Rivas said.
Editorial: Indicted 3 need to take leaves of absence
Post-Tribune
Post-Tribune Editorial Board
December 02, 2016
The Constitution implicitly guards against government abusing citizens with the power of courts by guaranteeing presumption of innocence.
It's an old Common Law standard and not a figurative protection.
Evidence is tested and judged in open court proceedings before citizens are held accountable. Guilt must be proved, not assumed. Not every country grants this protection. In some nations — China, for example — the defendant must prove innocence.
For all those reasons, the three Lake County senior public officials indicted in November for public corruption and bribery cannot only post bond and be released from jail but also keep functioning in their careers.
Sheriff John Buncich, Chief Deputy Tim Downs and Portage Mayor James Snyder are free to conduct their lives until a court says otherwise.
But for the good of those they have sworn to serve, all three should step away from their jobs and take a leave of absence. At the very least, they should turn the authority of enforcing the law and managing a city over to others until charges are proved or disproved.
Such a move does not require they admit guilt, but only acknowledges that leadership imposes higher duties of service.
Besides the law, implicit common sense and human nature standards apply. Those who come before all three on official business – professional colleagues or average residents - have reason to doubt them. Citizens have some right assume their servants are focused on the job, not preparing their court defense.
We do not presume the three are guilty but we do know they have damaged reputations.
Pretending as if nothing has happened that changes the nature of their jobs would be ridiculous. A sheriff and chief deputy cannot inspire confidence in the officers they lead. They cannot stand before their officers, look them in the eye and challenge their pride in upholding the law.
A mayor charged with corruption cannot address civic issues and conflicts by claiming the higher moral ground of leadership.
Both the sheriff's department and Portage city government have business to conduct and issues to resolve. Much of that management can't be put aside in the months while Buncich, Downs and Snyder prepare to defend themselves in court.
The only rational solution is for all three to step down momentarily, keep their pay and titles, but turn over duties to others who have the skill and focus to perform them.
FBI agents return to Portage to interview official
Updated - December 01, 2016 - 6:00PM
http://www.nwitimes.com/news/local/govt-and-politics/fbi-agents-return-to-portage-to-interview-official/article_fe764701-8ecf-58a3-9188-0693e8e8d0fe.html
PORTAGE — Nearly two weeks after Mayor James Snyder was indicted on bribery and obstruction charges, the FBI returned to interview at least one city official.
"Two agents with the local FBI office briefly stopped by the police department this morning to meet with me," Police Chief Troy Williams said in a written statement after being asked by The Times.
"Given the seriousness of their current investigation, I fully expected that they would come by at some point. I cannot expound on all details of our meeting, but they did not serve any subpoenas, search warrants or indictments.
"Additionally, no members of the police department were mentioned as being the subject of their investigation," Williams said.
Snyder pleaded not guilty Nov. 18 to felony bribery, extortion and tax dodging counts, which carry the potential for long prison terms if he is convicted. His trial is expected to begin Jan. 23.
The charges came after more than two years of investigation by the FBI.
Federal Agents Interview Portage Police Chief
Indiana 105.5 FM
December 01, 2016 - 5:37PM
http://indiana105.com/region-news/federal-agents-interview-portage-police-chief/
In Portage, FBI agents briefly stopped by the police department to speak with Police Chief Troy Williams. The Times reports the visit comes after Portage Mayor James Snyder was indicted for violation of the federal bribery statute and obstruction of internal revenue laws. His trial is anticipated to begin in January.
According to the article, Chief Williams stated that while he could not discuss the details of the meeting he did say that no subpoenas, search warrants or indictments were served, and that no police department members were mentioned as being part of the investigation.
Portage Indiana Police - 11/29/16
NWI CopBlock
Published on Nov 30, 2016
https://www.youtube.com/watch?v=nLlb1qkQGYY
PORTAGE INDIANA 11/29/2016 - Keith Hughes, employee at the Portage, Indiana police department was filmed trespassing on private property by a citizen who was on his way to work at a local steel mill. The purpose of his trespassing was to lay the ground work for the theft of property from a Portage resident, and to drum up illegal business for the contracted towing company. The same towing company that bribed the mayor (who is now under federal indictment) and continues to fleece the citizenry in collusion with the criminal police.
The video clearly shows Hughes marking the vehicle as abandoned even though it is clearly parked in the owner’s driveway at the time. Furthermore, Hughes made no attempt to verify if the vehicle is ”mechanically inoperable”, which is needed to meet the legal definition of abandoned.
We would like to remind Keith Hughes that you cannot protect the citizens property by stealing it. We would also like to take this opportunity to encourage him to seek an honest line of work.
EDITORIAL: Buncich, Snyder, Downs must resign
NWI Times
The Times Editorial Board
Updated - November 28, 2016
Sheriff John Buncich is a chief Lake County lawman now facing federal bribery charges. His deputy and second in command, Timothy Downs, is charged in the same scheme.
Portage Mayor James Snyder is the elected executive leader of a Porter County's largest city and is charged with felony violations of public trust.
All three men, charged in separate cases and indictments, owe it to their constituents to resign now.
Buncich also should immediately relinquish his post as Lake County Democratic Party chairman. Remaining in the post as the federal case unfolds will only continue to undermine his local party's reputation, already hobbled by the past felony convictions of a host of politicians affiliated with local Democrats.
Some lawyers and old-guard political figures may argue that the felony bribery charges all three men face are merely accusations — that they're all entitled to a trial by a federal jury of their peers.
That argument discounts the distraction that mounting a legal defense against federal felony charges will be to performing crucial duties of public service.
It also ignores the untenable reality of public officials trying to serve or govern when federal grand juries have found alleged evidence of violating public trust.
We all must consider the substance of the felony accusations while weighing an undeniable truth about nearly all public corruption indictments we've seen arise from the Hammond-based U.S. attorney's office.
In nearly every case for decades, indictments of Region political officials have led to convictions. That's because the U.S. attorney and federal investigators don't tend to pursue cases unless there's solid evidence of a crime.
Buncich and Downs are accused of wire fraud and receiving $34,500 in illicit bribes from a towing contractor conducting business for the county.
In a separate case, Snyder is charged with soliciting and receiving $12,000 in bribes in exchange for a towing contract with the city of Portage and soliciting $13,000 in bribes to influence public contracts and a Portage construction contract.
Snyder also is accused of obstructing the IRS from collecting unpaid taxes from his private mortgage business.
It's true Buncich, Downs and Snyder all are entitled to their days in court.
But that doesn't mean they should drag voters and taxpayers along with them.
If they opt to challenge these charges, as it appears they will, they'll need to focus on their legal defenses.
If they already intend to plead guilty, they're just unfairly delaying the inevitable by not resigning now.
In either scenario, Region residents will be getting short shrift.
If any of these men truly believes in public service, they must relinquish their offices without delay.
Officer praised in probe of graft
Help led to charges in Hammond area
November 25, 2016 1:01 AM
The Journal Gazette
HAMMOND – A retired police officer was instrumental in an investigation that led to charges alleging that a northwestern Indiana sheriff, his top deputy and a mayor collected bribes in return for contracts for towing and other services, a federal prosecutor said.
United States Attorney David Capp said the voluntary cooperation and assistance of Scott Jurgenson, owner of Samson’s Towing of Merrillville, helped investigators uncover the alleged corruption, The (Northwest Indiana) Times reported.
Capp said Jurgenson spent 22 years as an officer with the Merrillville Police Department before retiring.
The indictments announced Nov. 18 name Lake County Sheriff John Buncich, Chief Deputy Tim Downs, Portage Mayor James Snyder and two owners of local tow companies – William Szarmach of Chase Street Auto in Lake Station and John Cortina of Kustom Auto Body in Portage.
Prosecutors allege that between February 2014 and October 2016, Buncich, Downs and Szarmach worked to enrich Buncich and his campaign committee, Buncich Boosters, through towing contracts.
Buncich received over $25,000 in cash and $7,000, often collected by Downs, in checks from Szarmach and an unnamed individual for towing contracts in Gary and Lake County, prosecutors said. Buncich, who is chairman of the Lake County Democratic Party, was elected to his fourth term as sheriff in 2015.
Snyder, a Republican in his second term as Portage’s mayor, is accused of soliciting and receiving bribes to receive contracts and obstructing the IRS from collecting unpaid taxes from his private mortgage business.
Buncich, Downs and Szarmach all face wire fraud charges, while Buncich and Szarmach are also charged with bribery.
Cortina is accused of making illegal payments to Snyder and the unnamed individual for towing contracts in Portage, located in neighboring Porter County.
Capp declined to immediately identify the unnamed individual, saying the federal investigation is still ongoing.
Buncich, Downs, Snyder and Cortina are free on bond awaiting trial, now set to begin in January. Szarmach remains in federal detention.
Feds: Retired officer was crucial in Indiana bribery probe
The Daily Progress
Updated November 25, 2016
Updated November 25, 2016
http://www.dailyprogress.com/feds-retired-officer-was-crucial-in-indiana-bribery-probe/article_ede5d799-3964-5e71-a035-8d6e5e2bcb2f.html
HAMMOND, Ind. (AP) — A federal prosecutor says a retired police officer was instrumental in an investigation that led to bribery charges against a northwestern Indiana sheriff, his top deputy and a mayor.
U.S. Attorney David Capp says Scott Jurgenson's voluntary cooperation and assistance helped federal investigators uncover the alleged corruption.
The (Northwest Indiana) Times reports (http://bit.ly/2fcdZTN ) that Jurgenson served 22 years as an officer with the Merrillville Police Department. He's now owner of Samson's Towing of Merrillville.
The indictments announced Nov. 18 name Lake County Sheriff John Buncich, Chief Deputy Tim Downs and Portage Mayor James Snyder. They allegedly collected bribes in return for contracts for towing and other services.
Tow company owners William Szarmach and John Cortina were also indicted. They are accused of making payments in exchange for contracts.
Prosecutor: Retired officer crucial in Indiana bribery probe
Washington Times
Thursday, November 24, 2016
Thursday, November 24, 2016
http://www.washingtontimes.com/news/2016/nov/24/feds-retired-officer-was-crucial-in-indiana-briber/
HAMMOND, Ind. (AP) - A retired police officer was instrumental in an investigation that led to charges alleging that a northwestern Indiana sheriff, his top deputy and a mayor collected bribes in return for contracts for towing and other services, a federal prosecutor said.
United States Attorney David Capp said the voluntary cooperation and assistance of Scott Jurgenson, owner of Samson’s Towing of Merrillville, helped investigators uncover the alleged corruption, The (Northwest Indiana) Times reported (http://bit.ly/2fcdZTN ).
Capp said Jurgenson spent 22 years as an officer with the Merrillville Police Department before retiring.
The indictments announced Nov. 18 name Lake County Sheriff John Buncich, Chief Deputy Tim Downs, Portage Mayor James Snyder and two owners of local tow companies - William Szarmach of Chase Street Auto in Lake Station and John Cortina of Kustom Auto Body in Portage.
Prosecutors allege that between February 2014 and October 2016, Buncich, Downs and Szarmach worked to enrich Buncich and his campaign committee, Buncich Boosters, through towing contracts.
Buncich received over $25,000 in cash and $7,000, often collected by Downs, in checks from Szarmach and an unnamed individual for towing contracts in Gary and Lake County, prosecutors said. Buncich, who is chairman of the Lake County Democratic Party, was elected to his fourth term as sheriff in 2015.
Prosecutor: Retired officer crucial in Indiana bribery probe
Daily Herald
Updated: 11/24/2016 1:43 PM
Updated: 11/24/2016 1:43 PM
http://www.dailyherald.com/article/20161124/news/311249894/
HAMMOND, Ind. -- A retired police officer was instrumental in an investigation that led to charges alleging that a northwestern Indiana sheriff, his top deputy and a mayor collected bribes in return for contracts for towing and other services, a federal prosecutor said.
United States Attorney David Capp said the voluntary cooperation and assistance of Scott Jurgenson, owner of Samson's Towing of Merrillville, helped investigators uncover the alleged corruption, The (Northwest Indiana) Times reported (http://bit.ly/2fcdZTN ).
Capp said Jurgenson spent 22 years as an officer with the Merrillville Police Department before retiring.
The indictments announced Nov. 18 name Lake County Sheriff John Buncich, Chief Deputy Tim Downs, Portage Mayor James Snyder and two owners of local tow companies - William Szarmach of Chase Street Auto in Lake Station and John Cortina of Kustom Auto Body in Portage.
Prosecutors allege that between February 2014 and October 2016, Buncich, Downs and Szarmach worked to enrich Buncich and his campaign committee, Buncich Boosters, through towing contracts.
Buncich received over $25,000 in cash and $7,000, often collected by Downs, in checks from Szarmach and an unnamed individual for towing contracts in Gary and Lake County, prosecutors said. Buncich, who is chairman of the Lake County Democratic Party, was elected to his fourth term as sheriff in 2015.
Snyder, a Republican in his second term as Portage's mayor, is accused of soliciting and receiving bribes to receive contracts and obstructing the IRS from collecting unpaid taxes from his private mortgage business.
Buncich, Downs and Szarmach all face wire fraud charges, while Buncich and Szarmach are also charged with bribery.
Cortina is accused of making illegal payments to Snyder and the unnamed individual for towing contracts in Portage, located in neighboring Porter County.
Capp declined to immediately identify the unnamed individual, saying the federal investigation is still ongoing.
Buncich, Downs, Snyder and Cortina are free on bond awaiting trial, now set to begin in January. Szarmach remains in federal detention.
Information from: The Times, http://www.nwitimes.com
Portage Mayor Snyder indicted on bribery, tax charges
NWI Times
UPDATED - November 23, 2016
http://www.nwitimes.com/news/crime-and-court/portage-mayor-snyder-indicted-on-bribery-tax-charges/article_9d464eac-3944-5e2b-b914-464b0f2bdbe8.html
PORTAGE — Mayor James Snyder has been indicted in federal court in Hammond on bribery and obstruction charges.
U.S. District Attorney David Capp announced the indictments in a press conference Friday morning.
While the charges were being read from the federal courthouse in Hammond, Snyder met with city department heads and employees at his home.
U.S. marshals escorted Snyder, 38, into court about 3:30 p.m. Friday. He flashed smiles at his lawyers, Thomas Kirsch and Thomas Dogan.
He pleaded not guilty before U.S. Magistrate Judge Paul Cherry to felony bribery, extortion and tax dodging counts, which carry long prison terms if he is convicted.
He was freed on a $20,000 recognizance bond, but has to surrender his passport and firearms he owns. When the judge asked Snyder if he has a passport, Snyder smiled and said, “We’ve been looking for it since 7 a.m.”
Snyder’s administrative assistant, Amanda Lakie, said he would not be making a statement and directed The Times to Snyder’s attorney. Lakie said Snyder met with employees to encourage them to continue their work for the city.
“Mayor James Snyder has been under investigation for nearly two and half years and today was indicted on three counts,” said Snyder’s attorney, Tom Kirsch, of Chicago. “Mayor Snyder believed that this extremely lengthy federal investigation had been concluded without charges being sought. Today’s indictment comes as a complete surprise. This is particularly so because these charges are meritless. Mayor Snyder has always been cooperative with federal agents throughout the relentless investigation. Mayor Snyder looks forward to fighting these charges in a court of law and to complete vindication. Mayor Snyder and his family are grateful for the outpouring of support they have received from residents, friends, and family and asks that they continue to believe in him through this time.”
Federal authorities arrested and arraigned John Cortina, owner of Kustom Auto Body, 5409 U.S. 6, Portage, earlier Friday. He is pleading not guilty to his role in the scheme and is also free on bond.
Cherry set their trial to begin the week of Jan. 23, although the date could change if the defense needs more time to prepare.
The charges
The first charge names Snyder and Cortina.
Snyder and Cortina are both charged with a violation of the federal bribery statute. Snyder is alleged to have corruptly solicited and received two checks totaling $12,000 from Cortina, in exchange for a towing contract in the city of Portage, according to a press release from the U.S. Department of Justice. Cortina is charged with corruptly offering those checks to Snyder.
Cortina’s business was raided last week by Indiana State Police and U.S. Treasury Department agents. Cortina told The Times then that his business was not the subject of the raid, that a towing company which leases property from Cortina was being investigated.
Snyder is also charged with a second violation of the federal bribery statute. That count alleges that between Jan. 1, 2012 and Jan. 10, 2014, Snyder corruptly solicited and agreed to accept a bank check in the amount of $13,000 in connection with Portage Board of Works contracts, a Portage Redevelopment Commission project and other consideration, stated the release.
The final charge against Snyder alleges obstruction of the internal revenue laws. This count sets forth an alleged scheme, undertaken by Snyder between January 2010 and April 2013, to obstruct and impede the Internal Revenue Service’s collection of personal taxes he owed and payroll taxes owed by his mortgage business, First Financial Trust Mortgage LLC. Snyder is alleged to have diverted funds away from FFTM to a sole proprietorship he created, and submitted three forms to the IRS which failed to disclose, among other things, the existence of the sole proprietorship and its bank account – all during a time when the IRS was attempting to collect the aforementioned tax debt.
Lengthy investigation
The indictment comes after more than two years of investigation by the FBI into the city and Snyder and less than two months after Snyder attempted to get the city’s Utility Service Board to pay some $93,000 in legal fees involving the investigation.
In September, Snyder had two checks cut by the department and sent to two legal firms without approval by the board. The legal firms allegedly returned the checks because they were not from Snyder directly. The funds were returned to the department and Mark Oprisko, City Council president and utility board vice chairman, called for an investigation by an independent attorney into the claims.
While state law allows Snyder to request the reimbursement it can only be done if he was cleared of the investigation and there were no impending indictments.
Reactions
Oprisko said he had the “wind knocked out of me” when he heard about the indictments and was “disheartened,” thinking that the investigation was over a couple of months ago.
“It is a black eye to the city. The investigation is what it is. He is innocent until proven guilty. He still has a job to do. He has to pick it up and move forward,” Oprisko said, adding the same is true for city employees and other elected officials. “Our job is to serve the citizens of Portage, and we will continue to do that.”
“While this is a sad day for the city of Portage, Jim Snyder deserves his day in court,” said Portage Clerk-Treasurer Chris Stidham. “However, I am focused on ensuring myself and the City Council continue to lead Portage forward despite the mayor’s troubles. Now, more than ever, Portage needs good leaders. We are more than any one person and the issues of one won’t derail our progress.”
“Today’s indictment issued by the United States Attorney in connection to Portage Mayor James Snyder is deeply concerning,” said Portage Councilman Collin Czilli in a written statement, promising residents that city business will continue unimpeded. “However, like any other individual, Mayor Snyder deserves his day in court and the right to defend himself. As a city Councilman, I am of the mindset that we must allow the judicial process to continue and to not interfere in that process for political purposes.”
“These investigations are not over. Our public corruption team will continue its work, particularly into the towing contracts in both Lake and Porter counties,” Capp said in the press release.
Anyone with information related to these public corruption charges is encouraged to call the FBI at (219) 769-3719.
Times reporter Bill Dolan contributed to this story.
Feds: Former cop helped break bribery schemes
NWI Times
November 23, 2016
http://www.nwitimes.com/news/crime-and-court/feds-former-cop-helped-break-bribery-schemes/article_ba2e6d91-9515-5be0-8e9a-55d1149dd058.html
CROWN POINT — Federal authorities are crediting a retired Merrillville police officer with coming forward to expose an alleged bribes-for-towing scheme that has engulfed the Lake County Sheriff’s Department and Portage City Hall.
United States Attorney David Capp said the voluntary cooperation and assistance of Scott Jurgenson, owner of Samson’s Towing of Merrillville, has been instrumental in helping federal investigators uncover corruption in the awarding of towing contracts.
He said Jurgenson was a 22-year veteran of the Merrillville Police Department.
Last Friday, the government charged Lake County Sheriff John Buncich, Timothy Downs, the sheriff’s second-in-command, and Portage Mayor James E. Snyder.
Buncich and Downs are accused of wire fraud and receiving $34,500 in illicit cash payments.
The government charged William “Willie” Szarmach, operator of CSA Towing of Lake Station, with paying bribes to Buncich and Downs.
The government charged Snyder with soliciting and receiving $12,000 in bribes in exchange for a towing contract with the city of Portage.
Snyder also is charged with soliciting and accepting $13,000 in bribes to influence public contracts and a construction project in Portage, and obstructing the IRS from collecting unpaid taxes from Snyder’s private mortgage business.
The government charged John Cortina, owner of Kustom Auto Body of Portage, with making illegal payments to Snyder.
Buncich, Downs, Snyder and Cortina are free on bond awaiting trial, now set to begin in January.
Szarmach has been in federal detention since his arrest Friday. He appeared Tuesday in U.S. District Court in Hammond to try to win pre-trial freedom too, but the matter was delayed.
Jurgenson is ‘Individual A’
The U.S. attorney identified Jurgenson’s role in the federal investigation, following a Times review of Buncich’s campaign finance records indicating Jurgenson’s towing firm was at the center of the wide-ranging bribery investigation.
Last week’s indictments mention an “Individual A” who gave Buncich and Downs $19,500 in contributions to Buncich Boosters, the sheriff’s campaign election committee.
Capp declined to immediately identify Individual A, saying the federal investigation into corrupt towing would continue.
Earlier this week, The Times obtained a 2014 campaign finance report Buncich had filed with the Lake County Voter Registration and Elections Board. Earlier this month, federal authorities subpoenaed that report along with others of Buncich dating back to 2008.
Last week’s indictments state Individual A wrote a $2,000 check to Buncich’s campaign on April 8, 2014.
Buncich’s 2014 campaign finance report states Jurgenson’s Samson Towing was the only donor to make a donation of that amount on that day.
Jurgenson could not be reached for comment.
Buncich reported receiving more than 460 donations totaling $222,000 in 2014 and 2015 from a multitude of individuals, corporations and labor organizations.
Contributions missing
But those reports don’t mention $12,000 in donations Szarmach and his towing firm allegedly made to Buncich, according to last week’s indictment.
The government is alleging Buncich hid towing-related payments from the public to cover up the bribery, and that he was illegally fundraising on government time, a prohibited activity under county government rules.
County police order thousands of cars towed annually from public streets for a variety of violations.
County government gives the sheriff exclusive authority to pick which towing firms can remove cars and charge the owners hundreds in towing and storage fees.
Buncich has used as many as a dozen towing firms, the government alleges.
The indictments state Jurgenson’s Samson Towing and Szarmach’s CSA Towing won an increasing share of the county’s towing business with their payments to Buncich and his campaign.
Last week’s indictments allege Portage Mayor Snyder accepted two bank checks of $10,000 and $2,000 earlier this year from Cortina and Jurgenson to win towing contracts for Cortina’s and Jurgenson’s firms.
January trials set for Lake, Porter officials
Chicago Tribune
November 21, 2016
http://www.chicagotribune.com/suburbs/post-tribune/news/ct-ptb-lake-sheriff-court-dates-st-1122-20161121-story.html
A federal judge tentatively set January trial dates for the Lake and Porter county officials indicted Friday on a series of public corruption charges.
Lake County Sheriff John Buncich, chief of police Timothy Downs and William Szarmach, of CSA Towing in Lake Station, are tentatively set for trial on Jan. 17, according to court records. Portage Mayor James Snyder and John Cortina, of Kustom Auto Body in Portage, are tentatively set for trial on Jan. 23, court records show.
Buncich, Downs, Szarmach, Snyder and Cortina all pleaded not guilty during their initial appearances Friday.
Buncich, Downs and Szarmach are named in a multi-count indictment alleging an illegal towing scheme in which the sheriff accepted bribes in the form of thousands of dollars in cash and donations to his campaign fund, Buncich's Boosters, according to court records. All three are facing charges of wire fraud, while Buncich and Szarmach also are charged with bribery.
The sheriff, whose department was in charge of deciding which companies were called for towing services, and the chief allegedly steered business toward towing operators in exchange for cash and checks, the U.S. attorney alleged in a 14-page indictment. Buncich allegedly took more than $25,000 in cash bribes and $7,000 in checks from Szarmach and another towing operator identified as "Individual A," according to the indictment.
Paul Stracci, of Stracci Criminal Defense, who is representing Buncich, had no comment on the tentative scheduling of the trial.
Snyder and Cortina, named in a separate indictment, were charged with bribery. Capp said the mayor solicited money from Cortina and "Individual A" and gave them a towing contract for Portage.
Snyder allegedly accepted $13,000 in connection with a Board of Works contract and obstructed tax laws for by impeding the government's collection of personal taxes he owed and payroll taxes owed by his mortgage business, First Financial Trust Mortgage LLC.
Snyder declined to comment after his hearing, but his lead attorney, Thomas Kirsch, of the law firm Winston and Strawn, said they were surprised by the indictment, "particularly so because these charges are meritless."
Indictments outline alleged public corruption in Lake, Porter counties
Post-Tribune
November 19, 2016
http://www.chicagotribune.com/suburbs/post-tribune/news/ct-ptb-buncich-snyder-indictments-st-1120-20161119-story.html
This past April, Lake County Sheriff John Buncich went into a Gary towing operator's vehicle and fetched a $3,500 cash bribe from the front seat, a payment federal court records claim was part of a larger scheme to steer towing business to companies based on cash payments and campaign contributions to the sheriff.
Within a week of the payment, which also included $2,500 from another towing operator, Buncich directed the sheriff's department to enforce Gary's ordinance violations, according to court records.
Later, after an officer assigned to enforcing ordinance violations in Gary was injured, two towing operators involved in the bribery scheme complained about a subsequent dip in the city's tow business, court records say. Buncich responded by assigning another Lake County patrol officer to enforce ordinance violations in Gary, according to a federal indictment announced Friday against the sheriff, his second-in-command and a towing operator.
"This is a sad day for the citizens of Northwest Indiana," U.S. Attorney David Capp said at a Friday press conference.
The indictments announced Friday unveiled startling public corruption allegations that included charges against Buncich and, in a separate case, Portage Mayor James Snyder. While the investigations in Lake and Porter counties were separate, both involved allegedly soliciting and accepting money from towing company operators.
In addition to Buncich and Snyder, Capp announced indictments against Timothy Downs, chief of the Lake County Sheriff's Department police; William Szarmach, of Chase Street Auto in Lake Station; and John Cortina, of Kustom Auto Body in Portage.
Buncich, Downs and Szarmach are named in the multicount indictment alleging the illegal towing scheme in which the sheriff accepted bribes in the form of thousands of dollars in cash and in donations to his campaign fund, Buncich's Boosters. All three are facing charges of wire fraud, while Buncich and Szarmach also are charged with bribery.
Buncich, Downs, Szarmach and Cortina were all arrested and taken into custody Friday morning, Capp said, adding that he's asked that Szarmach remain in federal detention.
Buncich and Downs each were each released on $20,000 unsecured bonds.
Snyder surrendered to federal authorities Friday afternoon, officials said. He was released on a $20,000 unsecured bond. If he attends all of his hearings, Snyder will owe no money. If he misses any, he will have to pay the $20,000 and faces arrest. Snyder also was ordered to turn over his passport and any firearms to federal authorities.
Buncich, a Democrat, was elected to his fourth term as sheriff in 2015. Snyder, a Republican, was elected to his second term as mayor in 2015.
"The citizens of the region are tired of this," Capp said.
Lake County allegations
The sheriff, whose department was in charge of deciding which companies were called for towing services, and the chief allegedly steered business toward towing operators in exchange for cash and checks, the U.S. attorney alleged in a 14-page indictment. Buncich allegedly took more than $25,000 in cash bribes and $7,000 in checks from Szarmach and another towing operator identified as Individual A, an unidentified towing operator who was working with investigators, according to the indictment.
Individual A voluntarily offered to provide information to federal authorities, Capp said, adding that the decision by Individual A to step forward was critical for the investigation.
While Buncich's office had the authority to determine what towing operators were awarded contracts, according to Lake County ordinance, the county commissioners ultimately approved the sheriff's recommendations.
According to the indictment, Buncich's office had a list of up to a dozen towing companies used to handle tows in different parts of Lake County. But from February 2014 to October 2016, according to the indictment, Buncich used his power and authority as sheriff to steer towing business to firms based on their cash payments and campaign contributions.
Certain towing companies on the towing list saw an increase or drop in business based on their cash payments and campaign contributions, the indictment alleges. Certain towing firms were allowed to remain on the towing list based on the level of campaign fundraising tickets they bought, the indictment said.
Szarmach and Individual A were awarded towing operations in Gary, the indictment said.
Buncich and Downs allegedly collected money from Szarmach and Individual A, the indictment said.
In July, the indictment said, Individual A handed Buncich $2,500 in cash, which he pocketed. That same person handed Buncich a $7,500 cash payment, which he put in his right rear pocket, the indictment said.
Between July and August, Buncich also accepted $3,500 in cash and checks from Szarmach, the indictment alleges.
Both Szarmach and Individual A got "a larger share of towing involving large semi-tractor trailers, ordinance towing in the City of Gary, towing in other Lake County municipalities and towing for other entities," the indictment said.
Portage mayor
Snyder and Cortina, named in a separate indictment, were charged with bribery. Capp said the mayor solicited money from Cortina and Individual A and gave them a towing contract for Portage.
According to the indictment, Cortina paid Snyder $12,000 in exchange for a towing contract between him, Individual A and the City of Portage.
Snyder also allegedly accepted $13,000 in connection with a Board of Works contract and obstructed tax laws by impeding the government's collection of tens of thousands of dollars in personal taxes he owed and payroll taxes owed by his mortgage business, First Financial Trust Mortgage LLC.
Snyder declined to comment after his hearing, but his lead attorney, Thomas Kirsch, of the law firm Winston and Strawn, said they were surprised by the indictment, "particularly so because these charges are meritless."
A woman who answered the phone Friday afternoon at Cortina's body shop, 5409 U.S. Highway 6, Portage, promptly hung up when asked for comment on the indictments. The business was the site of a raid by officials with the U.S. Department of Treasury on Nov. 10, the same day of a sweep of several Lake County offices.
According to online campaign finance reports, Cortina donated thousands of dollars to Snyder's campaigns.
Local reaction
Buncich's office on Friday released a statement that said services will go uninterrupted at the department.
"The Sheriff's Department is continuing to run as normal. There has been no disruption of any operations. The proud men and women of the Lake County Indiana Sheriff's Department continue to serve and protect our citizens," Buncich said.
Dan Murchek, deputy chief of police for the sheriff's department, declined to comment on the charges or the investigation. He said in his position as deputy chief he is responsible for the day-to-day operations of the sheriff's department and providing the services the public needs and that will not change.
Gary Mayor Karen Freeman-Wilson, a former Indiana attorney general, said she has always believed a person is innocent until proven guilty. But she called the indictments a sad day from a personal standpoint, from a professional standpoint and a political standpoint. She described both Buncich and Snyder as friends.
"It shows the U.S. Attorney is not targeting one group over another," Freeman-Wilson said of the cross-party charges.
Buncich also is Lake County's Democratic Party chairman. His Republican Party counterpart, Chairman Dan Dernulc, said he was "extremely disappointed, even upset."
Dernulc said he has had a good working relationship with Buncich despite not always agreeing.
"As elected officials and appointed officials, we really have to always be above. People look up to us. This is another black eye in Lake County," Dernulc said.
Lake County Commissioner Mike Repay said the charges undermine both the hard, honest work most police officers do, and the work by outside contractors who are playing by the rules.
"I'm disappointed. It's a mark on the county. It's a mark on county government. It's unfortunate and sad. I'm mad. I'm just kind of conflicted on the whole thing. There is a range of different emotions. It is not a great day in Lake County," Repay said.
"We have a great city, and we're going to continue to move forward," Portage City Council President Mark Oprisko said. "It's a sad day for me, and I'm beside myself. In 28 years on the council, I've never dealt with anything like this, but the mayor has a very good staff, and he does care about the citizens of Portage.
"(Snyder) needs to keep his head up and keep leading."
FBI agent Jay Abbott said that when the public trust is betrayed, it erodes the trust in public institutions that people rely on.
"When these types of cases occur, it's a tragedy," Abbott said. "It's a tragedy for law enforcement, and it's a tragedy for the community."
Capp said the investigations into corruption related to towing contracts in Northwest Indiana continue and more charges are anticipated.
"You know who you are, and we know, currently, who some of you are," Capp said. "And we are coming after you. And if any of you want to try to help yourself, time is running short."
Michael Gonzalez and Carrie Napoleon are freelance reporters for the Post-Tribune. The Associated Press contributed.
Local politicians react to federal corruption indictments of Lake, Porter officials
Post-Tribune
November 19, 2016 - 4:53PM
http://www.chicagotribune.com/suburbs/post-tribune/news/ct-ptb-lake-porter-indictments-reaction-st-1120-20161119-story.html
Following a series of corruption indictments against elected leaders in Lake and Porter counties, other officials decried the situation but called for unity moving forward.
U.S. Attorney David Capp Friday announced indictments against Lake County Sheriff John Buncich, Timothy Downs, the sheriff's second-in-command; Portage Mayor James Snyder, William Szarmach of Chase Street Auto in Lake Station and John Cortina of Kustom Auto in Portage.
While the investigations in Lake and Porter counties were separate, both involved allegedly soliciting and accepting money from tow company operators. Buncich, Downs and Szarmach are named in multicount indictments alleging deprivation of honest services and receipt of illegal money.
Hammond Mayor Thomas McDermott Jr., a Democrat, said the situation is disappointing and makes the entire party look bad. Buncich is chairman of the Lake County Democratic Party.
"I feel bad for everybody involved, including the residents. It's bad for the residents. It's bad for the sheriff. It's bad for Mayor Snyder," McDermott said.
Disbelief and disappointment
Lake County politicians on Friday were reacting with stunned disbelief and disappointment as news of political corruption charges against the county's top cop and Democratic Party leader made the rounds.
McDermott said he is unsure what the sheriff plans to do regarding his role as chair of the Lake County's Democratic Central Committee, the post held by McDermott until he resigned. But, he said he thought Buncich should step down. McDermott was replaced by Buncich.
McDermott said the party has an already scheduled reorganization meeting in March when the election for the party's chairman takes place. If Buncich does step down, he would like to see vice chair Peggy Katona fill the slot until March when a new election can take place.
"Hopefully John does what's right for the party," McDermott said.
Jim Wieser, election board attorney and former officeholder, said while there are mechanisms in place in the state party's bylaws to remove a party official from a position before a conviction, any speculation on whether that may happen is premature. Buncich will have the option to resign from his post as party chair.
Wieser agreed with McDermott that given the timing of the holidays and the fact the reorganization meeting is in March, if Buncich does step down it may make sense to wait until March to elect a new leader.
Commissioner Michael Repay, D-Hammond, said he is not asking the sheriff to step down from either of his posts, but if he does step down from the party chairmanship, Repay said he would like to see a replacement selected before March.
"I'm not asking for him to step down. He has rights as an accused person. He has a right to defend himself any way he can," Repay said.
Whoever is in charge of Lake's Democratic Party has their work cut out for them in the wake of the Nov. 8 general election, and the charges against Buncich will only make it more difficult.
"The next county chair will have a lot of work to do rebuilding the reputation of the party. The next chairman would have had a lot of work. This just makes it all the more difficult. In my opinion, we should start fresh sooner rather than later," Repay said.
Gary Mayor Karen Freeman-Wilson said she is hopeful the county's Democrats can move forward as a party and as elected officials.
"It's just very unfortunate. It certainly requires us to regroup," Freeman-Wilson said. "We always know people are quick to point to Lake County as corrupt, as being a certain way. It is important in a time like this to be unified. I think we have to be focused collectively on rebuilding the party, repairing any negative damage that people may have inflicted and let folks understand that this is about individuals, not about an entire party."
City to move forward in wake of charges
Portage city officials on Friday were quick to assure citizens they had strong leadership in place, even as Snyder was indicted on federal bribery accusations and charges he tried to dodge paying payroll taxes to the IRS.
"We have a great city, and we're going to continue to move forward," City Council President Mark Oprisko said. "It's a sad day for me, and I'm beside myself. In 28 years on the council, I've never dealt with anything like this, but the mayor has a very good staff, and he does care about the citizens of Portage.
"(Snyder) needs to keep his head up and keep leading."
Snyder has declined to comment on the indictment or the 2 1/2 -year investigation leading up to the charges, but Oprisko said the mayor told him he would not be charged.
The investigation is one reason Oprisko said he blocked $93,000 in payments of legal fees to law firms that did work on Snyder's behalf during the investigation.
That determination to prevent the payments until there was more information on the legal fees is one example of Portage's leadership and another reason citizens can turn to city officials, Clerk-Treasurer Chris Stidham said.
"We have eight other elected officials who are leaders," Stidham said. "Portage can rest assured the city is in good hands, even with this cloud hanging over the mayor."
Portage Township Trustee Brendan Clancy, a Democrat who ran against Snyder in last year's municipal election, called for community unity in the wake of the charges.
"The mayor's innocent until proven guilty," Clancy said. "We have to let the judicial process take its course. No matter what happens, we have to come together as a city."
Snyder's indictment came after federal officials made multiple trips to Porter County government offices, as well as investigating the Portage mayor, who is a Republican.
Mike Simpson, chair of the county's Republican Party, said he was "shocked" because he's known Snyder for a long time, and "I have a great deal of respect for him."
Whether Snyder, who was re-elected to a second term as mayor last year, should step aside to focus on his legal issues remains to be seen, he said.
"It's way too early to suggest or consider something like that," Simpson said. "Any citizen, no matter their political persuasion, is innocent until proven guilty."
The county's Republican party can resolve the matter once Snyder's case has made its way through the court system, Simpson said.
"What James chooses to do, as the officer, is up to him" Simpson said. "This is extremely disconcerting no matter what, but I also believe everybody, including Buncich, deserves their day in court."
Carrie Napoleon and Michael Gonzalez are freelance reporters for the Post-Tribune. Staff reporter Craig Lyons contributed.
NW Indiana sheriff, mayor, other officials charged with bribery
WGN News - Chicago
November 19, 2016
http://wgntv.com/2016/11/19/indiana-sheriff-mayor-other-officials-charged-with-bribery/
HAMMOND, Ind. — A federal grand jury has indicted a northwestern Indiana sheriff, his top deputy and a mayor, accusing them of collecting bribes for contracts for towing and other services.
The indictments announced Friday name Lake County Sheriff John Buncich, Chief Deputy Tim Downs, Portage Mayor James Snyder and tow company owners William Szarmach of Lake Station and John Cortina of Portage.
The FBI last week raided Buncich's offices in Crown Point, Indiana, 45 miles southeast of Chicago.
Prosecutors say Buncich received over $25,000 in cash and $7,000 in checks from Szarmach and an unnamed individual for towing contracts in Gary and Lake County.
Snyder is accused of receiving $12,000 from Cortina and the same unnamed individual for towing contracts in Portage. He's also charged with receiving $13,000 for other city contracts or projects.
Portage Mayor Snyder indicted on bribery, tax charges
NWI Times
November 19, 2016
http://www.nwitimes.com/news/crime-and-court/portage-mayor-snyder-indicted-on-bribery-tax-charges/article_9d464eac-3944-5e2b-b914-464b0f2bdbe8.html
PORTAGE — Mayor James Snyder has been indicted in federal court in Hammond on bribery and obstruction charges.
U.S. District Attorney David Capp announced the indictments in a press conference Friday morning.
While the charges were being read from the federal courthouse in Hammond, Snyder met with city department heads and employees at his home.
U.S. marshals escorted Snyder, 38, into court about 3:30 p.m. Friday. He flashed smiles at his lawyers, Thomas Kirsch and Thomas Dogan.
He pleaded not guilty before U.S. Magistrate Judge Paul Cherry to felony bribery, extortion and tax dodging counts, which carry long prison terms if he is convicted.
He was freed on a $20,000 recognizance bond, but has to surrender his passport and firearms he owns. When the judge asked Snyder if he has a passport, Snyder smiled and said, “We’ve been looking for it since 7 a.m.”
Snyder’s administrative assistant, Amanda Lakie, said he would not be making a statement and directed The Times to Snyder’s attorney. Lakie said Snyder met with employees to encourage them to continue their work for the city.
“Mayor James Snyder has been under investigation for nearly two and half years and today was indicted on three counts,” said Snyder’s attorney, Tom Kirsch, of Chicago. “Mayor Snyder believed that this extremely lengthy federal investigation had been concluded without charges being sought. Today’s indictment comes as a complete surprise. This is particularly so because these charges are meritless. Mayor Snyder has always been cooperative with federal agents throughout the relentless investigation. Mayor Snyder looks forward to fighting these charges in a court of law and to complete vindication. Mayor Snyder and his family are grateful for the outpouring of support they have received from residents, friends, and family and asks that they continue to believe in him through this time.”
Federal authorities arrested and arraigned John Cortina, owner of Kustom Auto Body, 5409 U.S. 6, Portage, earlier Friday. He is pleading not guilty to his role in the scheme and is also free on bond.
Cherry set their trial to begin the week of Jan. 23, although the date could change if the defense needs more time to prepare.
The charges
The first charge names Snyder and Cortina.
Snyder and Cortina are both charged with a violation of the federal bribery statute. Snyder is alleged to have corruptly solicited and received two checks totaling $12,000 from Cortina, in exchange for a towing contract in the city of Portage, according to a press release from the U.S. Department of Justice. Cortina is charged with corruptly offering those checks to Snyder.
Cortina’s business was raided last week by Indiana State Police and U.S. Treasury Department agents. Cortina told The Times then that his business was not the subject of the raid, that a towing company which leases property from Cortina was being investigated.
Snyder is also charged with a second violation of the federal bribery statute. That count alleges that between Jan. 1, 2012 and Jan. 10, 2014, Snyder corruptly solicited and agreed to accept a bank check in the amount of $13,000 in connection with Portage Board of Works contracts, a Portage Redevelopment Commission project and other consideration, stated the release.
The final charge against Snyder alleges obstruction of the internal revenue laws. This count sets forth an alleged scheme, undertaken by Snyder between January 2010 and April 2013, to obstruct and impede the Internal Revenue Service’s collection of personal taxes he owed and payroll taxes owed by his mortgage business, First Financial Trust Mortgage LLC. Snyder is alleged to have diverted funds away from FFTM to a sole proprietorship he created, and submitted three forms to the IRS which failed to disclose, among other things, the existence of the sole proprietorship and its bank account – all during a time when the IRS was attempting to collect the aforementioned tax debt.
Lengthy investigation
The indictment comes after more than two years of investigation by the FBI into the city and Snyder and less than two months after Snyder attempted to get the city’s Utility Service Board to pay some $93,000 in legal fees involving the investigation.
In September, Snyder had two checks cut by the department and sent to two legal firms without approval by the board. The legal firms allegedly returned the checks because they were not from Snyder directly. The funds were returned to the department and Mark Oprisko, City Council president and utility board vice chairman, called for an investigation by an independent attorney into the claims.
While state law allows Snyder to request the reimbursement it can only be done if he was cleared of the investigation and there were no impending indictments.
Reactions
Oprisko said he had the “wind knocked out of me” when he heard about the indictments and was “disheartened,” thinking that the investigation was over a couple of months ago.
“It is a black eye to the city. The investigation is what it is. He is innocent until proven guilty. He still has a job to do. He has to pick it up and move forward,” Oprisko said, adding the same is true for city employees and other elected officials. “Our job is to serve the citizens of Portage, and we will continue to do that.”
“While this is a sad day for the city of Portage, Jim Snyder deserves his day in court,” said Portage Clerk-Treasurer Chris Stidham. “However, I am focused on ensuring myself and the City Council continue to lead Portage forward despite the mayor’s troubles. Now, more than ever, Portage needs good leaders. We are more than any one person and the issues of one won’t derail our progress.”
“Today’s indictment issued by the United States Attorney in connection to Portage Mayor James Snyder is deeply concerning,” said Portage Councilman Collin Czilli in a written statement, promising residents that city business will continue unimpeded. “However, like any other individual, Mayor Snyder deserves his day in court and the right to defend himself. As a city Councilman, I am of the mindset that we must allow the judicial process to continue and to not interfere in that process for political purposes.”
“These investigations are not over. Our public corruption team will continue its work, particularly into the towing contracts in both Lake and Porter counties,” Capp said in the press release.
Anyone with information related to these public corruption charges is encouraged to call the FBI at (219) 769-3719.
Lake County Sheriff, Portage Mayor Indicted On Public Corruption Charges
TV News
November 18, 2016
https://www.youtube.com/watch?v=oBqDUmPnKvk&t=2s
The U.S. Attorney's office announced public corruption indictments Friday against officials in both Lake and Porter counties in northwest Indiana.
Lake County sheriff, Portage mayor indicted on bribery charges
Fox 32 Chicago News
November 10, 2016 - 12:44PM
Updated: November 18, 2016 - 9:50PM
http://www.fox32chicago.com/news/local/216728220-story
SUN-TIMES MEDIA WIRE - Several northwest Indiana public officials, including Lake County Sheriff John Buncich and Portage Mayor James Snyder, were indicted Friday on federal bribery charges involving towing contracts.
One indictment named Buncich and his Chief Deputy Timothy Downs in connection with a scheme to exchange money for county towing contracts, according to a statement from the U.S. attorney’s office. The indictment also named William Szarmach, owner of CSA Towing in Lake Station, Indiana. They are charged with deprivation of honest services and receipt of illegal money.
Prosecutors allege that between February 2014 and October 2016, Downs collected multiple payments from Szarmach and the owner of another towing company in exchange for towing business in Lake County and the city of Gary. The scheme allegedly benefited Buncich personally, as well as his campaign committee, Buncich Boosters.
Buncich was also charged individually with violating a federal bribery statute, according to prosecutors. He is accused of having solicited, demanded and received more than $25,000 in cash and another $7,000 in checks in exchange for favorable actions in regard to towing contracts.
In a statement released Friday afternoon following the indictments, the sheriff’s office did not comment on the charges, saying only that Buncich and his administrative and command staff continue to oversee day-to-day operations for the department’s criminal investigations, patrol, civil, staff services, and corrections divisions.
“The Sheriff’s Department is continuing to run as normal,” Buncich said in the statement. “There has been no disruption of any operations. The proud men and women of the Lake County Indiana Sheriff’s Department continue to serve and protect our citizens.”
A second indictment was returned against Snyder and John Cortina, who owns and operates Kustom Auto Body in Portage, prosecutors said. Both men are charged with violating a federal bribery statute.
Snyder allegedly solicited and received two checks totaling $12,000 from Cortina and the owner of another towing company in exchange for towing contracts in Portage, prosecutors said. Snyder is also charged with a second bribery violation for allegedly soliciting and accepting a $13,000 bank check in January 2014 in connection with Portage Board of Works contracts and a Portage Redevelopment Commission project.
The same towing company owner voluntarily came forward and cooperated with federal authorities in both investigations, the U.S. attorney’s office said.
A third charge against Snyder claims he obstructed attempts by the IRS to collect personal taxes he owed and payroll taxes owed by his mortgage business, First Financial Trust Mortgage LLC, prosecutors said. He allegedly diverted funds from his company to a sole proprietorship, then submitted forms to the IRS that did not disclose the existence of the proprietorship or its bank account.
“These investigations are not over,” U.S. Attorney David Capp said in the statement. “Our public corruption team will continue its work, particularly into the towing contracts in both Lake and Porter counties.”
The investigations were conducted by the FBI and IRS with assistance from Indiana State Police.
Lake County Sheriff, Portage Mayor Indicted On Public Corruption Charges
ABC News- Chicago
Friday, November 18, 2016
http://abc7chicago.com/news/northwest-indiana-officials-indicted-on-public-corruption-charges-/1614075/
ABC News- Chicago
Friday, November 18, 2016
http://abc7chicago.com/news/northwest-indiana-officials-indicted-on-public-corruption-charges-/1614075/
CROWN POINT, Ind. (WLS) -- The U.S. Attorney's office announced public corruption indictments Friday against officials in both Lake and Porter counties in northwest Indiana.
Indictments name Lake County Sheriff John Buncich, Chief Deputy Tim Downs, Portage Mayor James Snyder and tow company owners William Szarmach of Chase Street Auto in Lake Station and John Cortina of Kustom Auto Body in Portage, U.S. Attorney David Capp said at a news conference.
Last week, state police assisted the FBI as they executed a search warrant at the Lake County Sheriff's office in Crown Point.
Last week, state police assisted the FBI as they executed a search warrant at the Lake County Sheriff's office in Crown Point.
The indictment alleges that between February 2014 and October 2016, Buncich, Downs and Szarmach worked to enrich Buncich and his campaign committee, Buncich Boosters, through towing contracts.
Buncich received over $25,000 in cash and $7,000, often collected by Downs, in checks from Szarmach and an unnamed individual for towing contracts in Gary and Lake County, prosecutors said. The three men face wire fraud charges, and Buncich and Szarmach also are charged with bribery.
The alleged scheme unraveled when another owner of a tow truck business, known as Individual A, went to the feds.
"It's because of his efforts that we have been able to get into the inner workings of this illegal scheme," Capp said.
Individual A also helped the feds snag Portage Mayor James Snyder in a similar towing scheme, involving Kustom Auto Body in Portage. Snyder is also facing tax evasion charges.
Snyder, named in a separate indictment, is accused of receiving $12,000 from Cortina and the same unnamed individual for towing contracts in Portage, located in neighboring Porter County. He's also accused of accepting $13,000 for other city contracts or projects from 2013 to 2014. He's faces a charge of obstructing tax laws for impeding the government's collection of personal taxes he owed and payroll taxes owed by his mortgage business, First Financial Trust Mortgage LLC.
Buncich, Downs, Szarmach and Cortina were all arrested and taken into custody Friday morning, Capp said. Snyder was to surrender to federal authorities later, officials said.
"To those others out there in law enforcement or in elected positions who have been engaging in conduct similar to that announced today regarding towing contracts. You know who you are and we know currently who some of them are and we are coming after you," Capp said.
Buncich is the chairman of the Lake County Democratic Party and was elected to his fourth term as sheriff in 2015. Snyder, a Republican, was elected to his second term as mayor in 2015.
Snyder's attorney, Thomas Kirsch, issued a statement saying the mayor's indictment "comes as a complete surprise."
"Mayor Snyder looks forward to fighting these charges in a court of law and to complete vindication," the statement said.
Federal authorities said they expect more charges to follow. Anyone with information related to these public corruption charges is encouraged to call the FBI at 219-769-3719.
The Associated Press contributed to this report.
Buncich received over $25,000 in cash and $7,000, often collected by Downs, in checks from Szarmach and an unnamed individual for towing contracts in Gary and Lake County, prosecutors said. The three men face wire fraud charges, and Buncich and Szarmach also are charged with bribery.
The alleged scheme unraveled when another owner of a tow truck business, known as Individual A, went to the feds.
"It's because of his efforts that we have been able to get into the inner workings of this illegal scheme," Capp said.
Individual A also helped the feds snag Portage Mayor James Snyder in a similar towing scheme, involving Kustom Auto Body in Portage. Snyder is also facing tax evasion charges.
Snyder, named in a separate indictment, is accused of receiving $12,000 from Cortina and the same unnamed individual for towing contracts in Portage, located in neighboring Porter County. He's also accused of accepting $13,000 for other city contracts or projects from 2013 to 2014. He's faces a charge of obstructing tax laws for impeding the government's collection of personal taxes he owed and payroll taxes owed by his mortgage business, First Financial Trust Mortgage LLC.
Buncich, Downs, Szarmach and Cortina were all arrested and taken into custody Friday morning, Capp said. Snyder was to surrender to federal authorities later, officials said.
"To those others out there in law enforcement or in elected positions who have been engaging in conduct similar to that announced today regarding towing contracts. You know who you are and we know currently who some of them are and we are coming after you," Capp said.
Buncich is the chairman of the Lake County Democratic Party and was elected to his fourth term as sheriff in 2015. Snyder, a Republican, was elected to his second term as mayor in 2015.
Snyder's attorney, Thomas Kirsch, issued a statement saying the mayor's indictment "comes as a complete surprise."
"Mayor Snyder looks forward to fighting these charges in a court of law and to complete vindication," the statement said.
Federal authorities said they expect more charges to follow. Anyone with information related to these public corruption charges is encouraged to call the FBI at 219-769-3719.
The Associated Press contributed to this report.
UPDATE: Portage Mayor Snyder indicted on bribery, tax charges
NWI Times
November 18, 2016 - 3:20PM
http://www.nwitimes.com/news/crime-and-court/update-portage-mayor-snyder-indicted-on-bribery-tax-charges/article_9d464eac-3944-5e2b-b914-464b0f2bdbe8.html
PORTAGE — Mayor James Snyder has been indicted in federal court in Hammond on bribery and obstruction charges.
U.S. District Attorney David Capp announced the indictments in a press conference Friday morning.
While the charges were being read from the federal courthouse in Hammond, Snyder met with city department heads and employees at his home.
His administrative assistant, Amanda Lakie, said Snyder would not be making a statement and directed The Times to Snyder's attorney. Lakie said Snyder met with employees to encourage them to continue their work for the city.
"Mayor James Snyder has been under investigation for nearly two and half years and today was indicted on three counts. Mayor Snyder believed that this extremely lengthy federal investigation had been concluded without charges being sought. Today's indictment comes as a complete surprise. This is particularly so because these charges are meritless. Mayor Snyder has always been cooperative with federal agents throughout the relentless investigation. Mayor Snyder looks forward to fighting these charges in a court of law and to complete vindication. Mayor Snyder and his family are grateful for the outpouring of support they have received from residents, friends, and family and asks that they continue to believe in him through this time," said Snyder's attorney, Tom Kirsch, of Chicago.
The charges
The first charge names Snyder and John Cortina, owner of Kustom Auto Body, 5409 U.S. 6, Portage.
Snyder and Cortina are both charged with a violation of the federal bribery statute. Snyder is alleged to have corruptly solicited and received two checks totaling $12,000 from Cortina, in exchange for a towing contract in the city of Portage, according to a press release from the U.S. Department of Justice. Cortina is charged with corruptly offering those checks to Snyder.
Cortina's business was raided last week by Indiana State Police and U.S. Treasury Department agents. Cortina told The Times then that his business was not the subject of the raid, that a towing company which leases property from Cortina was being investigated.
Snyder is also charged with a second violation of the federal bribery statute. That count alleges that between Jan. 1, 2012 and Jan. 10, 2014, Snyder corruptly solicited and agreed to accept a bank check in the amount of $13,000 in connection with Portage Board of Works contracts, a Portage Redevelopment Commission project and other consideration, stated the release.
The final charge against Snyder alleges obstruction of the internal revenue laws. This count sets forth an alleged scheme, undertaken by Snyder between January 2010 and April 2013, to obstruct and impede the Internal Revenue Service’s collection of personal taxes he owed and payroll taxes owed by his mortgage business, First Financial Trust Mortgage LLC. Snyder is alleged to have diverted funds away from FFTM to a sole proprietorship he created, and submitted three forms to the IRS which failed to disclose, among other things, the existence of the sole proprietorship and its bank account – all during a time when the IRS was attempting to collect the aforementioned tax debt.
The indictment comes after more than two years of investigation by the FBI into the city and Snyder and less than two months after Snyder attempted to get the city's Utility Service Board to pay some $93,000 in legal fees involving the investigation.
In September, Snyder had two checks cut by the department and sent to two legal firms without approval by the board. The legal firms allegedly returned the checks because they were not from Snyder directly. The funds were returned to the department and Mark Oprisko, City Council president and utility board vice chairman, called for an investigation by an independent attorney into the claims.
While state law allows Snyder to request the reimbursement it can only be done if he was cleared of the investigation and there were no impending indictments.
Reactions
Oprisko said he had the "wind knocked out of me" when he heard about the indictments and was "disheartened," thinking that the investigation was over a couple of months ago.
"It is a black eye to the city. The investigation is what it is. He is innocent until proven guilty. He still has a job to do. He has to pick it up and move forward," Oprisko said, adding the same is true for city employees and other elected officials. "Our job is to serve the citizens of Portage, and we will continue to do that."
"While this is a sad day for the city of Portage, Jim Snyder deserves his day in court," said Portage Clerk-Treasurer Chris Stidham. "However, I am focused on ensuring myself and the City Council continue to lead Portage forward despite the mayor's troubles. Now, more than ever, Portage needs good leaders. We are more than any one person and the issues of one won't derail our progress."
“These investigations are not over. Our public corruption team will continue its work, particularly into the towing contracts in both Lake and Porter counties," Capp said in the press release.
Anyone with information related to these public corruption charges is encouraged to call the FBI at (219) 769-3719.
Lake County Sheriff John Buncich and Portage Indiana Mayor James Snyder Indicted Separately on Public Corruption Charges
WNDU News
Nov 18, 2016
http://www.wndu.com/content/news/Lake-County-Sheriff-John-Buncich-and-Portage-Indiana-Mayor-James-Snyder-Indicted-Separately-on-Public-Corruption-Charges-401933685.html
United States Attorney David Capp announced today in Hammond the return of two public corruption indictments; one naming Lake County Sheriff John Buncich and the other naming Portage Mayor James Snyder.
Buncich, his chief deputy Timothy Downs, and William Szarmach were named in a multi-count indictment alleging a deprivation of honest services and receipt of illegal money in connection with towing contracts in Lake County.
John Buncich is the Lake County Sheriff. Buncich earlier served as sheriff from 1994-2002, and was re-elected in 2010 and again in 2014. Pursuant to a Lake County ordinance, the sheriff has exclusive authority to determine what entity would do any towing as required by the sheriff’s department. Downs is the Chief in the Lake County Sheriff’s Department, the second person in command, having been appointed to that position by Buncich. Szarmach owns and operates CSA Towing, located at 2599 DeKalb Street, Lake Station, Indiana.
The indictment alleges that from February 2014 continuing into October 2016, Buncich, Downs and Szarmach devised a scheme to deprive the citizens of Lake County of their right to the honest services of the sheriff’s office and the scheme was designed to enrich Buncich personally and his campaign committee, known as Buncich Boosters.
The indictment details a number of checks and cash payments, often collected by Downs, from Szarmach and an Individual A in exchange for Buncich awarding county towing business and towing in the City of Gary for ordinance violations. Individual A is the owner of a tow truck business who voluntarily came forward and cooperated with the United States during the course of this investigation.
Buncich is also charged individually with a violation of the federal bribery statute. Specifically, Buncich is alleged to have corruptly solicited, demanded and received over $25,000 in cash and $7000 in checks in exchange for favorable actions by Buncich regarding the towing contracts.
The second indictment names Portage Mayor James Snyder and John Cortina. Snyder was first elected as mayor in 2011 and was re-elected to a second four-year term in 2015. Cortina owns and operates a towing business, Kustom Auto Body, 5409 US Highway 6 in Portage.
Snyder and Cortina are both charged with a violation of the federal bribery statute. Snyder is alleged to have corruptly solicited and received two checks totaling $12000 from Cortina and Individual A (same individual above), in exchange for a towing contract in the City of Portage. Cortina is charged with corruptly offering those checks to Snyder.
Snyder is also charged with a second violation of the federal bribery statute. That count alleges that between January 1, 2012 and January 10, 2014, Snyder corruptly solicited and agreed to accept a bank check in the amount of $13,000 in connection with Portage Board of Works contracts, a Portage Redevelopment Commission project and other consideration.
The final charge against Snyder alleges obstruction of the internal revenue laws. This count sets forth an alleged scheme, undertaken by Snyder between January 2010 and April 2013, to obstruct and impede the IRS’s collection of personal taxes he owed and payroll taxes owed by his mortgage business, First Financial Trust Mortgage, LLC. Snyder is alleged to have diverted funds away from FFTM to a sole proprietorship he created, and submitted three forms to the IRS which failed to disclose, among other things, the existence of the sole proprietorship and its bank account – all during a time when the IRS was attempting to collect the aforementioned tax debt.
United States Attorney Capp stated, “These investigations are not over. Our public corruption team will continue its work, particularly into the towing contracts in both Lake and Porter counties.”
Anyone with information related to these public corruption charges is encouraged to call the FBI at 219-769-3719.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until, and unless, proven guilty in court.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
These indictments were the result of an extensive, ongoing investigation conducted by the Federal Bureau of Investigation and Internal Revenue Service, Criminal Investigation Division.
Assistance was provided throughout by the Indiana State Police. These indictments will be handled in the United States Attorney’s Office by Assistant United States Attorneys Philip C. Benson, Gary T. Bell and Jill R. Koster.
Lake County sheriff, Portage mayor accused of taking bribes for towing contracts
FOX 59 News
November 18, 2016
http://fox59.com/2016/11/18/lake-county-sheriff-portage-mayor-accused-of-taking-bribes-for-towing-contracts/
HAMMOND, Ind. – The sheriff of Lake County and mayor of Portage were indicted Friday on public corruption charges in connection with a towing and bribery scheme.
Federal prosecutors said the indictments were returned against Lake County Sheriff John Buncich and Portage Mayor James Snyder. Timothy Downs—Buncich’s chief deputy—and William Szarmach, who owns a company called CSA Towing, were also named in Buncich’s multi-count indictment. John Cortina, the owner of a towing business, was named in Snyder’s indictment.
The indictment involving Buncich alleges deprivation of honest services and receipt of illegal money. Snyder’s indictment alleges a violation of the federal bribery statute.
Buncich is also charged individually with violating the federal bribery statute. He, Downs and Szarmach are accused of using towing contracts to enrich Buncich and his campaign committee, which was called “Buncich Boosters.”
The indictment said Buncich and Downs collected cash and check payments from Szarmach and another individual in exchange for the awarding of towing contracts in Lake County and Gary. The second individual came forward to report the practice, prosecutors said.
Buncich, in a position of power as county sheriff, demanded more than $25,000 in cash and $7,000 in checks for the contracts, prosecutors said.
The FBI and Indiana State Police raided his office and home last week.
Snyder, the mayor of Portage, is accused of accepting $12,000 from Cortina and the aforementioned whistleblower in exchange for favorable towing contracts in Portage. Cortina owns and operates Kustom Auto Body.
Snyder is accused of a second violation of the bribery statute. Between Jan. 2012 and Jan. 2014, he allegedly solicited and accepted $13,000 in connection with Portage Board of Works contracts, a Portage Redevelopment Commission project and other consideration.
Snyder is also accused of impeding the Internal Revenue Service from collecting personal taxes and payroll taxes from his mortgage business.
Federal prosecutors said the investigations aren’t over yet and that towing contracts in Lake and Porter counties would be further scrutinized.
Northwest Indiana sheriff, mayor indicted in alleged bribery scheme
WGN News - Chicago
November 18, 2016
http://wgntv.com/2016/11/18/nw-indiana-sheriff-mayor-indicted-in-alleged-bribery-scheme/
Portage Mayor James Snyder leaving Hammond Federal Courthouse
HAMMOND, Ind. -- The sheriff of Lake County, Ind., along with his top deputy and a mayor have been indicted on charges of collecting bribes for contracts for towing and other services.
The indictments announced Friday name Lake County Sheriff John Buncich, Chief Deputy Tim Downs, Portage Mayor James Snyder and tow company owners William Szarmach of Lake Station and John Cortina of Portage.
The FBI raided Buncich's offices in Crown Point, Ind. last week.
Prosecutors say Buncich received over $25,000 in cash and $7,000 in checks from Szarmach and an unnamed individual for towing contracts in Gary and Lake County.
Snyder is accused of receiving $12,000 from Cortina and the same unnamed individual for towing contracts in Portage. He's also charged with receiving $13,000 for other city contracts or projects.
Snyder is expected to turn himself in to authorities Friday afternoon. Neither Snyder or Buncich have commented on the indictments.
Northwest Indiana sheriff, mayor indicted in alleged bribery scheme
WGN TV News
November 18, 2016 - 1:00PM
November 18, 2016 - 1:00PM
http://wgntv.com/2016/11/18/nw-indiana-sheriff-mayor-indicted-in-alleged-bribery-scheme/
HAMMOND, Ind. -- The sheriff of Lake County, Ind., along with his top deputy and a mayor have been indicted on charges of collecting bribes for contracts for towing and other services.
The indictments announced Friday name Lake County Sheriff John Buncich, Chief Deputy Tim Downs, Portage Mayor James Snyder and tow company owners William Szarmach of Lake Station and John Cortina of Portage.
The FBI raided Buncich's offices in Crown Point, Ind. last week.
Prosecutors say Buncich received over $25,000 in cash and $7,000 in checks from Szarmach and an unnamed individual for towing contracts in Gary and Lake County.
Snyder is accused of receiving $12,000 from Cortina and the same unnamed individual for towing contracts in Portage. He's also charged with receiving $13,000 for other city contracts or projects.
Snyder is expected to turn himself in to authorities Friday afternoon. Neither Snyder or Buncich have commented on the indictments.
Lake sheriff, Portage mayor indicted on corruption charges: Feds
Post-Tribune
November 18, 2016
http://www.chicagotribune.com/suburbs/post-tribune/news/ct-ptb-lake-porter-corruption-indictments-st-1121-20161118-story.html
Federal authorities Friday leveled a series of corruption charges against several Northwest Indiana officials.
U.S. Attorney David Capp announced indictments against Lake County Sheriff John Buncich, Chief Deputy Timothy Downs, Portage Mayor James Snyder, William Szarmach of Chase Street Auto in Gary and John Kortina of Kustom Auto in Portage.
While the investigations in Lake and Porter counties were separate, both involved allegedly soliciting and accepting money from tow company operators.
"This is a sad day for the citizens of Northwest Indiana," Capp said.
Buncich, Downs and Szarmach are named in multi-count indictments alleging deprivation of honest services and receipt of illegal money.
Among the charges the U.S. attorney leveled against Buncich are federal bribery, alleging the county's top police officals solicited, demanded and received more than $25,000 in cash and $7,000 in checks from the towing contracts.
Snyder and Kortina were charged with allegedly violating a federal bribery statue. 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.
Buncich, Downs, Szarmach and Kortina were all arrested and taken into custody Friday morning, according to Capp. Snyder will surrender to federal authorities later, officials said.
Buncich is the chairman of the Lake County Democratic Party and was elected to his fourth term as sheriff in 2015. Snyder, a Republican, was elected to his second term as mayor in 2015.
Federal agents were investigating a possible "receipt of a bribe by an agent of a local government receiving federal funds," "mail/wire fraud," "conspiracy to commit mail/wire fraud," and "Hobbs Act extortion under the Color of State Authority," according to a search warrant served in lake County Nov. 10.
On Nov. 10, FBI officials served search warrants at the Lake County Sheriff's Department and E-911 Department. Authorities sought information related to towing operations run through the county.
Federal agents sought records related towing operations for the last 6 years, according to a search warrant filed with the E-911 department. Information sought from the department included maps, tow logs, a list of tow companies, phone and dispatch call data for police and tow companies, emails from any sheriff's department personnel related to Lake County towing and dispatcher work schedules.
The Sheriff's Department has yet to make the search warrant served on the office public. The Post-Tribune has filed a freedom of information request for the document.
Capp said the investigations into corruption related to towing contracts in Northwest Indiana continue and more charges are anticipated.
"We know who you are. We know currently who some of you are," Capp said. "We are coming after you."
Portage Mayor, Lake County Sheriff Indicted For Corruption
CBS News - Chicago
November 18, 2016
November 18, 2016
http://chicago.cbslocal.com/2016/11/18/portage-mayor-lake-county-sheriff-indicted-for-corruption/
CHICAGO (CBS) — Portage Mayor James Snyder and Lake County Sheriff John Buncich have been indicted on public corruption charges in connection to towing companies in northwest Indiana.
In indictments announced Friday, federal prosecutors allege Buncich and his chief deputy Timothy Downs schemed to award towing business in Lake County and the city of Gary to CSA Towing in Lake Station, in exchange for bribes to Buncich.
The indictment alleges Buncich received more than $25,000 in cash and $7,000 in checks for directing towing business to CSA and another unnamed towing business. Downs allegedly acted as the bag man for Buncich.
Last week, the FBI raided Buncich’s home and office, but U.S. Atty. David Capp said the indictments were the result of a multi-year investigation that started when a towing company owner came forward with corruption allegations.
A second indictment accuses Snyder of accepting two checks totaling $12,000 from and Kustom Auto Body owner John Cortina and another towing company owner in exchange for a towing contract with the city of Portage. Snyder also allegedly accepted a check for $13,000 in connection to Portage Board of Works contracts.
“Today is a sad day for the citizens of northwest Indiana, and it is a particularly sad day for all of us in law enforcement,” Capp said.
The feds said the same towing company owner who came forward in Buncich’s case also was cooperating in the case against Snyder. Capp said the owner, identified in both indictments only as Individual A, has paid bribes, and then went to the FBI, starting the investigation.
“This individual voluntarily came forward and offered to work with us, and it’s because of his efforts that we have been able to get into the inner workings of this illegal scheme,” Capp said.
Prosecutors said the investigation does not end with the charges announced Friday, and Capp said there would be more indictments.
“To those others out there in law enforcement, or in elected positions, who have been engaging in conduct similar to that announced today, we are coming after you. Time is running short,” Capp said.
Lake County Sheriff, Portage Mayor Indicted
November 18, 2016 - 11:30AM
ABC News - Chicago
https://www.youtube.com/watch?v=oBqDUmPnKvk
LAKE COUNTY SHERIFF, PORTAGE MAYOR INDICTED ON PUBLIC CORRUPTION CHARGES
The U.S. Attorney's office announced public corruption indictments Friday against officials in both Lake and Porter counties in northwest Indiana.
Last week, state police assisted the FBI as they executed a search warrant at the Lake County Sheriff's office in Crown Point.
On Friday, authorities charged Lake County Sheriff John Buncich with four counts of wire fraud and receiving bribes. Timothy Downs, chief deputy at the Lake County Sheriff's Department, was also charged with three counts of wire fraud and one count of receiving a bribe. Portage Mayor James Schneider is also facing charges of bribery and obstruction of tax laws.
The officials are accused of taking money from local towing companies in exchange for contracts. Buncich is alleged to have corruptly solicited, demanded and received over $25,000 in cash and $7,000 in checks in exchange for favorable actions by Buncich regarding the towing contracts.
Snyder is alleged to have corruptly solicited and received two checks totaling $12,000 in exchange for a towing contract in the City of Portage. Authorities said Snyder also corruptly solicited and agreed to accept a bank check in the amount of $13,000 in connection with Portage Board of Works contracts and other considerations.
"To those others out there in law enforcement or in elected positions who have been engaging in conduct similar to that announced today regarding towing contracts. You know who you are and we know currently who some of them are and we are coming after you," said David Capp, U.S. Attorney, Northern District of Indiana.
If convicted on all of the charges, Buncich and Downs could face a maximum of 30 years in prison. Both pleaded not guilty and were released.
Buncich and Downs are due back in court on January 17. Federal authorities said they expect more charges to follow.
Buncich Behind Bars, Portage Mayor Snyder to Surrender Later Today
NWI Gazette
November 18, 2016
http://nwigazette.com/2016/11/buncich-behind-bars/
At a press conference this morning United States Attorney David Capp confirmed that Lake County Sheriff John Buncich and Chief of Police Timothy Downs were both arrested earlier today.
Additionally, Portage Mayor James Snyder has been indicted and is scheduled to surrender later today. William Szarrmach, owner of CSA Towing, was also arrested. John Cortina, owner of Kustom Towing in Portage, was also indicted and is scheduled to surrender later today. US Attorney David Capp declined to comment on why Buncich, Downs and Szarmach were arrested while Snyder and Cortina were allowed to surrender. Mr. Capp did say that his office had conversations with attorneys for Snyder and Cortina regarding their surrender.
UPDATE: Sheriff Buncich and Chief Tim Downs were arraigned and released earlier today. Sheriff Buncich issued a statement saying
"The Sheriff's Department is continuing to run as normal.
There has been no disruption of any operations. The proud men and women of the Lake
County Indiana Sheriff's Department continue to serve and protect our citizens."
The indictments against Buncich, Downs and Szarmach are not available at this time. The US Attorney’s office held a press conference outlining a scheme of pay-to-play regarding payments made from towing contractors to Downs and Buncich. “The indictment details a number of checks and cash payments, often collected by Downs, from Szarmach and an Individual A in exchange for Buncich awarding county towing business and towing in the City of Gary for ordinance violations.
Individual A is the owner of a tow truck business who voluntarily came forward and cooperated with the United States during the course of this investigation” according to a written release provided by Capp. “Buncich is alleged to have corruptly solicited, and received, over $25,000 in cash and $7,000 in checks in exchange for favorable actions by Buncich regarding towing contracts” the statement continues.
The Indictment of Mayor James Snydert contains three allegations. “Snyder is alleged to have corruptly solicited and received two checks totalling $12,000 from Cortina and Individual A, in exchange for towing contracts with the City of Portage” according to Capp. “Snyder is also charged with a second violation of the federal bribery statute. That count alleges that between January 1, 2012 and January 10, 2014, Snyer corruptly solicited and agreed to accept a public bank check in the amount of $13,000 in connection with Portage Board of Works contracts, a Portage Redevelopment Commission project and other consideration.” Finally, Snyer is charged with engaging in “an alleged scheme, . . . between January, 2010 and April 2013, to obstruct and impede the IRS’s collection of personal taxes he owed and payroll taxes owed by his mortgage business, First Financial Trust, LLC (FFTM). Snyder is alleged to have diverted funds away from FFTM to a sole proprietorship he created” according to the statement.
United States Attorney David Capp stressed that this investigation is ongoing and more indictments will come. Mr. Capp urged any citizen with information regarding public corruption to contact the FBI at 219-769-3719 or his office directly at 937-5601.
A criminal charge is not evidence of guilt. All criminal defendants are presumed innocent unless proven guilty in a court of law.
NWI Gazette
November 18, 2016
http://nwigazette.com/2016/11/buncich-behind-bars/
At a press conference this morning United States Attorney David Capp confirmed that Lake County Sheriff John Buncich and Chief of Police Timothy Downs were both arrested earlier today.
Additionally, Portage Mayor James Snyder has been indicted and is scheduled to surrender later today. William Szarrmach, owner of CSA Towing, was also arrested. John Cortina, owner of Kustom Towing in Portage, was also indicted and is scheduled to surrender later today. US Attorney David Capp declined to comment on why Buncich, Downs and Szarmach were arrested while Snyder and Cortina were allowed to surrender. Mr. Capp did say that his office had conversations with attorneys for Snyder and Cortina regarding their surrender.
UPDATE: Sheriff Buncich and Chief Tim Downs were arraigned and released earlier today. Sheriff Buncich issued a statement saying
"The Sheriff's Department is continuing to run as normal.
There has been no disruption of any operations. The proud men and women of the Lake
County Indiana Sheriff's Department continue to serve and protect our citizens."
The indictments against Buncich, Downs and Szarmach are not available at this time. The US Attorney’s office held a press conference outlining a scheme of pay-to-play regarding payments made from towing contractors to Downs and Buncich. “The indictment details a number of checks and cash payments, often collected by Downs, from Szarmach and an Individual A in exchange for Buncich awarding county towing business and towing in the City of Gary for ordinance violations.
Individual A is the owner of a tow truck business who voluntarily came forward and cooperated with the United States during the course of this investigation” according to a written release provided by Capp. “Buncich is alleged to have corruptly solicited, and received, over $25,000 in cash and $7,000 in checks in exchange for favorable actions by Buncich regarding towing contracts” the statement continues.
The Indictment of Mayor James Snydert contains three allegations. “Snyder is alleged to have corruptly solicited and received two checks totalling $12,000 from Cortina and Individual A, in exchange for towing contracts with the City of Portage” according to Capp. “Snyder is also charged with a second violation of the federal bribery statute. That count alleges that between January 1, 2012 and January 10, 2014, Snyer corruptly solicited and agreed to accept a public bank check in the amount of $13,000 in connection with Portage Board of Works contracts, a Portage Redevelopment Commission project and other consideration.” Finally, Snyer is charged with engaging in “an alleged scheme, . . . between January, 2010 and April 2013, to obstruct and impede the IRS’s collection of personal taxes he owed and payroll taxes owed by his mortgage business, First Financial Trust, LLC (FFTM). Snyder is alleged to have diverted funds away from FFTM to a sole proprietorship he created” according to the statement.
United States Attorney David Capp stressed that this investigation is ongoing and more indictments will come. Mr. Capp urged any citizen with information regarding public corruption to contact the FBI at 219-769-3719 or his office directly at 937-5601.
A criminal charge is not evidence of guilt. All criminal defendants are presumed innocent unless proven guilty in a court of law.
FOR IMMEDIATE RELEASE
Lake County Sheriff John Buncich and Portage Indiana Mayor James Snyder Indicted Separately on Public Corruption Charges
The United States Attorney's Office - Northern District Of Indiana
United States Attorney David Capp
Friday, November 18, 2016
https://www.justice.gov/usao-ndin/pr/lake-county-sheriff-john-buncich-and-portage-indiana-mayor-james-snyder-indicted
HAMMOND – United States Attorney David Capp announced today the return of two public corruption indictments; one naming Lake County Sheriff John Buncich and the other naming Portage Mayor James Snyder.
Buncich, his chief deputy Timothy Downs, and William Szarmach were named in a multi-count indictment alleging a deprivation of honest services and receipt of illegal money in connection with towing contracts in Lake County.
John Buncich is the Lake County Sheriff. Buncich earlier served as sheriff from 1994-2002, and was re-elected in 2010 and again in 2014. Pursuant to a Lake County ordinance, the sheriff has exclusive authority to determine what entity would do any towing as required by the sheriff’s department. Downs is the Chief in the Lake County Sheriff’s Department, the second person in command, having been appointed to that position by Buncich. Szarmach owns and operates CSA Towing, located at 2599 DeKalb Street, Lake Station, Indiana.
The indictment alleges that from February 2014 continuing into October 2016, Buncich, Downs and Szarmach devised a scheme to deprive the citizens of Lake County of their right to the honest services of the sheriff’s office. The scheme was designed to enrich Buncich personally and his campaign committee, known as Buncich Boosters. The indictment details a number of checks and cash payments, often collected by Downs, from Szarmach and an Individual A in exchange for Buncich awarding county towing business and towing in the City of Gary for ordinance violations. Individual A is the owner of a tow truck business who voluntarily came forward and cooperated with the United States during the course of this investigation.
Buncich is also charged individually with a violation of the federal bribery statute. Specifically, Buncich is alleged to have corruptly solicited, demanded and received over $25,000 in cash and $7000 in checks in exchange for favorable actions by Buncich regarding the towing contracts.
The second indictment names Portage Mayor James Snyder and John Cortina. Snyder was first elected as mayor in 2011 and was re-elected to a second four-year term in 2015. Cortina owns and operates a towing business, Kustom Auto Body, 5409 US Highway 6 in Portage.
Snyder and Cortina are both charged with a violation of the federal bribery statute. Snyder is alleged to have corruptly solicited and received two checks totaling $12000 from Cortina and Individual A (same individual above), in exchange for a towing contract in the City of Portage. Cortina is charged with corruptly offering those checks to Snyder.
Snyder is also charged with a second violation of the federal bribery statute. That count alleges that between January 1, 2012 and January 10, 2014, Snyder corruptly solicited and agreed to accept a bank check in the amount of $13,000 in connection with Portage Board of Works contracts, a Portage Redevelopment Commission project and other consideration.
The final charge against Snyder alleges obstruction of the internal revenue laws. This count sets forth an alleged scheme, undertaken by Snyder between January 2010 and April 2013, to obstruct and impede the IRS’s collection of personal taxes he owed and payroll taxes owed by his mortgage business, First Financial Trust Mortgage, LLC. Snyder is alleged to have diverted funds away from FFTM to a sole proprietorship he created, and submitted three forms to the IRS which failed to disclose, among other things, the existence of the sole proprietorship and its bank account – all during a time when the IRS was attempting to collect the aforementioned tax debt.
United States Attorney Capp stated, “These investigations are not over. Our public corruption team will continue its work, particularly into the towing contracts in both Lake and Porter counties.”
Anyone with information related to these public corruption charges is encouraged to call the FBI at 219-769-3719.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until, and unless, proven guilty in court.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
These indictments were the result of an extensive, ongoing investigation conducted by the Federal Bureau of Investigation and Internal Revenue Service, Criminal Investigation Division. Assistance was provided throughout by the Indiana State Police. These indictments will be handled in the United States Attorney’s Office by Assistant United States Attorneys Philip C. Benson, Gary T. Bell and Jill R. Koster.
Northwest Indiana Gazette
Ken Davidson
November 17, 2016
http://nwigazette.com/2016/11/source-sheriff-one-indicted-tomorrow/
November 17, 2016-During Operation Bar Tab and Operation Lights Out, “Federal Friday” sent chills down the spines of Lake County Politicians on a regular basis. The term was used in political circles after several high profile cases were announced on a Friday afternoon. The Gazette has received credible information that two indictments will be handed down tomorrow, November 18, 2016. “The Sheriff will be one of them” our source told us. The Source also said that Sheriff Buncich will be asked to step down as Sheriff. Charges are rumored to center around towing contracts and payments related to those contracts. The Gazette cautions that information from sources is never 100% accurate and no one can know for certain what is going to happen tomorrow. Thus, we print this with the express caveat that it could be wrong.
The home and office of Lake County Sheriff John Buncich was raided a week ago today. Additionally, FBI and US Treasury Agents raided CSA Towing in Lake Station and Samson Towing in Portage. Both Samson and CSA tow for the Lake County Sheriff’s Department. Agents also requested records from Lake County 9-1-1 and the Lake County Board of Elections and Voter Registration.
Friday after the raid was a holiday, but Sheriff Buncich returned to work on Monday. The Sheriff issued an official statement that his office was cooperating with Federal agents conducting the investigation. It is not known if the FBI received records responsive to the supboenas from Lake County 911 or the Election Board. In past cases, the time frame between a raid and an indictment has been as long as a year and a half. The office of Lake County Surveyor George Van Til was raided in June, 2012 and he was indicted in December, 2013. The office of Calumet Township Assessor Mary Elgin was raided in March, 2014 and she was indicted in December, 2014.
Buncich is also Chair of the Lake County Democratic Party.
Portage mayor's legal fees turned over to outside attorney
NWI Times
November 11, 2016
http://www.nwitimes.com/news/local/govt-and-politics/portage-mayor-s-legal-fees-turned-over-to-outside-attorney/article_80d727f4-8c32-5f98-a8e5-d125e6138e3b.html
PORTAGE — Mayor James Snyder’s $93,000 in legal fees will be turned over to an outside, independent attorney for review and investigation.
Utility Services Board Vice Chairman Mark Oprisko said this week he had hired John Hughes of Hoeppner Wagner & Evans in Valparaiso to review Snyder’s legal fees associated with a more than 2-year-old federal investigation. However, Oprisko said after spending an hour and a half with Hughes on Thursday, Hughes decided it would not be in his law firm’s best interest to take on the issue, Oprisko said.
Oprisko said he would move forward, seeking another attorney for the job.
Oprisko, also president of the City Council, said after last month’s controversy he spoke with City Council and Utility Services Board members and felt this is the right way to go. Snyder chairs the board.
Snyder, who has been under investigation by the FBI, had two checks cut by the utility department on Sept. 26, totaling more than $93,000 to pay his two attorneys representing him during the investigation. The checks initially were sent to the firms without board approval. The money was returned to the utility department after the firms said they couldn’t collect payment from the utility department because it was not their client.
The request for reimbursement for the legal fees is legal under Indiana law, but only “if a grand jury fails to indict the officer or employees and the acts investigated by the grand jury were within the scope of official duties of the officer or employee.”
Snyder’s request for reimbursement would indicate the federal investigation is over.
Oprisko, who was on vacation and out of the country at the time, asked the matter be tabled upon further investigation.
Oprisko said he has no guarantee that the investigation is over and if the funds are reimbursed to Snyder and Snyder is indicted, the utility department will have lost the money.
He also said he’s uncertain if the entire investigation has to do with Snyder’s role as board chairman. The investigation began over Snyder using a utility department credit card to take a trip to Austria that he said was for economic development. However, it spread beyond to include the street department and purchasing of garbage trucks.
Snyder said before Wednesday’s Utility Board meeting that he had no intention of submitting the claims to the board a second time until the review was completed. Even then, he added, he may not submit the claims.
“This is the right, the fair thing to do,” said Oprisko about reviewing the claims. “I till have an obligation to anyone sitting on this board to find out what is correct and legal.”
Oprisko said he will share what information he receives with the board and council.
FBI raids Lake sheriff department
Bill Dolan bill.dolan@nwi.com, (219) 662-5328
November 11, 2016 - 11:20AM
http://www.nwitimes.com/news/crime-and-court/fbi-raids-lake-sheriff-department/article_677e5038-f0f5-5da3-85da-0222e1f28c3a.html
NWI Times
November 11, 2016
http://www.nwitimes.com/news/local/govt-and-politics/portage-mayor-s-legal-fees-turned-over-to-outside-attorney/article_80d727f4-8c32-5f98-a8e5-d125e6138e3b.html
Utility Services Board Vice Chairman Mark Oprisko said this week he had hired John Hughes of Hoeppner Wagner & Evans in Valparaiso to review Snyder’s legal fees associated with a more than 2-year-old federal investigation. However, Oprisko said after spending an hour and a half with Hughes on Thursday, Hughes decided it would not be in his law firm’s best interest to take on the issue, Oprisko said.
Oprisko said he would move forward, seeking another attorney for the job.
Oprisko, also president of the City Council, said after last month’s controversy he spoke with City Council and Utility Services Board members and felt this is the right way to go. Snyder chairs the board.
Snyder, who has been under investigation by the FBI, had two checks cut by the utility department on Sept. 26, totaling more than $93,000 to pay his two attorneys representing him during the investigation. The checks initially were sent to the firms without board approval. The money was returned to the utility department after the firms said they couldn’t collect payment from the utility department because it was not their client.
The request for reimbursement for the legal fees is legal under Indiana law, but only “if a grand jury fails to indict the officer or employees and the acts investigated by the grand jury were within the scope of official duties of the officer or employee.”
Snyder’s request for reimbursement would indicate the federal investigation is over.
Oprisko, who was on vacation and out of the country at the time, asked the matter be tabled upon further investigation.
Oprisko said he has no guarantee that the investigation is over and if the funds are reimbursed to Snyder and Snyder is indicted, the utility department will have lost the money.
He also said he’s uncertain if the entire investigation has to do with Snyder’s role as board chairman. The investigation began over Snyder using a utility department credit card to take a trip to Austria that he said was for economic development. However, it spread beyond to include the street department and purchasing of garbage trucks.
Snyder said before Wednesday’s Utility Board meeting that he had no intention of submitting the claims to the board a second time until the review was completed. Even then, he added, he may not submit the claims.
“This is the right, the fair thing to do,” said Oprisko about reviewing the claims. “I till have an obligation to anyone sitting on this board to find out what is correct and legal.”
Oprisko said he will share what information he receives with the board and council.
Bill Dolan bill.dolan@nwi.com, (219) 662-5328
November 11, 2016 - 11:20AM
http://www.nwitimes.com/news/crime-and-court/fbi-raids-lake-sheriff-department/article_677e5038-f0f5-5da3-85da-0222e1f28c3a.html
CROWN POINT — FBI and Indiana State Police were raiding the Lake County Government Center early Thursday.
A number of FBI agents and state police investigators entered the sheriff's offices at the Lake County Government Center, 2293 N. Main St., about 9:30 a.m.
Ryan Holmes, spokesman for the U.S. Attorney's office, said federal authorities were serving search warrants on the county sheriff early today. He declined to comment on what documents are being sought or who is being targeted.
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 the building.
"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 federal agents and state police entered the building with dollies, which can be used to move large quantities of documents and equipment. A source said all employees in the building were ordered to leave the building.
A source within county government said federal agents then fanned out to the Lake County Voter Registration and Election offices, where vote totals are kept, the Lake County E-911 offices and other departments within the administration building.
The Lake County Jail, where the sheriff has offices, has been under a U.S. Department of Justice mandate for the last eight years for failing to meet federal healthcare standards for inmates.
Sheriff John Buncich couldn't be reached for comment.
A number of FBI agents and state police investigators entered the sheriff's offices at the Lake County Government Center, 2293 N. Main St., about 9:30 a.m.
Ryan Holmes, spokesman for the U.S. Attorney's office, said federal authorities were serving search warrants on the county sheriff early today. He declined to comment on what documents are being sought or who is being targeted.
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 the building.
"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 federal agents and state police entered the building with dollies, which can be used to move large quantities of documents and equipment. A source said all employees in the building were ordered to leave the building.
A source within county government said federal agents then fanned out to the Lake County Voter Registration and Election offices, where vote totals are kept, the Lake County E-911 offices and other departments within the administration building.
The Lake County Jail, where the sheriff has offices, has been under a U.S. Department of Justice mandate for the last eight years for failing to meet federal healthcare standards for inmates.
Sheriff John Buncich couldn't be reached for comment.
Bill Dolan bill.dolan@nwi.com, (219) 662-5328
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
PORTAGE — The Portage Utility Service Board did not decide whether to reimburse its chairman for his legal fees in regard to a long federal investigation.
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
Joyce Russell joyce.russell@nwi.com, (219) 762-1397, ext. 2222
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.
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.
Portage mayor's request for attorney fees remains up in the air
Joyce Russell joyce.russell@nwi.com, (219) 762-1397, ext. 2222
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
It’s unfortunate a course correction was necessary.
Portage mayor's request for attorney fees remains up in the air
Joyce Russell joyce.russell@nwi.com, (219) 762-1397, ext. 2222
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
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
Joyce Russell joyce.russell@nwi.com, (219) 762-1397, ext. 2222
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
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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