Lake sheriff, Portage mayor indicted on corruption charges
Post-Tribune
November 18, 2016
Federal officials on Friday announced a bevy of public corruption charges against Northwest Indiana officials, including the Lake County sheriff and the Portage mayor.
U.S. Attorney David Capp announced federal indictments against Lake County Sheriff John Buncich, who also heads the Lake County Democratic Party; Timothy Downs, chief of the Lake County Sheriff's Department police; Portage Mayor James Snyder; William Szarmach of Chase Street Auto in Lake Station; and John Cortina of Kustom Auto Body in Portage.
While the investigations in Lake and Porter counties were separate, both involved allegedly soliciting and accepting money from towing company operators.
"This is a sad day for the citizens of Northwest Indiana," Capp said.
Buncich, Downs and Szarmach are named in multicount indictments 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.
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.
From February 2014 to October 2016, federal authorities claim, Buncich, Downs and Szarmach created a scheme to "deprive the citizens of Lake County of their right to the honest services of the sheriff's office," and the scheme involved Buncich and Downs collecting money from Szarmach and "Individual A."
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.
"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.
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.
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."
Buncich 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.
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."
Friday's announcement came on the heels of a series of search warrants executed last week in Lake County.
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 on Nov. 10.
That day, 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 to towing operations for the past six years, according to a search warrant filed with the E-911 Department. Information sought from the department included maps, tow logs, a list of towing companies, phone and dispatch call data for police and towing 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 public the search warrant served on the office. The Post-Tribune has filed a freedom of information request for the document.
Buncich released a statement Friday and told residents of Lake County that 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.
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."
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