11232016 - News Article - Feds: Former cop helped break bribery schemes

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.