01302019 - In Attempt To Save His Own Ass, Portage IN Mayor James Snyder Turns Family Against Family

Apparently, there is no limit to the depths of scum that Portage Mayor James Snyder will sink to in order to save his own ass during his federal trial - even if it means turning his parents against his brother Jon who did the right thing by going to the FBI. 
Folks need to step back and realize that James Snyder is on trial because of his own selfish criminal actions. James Snyder put himself in this position - no one else. The 'bad guys' aren't the ones who broke the silence that protected James Snyder for all these years, and who turned to the FBI - the 'bad guy' is Portage Mayor James Snyder, for the crimes he committed because he counted on that 'silence' to protect him from accountability. PERIOD.






"You were threatened by the government" to turn on James Snyder, Cacioppo asked. When Jon Snyder denied the allegation, she countered that the information had come from his father, Bruce, who has been at the trial each day since its start. "Are you calling your father a liar?" Cacioppo asked.
"Yes. He told me he wouldn't be in the courtroom today," Jon Snyder answered. "I was not threatened by the government. I thought long and hard before I went to the FBI." [UPDATE: Jon Snyder agreed to wear wire in brother's public corruption case, jurors told. NWI Times. 01292019]










UPDATE: Jon Snyder agreed to wear wire in brother's public corruption case, jurors told
NWI Times
January 29, 2019
https://www.nwitimes.com/news/local/crime-and-courts/update-jon-snyder-agreed-to-wear-wire-in-brother-s/article_684f1d35-5df5-575e-be1b-a5b9c81359b6.html

HAMMOND — Jon Snyder had been cooperating with the FBI since 2012, but he didn't bring the agency information about his brother until a mutual friend began talking about an alleged bribe for towing scheme.

That mutual friend was John Cortina, who, until earlier this month was Portage Mayor James Snyder's co-defendant in an allegation that Cortina paid James Snyder $12,000 to get on the city's tow list. Cortina pleaded guilty this month to paying James Snyder the alleged bribe.

Jon Snyder, Porter County assessor, testified for less than two hours Tuesday afternoon against his brother as members of their family sat in the audience and watched.

"I had enough going on in my life and didn't want another investigation," Jon Snyder explained as to why he went to the FBI in 2015 to tell agents about the alleged bribery scheme. He didn't know at the time his brother was already being investigated on the allegation and that another confidential informant had been wearing a wire to collect incriminating evidence.

What was going on in Jon Snyder's life at the time included an investigation by the IRS into his own financial doings and an investigation into his county office over allegations that someone in the office was fixing assessment appeals.

Jon Snyder pleaded guilty to a misdemeanor tax count late last year. In return, he agreed to testify against his brother. He will be sentenced late next month.

Jon Snyder, who, during cross examination by one of his brother's attorneys, was painted as being ungrateful for everything James Snyder had done for his family and as someone who was looking for a way out from his own tax problems, said he didn't initially begin wearing a wire to collect evidence. That came about six months later.

Jon Snyder's direct testimony under questioning by Assistant U.S. Attorney Philip Benson was quick, lasting less than an hour Tuesday during the ninth day of his brother's public corruption trial.

He outlined his reasons for contacting the FBI and his relationship with Cortina. He authenticated a binder full of transcripts from the secret recordings, expected to be played for the jury sometime later in the trial.

Relationship with brother
Jayna Cacioppo, one of James Snyder's six attorneys attending the trial, asked Jon Snyder about his support in James Snyder's political campaigns as well as James Snyder's support in Jon's. She asked about times James Snyder went grocery shopping or allegedly lent Jon Snyder money.

"Most of the time you were informing on James, he was helping out with all your children?" Cacioppo asked.

Jon Snyder recalled some of the incidents, but he denied others happened. He told jurors he had borrowed money from his brother, but paid it back, and that his brother owed him money.

"You were threatened by the government" to turn on James Snyder, Cacioppo asked. When Jon Snyder denied the allegation, she countered that the information had come from his father, Bruce, who has been at the trial each day since its start.

"Are you calling your father a liar?" Cacioppo asked.

"Yes. He told me he wouldn't be in the courtroom today," Jon Snyder answered. "I was not threatened by the government. I thought long and hard before I went to the FBI."

Tow company informant
Prior to Jon Snyder's testimony, Scott Jurgensen, a confidential informant who also wore a wire recording conversations regarding the alledged tow for pay charge, took the stand.

Jurgensen, a former Merrillville police officer turned tow truck company owner, said he took up the FBI on its offer to become a confidential informant because he wanted "to do the right thing."

Cortina pleaded guilty earlier this month to paying Snyder the bribe and is expected to be a government witness in the case.

Jurgensen said he first approached Snyder about getting on Portage's tow list in May 2014. During that meeting in Portage City Hall, Jurgensen testified Snyder directed him to Cortina, who owns Kustom Auto Body. Cortina had partnered with another tow company, Ambassador Towing, but Ambassador was being removed from the city's list, leaving Cortina without a partner.

Cortina provided storage yard and payment collection services to the tow companies.

"James Snyder told me Cortina meant a lot to him, and it was best to go through Cortina," Jurgensen testified under questioning by Assistant U.S. Attorney Philip Benson.

Jurgensen said he had not previously met Cortina, but knew of him. He said he stopped by Cortina's business one day to discuss the partnership.

"He (Cortina) felt he was close to the mayor, and he could get us on the tow list," Jurgensen testified.

Jurgensen said he gave Cortina $6,000 toward the $12,000 bribe, which was paid to Snyder in January 2016. Jurgensen said he received the tow contract from Portage in August 2016 and towed within the city until November 2016 when FBI agents issued search warrants on Cortina's property. Cortina and Snyder were indicted on Nov. 17, 2016.

Due to the weather, the trial has been recessed until 9 a.m. Friday.

01292018 - News Article - Tow operator testifies about alleged bribe to Portage mayor

Tow operator testifies about alleged bribe to Portage mayor
Chicago Tribune
January 29, 2019
https://www.chicagotribune.com/suburbs/post-tribune/news/ct-ptb-snyder-trial-day-nine-st-0129-story.html

A tow operator cooperating with the FBI said he always wanted to get on the towing lists of Region communities honestly.

In Portage, the tow operator testified Tuesday that he needed to pay a bribe.

On the ninth day of trial, federal prosecutors began presenting evidence that Portage Mayor James Snyder allegedly sought $12,000 from Scott Jurgensen, of Samson’s Towing, who was cooperating with the FBI, and John Cortina, of Kustom Auto Body in Portage, to get them a spot on the city’s towing list.

Jurgensen’s testimony about the alleged bribe was followed Tuesday by the mayor’s brother, Porter County Assessor Jon Snyder, who wound up providing information to the FBI after being alarmed by the alleged towing deal.

Jurgensen said he began cooperating with the FBI in 2013, “because I didn’t pay bribes,” Jurgensen said.

Snyder was indicted in November 2016 and charged with allegedly violating federal bribery statutes. Federal prosecutors say the mayor allegedly solicited money from Cortina and “Individual A” and gave them a towing contract for Portage.

Snyder has pleaded not guilty to the charges, according to court documents.

Cortina, who was indicted alongside the James Snyder, pleaded guilty to a charge that he paid bribes to Snyder to get a spot on the tow list. Cortina is expected to cooperate with federal investigators against Snyder, according to court documents.

Jurgensen said he first met with James Snyder in 2014 and was told to talk to Cortina. He said he then went to meet Cortina.

“He felt he was close to the mayor and he could get us on that list, Jurgensen said.

Defense attorney Jackie Bennett Jr. asked if Jurgensen had ever given donations to other officials’ campaigns.

Jurgensen said he’s given donations to political figures.

Bennett asked if it was Jurgensen’s understanding that the two checks Cortina delivered were a bribe.

“Yes,” Jurgensen said.

Bennett said that’s only based on what Cortina told Jurgensen, and that he never discussed the transaction with the mayor.

Assistant U.S. Attorney Philip Benson asked about a phone call that Jurgensen recorded between Cortina and Snyder on the day the $12,000 was ready.

Jurgensen said Cortina told the mayor it was “Christmas time.”

Jurgensen said after the FBI raided Cortina’s tow yard in November 2016, and the indictments were announced, he was removed from Portage’s tow list.

Jon Snyder, said that Cortina, who he described as a longtime friend, began talking to him about getting on the city towing list.

“I just didn’t like it,” Jon Snyder said. “I tried to tell him to stop talking about it.”

Jon Snyder, who was already under federal investigation related to his personal business, said he didn’t want to get involved in any towing business and went to the FBI.

“I had enough going on in my life, I didn’t need another investigation,” Jon Snyder said.

In October, Jon Snyder pleaded guilty to a charge of failing to supply information to the IRS, and agreed to provide the FBI with information about his brother, including making undercover recordings.

Jon Snyder, as owner of Shoreline Appraisals Inc., allegedly failed to give the IRS an “Informational Return 1099 Form,” which is a requirement for non-employees who received more than $600 in payments during a calendar year, according to court documents.

Jon Snyder and Shoreline Appraisals allegedly failed to file the document for “Person A,” who was paid more than $5,000 in 2013, according to court documents.

Defense attorney Jayna Cacioppo asked if Jon Snyder was threatened by the federal government to cooperate with the FBI because of his tax charge.

“You didn’t feel threatened by the government?” Cacioppo asked.

“I did not feel threatened by the government,” Jon Snyder said.

Cacioppo asked about $5,000 Cortina loaned Jon Snyder.

John Snyder said it was a loan to help cover his legal expenses at the time.

Jon Snyder said he had paid half that amount back.

Cacioppo asked about claims Cortina also helped Jon Snyder buy a Mustang and got him wholesale pricing, and about work that he had done at Kustom Auto Body.

“He went and looked at it,” Jon Snyder said of the Mustang deal.

Before prosecutors moved onto the alleged towing bribery scheme, they wrapped up testimony on a second bribery count that claimed the Snyder steered a city contract to one firm and netted himself a $13,000 kickback.

Prosecutors say that when Snyder first ran for mayor, he told residents he planned to automate Portage’s trash pickup, but would up allegedly steering contracts for $712,882.50 and another for $425,355 to Great Lakes Peterbilt, which was then owned by Robert and Steve Buha.

Great Lakes Peterbilt is now owned by a different firm.

After getting those contracts, prosecutors said Great Lakes Peterbilt gave Snyder a check for $13,000 payable to his shell company, which state records showed had been dissolved.

Defense attorneys say that Snyder used his experience in offering health insurance to city employees through the Affordable Care Act, and making technology upgrades to advice Great Lakes Peterbilt about making similar changes.

Mike Matusak, of Pozzo Truck Centers, said his company would supply the truck chassis in partnership with other body companies to submit bids to Portage. Matusak said Pozzo sells Mack and Volvo trucks.

Assistant U.S. Attorney Jill Koster asked if Matusak offered to demomonstrate a truck’s features.

Matusak said he met with the assistant streets superintendent and was told he didn’t need to bring a truck.

“You get the sense it’s a waste of time,” Matusak said.

James Snyder is also charged with obstructing or impeding the IRS, according to court documents.

01292019 - News Article - FBI informant takes stand in Portage mayor's corruption case

FBI informant takes stand in Portage mayor's corruption case
NWI Times
January 29, 2019
https://www.nwitimes.com/news/local/crime-and-courts/fbi-informant-takes-stand-in-portage-mayor-s-corruption-case/article_684f1d35-5df5-575e-be1b-a5b9c81359b6.html

HAMMOND — Scott Jurgensen said he took up the FBI on its offer to become a confidential informant because he wanted "to do the right thing."

Jurgensen, a former Merrillville police officer turned tow truck company owner, took the stand Tuesday morning in Portage Mayor James Snyder's public corruption trial.

Snyder is charged with two counts of bribery and one of tax obstruction. One bribery account alleges Snyder took $12,000 from John Cortina, who partnered with Jurgensen, to get on Portage's tow list.

Cortina pleaded guilty earlier this month to paying Snyder the bribe and is expected to be a government witness in the case.

Jurgensen said he first approached Snyder about getting on Portage's tow list in May 2014. During that meeting in Portage City Hall, Jurgensen testified Snyder directed him to Cortina, who owns Kustom Auto Body. Cortina had partnered with another tow company, Ambassador Towing, but Ambassador was being removed from the city's list, leaving Cortina without a partner.

Cortina provided storage yard and payment collection services to the tow companies.

"James Snyder told me Cortina meant a lot to him, and it was best to go through Cortina," Jurgensen testified under questioning by Assistant U.S. Attorney Philip Benson.

Jurgensen said he had not previously met Cortina, but knew of him. He said he stopped by Cortina's business one day to discuss the partnership.

"He (Cortina) felt he was close to the mayor, and he could get us on the tow list," Jurgensen testified.

Jurgensen said he gave Cortina $6,000 toward the $12,000 bribe, which was paid to Snyder in January 2016. Jurgensen said he received the tow contract from Portage in August 2016 and towed within the city until November 2016 when FBI agents issued search warrants on Cortina's property. Cortina and Snyder were indicted on Nov. 17, 2016.

01292019 - News Article - UPDATE: Jon Snyder agreed to wear wire in brother's public corruption case, jurors told

UPDATE: Jon Snyder agreed to wear wire in brother's public corruption case, jurors told
NWI Times
January 29, 2019
https://www.nwitimes.com/news/local/crime-and-courts/update-jon-snyder-agreed-to-wear-wire-in-brother-s/article_684f1d35-5df5-575e-be1b-a5b9c81359b6.html

HAMMOND — Jon Snyder had been cooperating with the FBI since 2012, but he didn't bring the agency information about his brother until a mutual friend began talking about an alleged bribe for towing scheme.

That mutual friend was John Cortina, who, until earlier this month was Portage Mayor James Snyder's co-defendant in an allegation that Cortina paid James Snyder $12,000 to get on the city's tow list. Cortina pleaded guilty this month to paying James Snyder the alleged bribe.

Jon Snyder, Porter County assessor, testified for less than two hours Tuesday afternoon against his brother as members of their family sat in the audience and watched.

"I had enough going on in my life and didn't want another investigation," Jon Snyder explained as to why he went to the FBI in 2015 to tell agents about the alleged bribery scheme. He didn't know at the time his brother was already being investigated on the allegation and that another confidential informant had been wearing a wire to collect incriminating evidence.

What was going on in Jon Snyder's life at the time included an investigation by the IRS into his own financial doings and an investigation into his county office over allegations that someone in the office was fixing assessment appeals.

Jon Snyder pleaded guilty to a misdemeanor tax count late last year. In return, he agreed to testify against his brother. He will be sentenced late next month.

Jon Snyder, who, during cross examination by one of his brother's attorneys, was painted as being ungrateful for everything James Snyder had done for his family and as someone who was looking for a way out from his own tax problems, said he didn't initially begin wearing a wire to collect evidence. That came about six months later.

Jon Snyder's direct testimony under questioning by Assistant U.S. Attorney Philip Benson was quick, lasting less than an hour Tuesday during the ninth day of his brother's public corruption trial.

He outlined his reasons for contacting the FBI and his relationship with Cortina. He authenticated a binder full of transcripts from the secret recordings, expected to be played for the jury sometime later in the trial.

Relationship with brother
Jayna Cacioppo, one of James Snyder's six attorneys attending the trial, asked Jon Snyder about his support in James Snyder's political campaigns as well as James Snyder's support in Jon's. She asked about times James Snyder went grocery shopping or allegedly lent Jon Snyder money.

"Most of the time you were informing on James, he was helping out with all your children?" Cacioppo asked.

Jon Snyder recalled some of the incidents, but he denied others happened. He told jurors he had borrowed money from his brother, but paid it back, and that his brother owed him money.

"You were threatened by the government" to turn on James Snyder, Cacioppo asked. When Jon Snyder denied the allegation, she countered that the information had come from his father, Bruce, who has been at the trial each day since its start.

"Are you calling your father a liar?" Cacioppo asked.

"Yes. He told me he wouldn't be in the courtroom today," Jon Snyder answered. "I was not threatened by the government. I thought long and hard before I went to the FBI."

Tow company informant
Prior to Jon Snyder's testimony, Scott Jurgensen, a confidential informant who also wore a wire recording conversations regarding the alledged tow for pay charge, took the stand.

Jurgensen, a former Merrillville police officer turned tow truck company owner, said he took up the FBI on its offer to become a confidential informant because he wanted "to do the right thing."

Cortina pleaded guilty earlier this month to paying Snyder the bribe and is expected to be a government witness in the case.

Jurgensen said he first approached Snyder about getting on Portage's tow list in May 2014. During that meeting in Portage City Hall, Jurgensen testified Snyder directed him to Cortina, who owns Kustom Auto Body. Cortina had partnered with another tow company, Ambassador Towing, but Ambassador was being removed from the city's list, leaving Cortina without a partner.

Cortina provided storage yard and payment collection services to the tow companies.

"James Snyder told me Cortina meant a lot to him, and it was best to go through Cortina," Jurgensen testified under questioning by Assistant U.S. Attorney Philip Benson.

Jurgensen said he had not previously met Cortina, but knew of him. He said he stopped by Cortina's business one day to discuss the partnership.

"He (Cortina) felt he was close to the mayor, and he could get us on the tow list," Jurgensen testified.

Jurgensen said he gave Cortina $6,000 toward the $12,000 bribe, which was paid to Snyder in January 2016. Jurgensen said he received the tow contract from Portage in August 2016 and towed within the city until November 2016 when FBI agents issued search warrants on Cortina's property. Cortina and Snyder were indicted on Nov. 17, 2016.

Due to the weather, the trial has been recessed until 9 a.m. Friday.

01282019 - Mortgage Fraud and Portage Indiana Mayor James Snyder. Hmmm...

"Federal prosecutors have said they had enough evidence to charge Portage Mayor James Snyder with additional crimes but did not pursue the case...Eric Field, a supervisory special agent with the FBI, said investigators looked into possible mortgage fraud, and found evidence that it had occurred. Assistant U.S. Attorney Jill Koster said investigators had enough evidence to charge Snyder with mortgage fraud but used their discretion not to prosecute." [Feds reveal they had evidence that Portage Mayor James Snyder committed mortgage fraud, but didn't pursue charges. Chicago Tribune. January 25, 2019]

***************************************************************

MORTGAGE FRAUD:  Sorta like a realtor [Jim Thompson], directing those involved in sale of a marital home in a divorce case, to his friend/Snyder's mortgage company [months after said mortgage company was dissolved] - where upon said banker claimed that realtor's client wasn't eligible to refinance home for property division. However, during unlawful entry into house for realtor's and Snyder's client to obtain possession of said home, police were overheard talking and laughing on their police radios about the large amount of money realtor's/banker's client had - said money was hidden during divorce. And, when said banker was elected mayor, he successfully blocked all efforts for an investigation into unlawful police entry of said marital home.

01032011 - DIVORCE: ReMax Realtor BruceAnn Singleton - Portage Mayor James Snyder

01282019 - News Article - Truck bidder says he thought Portage process didn't look right

Truck bidder says he thought Portage process didn't look right
Chicago Tribune
January 28, 2019
https://www.chicagotribune.com/suburbs/post-tribune/news/ct-ptb-snyder-trial-day-eight-st-0128-story.html

A company that aimed to win a Portage contract for garbage trucks knew something was not right when no one from the city would look at the equipment he planned to offer.

The eighth day of Portage Mayor James Snyder’s trial, federal prosecutors continued showing how the bid process for garbage trucks was allegedly rigged for one firm and reportedly netted the mayor a $13,000 payout. Defense attorneys have said there was nothing questionable about the bid process and it was all done above board.

Greg Dadlow, of Pyramid Equipment, said ahead of the bids for the garbage trucks in 2013 he wanted to let someone from the city’s streets department test his equipment but they said they already knew what they wanted.

Dadlow’s company submitted four bids for the trucks, each with a Mack chassis and either a Wayne or Bridgeport body. Those four bids were among the lowest, Dadlow said, and one was roughly $60,000 less than the company that won the contract.

“Sometime you don’t believe that could just be overlooked,” Dadlow said.

Snyder’s defense says those bids did not meet the specifications, which called for a Peterbilt chassis, a McNeilus body, a Cummins engine and a 150-day delivery date.

Assistant U.S. Attorney Jill Koster asked why Dadlow submitted a bid if those items were specifically included in the specs.

Dadlow said he went through all the specs and in his proposal detailed how his equipment met the same requirements and even noted what differed between the machines.

Koster asked, as an example, if not having a McNeilus body automatically disqualified the Pyramid bid.

“No, it does not,” Dadlow said.

Dadlow said, in his experience, that municipalities will consider something besides the specs if the price is significantly different.

Prosecutors say that when Snyder first ran for mayor, he told residents he planned to automate Portage’s trash pickup, but wound up allegedly steering contracts for $712,882.50 and another for $425,355 to Great Lakes Peterbilt, which was then owned by Robert and Steve Buha.

Great Lakes Peterbilt is now owned by a different firm.

After getting those contracts, prosecutors said Great Lakes Peterbilt gave Snyder a check for $13,000 payable to his shell company, which state records showed had been dissolved.

Defense attorneys say that Snyder used his experience in offering health insurance to city employees through the Affordable Care Act, and making technology upgrades to advise Great Lakes Peterbilt about making similar changes.

It was the questionable bidding process that prompted Steve Charnetzky, Portage’s former streets superintendent, to raise the issue to the FBI.

On the witness stand, Charnetzky said he had heard that the mayor’s office and the assistant streets superintendent say the contract was going to Great Lakes Peterbilt

Defense attorney Jackie Bennett Jr. said that Charnetzky testified that he was not involved in the bidding process for the garbage trucks and had no knowledge of what was submitted.

“Your statement about something illegal and unlawful is simply your opinion,” Bennett said.

Snyder was indicted in November 2016 and charged with allegedly violating federal bribery statutes. Federal prosecutors say the mayor allegedly solicited money from John Cortina, of Kustom Auto Body, and “Individual A” and gave them a towing contract for Portage. Snyder received an additional bribery indictment for alleged accepting $13,000 in connection with a Board of Works contract.

A third charge alleges Snyder obstructed or impeded Internal Revenue Service laws.

Snyder has pleaded not guilty to the charges, according to court documents.

Cortina, who was indicted alongside the mayor, pleaded guilty to a charge that he paid bribes to Snyder to get a spot on the tow list. Cortina is expected to cooperate with federal investigators against Snyder, according to court documents.

01282019 - News Article - UPDATE: Truck competitor says Portage bid process 'irregular,' 'unusual' in garbage truck purchase

UPDATE: Truck competitor says Portage bid process 'irregular,' 'unusual' in garbage truck purchase
NWI Times
January 28, 2019
https://www.nwitimes.com/news/local/crime-and-courts/update-truck-competitor-says-portage-bid-process-irregular-unusual-in/article_189ad855-bd7c-5e24-8ac9-eee823d89fe8.html

HAMMOND — Greg Dadlow said he was "kinda shocked" when Portage turned down a chance to try out one of his company's automated trash trucks.

"It kinda bothered me they did not want, did not need a demo," Dadlow, who worked at Pyramid Equipment of Rolling Prairie, Indiana, at the time, testified Monday afternoon in Portage Mayor James Snyder's public corruption trial.

Dadlow said the process was "unusual" and "irregular."

Dadlow said his company offered four of the six lowest bids in the first round of trash truck purchases by the city in 2013. The contract for three trucks instead went to Great Lakes Peterbilt of Portage. Great Lakes Peterbilt's bid was nearly $60,000 higher than that of Pyramid Equipment.

Snyder is facing two counts of bribery and one of tax obstruction in the trial in U.S. District Court. One of the bribery counts alleges Snyder took a $13,000 bribe from Great Lakes Peterbilt in exchange for two contracts, totaling five trucks from the company.

Dadlow said his bid didn't meet the specifications for either the brand of chassis or body in the bid, but that, in his experience, sometimes a large cost reduction would outweigh the variations in the bid.

After the bids were open, Dadlow said he approached Assistant Street Department Superintendent Randy Reeder, who had been designated the point man in the city's switch to automated trash trucks, and offered the use of a demonstration truck to help sell his product.

Dadlow said an email to Reeder went unanswered and then a sales call and the offer of the demonstration truck was refused.

"Randy Reeder told me they knew what they were going to go with," he said, adding Reeder told him his company wasn't going to get the contract before the Board of Works officially voted.

Dadlow's testimony in the eighth day of the trial followed the second day of testimony from former Street Superintendent Steve Charnetzky, who first approached the FBI in September 2013 to alert them of possible wrongdoing by Snyder.

Under cross-examination Monday morning, Snyder's lead attorney said wrongdoing didn't cause the FBI to open an investigation into his client's activities, but, instead, a former employee scorned.

"Your feelings got hurt because you didn't have input in that process?" attorney Jackie Bennett asked Charnetzky Monday morning.

"Slight," Charnetzky replied.

Charnetzky testified last week he went to the FBI because he believed the bidding process for the garbage trucks was being done illegally, among other allegations.

Charnetzky told the jury he was left out of the bidding process, which was unusual considering his tenure as street superintendent and experience of more than 30 years on the job. Charnetzky testified Snyder gave the job to Reeder, and that at one point during the bid process, Reeder told him the mayor wanted Great Lakes Peterbilt to get the contract, no matter the price of their trucks.

Bennett questioned Charnetzky about the bidding process, timeline of his reporting and meetings with the FBI, and the reasons for Charnetzky's termination in January 2016.

01282019 - News Article - Snyder's lawyer: 'Hard feelings' spurred probe into Portage mayor's alleged wrongdoing

Snyder's lawyer: 'Hard feelings' spurred probe into Portage mayor's alleged wrongdoing
NWI Times
January 28, 2019
https://www.nwitimes.com/news/local/crime-and-courts/snyder-s-lawyer-hard-feelings-spurred-probe-into-portage-mayor/article_189ad855-bd7c-5e24-8ac9-eee823d89fe8.html

HAMMOND — Portage Mayor James Snyder's lead attorney said wrongdoing didn't cause the FBI to open an investigation into his client's activities, but, instead, a former employee scorned.

"Your feelings got hurt because you didn't have input in that process?" attorney Jackie Bennett asked longtime former Portage Street Department Superintendent Steve Charnetzky Monday morning.

"Slight," Charnetzky replied.

Bennett continued his cross-examination of Charnetzky Monday morning in day eight of Snyder's public corruption trial in U.S. District Court.

Charnetzky approached the FBI in September 2013 to allege wrongdoings against Snyder, including the steering of garbage truck bids toward Great Lakes Peterbilt, a Portage truck dealership.

Snyder allegedly took a $13,000 bribe from the company in exchange for the city's purchasing five automated garbage trucks from the company.

It is one of two bribery charges the two-term mayor is facing. The second involves accepting a bribe to place a company on the city's tow list. Snyder also is charged with tax obstruction.

Charnetzky testified last week he went to the FBI, because he believed the bidding process for the garbage trucks was being done illegally, among other allegations. Charnetzky told the jury he was left out of the bidding process, which was unusual considering his tenure as street superintendent and experience of more than 30 years on the job.

Charnetzky testified Snyder gave the job to his assistant, Randy Reeder, and that at one point during the bid process, Reeder told him the mayor wanted Great Lakes Peterbilt to get the contract, no matter the price of their trucks.

Bennett began cross-examining Charnetzky Friday and continued Monday.

Bennett questioned Charnetzky about the bidding process, timeline of his reporting and meetings with the FBI, and the reasons for Charnetzky's termination in January 2016.

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Also See:
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02112019 - NEWS ARTICLES - PORTAGE INDIANA MAYOR JAMES SNYDER - FEDERAL CORRUPTION TRIAL - WEEK 5

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Portage-Mayor-James-Snyder--INDICTMENT--11172016--Case-216CR160


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A common denominator in Northwest Indiana's pay-to-play towing investigations: 'Individual A'
Chicago Tribune
February 01, 2019
https://www.chicagotribune.com/suburbs/post-tribune/news/ct-ptb-jurgensen-towing-investigation-st-0203-story.html

A Hobart tow operator wanted to do the right thing to get work for his company.

Scott Jurgensen, owner of Samson’s Towing, allegedly went to Portage Mayor James Snyder to get on the city’s tow list, but federal prosecutors say that deal went nowhere until he paid a bribe.

What allegedly happened in Portage wasn’t the only case of pay-to-play towing that Jurgensen helped expose.

Federal authorities, with Jurgensen’s cooperation, built public corruption cases against former Lake County Sheriff John Buncich, former Lake County Police Chief Timothy Downs, former Merrillville town councilman Tom Goralczyk and former Lake County Deputy Chief Dan Murchek. Also indicted with Buncich in November 2016 was tow operator William Szarmach of CSA Towing. John Cortina, of Kustom Auto Body in Portage, was indicted with Snyder.

Jurgensen testified Tuesday during Snyder’s public corruption trial about how he tried to get on the tow list, but until he partnered with Cortina and kicked in money to give to the mayor, the process languished.

But Jurgensen’s story mirrored his experiences to get on the Merrillville and Lake County tow lists.

When the FBI came looking for a towing invoice at Jurgensen’s yard in 2013, they asked the retired Merrillville police officer why he didn’t do more towing.

“Because I didn’t pay bribes,” Jurgensen said. That conversation began a years-long investigation into pay-to-play towing in Northwest Indiana.

At its early stages, the investigation started in Merrillville.

Assistant U.S. Attorney Phillip Benson asked how long Jurgensen tried to get on the Merrillville list.

“Years,” Jurgensen said.

That changed when “a politician took cars from me,” Jurgensen said. In November 2017, Goralczyk was indicted for allegedly taking 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, who represented Ward 4, was seeking his third term on the Merrillville Town Council when he lost the seat to Marge Uzelac, a longtime activist in the town, in the May 2015 Democratic primary. He had served as council president twice during his two terms.

Jurgensen had tried for at least three years to get on the Merrillville list, according to testimony, but once the bribe was paid Jurgensen was towing within six months.

While Jurgensen worked in Merrillville, he began talking about tow operations with Downs, who also distributed political fundraising tickets and collected money for Buncich.

Buncich, Downs, and 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.

Buncich, 73, was convicted for using his office to solicit bribes from tow operators, according to court records, and later sentenced to 15 years and eight months in prison. Buncich, who entered prison in January 2018, is in the process of appealing his conviction and sentence.

Jurgensen told a jury during Buncich’s trial that the bribes helped him get on the tow list but also led to the expansion of his towing territory. During Buncich’s trial, his defense team accused the FBI of buying itself a crime.

They argued that the former sheriff did nothing illegal and all the donations and fundraising tickets purchased were legitimate. Jurgensen said during the six and half years of cooperating with the FBI, he’s been paid roughly $140,000. He said $30,000 of that amount was for expenses.

While not directly tied to the bribery scheme that took down Buncich, Murchek was pulled into the federal investigation when he lied about campaign donations he received from Jurgensen.

Murchek was indicted in April for allegedly making false statements to the FBI, according to court documents, and reportedly lied to investigators during an interview about towing operations under Buncich when the former deputy chief was asked about campaign contributions he received from a tow operator.

During the fall of 2016, Murchek had announced he planned to run for sheriff during the 2018 primary, as Buncich had served two consecutive terms and was prohibited by term limits from running again.

On Sept. 23, 2016, Murchek met with “Person A,” who was recording the meeting in cooperation with the FBI, and discussed how to structure a campaign donation to avoid Indiana’s limitation on business contributions, according to court documents.

The indictment said “Person A” allegedly gave Murchek a $1,000 donation from his business, which was a towing firm that did work for the Sheriff’s Department, and a personal check for $500 from one of the business’ employees. “Person A” had given an employee $500, according to the U.S. Attorney’s Office, and the employee then wrote a check to Murchek’s campaign.

During a November 2016 interview with the FBI, agents asked Murchek about contributions from “Person A,” according to the indictment, but he denied structuring the donation to skirt Indiana campaign donation limits.

UPDATE: Secret audio recordings played in Portage mayor's public corruption trial; co-defendant may not testify
NWI Times
February 01, 2019
https://www.nwitimes.com/news/local/crime-and-courts/he-owes-me-secret-recordings-played-for-jury-in-mayor/article_62fe5d3b-afaf-53a4-818b-5d41405d3671.html

HAMMOND — Secret audio recordings played for jurors Friday of John Cortina, Portage Mayor James Snyder's co-defendant in Snyder's public corruption case, drew persistent objections by Snyder's defense attorney.

Defense attorney Jayna Cacioppo told U.S. District Court Judge Joseph Van Bokkelen that accepting the tapes as evidence, but not calling Cortina to testify, would not give Snyder's team a chance to cross examine Cortina.

"They are using the testimony against my client with no chance to cross-examine him. To the extent the way we are handling it, the way the government is putting on its case, they are forcing us to put on a case," Cacioppo said.

Cortina pleaded guilty to paying Snyder a bribe, but Cortina might not take the witness stand to tell the jury his side of the story. Assistant U.S. Attorney Philip Benson said the government is not committed to calling Cortina, and the decision would be made only after cross-examination. 

Friday's testimony in federal court centered on the $12,000 Cortina has admitted paying Snyder for a spot on the towing list for himself and FBI informant Scott Jurgensen.

The testimony, however, came by way of secretly recorded audiotapes in which Cortina can be heard telling Jurgensen, "He owes me," referring to Snyder and the alleged bribe-for-towing scheme.

The excerpt was one of dozens played for the jury throughout the 10th day of the trial in U.S. District Court.

The tapes were continually objected to by Snyder's defense team, especially after it was learned government prosecutors may not call the 79-year-old Cortina to the stand to testify against Snyder.

Court officials and attorneys also conferenced with Cortina's attorney, Kevin Milner, as to whether Cortina would be available to testify.

The audiotapes were introduced through the testimony of FBI special agent Nathan Holbrook, who was Jurgensen's handler during several bribe-for-towing investigations in the Region.

"The government has the right to proceed. I don't think I have to make a ruling now," Van Bokkelen said, adding he could rule later as the trial progressed.

The audiotapes primarily covered Jan. 26, 2016, through Sept. 6, 2016, and were predominantly conversations between Cortina and Jurgensen on how to get on the city's tow list, frustrations over how long it took to get on the list after paying Snyder $12,000 and finally, after getting on the list, what they might do to maintain the status.

One tape, from May 2014, featured a conversation between Snyder and Jurgensen, ending with Snyder suggesting he would talk to Cortina about partnering with Jurgensen to win a spot on the Portage contract.

The tapes, which were often inaudible in the courtroom due to quality or background noises, also featured conversations with Portage Police Chief Troy Williams and Joe Calhoun, former director of administration for the city.

Jurors were given transcripts of the audiotapes.

Snyder, who pleaded not guilty to this and a second bribery charge and a tax obstruction charge, has contended the money he received from Cortina was a combination of a donation to his campaign account and a loan to help pay Snyder's attorneys.

Cortina, who was indicted along with Snyder in November 2016, pleaded guilty to paying a bribe to Snyder earlier this month and is expected to be sentenced in April.











Jurors hear recordings of alleged $12K bribe to Portage mayor
Chicago Tribune
February 01, 2019
https://www.chicagotribune.com/suburbs/post-tribune/news/ct-ptb-snyder-trial-day-ten-st-0202-story.html

As federal prosecutors played a series of undercover recordings documenting an alleged $12,000 bribe paid to Portage Mayor James Snyder, defense attorneys cried foul over the evidence.

During the 10th day of Snyder’s public corruption trial in Hammond’s federal court, the mayor’s defense attorneys say that the undercover recordings should be excluded as hearsay, especially since John Cortina, of Kustom Auto Body in Portage, might not take the stand, leaving the defense unable to question him.

Judge Joseph Van Bokkelen said he will let federal prosecutors continue to play the tapes, which were made by Scott Jurgensen, of Samson’s Towing, who was cooperating with the FBI.

Defense attorney Jayna Caioppo said if Cortina doesn’t take the stand they cannot cross examine him, and the FBI agent walking the jury through the tapes has “zero knowledge” of the events.

Cacioppo said Snyder does not need to put on a defense as it is the government’s burden to prove any alleged crimes. She said forcing the defense to call a witness could be a constitutional violation.

Assistant U.S. Attorney Philip Benson said the prosecution is “leaning toward” not calling Cortina, but has not made a decision.

Van Bokkelen said he would let the case proceed and address that issue as the trial moves along.

“I think this issue has not been teed up,” Van Bokkelen said.

Snyder was indicted in November 2016 and charged with allegedly violating federal bribery statutes. Federal prosecutors say the mayor allegedly solicited money from Cortina and “Individual A” and gave them a towing contract for Portage.

Snyder has pleaded not guilty to the charges, according to court documents.

Cortina, who was indicted alongside the mayor in November 2016, pleaded guilty last month to a charge that he paid bribes to Snyder to get a spot on the tow list. Cortina is expected to cooperate with federal investigators against Snyder, according to court documents.

On Jan. 28, 2016, Jurgensen brought Cortina his portion of the $12,000 that would go to Snyder. Cortina got two bank checks, one for $2,000 for the mayor’s roundtable group and another for a $10,000 donation.

“When the feds look at this, it looks like a donation,” Cortina said to Jurgensen.

Cortina called Snyder to arrange a time to drop off the checks.

“Christmas is here,” Cortina said to Snyder. “I’ve got Christmas.”

Despite the alleged bribe, Jurgensen and Cortina did not get on the Portage’s tow list until August 2016, but the recordings have Cortina insisting the mayor is on it.

“Nothing’s happening yet,” Cortina said, in a Feb. 22, 2016, conversation. “It’ll happen.”

During an Aug. 9, 2016, meeting, the confidential source recorded a conversation with Cortina where the two discussed the $12,000 payment and getting on Portage’s tow list, according to court documents.

“Uh, I asked the mayor last night if he needs anything. He says he doesn’t need anything,” Cortina said, on the Aug. 9 recording. “So forget it. We gave $12,000.”

“Yeah, I know,” the source said.

“We gave $12,000. I’m, I’m gonna (unintelligible),” Cortina said.

“We, and we gave $12,000 and we got nothing,” the source said.

“Yeah, I know,” Cortina said.

“Until today,” the source said.

“Well, ‘till today,” Cortina replied.

In a later recording, Cortina said the mayor called the money “a loan” but he called it “juice money.”

On Tuesday, jurors heard from Jurgensen, who worked with Cortina to get on Portage’s tow list and together paid an alleged $12,000 bribe. Jurgensen was cooperating with the FBI.

Jon Snyder, the mayor’s brother and the Porter County assessor, said that Cortina reached out to him about getting on Portage’s tow list, but he said he didn’t want to get involved. Jon Snyder contacted the FBI and began cooperating against his brother.

Before prosecutors moved onto the alleged towing bribery scheme, they wrapped up testimony on a second bribery count that claimed the Snyder steered a city contract to one firm and netted himself a $13,000 kickback.

Prosecutors say that when Snyder first ran for mayor, he told residents he planned to automate Portage’s trash pickup, but would up allegedly steering contracts for $712,882.50 and another for $425,355 to Great Lakes Peterbilt, which was then owned by Robert and Steve Buha.

Great Lakes Peterbilt is now owned by a different firm.

After getting those contracts, prosecutors Great Lakes Peterbilt gave Snyder a check for $13,000 payable to his shell company, which state records showed had been dissolved.

Defense attorneys say that Snyder used his experience in offering health insurance to city employees through the Affordable Care Act, and making technology upgrades to advice Great Lakes Peterbilt about making similar changes.

Snyder is also charged with obstructing or impeding the IRS, according to court documents.

UPDATE: Jon Snyder agreed to wear wire in brother's public corruption case, jurors told
NWI Times
January 29, 2019
https://www.nwitimes.com/news/local/crime-and-courts/update-jon-snyder-agreed-to-wear-wire-in-brother-s/article_684f1d35-5df5-575e-be1b-a5b9c81359b6.html

HAMMOND — Jon Snyder had been cooperating with the FBI since 2012, but he didn't bring the agency information about his brother until a mutual friend began talking about an alleged bribe for towing scheme.

That mutual friend was John Cortina, who, until earlier this month was Portage Mayor James Snyder's co-defendant in an allegation that Cortina paid James Snyder $12,000 to get on the city's tow list. Cortina pleaded guilty this month to paying James Snyder the alleged bribe.

Jon Snyder, Porter County assessor, testified for less than two hours Tuesday afternoon against his brother as members of their family sat in the audience and watched.

"I had enough going on in my life and didn't want another investigation," Jon Snyder explained as to why he went to the FBI in 2015 to tell agents about the alleged bribery scheme. He didn't know at the time his brother was already being investigated on the allegation and that another confidential informant had been wearing a wire to collect incriminating evidence.

What was going on in Jon Snyder's life at the time included an investigation by the IRS into his own financial doings and an investigation into his county office over allegations that someone in the office was fixing assessment appeals.

Jon Snyder pleaded guilty to a misdemeanor tax count late last year. In return, he agreed to testify against his brother. He will be sentenced late next month.

Jon Snyder, who, during cross examination by one of his brother's attorneys, was painted as being ungrateful for everything James Snyder had done for his family and as someone who was looking for a way out from his own tax problems, said he didn't initially begin wearing a wire to collect evidence. That came about six months later.

Jon Snyder's direct testimony under questioning by Assistant U.S. Attorney Philip Benson was quick, lasting less than an hour Tuesday during the ninth day of his brother's public corruption trial.

He outlined his reasons for contacting the FBI and his relationship with Cortina. He authenticated a binder full of transcripts from the secret recordings, expected to be played for the jury sometime later in the trial.

Relationship with brother
Jayna Cacioppo, one of James Snyder's six attorneys attending the trial, asked Jon Snyder about his support in James Snyder's political campaigns as well as James Snyder's support in Jon's. She asked about times James Snyder went grocery shopping or allegedly lent Jon Snyder money.

"Most of the time you were informing on James, he was helping out with all your children?" Cacioppo asked.

Jon Snyder recalled some of the incidents, but he denied others happened. He told jurors he had borrowed money from his brother, but paid it back, and that his brother owed him money.

"You were threatened by the government" to turn on James Snyder, Cacioppo asked. When Jon Snyder denied the allegation, she countered that the information had come from his father, Bruce, who has been at the trial each day since its start.

"Are you calling your father a liar?" Cacioppo asked.

"Yes. He told me he wouldn't be in the courtroom today," Jon Snyder answered. "I was not threatened by the government. I thought long and hard before I went to the FBI."

Tow company informant
Prior to Jon Snyder's testimony, Scott Jurgensen, a confidential informant who also wore a wire recording conversations regarding the alledged tow for pay charge, took the stand.

Jurgensen, a former Merrillville police officer turned tow truck company owner, said he took up the FBI on its offer to become a confidential informant because he wanted "to do the right thing."

Cortina pleaded guilty earlier this month to paying Snyder the bribe and is expected to be a government witness in the case.

Jurgensen said he first approached Snyder about getting on Portage's tow list in May 2014. During that meeting in Portage City Hall, Jurgensen testified Snyder directed him to Cortina, who owns Kustom Auto Body. Cortina had partnered with another tow company, Ambassador Towing, but Ambassador was being removed from the city's list, leaving Cortina without a partner.

Cortina provided storage yard and payment collection services to the tow companies.

"James Snyder told me Cortina meant a lot to him, and it was best to go through Cortina," Jurgensen testified under questioning by Assistant U.S. Attorney Philip Benson.

Jurgensen said he had not previously met Cortina, but knew of him. He said he stopped by Cortina's business one day to discuss the partnership.

"He (Cortina) felt he was close to the mayor, and he could get us on the tow list," Jurgensen testified.

Jurgensen said he gave Cortina $6,000 toward the $12,000 bribe, which was paid to Snyder in January 2016. Jurgensen said he received the tow contract from Portage in August 2016 and towed within the city until November 2016 when FBI agents issued search warrants on Cortina's property. Cortina and Snyder were indicted on Nov. 17, 2016.

Due to the weather, the trial has been recessed until 9 a.m. Friday.

Tow operator testifies about alleged bribe to Portage mayor
Chicago Tribune
January 29, 2019
https://www.chicagotribune.com/suburbs/post-tribune/news/ct-ptb-snyder-trial-day-nine-st-0129-story.html

A tow operator cooperating with the FBI said he always wanted to get on the towing lists of Region communities honestly.

In Portage, the tow operator testified Tuesday that he needed to pay a bribe.

On the ninth day of trial, federal prosecutors began presenting evidence that Portage Mayor James Snyder allegedly sought $12,000 from Scott Jurgensen, of Samson’s Towing, who was cooperating with the FBI, and John Cortina, of Kustom Auto Body in Portage, to get them a spot on the city’s towing list.

Jurgensen’s testimony about the alleged bribe was followed Tuesday by the mayor’s brother, Porter County Assessor Jon Snyder, who wound up providing information to the FBI after being alarmed by the alleged towing deal.

Jurgensen said he began cooperating with the FBI in 2013, “because I didn’t pay bribes,” Jurgensen said.

Snyder was indicted in November 2016 and charged with allegedly violating federal bribery statutes. Federal prosecutors say the mayor allegedly solicited money from Cortina and “Individual A” and gave them a towing contract for Portage.

Snyder has pleaded not guilty to the charges, according to court documents.

Cortina, who was indicted alongside the James Snyder, pleaded guilty to a charge that he paid bribes to Snyder to get a spot on the tow list. Cortina is expected to cooperate with federal investigators against Snyder, according to court documents.

Jurgensen said he first met with James Snyder in 2014 and was told to talk to Cortina. He said he then went to meet Cortina.

“He felt he was close to the mayor and he could get us on that list, Jurgensen said.

Defense attorney Jackie Bennett Jr. asked if Jurgensen had ever given donations to other officials’ campaigns.

Jurgensen said he’s given donations to political figures.

Bennett asked if it was Jurgensen’s understanding that the two checks Cortina delivered were a bribe.

“Yes,” Jurgensen said.

Bennett said that’s only based on what Cortina told Jurgensen, and that he never discussed the transaction with the mayor.

Assistant U.S. Attorney Philip Benson asked about a phone call that Jurgensen recorded between Cortina and Snyder on the day the $12,000 was ready.

Jurgensen said Cortina told the mayor it was “Christmas time.”

Jurgensen said after the FBI raided Cortina’s tow yard in November 2016, and the indictments were announced, he was removed from Portage’s tow list.

Jon Snyder, said that Cortina, who he described as a longtime friend, began talking to him about getting on the city towing list.

“I just didn’t like it,” Jon Snyder said. “I tried to tell him to stop talking about it.”

Jon Snyder, who was already under federal investigation related to his personal business, said he didn’t want to get involved in any towing business and went to the FBI.

“I had enough going on in my life, I didn’t need another investigation,” Jon Snyder said.

In October, Jon Snyder pleaded guilty to a charge of failing to supply information to the IRS, and agreed to provide the FBI with information about his brother, including making undercover recordings.

Jon Snyder, as owner of Shoreline Appraisals Inc., allegedly failed to give the IRS an “Informational Return 1099 Form,” which is a requirement for non-employees who received more than $600 in payments during a calendar year, according to court documents.

Jon Snyder and Shoreline Appraisals allegedly failed to file the document for “Person A,” who was paid more than $5,000 in 2013, according to court documents.

Defense attorney Jayna Cacioppo asked if Jon Snyder was threatened by the federal government to cooperate with the FBI because of his tax charge.

“You didn’t feel threatened by the government?” Cacioppo asked.

“I did not feel threatened by the government,” Jon Snyder said.

Cacioppo asked about $5,000 Cortina loaned Jon Snyder.

John Snyder said it was a loan to help cover his legal expenses at the time.

Jon Snyder said he had paid half that amount back.

Cacioppo asked about claims Cortina also helped Jon Snyder buy a Mustang and got him wholesale pricing, and about work that he had done at Kustom Auto Body.

“He went and looked at it,” Jon Snyder said of the Mustang deal.

Before prosecutors moved onto the alleged towing bribery scheme, they wrapped up testimony on a second bribery count that claimed the Snyder steered a city contract to one firm and netted himself a $13,000 kickback.

Prosecutors say that when Snyder first ran for mayor, he told residents he planned to automate Portage’s trash pickup, but would up allegedly steering contracts for $712,882.50 and another for $425,355 to Great Lakes Peterbilt, which was then owned by Robert and Steve Buha.

Great Lakes Peterbilt is now owned by a different firm.

After getting those contracts, prosecutors said Great Lakes Peterbilt gave Snyder a check for $13,000 payable to his shell company, which state records showed had been dissolved.

Defense attorneys say that Snyder used his experience in offering health insurance to city employees through the Affordable Care Act, and making technology upgrades to advice Great Lakes Peterbilt about making similar changes.

Mike Matusak, of Pozzo Truck Centers, said his company would supply the truck chassis in partnership with other body companies to submit bids to Portage. Matusak said Pozzo sells Mack and Volvo trucks.

Assistant U.S. Attorney Jill Koster asked if Matusak offered to demomonstrate a truck’s features.

Matusak said he met with the assistant streets superintendent and was told he didn’t need to bring a truck.

“You get the sense it’s a waste of time,” Matusak said.

James Snyder is also charged with obstructing or impeding the IRS, according to court documents.

FBI informant takes stand in Portage mayor's corruption case
NWI Times
January 29, 2019
https://www.nwitimes.com/news/local/crime-and-courts/fbi-informant-takes-stand-in-portage-mayor-s-corruption-case/article_684f1d35-5df5-575e-be1b-a5b9c81359b6.html

HAMMOND — Scott Jurgensen said he took up the FBI on its offer to become a confidential informant because he wanted "to do the right thing."

Jurgensen, a former Merrillville police officer turned tow truck company owner, took the stand Tuesday morning in Portage Mayor James Snyder's public corruption trial.

Snyder is charged with two counts of bribery and one of tax obstruction. One bribery account alleges Snyder took $12,000 from John Cortina, who partnered with Jurgensen, to get on Portage's tow list.

Cortina pleaded guilty earlier this month to paying Snyder the bribe and is expected to be a government witness in the case.

Jurgensen said he first approached Snyder about getting on Portage's tow list in May 2014. During that meeting in Portage City Hall, Jurgensen testified Snyder directed him to Cortina, who owns Kustom Auto Body. Cortina had partnered with another tow company, Ambassador Towing, but Ambassador was being removed from the city's list, leaving Cortina without a partner.

Cortina provided storage yard and payment collection services to the tow companies.

"James Snyder told me Cortina meant a lot to him, and it was best to go through Cortina," Jurgensen testified under questioning by Assistant U.S. Attorney Philip Benson.

Jurgensen said he had not previously met Cortina, but knew of him. He said he stopped by Cortina's business one day to discuss the partnership.

"He (Cortina) felt he was close to the mayor, and he could get us on the tow list," Jurgensen testified.

Jurgensen said he gave Cortina $6,000 toward the $12,000 bribe, which was paid to Snyder in January 2016. Jurgensen said he received the tow contract from Portage in August 2016 and towed within the city until November 2016 when FBI agents issued search warrants on Cortina's property. Cortina and Snyder were indicted on Nov. 17, 2016.

UPDATE: Truck competitor says Portage bid process 'irregular,' 'unusual' in garbage truck purchase
NWI Times
January 28, 2019
https://www.nwitimes.com/news/local/crime-and-courts/update-truck-competitor-says-portage-bid-process-irregular-unusual-in/article_189ad855-bd7c-5e24-8ac9-eee823d89fe8.html

HAMMOND — Greg Dadlow said he was "kinda shocked" when Portage turned down a chance to try out one of his company's automated trash trucks.

"It kinda bothered me they did not want, did not need a demo," Dadlow, who worked at Pyramid Equipment of Rolling Prairie, Indiana, at the time, testified Monday afternoon in Portage Mayor James Snyder's public corruption trial.

Dadlow said the process was "unusual" and "irregular."

Dadlow said his company offered four of the six lowest bids in the first round of trash truck purchases by the city in 2013. The contract for three trucks instead went to Great Lakes Peterbilt of Portage. Great Lakes Peterbilt's bid was nearly $60,000 higher than that of Pyramid Equipment.

Snyder is facing two counts of bribery and one of tax obstruction in the trial in U.S. District Court. One of the bribery counts alleges Snyder took a $13,000 bribe from Great Lakes Peterbilt in exchange for two contracts, totaling five trucks from the company.

Dadlow said his bid didn't meet the specifications for either the brand of chassis or body in the bid, but that, in his experience, sometimes a large cost reduction would outweigh the variations in the bid.

After the bids were open, Dadlow said he approached Assistant Street Department Superintendent Randy Reeder, who had been designated the point man in the city's switch to automated trash trucks, and offered the use of a demonstration truck to help sell his product.

Dadlow said an email to Reeder went unanswered and then a sales call and the offer of the demonstration truck was refused.

"Randy Reeder told me they knew what they were going to go with," he said, adding Reeder told him his company wasn't going to get the contract before the Board of Works officially voted.

Dadlow's testimony in the eighth day of the trial followed the second day of testimony from former Street Superintendent Steve Charnetzky, who first approached the FBI in September 2013 to alert them of possible wrongdoing by Snyder.

Under cross-examination Monday morning, Snyder's lead attorney said wrongdoing didn't cause the FBI to open an investigation into his client's activities, but, instead, a former employee scorned.

"Your feelings got hurt because you didn't have input in that process?" attorney Jackie Bennett asked Charnetzky Monday morning.

"Slight," Charnetzky replied.

Charnetzky testified last week he went to the FBI because he believed the bidding process for the garbage trucks was being done illegally, among other allegations.

Charnetzky told the jury he was left out of the bidding process, which was unusual considering his tenure as street superintendent and experience of more than 30 years on the job. Charnetzky testified Snyder gave the job to Reeder, and that at one point during the bid process, Reeder told him the mayor wanted Great Lakes Peterbilt to get the contract, no matter the price of their trucks.

Bennett questioned Charnetzky about the bidding process, timeline of his reporting and meetings with the FBI, and the reasons for Charnetzky's termination in January 2016.













Truck bidder says he thought Portage process didn't look right
Chicago Tribune
January 28, 2019
https://www.chicagotribune.com/suburbs/post-tribune/news/ct-ptb-snyder-trial-day-eight-st-0128-story.html

A company that aimed to win a Portage contract for garbage trucks knew something was not right when no one from the city would look at the equipment he planned to offer.

The eighth day of Portage Mayor James Snyder’s trial, federal prosecutors continued showing how the bid process for garbage trucks was allegedly rigged for one firm and reportedly netted the mayor a $13,000 payout. Defense attorneys have said there was nothing questionable about the bid process and it was all done above board.

Greg Dadlow, of Pyramid Equipment, said ahead of the bids for the garbage trucks in 2013 he wanted to let someone from the city’s streets department test his equipment but they said they already knew what they wanted.

Dadlow’s company submitted four bids for the trucks, each with a Mack chassis and either a Wayne or Bridgeport body. Those four bids were among the lowest, Dadlow said, and one was roughly $60,000 less than the company that won the contract.

“Sometime you don’t believe that could just be overlooked,” Dadlow said.

Snyder’s defense says those bids did not meet the specifications, which called for a Peterbilt chassis, a McNeilus body, a Cummins engine and a 150-day delivery date.

Assistant U.S. Attorney Jill Koster asked why Dadlow submitted a bid if those items were specifically included in the specs.

Dadlow said he went through all the specs and in his proposal detailed how his equipment met the same requirements and even noted what differed between the machines.

Koster asked, as an example, if not having a McNeilus body automatically disqualified the Pyramid bid.

“No, it does not,” Dadlow said.

Dadlow said, in his experience, that municipalities will consider something besides the specs if the price is significantly different.

Prosecutors say that when Snyder first ran for mayor, he told residents he planned to automate Portage’s trash pickup, but wound up allegedly steering contracts for $712,882.50 and another for $425,355 to Great Lakes Peterbilt, which was then owned by Robert and Steve Buha.

Great Lakes Peterbilt is now owned by a different firm.

After getting those contracts, prosecutors said Great Lakes Peterbilt gave Snyder a check for $13,000 payable to his shell company, which state records showed had been dissolved.

Defense attorneys say that Snyder used his experience in offering health insurance to city employees through the Affordable Care Act, and making technology upgrades to advise Great Lakes Peterbilt about making similar changes.

It was the questionable bidding process that prompted Steve Charnetzky, Portage’s former streets superintendent, to raise the issue to the FBI.

On the witness stand, Charnetzky said he had heard that the mayor’s office and the assistant streets superintendent say the contract was going to Great Lakes Peterbilt

Defense attorney Jackie Bennett Jr. said that Charnetzky testified that he was not involved in the bidding process for the garbage trucks and had no knowledge of what was submitted.

“Your statement about something illegal and unlawful is simply your opinion,” Bennett said.

Snyder was indicted in November 2016 and charged with allegedly violating federal bribery statutes. Federal prosecutors say the mayor allegedly solicited money from John Cortina, of Kustom Auto Body, and “Individual A” and gave them a towing contract for Portage. Snyder received an additional bribery indictment for alleged accepting $13,000 in connection with a Board of Works contract.

A third charge alleges Snyder obstructed or impeded Internal Revenue Service laws.

Snyder has pleaded not guilty to the charges, according to court documents.

Cortina, who was indicted alongside the mayor, pleaded guilty to a charge that he paid bribes to Snyder to get a spot on the tow list. Cortina is expected to cooperate with federal investigators against Snyder, according to court documents.

Snyder's lawyer: 'Hard feelings' spurred probe into Portage mayor's alleged wrongdoing
NWI Times
January 28, 2019
https://www.nwitimes.com/news/local/crime-and-courts/snyder-s-lawyer-hard-feelings-spurred-probe-into-portage-mayor/article_189ad855-bd7c-5e24-8ac9-eee823d89fe8.html

HAMMOND — Portage Mayor James Snyder's lead attorney said wrongdoing didn't cause the FBI to open an investigation into his client's activities, but, instead, a former employee scorned.

"Your feelings got hurt because you didn't have input in that process?" attorney Jackie Bennett asked longtime former Portage Street Department Superintendent Steve Charnetzky Monday morning.

"Slight," Charnetzky replied.

Bennett continued his cross-examination of Charnetzky Monday morning in day eight of Snyder's public corruption trial in U.S. District Court.

Charnetzky approached the FBI in September 2013 to allege wrongdoings against Snyder, including the steering of garbage truck bids toward Great Lakes Peterbilt, a Portage truck dealership.

Snyder allegedly took a $13,000 bribe from the company in exchange for the city's purchasing five automated garbage trucks from the company.

It is one of two bribery charges the two-term mayor is facing. The second involves accepting a bribe to place a company on the city's tow list. Snyder also is charged with tax obstruction.

Charnetzky testified last week he went to the FBI, because he believed the bidding process for the garbage trucks was being done illegally, among other allegations. Charnetzky told the jury he was left out of the bidding process, which was unusual considering his tenure as street superintendent and experience of more than 30 years on the job.

Charnetzky testified Snyder gave the job to his assistant, Randy Reeder, and that at one point during the bid process, Reeder told him the mayor wanted Great Lakes Peterbilt to get the contract, no matter the price of their trucks.

Bennett began cross-examining Charnetzky Friday and continued Monday.

Bennett questioned Charnetzky about the bidding process, timeline of his reporting and meetings with the FBI, and the reasons for Charnetzky's termination in January 2016.