Prosecutors say Portage mayor 'does not think the rules apply,' while defense says charges are 'lies'
Chicago Tribune
January 15, 2019
https://www.chicagotribune.com/suburbs/post-tribune/news/ct-ptb-snyder-trial-day-two-st-0116-story.html
Federal prosecutors on Tuesday painted Portage Mayor James Snyder as someone who moved from one scheme to another, but defense attorneys say those allegations are lies.
Opening statements in Snyder’s public corruption case started with prosecutors saying Snyder allegedly schemed to hide assets from the IRS; worked a garbage truck contract to net himself $13,000; and took $12,000 to get two men on the city’s towing list. The defense said those allegations are lies, and that the evidence will show the mayor did not engage in unlawful conduct.
“James Snyder does not think rules apply to him,” said Assistant U.S. Attorney Jill Koster.
Defense attorney Jackie Bennett Jr. said the allegations in the indictment seem straightforward, but are false.
“These allegations are lies,” Bennett said. “On behalf of James Snyder, we are going to prove it.”
Snyder was indicted in November 2016 and charged with allegedly violating a federal bribery statue. Federal prosecutors said 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 allegedly accepting $13,000 in connection with a Board of Works contract, and allegedly obstructing Internal Revenue Service laws.
Snyder has pleaded not guilty to the charges, according to court documents.
Cortina, who was indicted alongside the mayor, last week pleaded guilty to a charge that he paid bribes to Snyder to get a spot on the city’s tow list. Cortina is expected to cooperate with federal investigators against Snyder, according to court documents.
When Snyder first ran for mayor, Koster said he told people he would automate the city’s trash collection. Koster said Snyder helped steer a contract for $712,882.50 and another for $425,355 to Great Lakes Peterbilt for garbage trucks.
After getting those contracts, Koster said Great Lakes Peterbilt gave Snyder a check for $13,000 payable to his shell company.
Koster said Great Lakes Peterbilt submitted a bid that sold the city older trucks than what other companies offered despite the specifications seeking new, unused equipment.
“Everything about the bid process with Great Lakes Peterbilt was fishy,” Koster said.
Since Snyder took office, Bennett said he has bought and paid for the new garbage trucks and lowered costs for the city. Snyder saw that the bids met what the city needed, Bennett said, and had his staff thoroughly research what was available.
Bennett said the owners of Great Lakes Peterbilt will testify that no bribe was paid. Bennett said prosecutors say that Snyder allegedly took $13,000 for contracts worth more than $1 million, but Great Lakes Peterbilt only made roughly $35,000 in profit.
Bennett said that doesn’t seem to add up.
“It was done according to the rules,” Bennett said.
But Snyder didn’t stop there, Koster said.
In 2016, Cortina teamed up with Scott Jurgensen, who was working with the FBI, and wanted to get on Portage’s tow list. The two allegedly gave Snyder $12,000.
“This was a bribe,” Koster said. “John Cortina knew it was a bribe. Scott Jurgensen knew it was a bribe.”
Bennett said that Cortina had partnered with another firm and been removed from the tow list. In 2016, Cortina was no longer on the list but a spot later opened after one of the three firms was not meeting the city’s expectations, Bennett said.
Cortina was a member of the mayor’s roundtable group, Bennett said, and the $2,000 check Snyder got was for that membership. Bennett said it is legal to pay legal expenses out of a campaign committee, and Snyder sought for a $10,000 loan from Cortina, who was a friend and political backer.
Snyder is also charged with obstructing or impeding the IRS, according to court documents.
Koster said that Snyder ran a mortgage company and did not racked up tens of thousands of dollars that he owed the IRS.
“So James Snyder had a problem,” Koster said. “He devised a scheme.”
Another mortgage firm merged with Snyder’s company, Koster said, and he allegedly set up a shell company that submitted invoices and got paid. Snyder was the only employee of the shell company, Koster said.
Snyder also had personal tax debt, Koster said, but did not tell the IRS about his shell company and its bank account.
“James Snyder deceived the IRS,” Koster said.
Bennett said Snyder had to deal with a failing business and has consistently made payments to the IRS to settle his debts. Bennett said there was no effort to hide anything, and an accountant will testify that little money was ever held in Snyder’s company account.
“The account never really held much money,” Bennett said.
Snyder has paid 100 percent of his personal debt to the IRS, Bennett said, and is still making payments on what was owed by his old mortgage company.
Bennett asked if that sounds like it impeded the IRS.
“It did not,” Bennett said.
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