01162019 - News Article - Tax preparer emails to Snyder reveal concern about what IRS auditors might find

Tax preparer emails to Snyder reveal concern about what IRS auditors might find
NWI Times
January 16, 2019
https://www.nwitimes.com/news/local/crime-and-courts/tax-preparer-emails-to-snyder-reveal-concern-about-what-irs/article_1d9c7929-ce10-50e7-83d2-89c7dffaa9c3.html

HAMMOND — Emails read Wednesday during Portage Mayor James Snyder's corruption trial revealed Snyder's tax preparer was worried about what IRS auditors might find.

Assistant U.S. Attorney Philip Benson asked IRS agent Gerard Hatagan, who was testifying in federal court for the prosecution, to read emails between Snyder and his tax preparer, Steve Dolton.

The first email, sent to Snyder from Dolton on Oct. 6, 2012, read: "I buried a lot, but I don't think I could risk killing any more of the incomes." Dolton said he was concerned about what auditors might uncover.

The first email also discussed loans from Snyder's company, SRC Properties, to his mortgage company and to himself.

Dolton helped prepare Snyder's income taxes in 2010 and 2011.

U.S. District Court Judge Joseph Van Bokkelen allowed the emails into evidence over the objection of Snyder's lawyer, Neal Brackett, who said they were not relevant and inflammatory.

Snyder was indicted in November 2016 on two counts of bribery and attempting to obstruct the Internal Revenue Service from collecting payroll taxes from his mortgage business, First Financial Trust Mortgage, and his personal income taxes.

Prosecutors allege Snyder schemed to hide income from the IRS as he attempted to negotiate a settlement with the IRS to pay the back taxes.

A second email to Snyder from Dolton, a few days after the one from Oct. 6, 2012, spoke of concerns Dan Pickart, Snyder's accountant, might have with the tax returns.

"He (Pickart) knows we fabricated some of this," Dolton wrote. "He's going to start asking questions on loans and cars and such."

Hatagan testified throughout the morning.

Van Bokkelen also voiced concerns Wednesday morning about the tax charge against Snyder.

As prosecutors and defense attorneys argued about the emails, Van Bokkelen noted concerns involving the charge, though he declined to elaborate further from the bench.

"I have some problems with that count," the judge said in overruling the defense's objections about the emails being admitted as evidence. "If it plays out, that count may be gone."

"I'm sort of talking out loud right now. I have not drawn any conclusions. I have some concerns right now," Van Bokkelen said, adding he wanted to let the testimony play out before deciding.

"I've said too much already."

After Benson completed his questioning of Hatagan Wednesday afternoon, Brackett cross examined the IRS agent, questioning him about some of the forms and suggesting income information was included, but not properly identified.

Van Bokkelen recessed the court, admonishing jurors not to discuss the case over the next five days. Court is scheduled to reconvene at 9 a.m. Tuesday, Jan. 22.