01242019 - News Article - Questioning of alleged $13K payoff to Portage mayor begins

Questioning of alleged $13K payoff to Portage mayor begins
Chicago Tribune
January 24, 2019
https://www.chicagotribune.com/suburbs/post-tribune/news/ct-ptb-snyder-trial-day-four-st-0123-story.html

If $13,000 paid to Portage Mayor James Snyder for work he did through a private company for a city contractor was legitimate, federal prosecutors Tuesday questioned why it wasn’t disclosed.

Federal prosecutors began presenting evidence to back up a bribery charge during the fourth day of Snyder’s trial, asking another top-ranking Portage elected official about legally required disclosures that the mayor and others have to fill out.

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.

After getting those contracts, prosecutors said Great Lakes Peterbilt gave Snyder a check for $13,000 payable to his shell company, and the city wound up with older trucks than what was asked for.

The defense has said nothing was wrong with the bidding process for the garbage trucks and that Snyder did contract work for Great Lakes Peterbilt, through his company SRC, to warrant the payment for services rendered.

Portage Clerk-Treasurer Chris Stidham, who recently announced he’d seek the Democratic nomination for mayor in the May primary, said that elected officials and city department heads must submit a statement of economic interest, and among the disclosures are if that person has received any compensation from a city contractor or an entity in the queue for city business.

Assistant U.S. Attorney Jill Koster said her office asked Stidham to supply those forms from 2012 to the present.

Koster said Snyder’s disclosure forms from 2014 listed nothing, and a 2013 form listed $250 for lodging and another $75 for meals from Circle R Electric.

Koster pointed out two city initiatives on health care and technology that both Stidham and the mayor were a part of. She said in both instances the city had outside consultants help evaluate the city’s needs and make recommendations.

Koster asked if after the health insurance project if Stidham felt qualified to consult on health care.

“No,” Stidham said.

Koster asked what he thought of Snyder acting as a health care consultant after attending those same meetings.

“We were all relying heavily on the consultant,” Stidham said.

Defense attorney Jackie Bennett Jr. began questioning Stidham’s relationship with a former city contractor, and if any of that was disclosed.

Bennett asked about a series of payments made to three companies, which at the time were run by the woman, who is now the clerk-treasurer’s wife. Bennett noted in sum more than $50,000 was paid to those companies in 2015 and 2016.

Stidham said those payments were for bookkeeping and bank reconciliation services.

Stidham said his department has its own budget, and he is permitted to hire contracts and make purchase if they are under certain amounts. Stidham said a small purchasing policy applies to the whole city.

Koster asked if after their marriage if any more payments went to any of those companies.

“No,” Stidham said.

Koster said the forms say to list any income or gifts to that person or any dependent. She asked if prior to his marriage if any payments went to him or any dependents.

“No,” Stidham said.

During testimony earlier Tuesday, Koster pointed out that the bids for the garbage trucks were sent directly to the mayor’s office, and after it was approved Stidham had to ask for a copy of the tabulations for what was submitted.

Bennett asked if Stidham had heard any complaints about the bidding process.

“No vendor has complained to me directly,” Stidham said.

Peyton Harrell, a director of network development for Peterbilt Motors Company in Texas, testified that federal emissions standards changed in 2013, and earlier models would not meet those thresholds. Harrell said that change would not prevent a local dealer from selling those trucks.

Defense attorney Vivak Hadley said Peterbilt is a well-regarded American company, and routinely wins state and local bids for its trucks. Hadley asked if he thought it made sense Peterbilt won the bid as the most responsive and lowest priced.

“Lowest priced would surprise me,” Harrell said.

Koster asked about one particular truck that Great Lakes Peterbilt had on its lot for about two years that wound up being sold to the city.

“Do you agree that on Friday, Dec. 12, 2013, that vehicle was not the same as the manufacturer’s current production model?” Koster asked.

“It was not the same,” Harrell said.

Snyder’s trial started last week as federal prosecutors aimed to paint the mayor as someone who allegedly came up with schemes to obstruct the IRS, bilked $13,000 from a Board of Public Works contract for trash trucks, and netted $12,000 by getting a company a spot on Portage’s tow list. The defense has said the charges against Snyder are lies.

Testimony last week began going through the obstructing the IRS charge, detailing for a jury how Snyder allegedly submitted paperwork to settle his business and personal tax debt but did not give a full picture of his finances.

The defense has said that Snyder was only trying to deal with issues related to his failing mortgage company and did not aim to obstruct the IRS. The defense said that Snyder paid all of his personal income tax debt and is still making timely payments on what is owned by his mortgage company.

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.