01262019 - News Article - Portage mayor's defense pushes back against rigged bids, bribery allegations on 6th day of trial

Portage mayor's defense pushes back against rigged bids, bribery allegations on 6th day of trial
Chicago Tribune
January 26, 2019
https://www.chicagotribune.com/suburbs/post-tribune/news/ct-ptb-snyder-trial-day-six-st-0125-story.html

Defense attorneys for Portage Mayor James Snyder on Thursday sought to cast doubt on allegations that he accepted a bribe to award a city contract for garbage trucks.

On the sixth day of Snyder’s public corruption trial, defense attorneys questioned an FBI agent about a deal to sell garbage trucks to the city in 2013 that allegedly netted the mayor a $13,000 kickback. Attorneys aimed to show that there was nothing questionable about the deal, but federal prosecutors continued to point out that a fix was in.

Defense attorney Jayna Cacioppo asked about the bids for the first round of garbage trucks, which Great Lakes Peterbilt, then owned by Robert and Steve Buha, won.Cacioppo said that firm was the lowest and most responsive bidder.

Cacioppo pointed out that nine firms with lower bid amounts did not meet the specifications the city asked for, which included a Peterbilt chassis and a McNeilus body. She said the bid also sought a Cummins engine but many bidders proposed trucks with Volvo engines.

Assistant U.S. Attorney Jill Koster asked Eric Field, a supervisory special agent with the FBI, what companies the city asked to design the bid specs.

Field said Peterbilt and McNeilus.

Cacioppo said during the second round of bids, the city saw a chance to save money with a 2012 chassis sitting on the lot. She asked if Field knew of any differences between the models besides the size of the transmission.

Field said the transmission and the emissions standards.

“Was that purchase in accordance with the invitation to bid that was issued by the city?” Koster asked.

“No,” Field said. He said the 2012 model-year truck was not the manufacturer’s current production model.

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.

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.

Federal prosecutors this week began going over the bribery charge, with jurors hearing testimony that Snyder never disclosed he received income from a company doing business with the city, and that the FBI could not find documentation that justified the payment.

Prosecutors Thursday played a series of clips from an FBI interview with Snyder at city hall where they asked about the garbage truck contracts, and Snyder, in the recordings, denied any wrongdoing.

“He’s had to win the bids,” Snyder said on the recording. “I had nothing to do with that process.”

Snyder also told the FBI during that interview his contract with Great Lakes Peterbilt was for consulting services about health care and technology matters.

During that interview, Snyder said that the income would have to be disclosed in an annual filing.

Koster said even after being interviewed by the FBI that income was never disclosed.

“Correct,” Field said.

Cacioppo said there’s no evidence that the $13,000 was a bribe.

“No, that’s not correct,” Field said.

Cacioppo said the FBI was “extremely focused” on making a case against Snyder.

Field said the FBI was trying to determine if any criminal activity took place.

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.

Power in the courtroom flickered before going out Thursday morning.

“The government’s on shutdown,” Judge Joseph Van Bokkelen said, before recessing the jury until the courtroom’s equipment restarted.

Van Bokkelen said the outage was caused by a NIPSCO issue.