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01142019 - NEWS ARTICLES - PORTAGE INDIANA MAYOR JAMES SNYDER - FEDERAL CORRUPTION TRIAL - WEEK 1
01222019 - NEWS ARTICLES - PORTAGE INDIANA MAYOR JAMES SNYDER - FEDERAL CORRUPTION TRIAL - WEEK 2
01282019 - NEWS ARTICLES - PORTAGE INDIANA MAYOR JAMES SNYDER - FEDERAL CORRUPTION TRIAL - WEEK 3
02112019 - NEWS ARTICLES - PORTAGE INDIANA MAYOR JAMES SNYDER - FEDERAL CORRUPTION TRIAL - WEEK 5
02142019 - NEWS ARTICLES - PORTAGE MAYOR JAMES SNYDER GUILTY OF FEDERAL CHARGES
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Witness in Portage mayor's bribery case says he wants to recant grand jury testimony
Chicago Tribune
February 08, 2019
https://www.chicagotribune.com/suburbs/post-tribune/news/ct-ptb-snyder-trial-day-15-st-0209-story.html
A Portage employee said Friday he wanted to recant testimony he gave a federal grand jury that implicated Mayor James Snyder in an alleged scheme to steer a contract to one company in exchange for a $13,000 payoff.
Randy Reeder, the city’s assistant superintendent of streets and sanitation, said that he “misspoke” when he testified before a grand jury on two occasions in 2016, and wanted to recant his statements made under oath. Reeder, on the 15th day of Snyder’s public corruption trial, wanted to take back statements he made about Snyder’s involvement in the purchases of five garbage trucks.
Snyder was indicted in November 2016 and charged with allegedly violating federal bribery statutes. Federal prosecutors say the mayor allegedly solicited money from Kustom Auto owner John Cortina and “Individual A” and gave them a towing contract for Portage. Snyder is also charged with obstructing or impeding the IRS, according to court documents.
Snyder has pleaded not guilty to the charges, according to court documents.
Reeder said he had “misspoken in error” when he told the grand jury that Snyder told him to put a 150-day deliver period in the bid specifications for garbage trucks.
Reeder said when he told the grand jury he was a “pawn” for Snyder that the statement was not accurate.
“I would like to recant that,” Reeder said.
Reeder said he also misspoke when he talked about preparing the bids specifications. Reeder said that it’s common to narrowly tailor specifications so the city gets the equipment it wants.
Assistant U.S. Attorney Jill Koster asked about grand jury testimony where Reeder had agreed that the evidence showed Snyder wanted the contract to go to Great Lakes Peterbilt.
Reeder said that was not correct.
Koster said many of those statements are incriminating for Snyder, and retracting things he said in the grand jury is helpful to the defense.
Defense attorney Jayna Cacioppo asked if Reeder felt afraid when he spoke with federal investigators during a meeting.
Reeder said he was afraid because he didn’t think investigators would believe him and they said he could be incarcerated.
Koster said that during that meeting, where Reeder had an attorney, that he took it as a threat when federal investigators told him it was a crime to lie to the FBI.
“Yes,” Reeder said.
Koster asked if Reeder knew it was a crime to lie under oath.
“Yes,” Reeder said.
Koster asked if Reeder considered that a threat.
“No,” Reeder said.
Federal prosecutors claim that 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 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 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.
Reeder said when he was hired as assistant superintendent of streets and sanitation, one of his key functions was looking at automating trash and recycling pickup. Reeder said he talked to neighboring cities about how their programs work, looked at pricing for refuse containers, and rewrote Portage’s trash ordinance.
Reeder said that the mayor did not have any specific involvement in the bidding process, and he was only kept in the loop as the process move forward.
During the second round of garbage truck purchases at the end of 2013, Great Lakes Peterbilt again won the contract, and federal prosecutors say sold the city a two-year old truck despite Portage’s own specifications calling for new, unused and current factory production model.
Reeder said all the bids were awarded to the lowest and most responsive bidder. He said he thought the equipment only need to be new and unused, which the truck that had been sitting on the lot was.
Koster asked if Reeder told the Board of Works one of the trucks was two years old.
Reeder said he did not.
As the defense began making its case Wednesday, they first sought to refute allegations that Snyder took a bribe to get a company on the Portage’s tow list.
Cortina, 79, 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.
The trial continues Monday in Hammond’s federal court.
UPDATE: Snyder witness wants to recant incriminating grand jury testimony; says he was threatened by government
NWI Times
February 08, 2019
https://www.nwitimes.com/news/local/crime-and-courts/update-snyder-witness-wants-to-recant-incriminating-grand-jury-testimony/article_d77af206-8e56-5ee9-8e05-3042702abf46.html
HAMMOND — Portage Assistant Street Superintendent Randy Reeder said he was under severe emotional distress when he told a grand jury he felt like he was Mayor James Snyder's pawn.
Reeder is at the center of a charge that Snyder took a $13,000 bribe from Steve and Bob Buha, owners of Great Lakes Peterbilt at the time, in exchange for steering more than $1 million in garbage truck purchases. Reeder said Friday he wants to recant what he told the grand jury in early 2016.
"I said I felt like a pawn," Reeder said of his grand jury testimony.
"You told the grand jury, 'I felt like Snyder's pawn,'" Assistant U.S. Attorney Jill Koster said.
"I want to recant that," Reeder answered.
Reeder spent Friday on the stand under direct questioning by Snyder attorney Jayna Cacioppo and cross-examination by Koster.
During that questioning, Reeder testified Snyder was not involved in the bidding process nor did Snyder direct him to make sure the contracts went to Great Lakes Peterbilt.
Reeder's testimony was in direct conflict with previous testimony of former Street Superintendent Steve Charnetsky and FBI agents who claimed Snyder chose Reeder to work on the project and to make sure the Buhas received the bids.
Reeder said he didn't know of a relationship between the Buhas and Snyder nor that Snyder lunched with the Buhas a day before one of the rounds of bids was to be opened.
In that direct questioning, Cacioppo asked Reeder if he felt threatened by the government and if his grand jury testimony was accurate.
"There were a few things I disagree with," Reeder said of his grand jury testimony.
"Yes. I was afraid the government would not believe me in my statements and I would be incarcerated," Reeder said of his state of mind at the time.
Reeder also told jurors "multiple layers of emotional stress" were going on in his life at the time due to his daughter's diagnosis and treatment for leukemia.
Under cross-examination, Koster asked what corrections he wanted to make.
Reeder said he "misspoke in error" to the grand jury about Snyder knowing about the 150-day delivery requirement for the first round of bidding for the garbage trucks.
"I'd like to change that. He didn't know," Reeder said, adding there were a couple of other items he wanted to change.
After reviewing his grand jury testimony from 2016 during a lunch break, Reeder said he wanted to recant testimony in which he said evidence pointed to Snyder wanting the contracts to go to Great Lakes Peterbilt and that Snyder wanted the deal done as quickly as possible.
Reeder said he felt threatened during an interview with Koster and FBI agents.
"They said if I don't come clean for what I know ... I would not see my family and go to jail," Reeder recounted.
Koster asked him if that was when investigators informed him it was a crime to lie to law enforcement.
"Yes," Reeder replied.
"It's a crime to lie under oath. Do you take that as a threat?" Koster then asked.
"No," Reeder said. "It was the way the government provided that information and the emotional stress I was going through. I misspoke in those statements."
Koster replied that the only statements Reeder wanted to recant were those that were incriminating Snyder.
During continued testimony, Reeder denied Snyder directed him to make sure Great Lakes Peterbilt received the contracts. He told jurors he spoke with Snyder only to keep him updated on the process.
"I never discussed that with the mayor about tailoring the spec," he said while talking about the second round of bids, which prosecutors allege were aimed to make sure Great Lakes Peterbilt could meet them.
In that round, it is alleged the specifications were written so that the company could sell the city a 2-year-old truck while bid requirements included verbiage that the trucks must be new, unused and of the current model year.
Reeder said the truck in question, which allowed the Great Lakes Peterbilt bid to be the lowest, was new and unused, but that he ignored the requirement it be of the current model year.
UPDATE: Towing contracts 'no big deal,' Portage police chief tells jury at Mayor Snyder's trial
NWI Times
February 07, 2019
https://www.nwitimes.com/news/local/crime-and-courts/update-towing-contracts-no-big-deal-portage-police-chief-tells/article_cac19e7f-032e-5c12-83fd-d8ca86689bdf.html
HAMMOND — Dealing with towing companies wasn't one of his priorities when Troy Williams became Portage's police chief in 2012, Williams told jurors Thursday morning.
Williams said dealing with tow companies was "no big deal," so he left it to others in his administration.
Williams testified Thursday morning in Portage Mayor James Snyder's public corruption trial. Snyder is facing two bribery counts and one tax obstruction charge. The trial is in its 14th day.
Snyder has been charged with accepting a $12,000 bribe from John Cortina for placing Cortina and his towing partner, Samson Towing, on the city's list. Samson was placed on the list less than a month after Waffco was removed. Cortina had partnered with Ambassador prior to Samson.
Cortina, Snyder's former co-defendant, pleaded guilty last month to paying Snyder the bribe.
Williams said he believed Waffco Towing had a storage yard in the city, on Old Porter Road, when he first became chief. It wasn't until January 2016, when a fellow city employee was arrested for drunken driving and Snyder and former Director of Administration Joe Calhoun went to retrieve that employee's car, that he learned Waffco had closed that lot.
Assistant U.S. Attorney Philip Benson questioned Williams about why he gave Ambassador four to five chances to correct issues before removing them from the city's tow list, while not calling Waffco to advise them of the issue before a letter was sent terminating the tow company. Benson also questioned Williams about the city's tow agreement not requiring a storage lot within city limits.
Waffco owner Kevin Farthing testified earlier he had an indoor storage yard on U.S. 6, which opened in 2015.
Williams said he learned of the U.S. 6 lot and went by it several times but believed it was closed. He also testified it did not have an outdoor secure lot, and the building appeared too small to store a sufficient number of vehicles.
Williams told jurors while it wasn't in the written agreement, the expectation of having a lot in Portage was discussed with a Waffco representative and other tow company owners in January 2016.
Williams said the decision to remove Waffco from the list was made by himself, Calhoun and Snyder.
The defense played an audiotape of an Aug. 9, 2016, meeting between Williams and Samson owner, Scott Jurgensen, who worked as an undercover agent for the FBI.
In the tape, Williams can be heard telling Jurgensen Waffco was removed because of a lack of a yard in the city.
In addition to Williams, Snyder's campaign treasurer Kenard Taylor told jurors $10,000 of the $12,000 Snyder received from Cortina was considered a loan and listed as such on campaign finance documents.
Assistant Street Department Superintendent Randy Reeder took the stand near the end of the day and is expected to continue testifying Friday.
Portage chief rebuffs claims that mayor had one tow firm bumped from city list to make way for another that paid bribe
Chicago Tribune
February 07, 2019
https://www.chicagotribune.com/suburbs/post-tribune/news/ct-ptb-snyder-trial-day-14-st-0708-story.html
Portage’s police chief rebuffed the idea that a tow operator was removed from the city’s tow list to make room for another company that allegedly bribed Mayor James Snyder.
Portage Police Chief Troy Williams on Thursday said it was a “collective decision” to remove Waffco, a Lake Station firm, after city officials found the company didn’t have a satisfactory yard in the city. Federal prosecutors aimed to show that the company met all the city’s requirements and was removed to open a spot for John Cortina of Kustom Auto Body, and Scott Jurgensen, of Samson’s Towing, after they gave Snyder an alleged $12,000 bribe.
Defense attorney Jayna Cacioppo asked who made the decision to terminate Waffco.
“I would say it was more a collective decision,” Williams said.
Cacioppo asked if Williams was ever directed by the mayor to remove Waffco from the tow list.
“No,” Williams said.
Assistant U.S. Attorney Philip Benson asked about the decision to get rid of Waffco, and if the mayor made the final call.
“There were conversations,” Williams said. “I was in agreement with it.”
The mayor had the authority to make that call, Benson asked.
“Yes,” Williams said.
Benson showed Williams a copy of the Portage Police Department’s vehicle release form that listed Waffco’s address in Lake Station.
Williams said it was a clerical form and he “wasn’t familiar with every form.”
Benson asked if anyone had complained about not being able to find Waffco’s yard.
“Not that I recall,” Williams said.
Kevin Farthing, owner of Waffco Towing in Lake Station, testified Tuesday that he had towed for Portage from 1998 to when the city ended the contract in July 2016.
Farthing said his company had worked out of two rented yards in Portage, even though his main Lake Station yard was only minutes from the county line. Farthing said when he began towing for the Porter County Sheriff’s Department he rented a new yard in Portage in 2015.
On July 20, 2016, Farthing said he received a letter from Joe Calhoun, the city’s then director of administration, informing him the towing contract was going to end because Waffco didn’t have a yard in Portage.
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, 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.
Cacioppo asked Williams about when Cortina had previously partnered with Ambassador, which was later removed from Portage’s tow list in 2015.
Williams said the department had complaints about the company arriving late, not adequately cleaning scenes and drivers not dressing appropriately.
Cacioppo asked if Snyder could have told Williams to keep Ambassador on the list.
“Yes,” Williams said.
Benson said that even though Williams had repeated complaints about Ambassador, he continued to give them another chance unlike Waffco.
Benson said the city told Waffco it was being taken off the list for not having a yard in Portage even though the written towing agreement doesn’t say they needed that.
Federal prosecutors rested their case Wednesday after presenting evidence of Snyder’s alleged schemes for 11 days.
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. Prosecutors say the deal netted Snyder a $13,000 kickback.
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.
Snyder is also charged with obstructing or impeding the IRS, according to court documents.
UPDATE: John Cortina refused payments for city and personal services, Portage police chief tells jurors
NWI Times
February 06, 2019
https://www.nwitimes.com/news/local/crime-and-courts/update-john-cortina-refused-payments-for-city-and-personal-services/article_bb59e823-c974-5d06-8611-7d8bc984d8f8.html
HAMMOND — John Cortina may have complained on undercover audiotape recordings that Portage officials continued to "squeeze" him for free city and personal services, but that is far from the truth, Police Chief Troy Williams testified Wednesday afternoon.
Williams was the first witness for the defense in Portage Mayor James Snyder's public corruption trial.
Prosecuting attorneys rested the government's case just after lunch and turned the case over to Snyder's six-member defense team as the trial continued into its 13th day.
"He was always asking if there was something he could do," Williams said about work Cortina did on three city vehicles, adding Williams offered to have the city pay for the painting of two Humvees and a prisoner transport van.
Williams said Cortina, through his Kustom Auto Body business, was one of several Portage businesses which donated or deeply discounted services to the city.
Cortina was Snyder's co-defendant. Charges allege Cortina paid Snyder a $12,000 bribe to get himself and his partner, Samson Towing, owned by FBI undercover informant Scott Jurgensen, on the city's tow list. Cortina pleaded guilty in January to paying the bribe.
Snyder contends the $12,000 was a combination of a $2,000 political donation and a $10,000 loan.
In addition to the alleged tow-for-pay charge, Snyder is also charged with a second count of bribery in the awarding of contracts for city trash trucks in exchange for $13,000 and tax obstruction.
Williams said he also offered to pay Cortina for work on his wife's van, but Cortina refused payment. Instead, Williams said, his wife sent pizza and soft drinks to the business the next day in appreciation for the work.
Williams, who will continue on the stand Thursday morning, also denied knowledge of Cortina's claim that Cortina paid $1,100 to put new wheels and tires on a truck driven by Portage police Sgt. Ross Haynes, who was assigned to the U.S. Marshals Service in 2016.
It is still uncertain whether Cortina will testify. Snyder's team has issued him a subpoena, but Cortina's attorney, Kevin Milner, filed a motion to quash the subpoena, saying testifying could violate Cortina's Fifth Amendment rights regarding self-incrimination.
Defense attorney Jayna Cacioppo also began questioning Williams about the city's tow policy and his interactions with Waffco Towing.
Waffco owner Kevin Farthing testified previously he was removed from the city's tow list in July 2016 without warning and for no cause.
About a month later, Samson Towing took Waffco's spot on the tow list.
After prosecutors rested their cases, the defense team immediately sought an acquittal, as is customary. U.S. District Court Judge Joseph Van Bokkelen requested written briefs on the motion, saying he will rule in the future.
Government rests, defense calls first witness in Portage mayor's bribery trial
Chicago Tribune
February 06, 2019
https://www.chicagotribune.com/suburbs/post-tribune/news/ct-ptb-snyder-trial-day-thirteen-st-0207-story.html
Federal prosecutors rested their case Wednesday against Portage Mayor James Snyder as the defense called its first witness.
Portage Police Chief Troy Williams, dressed in his department uniform, took the stand Wednesday afternoon at the Hammond federal courthouse as the defense’s first witness.
Attorney Jayna Cacioppo asked if Snyder directed Williams to take police department vehicles to Kustom Auto Body, owned by John Cortina, to have work done.
“Not at all,” Williams said.
Williams testified for roughly an hour Wednesday after the government finished presenting its case on the 13th day of Snyder’s jury trial.
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, pleaded guilty to a charge that he paid bribes to Snyder to get a spot on the tow list. Cortina was not called as one of the government’s witnesses.
Prosecutors wrapped up their case by finishing testimony from Kevin Farthing, owner of Waffco Towing in Lake Station, who they say was bumped from the Portage tow list after another firm gave the mayor a $12,000 bribe.
The government also recalled an IRS agent who helped investigate campaign fiances in the case.
Williams then testified for the defense that he met Snyder around 2010 or 2011, and he agreed to support Snyder in his 2011 mayoral campaign. Williams donated about $300 to Snyder, he said.
“I wanted to see a change,” Williams said.
Williams later became police chief in 2012. Towing was not a major focus for Williams when he took over the role, he said, instead leaving day-to-day towing operations to a major in the department. Williams said he would step in if a new tow firm came was signed on.
Williams and the mayor had a say on who was on the tow list, he said, but the agreements they had with the companies were “nonbinding” and were “at will.”
Multiple businesses would offer services or help to the police department for free or at discounted rates, including Cortina’s, Williams said. Cortina was friendly and asked “hey, is there anything I can do for you? Let me know,” Williams said.
Cortina painted vehicles for the department, including a prisoner transport van and a Humvee, according to Williams. Cacioppo asked if Williams offered to pay Cortina for the work he did.
“I’m certain that I did,” Williams said. Had Cortina submitted an invoice, “we’d be happy to pay it,” he said.
A department vehicle used for undercover and surveillance had “flashy” rims, Williams said. The chief called Cortina to ask who could get those changed, and Cortina told him to bring the vehicle to Kustom Auto Body, Williams said.
Cacioppo asked if Williams asked Cortina to do the work for free.
“Never,” Williams said.
Williams said he brought a personal vehicle to Cortina once. Williams’ wife’s vehicle had “rust spots” on it. The chief said he chose to bring the vehicle to Cortina because he knew he did good work and was a local business.
Cacioppo asked if Williams and his wife offered to pay for the work.
“Absolutely we did,” Williams said.
When Cortina “refused to take payment,” Williams said his wife sent pizzas and pop to the business the next day.
Before the defense called their first witness, Vivek Hadley, another attorney on Snyder’s defense team, made arguments for a judgement of acquittal. Hadley argued that some evidence was improperly admitted and that the government had not proved its case.
“We do not believe the government has shown quid pro quo,” Hadley said.
Hadley argued that prosecutors had not shown intent and had stretched the bounds of the statutes that Snyder is charged with so far that any campaign contribution could be considered illegal.
“A political contribution can be a bribe,” Assistant U.S. Attorney Philip Benson said.
Benson argued that there was an agreement with the mayor that Cortina would get on the Portage tow list, and Waffco would get kicked off.
Snyder was in a “terrible financial situation,” Benson said. When Snyder received $12,000 from Cortina that was designated as a campaign contribution and as a loan, Snyder went and paid his attorney, Benson said.
“That’s motive. He needed the money,” Benson said.
Judge Joseph Van Bokkelen took the acquittal motion under advisement.
Portage officials 'squeeze everybody,' Snyder's co-defendant says on secret audio recording
NWI Times
2 hours ago
https://www.nwitimes.com/news/local/crime-and-courts/portage-officials-squeeze-everybody-snyder-s-co-defendant-says-on/article_567dd015-96d8-5873-a594-315a7f281b73.html
HAMMOND — Portage Mayor James Snyder's co-defendant John Cortina could be heard complaining in a secret recording that Portage officials "squeeze everybody." The audio was played for the jury in Snyder's public corruption trial Tuesday.
In the secret recording by Cortina's partner, Scott Jurgensen, also an undercover agent for the FBI, Cortina complains to Jurgensen that he had to do free work on the car of Police Chief Troy Williams' wife, bought hundreds of dollars of fireworks for Snyder and former Director of Administration Joe Calhoun and paid $1,100 to put new tires and rims on a car used by Portage police Officer Ross Haynes, who had been assigned to the U.S. Marshals Service, to remain on the city's tow list.
In another recording, Snyder was adamant that Cortina seek legal counsel after Cortina's business was raided by the FBI.
On secretly recorded audiotapes introduced during the 12th day of Snyder's trial Tuesday, Snyder could be heard encouraging Cortina and his wife, Margaret, to get Cortina legal representation. Snyder even offered to drive Cortina to an attorney's office if necessary.
Cortina, who was indicted along with Snyder in November 2016, pleaded guilty to one count of paying Snyder a $12,000 bribe in a pay-for-tow scheme.
Snyder has contended Cortina donated $2,000 to his campaign committee and loaned him $10,000 to pay legal fees.
Government prosecutors, during testimony by retired FBI agent Donald Cooley, introduced the tapes and evidence they believe indicate the payment from Cortina to Snyder was a bribe to get on the city's tow list. Cortina and Jurgensen were put on the city's tow list about six months after Cortina gave Snyder the $12,000 in January 2016.
Among audiotapes introduced Tuesday were ones secretly recorded by Snyder's brother, Jon Snyder, who worked with the FBI during the investigation. The conversation Jon Snyder recorded took place in James Snyder's home and included the brothers and the Cortinas. It took place Nov. 10, 2016, after FBI agents executed search warrants throughout the Region, including Cortina's business, Kustom Auto Body, the Lake County Sheriff's Department and the home of former Lake County Sheriff John Buncich, who was later convicted on separate bribery charges.
At the time, they were concerned Cortina had been caught up in the Buncich investigation.
"But they don't see here, here they know that when you work for the city, most of the time you gotta give favors to get the job from the city. They know that," Cortina is heard saying in the recording.
"You just can't say that," James Snyder replied.
"You can't say it that way. But, but we're stupid if we don't say amongst ourselves what, what's going on," Cortina says.
"And hence, hence Margaret, he needs an attorney because of the way he talks," James Snyder said on the tape.
James Snyder is also heard telling those in the conversation, "It's not like he gave me cash" and "I wrote on it, 'Loan.'"
Kevin Farthing, owner of Waffco Towing testified throughout the afternoon.
Farthing testified his company had been on the city tow list for 18 years before he received a letter in July 2016 saying Waffco would be removed because he did not have a storage yard in Portage. Farthing said, under questioning by Assistant U.S. Attorney Philip Benson, he had met with Snyder in 2012 and Snyder told him he didn't care if he had a yard in Portage.
Prosecutors contend Waffco was removed from the tow list to make room for Cortina and Jurgensen.
Defense attorney Neal Brackett cross-examined Farthing, challenging Farthing's claim he met all city requirements and had never received any complaints. The cross-examination is expected to continue Wednesday morning.
Prosecutors say firm followed the rules but lost contract after another allegedly bribed Portage Mayor Snyder
Post Tribune
February 05, 2019
https://www.chicagotribune.com/suburbs/post-tribune/news/ct-ptb-snyder-trial-day-twelve-st-0206-story.html
Federal prosecutors say one business lost a spot on Portage’s towing list after another firm gave Mayor James Snyder $12,000 to get the city’s business.
Federal prosecutors say Scott Jurgensen, of Samson’s Towing, who was cooperating in an undercover FBI investigation, and John Cortina, of Kustom Auto Body in Portage, paid a $12,000 bribe to the mayor to get a spot on the city’s towing list. Prosecutors say to get that spot, Waffco Towing was taken off the list without just cause.
Kevin Farthing, owner of Waffco Towing in Lake Station, said he had towed for Portage from 1998 to when the city ended the contract in July 2016.
Farthing said his company had worked out of two rented yards in Portage, even though his main Lake Station yard was only minutes from the county line. Farthing said when he began towing for the Porter County Sheriff’s Department he rented a new yard in Portage in 2015.
After Snyder first took office in 2012, Farthing said he met with the mayor and was told he didn’t care if Waffco had a yard in Portage.
On July 20, 2016, Farthing said he received a letter from Joe Calhoun, the city’s director of administration at the time, informing him the towing contract was going to end because Waffco didn’t have a yard in Portage.
Assistant U.S. Attorney Phillip Benson asked if prior to that letter had Calhoun, the mayor or Police Chief Troy Williams had gone to him with any concerns or problems with Waffco’s operations.
“No,” Farthing said.
The defense sought to show that Waffco did not meet all the city’s requirements.
Defense attorney Neil Brackett asked if the company’s yard in Portage had a locked, secured gate around the facility.
Farthing said it did not.
Brackett also pointed out that the towing policies said the agreements were at the discretion of the police chief.
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, pleaded guilty to a charge that he paid bribes to Snyder to get a spot on the tow list.
When Jurgensen first approached Snyder in 2014 about the towing, the mayor told him the city had three firms on the list and he didn’t want to add a fourth. Those three firms were Waffco, Precision, and Ambassador, which was then partnered with Cortina.
In 2016, when Jurgensen approached Cortina about partnering after Ambassador had been removed from the city’s towing list.
“…He need to knock Waffco out to get us back on,” Cortina said, during a Jan. 26, 2016 recorded conversation.
On Jan 27, 2016, Cortina delivered checks totaling $12,000 to make the alleged bribe, according to court documents.
Defense attorneys have said the money was not a bribe as prosecutors allege but a legitimate loan to Snyder’s campaign.
Prosecutors played a Sept. 26, 2016 call between Cortina and Jon Snyder, the mayor’s brother, who was cooperating with the FBI and recording the conversation. Jon Snyder asked about the $12,000 being a loan.
Jon Snyder said he spoke with his brother, who said the money was a loan and he would pay it back to Cortina. Jon Snyder said Cortina didn’t tell him anything about it being a loan.
“I don’t know anything about that,” Cortina said.
“Yeah, it’s probably good, right,” Jon Snyder said.
“Yeah, That would be a surprise to me. That would be a surprise to me,” Cortina said. “You hear me? Yeah.”
“You’re not expecting that, right?” Jon Snyder asked.
“No, I’m not expecting that,” Cortina said.
Defense attorney Jackie Bennett Jr. asked Donald Cooley, a retired FBI agent who worked on a part of the Snyder case, if in reviewing the recordings, if he ever heard Snyder say getting on the tow list required a bribe.
“No,” Cooley said.
Benson asked if in Cooley’s experience investigating public corruption if it was common or uncommon for a public official to ask for a bribe.
“It is uncommon to explicitly demand a bribe,” Cooley said.
UPDATE: Secret tapes will show pay-for-tow scheme included work on personal vehicles, prosecutors say
NWI Times
February 04, 2019
https://www.nwitimes.com/news/local/crime-and-courts/update-secret-tapes-will-show-pay-for-tow-scheme-included/article_b4ad8c37-9b93-5725-b79c-51d46b93ebb4.html
HAMMOND — Prosecutors said Monday if you want to tow cars in Portage, you have to take care of officials.
Assistant U.S. Attorney Philip Benson said it is the theory of the government's case in the bribery charge against Portage Mayor James Snyder.
"If you are going to tow in Portage, you better take care of who makes the decisions," Benson told the court, out of the jury's ear shot as the two sides wrangled over what secretly-recorded audio tapes will be next admitted in court.
Benson said audio tapes will show that John Cortina also did work on Portage officials' personal vehicles.
The debate followed a morning of cross-examination of an FBI agent where one of Snyder's defense attorneys suggested Snyder was "set up" by the FBI in the alleged pay-for-tow scheme in the Region.
Jayna Cacioppo cross-examined FBI special agent Nathan Holbrook Monday morning as the 11th day of Snyder's public corruption trial in federal court began.
Holbrook was Scott Jurgensen's handler as Jurgensen, owner of Samson Towing, worked undercover for the FBI to expose pay-for-tow incidents. Jurgensen, who testified last week, worked for the FBI since 2012 as a confidential informant.
"Is it typical (of the FBI) to set up an elected official with what they think is a donation?" Cacioppo asked Holbrook early in the cross-examination.
"No," Holbrook replied, explaining the FBI investigates to determine whether an official would be willing to accept a bribe.
"We are not trying to set anybody up or push any issues," Holbrook said.
Snyder is charged with accepting a $12,000 bribe from former co-defendant Cortina to get on the city's tow list. Jurgensen partnered with Cortina in the effort and wore a wire, secretly recording dozens of conversations. Snyder is also charged with a second count of bribery and one count of tax obstruction.
Cortina, who may or may not testify during Snyder's trial, pleaded guilty last month to offering Snyder the bribe.
Snyder has said the $12,000 at issue included a $2,000 donation to his political campaign, and a $10,000 loan from Cortina.
Following the cross-examination of Holbrook, another FBI handler, retired agent Donald Cooley, who worked with both Jurgensen and Snyder's brother Jon Snyder during the investigation, took the stand.
His testimony, however, was delayed as defense and government attorneys attempted to come to an agreement on which undercover tapes, recorded between September 2016 and November 2016, would be admitted and played for the jury when court resumes Wednesday.
At issue were tapes in which conversations included how Snyder had planned to pay his attorneys. While not charged in the incident, Snyder attempted in September 2016, to divert $93,000 from the city's Utility Services Board to pay attorney fees.
U.S. District Court Judge Joseph Van Bokkelen ruled introducing any of that evidence was out, but agreed with the government on the admission of other audio tapes.
Portage mayor's defense tries to block playing of undercover recordings
Chicago Tribune
February 04, 2019
https://www.chicagotribune.com/suburbs/post-tribune/news/ct-ptb-snyder-trial-day-eleven-st-0205-story.html
Defense attorneys for Portage Mayor James Snyder attempted to block a jury from hearing undercover recordings that prosecutors say further elaborate on the scheme to solicit bribes.
Federal prosecutors said a final round of undercover recordings, which include conversations with Snyder after the FBI conducted search warrants in Northwest Indiana related to towing, lay out the scheme to solicit bribes and favors to get city business. Defense attorneys called some of the recordings “prejudicial” and that playing only portions wouldn’t give the jury a full understanding of events.
Assistant U.S. Attorney Philip Benson said some conversations show that people went to John Cortina, of Kustom Auto Body, to get work done on their cars; how Cortina gave fireworks to the mayor; and other favors.
“It’s really necessary to show this is exactly how towing works in Portage,” Benson said.
Defense attorney Jackie Bennett Jr. said one conversation relates to a police officer getting tires from Kustom Auto Body, owned by Snyder’s co-defendant John Cortina who pleaded guilty to paying bribes.
“There’s no suggestion the mayor had anything to do with it,” Bennett said.
Judge Joseph Van Bokkelen said he would let prosecutors play the tapes.
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, 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.
Another series of recordings were made during a meeting between Snyder, Jon Snyder and Cortina the same day that the FBI conducted searches at Kustom Auto Body. That same day, the FBI also searched now-former Lake County Sheriff John Buncich’s office, home, and the yard and residence of a Lake Station tow operator.
Defense attorney Vivek Hadley said they would want more of the conversation introduced than what the government planned to play. Hadley said the conversation includes several times where Snyder explains to Cortina why he should get an attorney after the raid.
Benson said during one of the recordings Snyder tells Cortina to get a lawyer because of how he talks. Benson said the intent of why Snyder would say that to Cortina is clear.
Van Bokkelen said he would not allow the whole conversation to be introduced.
“I don’t think the law’s with you,” Van Bokkelen said.
Starting Friday, federal prosecutors played a series of undercover recordings that document the alleged $12,000 bribe and how Cortina and Jurgensen got on Portage’s tow list.
Defense attorneys have said $10,000 of that was a loan to Snyder’s campaign.
Defense attorney Jayna Cacioppo asked what the difference is between a lawful political contribution and a non-lawful contribution.
“Some political contributions are bribes,” said FBI agent Nathan Holbrook.
Holbrook said the distinction is made if a quid pro quo is attached to the contribution.
Cacioppo asked if it’s typical for the FBI to set up an individual with what that person thinks is a lawful political contribution.
“We’re not trying to set up anyone,” Holbrook said.
The defense pointed out that the alleged bribe was paid in January 2016, but Jurgensen and Cortina didn’t get on the tow list until August.
Benson asked Holbrook, in his experience working other public corruption cases, if it was unusual for such a passage of time.
“It’s not unusual,” Holbrook said.
As the trial entered its 11th day, prosecutors have already presented evidence on two other charges.
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. Prosecutors say the deal netted Snyder a $13,000 kickback.
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.
Snyder is also charged with obstructing or impeding the IRS, according to court documents.
Snyder defense attorney suggests FBI 'set up' Portage mayor in pay-for-tow charge
NWI Times
February 04, 2019
HAMMOND — One of Portage Mayor James Snyder's defense attorneys suggested Snyder was "set up" by the FBI in the alleged pay-for-tow scheme in the Region.
Jayna Cacioppo cross-examined FBI special agent Nathan Holbrook Monday morning as the 11th day of Snyder's public corruption trial in federal court began.
Holbrook was Scott Jurgensen's handler as Jurgensen, owner of Sampson Towing, worked undercover for the FBI to expose pay-for-tow incidents. Jurgensen, who testified last week, worked for the FBI since 2012 as a confidential informant.
"Is it typical (of the FBI) to set up an elected official with what they think is a donation?" Cacioppo asked Holbrook early in the cross-examination.
"No," Holbrook replied, later explaining the FBI investigates to determine whether an official would be willing to accept a bribe.
"We are not trying to set anybody up or push any issues," Holbrook said.
Snyder is charged with accepting a $12,000 bribe from former co-defendant John Cortina to get on the city's tow list. Jurgensen partnered with Cortina in the effort and wore a wire, secretly recording dozens of conversations.
Cortina, who may or may not testify during Snyder's trial, pleaded guilty last month to offering Snyder the bribe.
Snyder has said the $12,000 at issue included a $2,000 donation to his political campaign, and a $10,000 loan from Cortina.
Through Monday morning's cross-examination of Holbrook, Cacioppo attempted to discredit Cortina, the FBI's investigation and Jurgensen's motivations in working for the government.
Cacioppo also asked Holbrook if he had any evidence to prove claims Cortina made in the undercover recordings that he had paid for Snyder's vacation, lent large sums of money to the mayor, paid for meals or taken him to sporting events.
Holbrook said he had no evidence, but added he did not work on the financial aspects of Snyder's investigation.
In her questioning of Holbrook, Cacioppo also attempted to compare Snyder's alleged offense to that of former Lake County Sheriff John Buncich, who was convicted of taking bribes, and the role of Porter County Sheriff Dave Reynolds in setting up an initial meeting between Jurgensen and Snyder.
Assistant U.S. Attorney Philip Benson objected repeatedly during these questions, and several sidebars among the two attorneys and U.S. District Court Judge Joseph Van Bokkelen took place. Van Bokkelen ruled against Cacioppo over these objections.
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