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.
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