Convicted Portage mayor’s campaign fund down to $233: report
Chicago Tribune
January 31, 2020
https://www.chicagotribune.com/suburbs/post-tribune/ct-ptb-snyder-finances-portage-st-0202-20200131-rgcd37xyo5fdtgfv4nkmfoecke-story.html
The campaign fund of disgraced former Portage Mayor James Snyder owes more than it has, as its once robust balance dwindled, according to an annual campaign finance report filed with Porter County Elections and Registration last month.
Much of the activity in and out of the fund ceased around mid-February, when Snyder was convicted of federal corruption charges and was removed out of office.
In all, including its balance at the start of 2019, the fund had contributions and donations totaling $19,129.77.
Expenditures, which, according to the form, included attorney fees and related expenses, including meals and hotels, for Snyder’s federal trial, as well as a handful of campaign-related meals and other expenses before Snyder decided not to file for a third term as mayor, totaled $18,896.36.
The balance at the end of the reporting period, which covered all of last year, was $233.41. The campaign owes $8,949.29. Of that, $6,000 was owed to John Cortina, who pleaded guilty to a federal bribery charge involving Snyder and was recently sentenced to time served, a $12,000 fine and probation. The remainder of the debt was owed to Snyder.
Snyder raised more than $69,000 in 2018, according to his annual finance report for that year, an off-year for municipal elections when Snyder had a federal trial looming on the horizon.
Snyder’s 2017 report reflected about $102,000 in contributions and expenditures, including $41,000 in legal fees for two attorneys related to his November 2016 federal indictment.
Snyder declined to comment, but Kenard Taylor, treasure of his campaign, said any contributions and expenses from early last year were from when he was still debating whether to seek another term for mayor.
“When he decided not to run in the primary is when he decided to suspend any payments to campaign staff, including me,” Taylor said.
Snyder was convicted on Feb. 14 of bribery and obstructing the IRS after a lengthy trial in U.S. District Court in Hammond. He was acquitted on a third count, also bribery. He is scheduled be re-tried in March on the bribery count for which he was convicted.
“Until the case is settled, (the campaign fund) will maintain itself as it is,” Taylor said.
In the event that Snyder is acquitted during his re-trial and successfully appeals the IRS conviction, Taylor said, his legal fees will become the responsibility of the city of Portage. Part of those funds would be returned to the campaign for what he paid in legal fees and expenses.
The debt to Cortina, listed as a loan, dates back to four years ago. The plan for repaying that debt, Taylor said, included Cortina remaining a member of Snyder’s roundtable without paying the dues. Members paid $2,000 annually for private group meetings over meals with the mayor.
If Snyder is cleared of all charges, Taylor said, money he is reimbursed for his legal fees also would be used to pay off that debt.
“We’re not taking an active role to pay that off until we see what the disposition of the case will be,” Taylor said.
Snyder’s annual report reflects a $1,250 contribution from Combined Transport Systems in Portage, received Feb. 20 and signed off on by Taylor.
Expenditures include $5,000 for legal fees for Indianapolis attorney Jackie Bennett, who helped represent Snyder during his trial last year, paid out March 5. They also include more than $4,400 in hotel expenses for legal meetings; $2,300 for additional legal work; and hundreds of dollars for restaurant bills for legal meetings, including a tab of almost $500 at Gino’s Steakhouse in Merrillville, paid in January 2019.
If Snyder is unsuccessful in his attempt to be cleared in federal court and is not reimbursed for his legal fees, “we’re going to have to figure something else out,” Taylor said.
Judge grants new trial for one count against former Portage Mayor
Chicago Tribune
January 28, 2020
https://www.chicagotribune.com/suburbs/post-tribune/ct-ptb-snyder-new-trial-dates-st-0129-20200128-dg6totg3efculj3k4csjrgkrvi-story.html
Former Portage Mayor James Snyder, who was convicted of bribery and obstructing the IRS almost a year ago, will return in March to federal court in Hammond to retry one of the counts against him, according to his lawyers.
Snyder was convicted of taking a $13,000 bribe in exchange for contracts to sell five garbage trucks to the city and using a shell company to hide income assets from the IRS while owning back personal and business taxes. The jury acquitted Snyder of a third count that alleged he took a $12,000 bribe to get a company on Portage’s tow list.
Snyder, 41, has agreed to forfeit $13,000 to the federal government, documents show.
In February 2019, Snyder filed a motion for a new trial and acquittal on the two counts because of “alleged prosecutorial misconduct” related to the soliciting bribes count and “the Government failed to present sufficient evidence from which a rational jury could find the defendant guilty” regarding corruptly interfering with the administration of the Internal Revenue Service laws, according to the order.
In November, U.S. District Court Judge Joseph Van Bokkelen denied Snyder’s motion for acquittal to both charges, according to the court order. Van Bokkelen denied a motion for a new trial for the corruptly interfering with the IRS charge, but he granted the motion for a new trial on soliciting bribes charge, according to the order.
In December, after Chief Judge Theresa L. Springmann was assigned to the case, Snyder filed motions to dismiss the two counts and a motion to “strike, or in the alternative, an extension of time to seek reconsideration,” on Van Bokkelen’s ruling on the soliciting bribes count, according to the court order.
Springmann issued an order Jan. 21 denying the motions, among other motions the still required rulings in the case.
Following a Friday telephone conference, a jury trial has been set to start March 23 and could last about two weeks, according to court records. Jayna Cacioppo, one of Snyder’s attorneys, confirmed Tuesday the trial will focus on the soliciting bribes count and that the obstruction charge “stands” because he was convicted by the jury.
The U.S. Attorney’s Office for the Northern District of Illinois, which oversaw the prosecution, said that Snyder could face up to 10 years in prison on the bribery charge, and up to three years in prison on the obstruction charge.
The U.S. Attorney’s Office for the Northern District of Indiana was recused from the case, absent two prosecutors, as U.S. Attorney Thomas Kirsch II previously represented Snyder.
Snyder, a Republican, was indicted in November 2016 and charged with allegedly violating a federal bribery statute and obstruction or impeding the IRS.
Prosecutors said that when Snyder ran for mayor in 2011, he told residents he planned to automate Portage’s trash pickup, but wound up steering contracts for $712,882.50 and another for $425,355 to Great Lakes Peterbuilt, which was then owned by Robert and Stephen Buha.
Defense attorneys say that Snyder used his experience in offering health insurance to city employees through the Affordable Care Act and suggesting technology upgrades to Great Lakes Peterbilt.
A second count said that Snyder, while owing tens of thousands of dollars to the IRS, funneled income through a shell company, and failed to disclose any of those assets to the IRS.
Federal prosecutors said Snyder allegedly solicited money from co-defendant John Cortina, of Kustom Auto Body in Portage, and “Individual A” and gave them a towing contract for Portage.
Cortina, 80, in January 2019 pleaded guilty to a charge that he paid bribes to Snyder to get a spot on the tow list. Cortina did not testify during the trial, invoking his Fifth Amendment right to not incriminate himself, according to court documents.
Cortina was sentenced Jan. 22 to time served and a $12,000 fine.
Snyder has maintained his innocence during the more than three years since he was indicted.
2 union officials plead guilty to charges stemming from 2016 ‘brutal’ attack against non-union workers in Dyer
Chicago Tribune
January 26, 2020
https://www.chicagotribune.com/suburbs/post-tribune/ct-ptb-veach-williamson-guilty-plea-st-0125-20200124-ddsfwuqi5nh2tf7jeybedbomhq-story.html
Two union officials pleaded guilty Friday for their role in “a brutal” assault of a group of non-union ironworkers in Dyer in 2016, according to a release.
Thomas R. Williamson, 68, of Schererville, and Jeffery R. Veach, 56, of Portage, were charged in an indictment unsealed in August 2018 with one count of Hobbs Act extortion conspiracy and two counts of attempted Hobbs Act extortion. At the time, they were released on $20,000 unsecured bonds.
On Friday, both pleaded guilty to one count of extortion conspiracy, according to a release from the U.S. Attorney’s Office for the Northern District of Indiana.
According to the plea agreements, Williamson and Veach admitted that on Jan. 7, 2016, they “conspired to use actual and threatened violence to obtain contracts for Local 395” from general contractor Lagestee-Mulder and a labor contract from D5 Iron Works, two Illinois-based companies, according to the release.
Before Jan. 7, 2016, Veach and Williamson learned that D5 was doing structural ironworks for Dyer Baptist Church, “which was located in Local 395′s ‘territory,’' and the company was not signed up with Local 395, according to the release.
On Jan. 6, 2016, Williamson visited the church to talk to the D5 foreman and convince him to “sign up” with Local 395 or stop the work, according to the release.
After being told to leave the site, Williamson went across the street to the church and confronted a youth pastor for the church. Williamson told him that it was “unethical” to use non-union labor and offered to get “his guys,” according to the release.
The next morning, Williamson returned with Veach, documents said. The D5 foreman again asked the men to leave, according to the release.
Williamson then grabbed the foreman’s jacket and called him names, documents said. As they left the site, Williamson told Veach that the two of them were going to have to go “old school,” according to the release.
The two men later returned to the church with 10 Local 395 members and “immediately attacked the D5 workers and beat them with fists and loose pieces of hardwood, kicking them while they were on the ground,” according to the release.
The attack left one D5 worker with a broken jaw that required several surgeries and extended hospital stays, according to the release.
Veach is the current president of Local 395 of the International Association of Bridge, Structural, Ornamental, and Reinforcing Iron Workers based in Portage. Before his retirement, Williamson was a business agent for the union, according to the press release.
By entering guilty pleas, following federal law, Veach will forfeit his position as president. Veach and Williamson won’t be able to hold a union position for at least 13 years following any prison sentences they may serve, according to the release.
It was not immediately clear how many years in prison they will face.
Portage Mayor Sue Lynch said in a statement Friday that Veach has been removed from the park board, which removes him from the plan commission, and that City Council President Scott Williams removed Veach as his representative to the board of zoning appeals.
“The facts surrounding Jeff Veach’s plea agreement are troubling, and he will have to fact the consequences of his actions now that he has had his day in court,” Lynch said in the statement.
New trial set for former Portage mayor on bribery charge
NWI Times
January 24, 2020
https://www.nwitimes.com/news/new-trial-set-for-former-portage-mayor-on-bribery-charge/article_022e4952-e766-5454-943c-cf2f30e56b25.html
HAMMOND — A new trial has been set for former Portage Mayor James Snyder following a lengthy legal battle that has resulted in both an acquittal and conviction on multiple corruption charges.
U.S. District Judge Theresa Springmann on Tuesday refused to dismiss two felony counts against Snyder, ruling that he may face a new trial on a bribery charge and will remain guilty of tax evasion.
Attorneys and Springman agreed Friday to set the date for Snyder’s new trial on the bribery charge for March 23, and expect it to last 10 to 12 days, according to court records.
Snyder was first charged in November 2016 by federal prosecutors with two bribery counts and one tax evasion count.
A jury heard the case between Jan. 14, 2019, and Feb. 14, 2019. Jurors ended up acquitting Snyder of one bribery count, which alleged that he corruptly arranged for the city of Portage to award public vendor contracts for towing services. However, Snyder was found guilty of a bribery count accusing him of corruptly arranging for Portage to award garbage truck purchases.
He was also convicted of obstructing the Internal Revenue Service’s collection of income taxes by falsifying documents.
On Nov. 27 U.S. District Court Judge Joseph Van Bokkelen ruled that Snyder deserved a new trial on the garbage truck bribery charge, and upheld his conviction on the tax evasion charge.
Springmann took over the case in December and declined to upset Van Bokkelen's ruling, citing federal case law that encourages a new judge to abide by the decision of the first judge.
Prior to his ruling, Snyder's attorneys had pressed Van Bokkelen to overturn the convictions and find him not guilty or grant him a new trial. The defense argued there was insufficient evidence to support the guilty verdicts and that misconduct by prosecutors denied Snyder a fair trial.
Van Bokkelen said "gamesmanship" by the prosecution prevented the jury from hearing testimony from the former owners of the garbage truck dealership.
Although Van Bokkelen upheld the tax count, Snyder’s lawyers argued to Springmann the government failed to prove Snyder committed any violations still punishable under the statute of limitations, which sets the deadline for the government to file charges.
Springmann let stand Van Bokkelen's decision last year that Snyder's misrepresentations to the IRS were timely charged and there is enough evidence for a jury to find Snyder guilty of corruptly obstructing tax collections.
Union president resigns from city posts ahead of federal extortion plea
NWI Times
January 24, 2020
https://www.nwitimes.com/news/local/crime-and-courts/union-president-resigns-from-city-posts-ahead-of-federal-extortion/article_1d003068-d5dc-5dce-b21d-1e463877c9d7.html
HAMMOND — Iron Workers Local 395 President Jeff Veach resigned early Friday from the Portage Plan Commission and Park Board just hours before pleading guilty in federal court to a felony extortion charge, according to one of his attorneys.
Veach was largely quiet during Friday's court hearing, clasping his hands before him and staring down at the table as he pleaded guilty to committing a Hobbs Act extortion conspiracy in return for two counts of attempted Hobbs Act extortion to be dismissed.
Also pleading guilty later in the day to the same incident and charge was Thomas Williamson Sr., 68, of Schererville, who has since retired as a business agent for Local 395.
Under federal law, Veach will forfeit his position as president and both men will be barred from holding any union position for at least 13 years following the end of any prison sentences they receive, according to the Department of Justice.
Under the plea, Veach faces a prison term that could range between 24 months and 54 months, though a sentencing date was not set during Friday's plea hearing. As part of his plea, Veach has agreed to pay full restitution to victims.
Absent a deal, the maximum penalty for the conspiracy count would have been 20 years in prison, 3 years supervised release, and a $250,000 fine.
Veach, 56, of Portage, was indicted along with Williamson on accusations of using threats and violence against non-union laborers Jan. 7, 2016, to extort a favorable labor contract from the owners of a construction company and a steel-working company, according to court documents.
Veach had been appointed to a four-year term on the Portage Park Board in 2018 by former Republican Mayor James Snyder, who was found guilty last year in federal court on two counts of corruption and thus removed from office, according to attorney Ken Elwood, who is representing Veach in a civil matter stemming from the same case.
The park board appointed Veach that same year to the city's plan commission, Elwood said.
While Veach is not required by law to resign the city posts until he is sentenced and his felony conviction accepted by the judge, Elwood said he opted on his own to step down ahead of time.
Democratic Portage Mayor Sue Lynch said she has removed Veach from the city's park board, which in turn removes him from the plan commission.
City Council President Scott Williams has also removed Veach as the group's representative on the city's board of zoning appeals, Lynch said.
"The facts surrounding Jeff Veach's plea agreement are troubling, and he will have to face the consequences of his actions now that he has had his day in court," she said.
Sentencing is expected to take place in three to four months.
The allegations stem from a brawl that broke out Jan. 7, 2016, at the work site for Plumb Creek Christian Academy, located in the southwest corner of 213th Street and Calumet Avenue in Dyer.
D5 Iron Works claims in a lawsuit filed in U.S. District Court Williamson approached its workers Jan. 6, 2016, at the construction site to solicit a labor agreement that would call for Iron Workers Local 395 to work the job.
He was told to leave.
Williamson returned the next day and began arguing with workers about the labor agreement. He and other men allegedly returned later that day and attacked the laborers. Some of the men from Iron Workers Local 395 wore steel-toed boots during the attack and yelled, “This is 395 territory," the lawsuit states.
At least one worker at the site suffered a broken jaw, according to the lawsuit.
No one was immediately available Friday at Iron Workers Local 395 in Portage for comment.
The Center on National Labor Policy, which bills its goal as protecting individual rights from excesses of union and government power, issued a statement saying, "The Iron Workers made a mockery of worker free choice. These employees were beaten without any opportunity to register their desires. The criminal pleas send a powerful message to union officials nationwide and to their supporters who think America’s workers have one choice — union exclusive representation."
Questions have been raised about Veach's role in directing Iron Workers donations to Lynch, who took office earlier this month.
But Lynch said Friday she knew nothing about that connection.
"I didn't ask Jeff Veach for that money," she said.
Elwood confirmed Veach is not the union official who is approached for political donations.
"He doesn't make those decisions," Elwood said.
At Friday's hearing, Magistrate Judge John E. Martin had Veach's attorney, Kevin Milner, read into the record Veach's involvement in the Jan. 7, 2016, brawl. The D5 workers were beaten with fists and wood and kicked. One D5 worker suffered serious injuries, including a broken jaw that required numerous surgeries. Veach initiated the confrontation, and was not acting in self-defense, Milner added.
Assistant U.S. Attorney Tom Godfrey said prosecutors had incriminating, credible evidence against Veach — including eyewitnesses, photos from the scene, and statements from an "immunized witness" that could have been presented if they wound up going to trial.
"So it's all true?" Martin said, directing his question at Veach.
"Yes, your honor.”
Democrat Sue Lynch unseats incumbent Mayor John Cannon in Portage nail-biter
NWI Times
November 05, 2019
https://www.nwitimes.com/news/local/govt-and-politics/democrat-sue-lynch-unseats-incumbent-mayor-john-cannon-in-portage/article_cde2065a-2186-54fb-b6f5-c04aebaf2603.html
PORTAGE — Democrat Sue Lynch pulled ahead late in a tight race Tuesday night to unseat Republican Mayor John Cannon.
It will be a return to the office for Lynch, who had served as mayor for a couple of weeks following former Republican Mayor James Snyder's federal conviction in February on bribery and tax obstruction charges.
Lynch had taken over the city's top job by virtue of her position as city council president.
"We both worked very hard to win our race," Lynch said.
She said her edge came in remaining focused and having a strong team.
Her victory was part of a Democratic sweep in the city, including all seven seats on the city council and the clerk-treasurer's office.
"It'a great day for Portage Democrats," she said.
"I am running for mayor because it is time to bring fiscal responsibility, honesty, integrity and transparency back to our city," Lynch had said. "It is time to put politics aside and work for all citizens. Now more than ever we need a person with leadership skills and experience working with our business community, our schools, our employees and our citizens. After eight long years of negative headlines it is time to move forward and create a positive image for our city."
Lynch was replaced as mayor at the start of March by Cannon, who was voted in by Republican precinct officials to finish Snyder's term.
Lynch said her top goals include getting the city's finances in order in the wake of "living 'paycheck to paycheck,' spending money that was not budgeted for, and running our city into debt."
She also intends to focus on downtown development by updating the city's 11-year-old master plan to create a "new, shared vision."
Infrastructure improvements are also a priority, including "the west side of our city, a plan we develop and stick to, without going over budget," she said.
Lynch is a retired office manager from Calumet Park Cemetery and had served as executive director of the nonprofit environmental organization People Against Hazardous Landfill Sites.
She has served on the Portage City Council since 2008 and had held other local elected offices.
Lynch also is a member of the Portage Historical Society, several veterans groups, the Indiana Sheriff's Association and the Police Memorial Fund that assists widows of fallen officers.
She is chairwoman of the Mayor's Senior Advisory Committee and the Porter County Recycling and Waste Reduction Board. Lynch is an active member of St. Peter Lutheran Church.
Lych said what sets her apart from her opponent is her 12 years on the city council.
"I am able to converse and communicate well with our business community, our county officials and our state legislators," she said. "I know how to manage people and budgets."
"I am a consensus builder and believe there is no 'I' in team," Lynch said. "There will be no room for politics in my administration."
Two union members indicted in attack on non-union laborers at Dyer construction site
NWI Times
August 16, 2018
https://www.nwitimes.com/news/local/crime-and-courts/two-union-members-indicted-in-attack-on-non-union-laborers/article_f24bb08a-47bb-5a6a-b204-ec888939920c.html
MUNSTER — Two union members were arrested Thursday morning on federal extortion charges in the alleged attack on non-union laborers two years ago at a Dyer construction site.
Thomas R. Williamson, 67, of Schererville, and Jeffrey R. Veach, 55, of Portage, were indicted Wednesday for committing a Hobbs Act extortion conspiracy and two counts of attempted Hobbs Act extortion. The charges were unsealed Thursday.
The men allegedly used threats and violence against non-union laborers Jan. 7, 2016, to extort a favorable labor contract from the owners of a construction company and a steel-working company, the indictment states.
The men appeared with their attorneys, Paul Stracci and Kevin Milner, at initial hearings Thursday morning, court records state.
The men entered not guilty pleas and were released on $20,000 unsecured appearance bonds, records state. The men are prohibited from traveling outside the continental United States under the terms of their bond agreements.
The allegations stem from a brawl that broke out Jan. 7, 2016, at the work site for Plumb Creek Christian Academy, located in the southwest corner of 213th Street and Calumet Avenue in Dyer.
D5 Iron Works claims in a lawsuit filed that year in U.S. District Court Williamson approached its workers Jan. 6, 2016, at the construction site to solicit a labor agreement that would call for Iron Workers Local 395 to work the job.
He was told to leave.
Williamson returned the next day and began arguing with workers about the labor agreement. He and other men allegedly returned later that day and attacked the laborers. Some of the men from Iron Workers Local 395 wore steel-toed boots during the attack and yelled, “This is 395 territory," the lawsuit states.
At least one worker at the site suffered a broken jaw, according to the lawsuit.
Dyer Police Chief David Hein told The Times in June 2016 he referred his investigation of the brawl to the U.S. Attorney's Office. He said police worked with the U.S. Department of Labor on the investigation.
Veach and Williamson are named defendants in the lawsuit. The parties failed to reach a settlement at a March 22 conference meeting, court records state. A trial is scheduled for Nov. 26.
Robert T. Hanlon is representing D5 Iron Works and its employees in the lawsuit.
“These guys acted like a bunch of animals," he said about the union members allegedly involved in the attack. "They get what they deserve.”
He said the union members were "cowards," who exercised their Fifth Amendment rights during depositions in the civil case.
“They should have manned up and owned up to what they did, but they were cowards and couldn't even do that.”
He said the settlement conference in March was a "big waste of time," but a second court-ordered conference is scheduled for October. He said he expected the case would head to trial.
Jeffrey Veach was listed Thursday on the Iron Workers Local 395 as a business agent and president for the union.
A person who answered the phone Thursday at Iron Workers Local 395 said the union did not comment on "active investigations."
Union Officials Plead Guilty to Violent Extortion
Department of Justice
January 24, 2020
https://www.justice.gov/opa/pr/union-officials-plead-guilty-violent-extortion
FOR IMMEDIATE RELEASE
Two officials from the local Iron Workers union pleaded guilty today for their role in a brutal assault on a group of non-union ironworkers in Dyer, Indiana. The attack, which left multiple workers with serious injuries, was part of an effort to obtain a contract for the union to assist with the construction of the Plum Creek Christian Academy, a school affiliated with the Dyer Baptist Church.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Thomas L. Kirsch II of the Northern District of Indiana, Special Agent in Charge Irene Lindow, Chicago Regional Office, U.S. Department of Labor, Office of Inspector General (DOL-OIG) and Special Agent in Charge Grant Mendenhall of the FBI’s Indianapolis Field Office made the announcement.
Thomas Williamson Sr., 68, and Jeffrey Veach, 56, pleaded guilty to one count of extortion conspiracy before U.S. Magistrate Judge John Martin of the Northern District of Indiana.
Veach is the current president of Local 395 of the International Association of Bridge, Structural, Ornamental, and Reinforcing Iron Workers (Local 395), based in Portage, Indiana. Prior to his recent retirement, Williamson was a business agent for Local 395. Under federal law, following their guilty pleas, Veach will forfeit his position as president and both men will be barred from holding any union position for at least 13 years following the end of any prison sentences they may serve.
Pursuant to their plea agreements, Williamson and Veach admitted that on Jan. 7, 2016, they conspired to use actual and threatened violence to obtain contracts for Local 395 – a business contract from general contractor Lagestee-Mulder of Illinois, and/or a labor contract from D5 Iron Works (D5), also of Illinois. Prior to Jan. 7, 2016, the two defendants had learned that D5 was performing structural ironwork for the Dyer Baptist Church, which was located in Local 395’s “territory.” They also knew that D5 was not signed up to a labor contract with Local 395.
On the afternoon of Jan. 6, 2016, Williamson visited the church jobsite to talk to the foreman of the D5 crew and convince him to “sign up” with Local 395, or to stop work on the site. After being told to leave the site, Williamson went across the street to the church. Once inside, he confronted a youth pastor for the church and told him that it was “unethical” to use non-union labor for the construction site. Williamson offered to get “his guys” on the jobsite instead. The next morning, Williamson returned to the jobsite, this time accompanied by co-defendant Veach. The D5 foreman again refused to join the union and asked the two defendants to leave the site. Williamson became angry and grabbed the foreman’s jacket, calling him, among other things, a “scab bastard.” As they left the site, Williamson remarked to Veach that the two of them were going to have to “take things back to old school.”
The two defendants then gathered up about 10 rank-and-file members of Local 395 to return to the jobsite that afternoon. Once at the jobsite, the union members immediately attacked the D5 workers and beat them with fists and loose pieces of hardwood, kicking them while they were on the ground. As a result of the attack, one D5 worker sustained a broken jaw that required several surgeries and extended hospitalization.
The DOL-OIG, the FBI and the Dyer Police Department investigated the case. Trial Attorneys Alexander Gottfried and Robert Tully of the Criminal Division’s Organized Crime and Gang Section are prosecuting the case. Through its Labor Unit, the Organized Crime and Gang Section supports federal criminal prosecution in cases involving labor-management relations, internal union affairs, and the operation of employee pension and health care plans. Assistant Chief for Labor-Management Racketeering Gerald Toner provided invaluable assistance in the prosecution of this case.
Union president attacks non-union workers for encroaching on Indiana job site, feds say
Kansas City
January 24, 2020
https://www.kansascity.com/latest-news/article239620048.html
The president of an Indiana Iron Workers union and a colleague pleaded guilty Friday to assaulting a group of non-union workers at a construction site for a Christian school, according to the U.S. Department of Justice.
Prior to his guilty plea, Iron Workers Local 395 President Jeff Veach also resigned from his roles on the Portage, Indiana Plan Commission and Park Board, The Times of Northwest Indiana reported.
The attack by Veach, 56, and Thomas Williamson Sr., 68, left multiple workers with serious injuries in the union workers’ attempt to obtain a contract to assist on the construction of the school, the Department of Justice said.
“Both men will be barred from holding any union position for at least 13 years” following their prison sentences, which have not been announced, the court said.
The federal court said that in January 2016, Williamson and Veach tried to obtain contracts from D5 Iron Works for work on Plum Creek Christian Academy, a school affiliated with Dyer Baptist Church. The union workers claimed the church was in Local 395’s “territory,” according to the plea agreement.
On Jan. 6, 2016, Williamson visited the job site and met with the D5 foreman to convince him to join his union or stop working at the site, according to the Department of Justice. He also confronted the youth pastor of the church and told him it was “unethical” to use non-union labor for the job, the federal court said.
Williamson returned to the site the next day with Veach, and when the foreman again refused to join the union, Williamson grabbed the man’s jacket and called him a “scab bastard,” according to the court. They later returned with around 10 members of the union and immediately attacked the D5 workers with fists and loose hardwood, then kicked them while they were on the ground, the Department of Justice said.
The attack lasted for around an hour, Center on National Labor Policy attorney Michael Avakian told InsideSources. One of the non-union members had his jaw crushed and broken in three places, the attorney told InsideSources.
“Here’s the kicker for the employer,” Avakian told InsideSources in 2017. “Its cost of doing business has now increased dramatically because the medical worker comp insurance kicked in to take care of the medical expenses for the four guys.”
Veach and Williamson each pleaded guilty to one count of extortion conspiracy, according to the Department of Justice. Under the plea deal, they could face prison terms between 24 months and 54 months, according to the Times of Northwest Indiana.
Robert T. Hanlon, the attorney representing D5, told The Times of Northwest Indiana that the union members were “cowards” and “acted like a bunch of animals.”
Brett McMahon, the chairman of the Center on National Labor Policy, said in a statement to The Indiana Lawyer that the union members “made a mockery of worker free choice.”
“These employees were beaten without any opportunity to register their desires,” McMahon said. “The criminal pleas send a powerful message to union officials nationwide and to their supporters who think America’s workers have one choice — union exclusive representation.”
Snyder friend fined $12,000 in case that took down mayor
NWI Times
January 22, 2020
https://www.nwitimes.com/news/local/porter/portage/snyder-friend-fined-in-case-that-took-down-mayor/article_c7c0c82b-5714-5594-af6a-7e46e511f956.html
HAMMOND — A political supporter and co-defendant of former Portage Mayor James Snyder has gotten off with only a fine for bribery.
U.S. District Court Judge Joseph Van Bokkelen imposed a $12,000 fine Wednesday afternoon on 80-year-old John Cortina.
The judge, who gave Cortina credit for having already served one day in jail, chose not to impose an additional period of jail or probation, although federal sentencing guidelines would have justified that.
Cortina--07
Cortina, who has run the Kustom Auto Body in Portage for decades, pleaded guilty a year ago to paying what he claimed was a bribe of thousands of dollars in January 2016 to Snyder to win a towing contract with the city of Portage.
A federal grand jury indicted Cortina and Snyder in 2016 on a felony bribery count alleging Cortina made the payment to get on the city's list of towing vendors. Cortina and an FBI undercover informant supplied the money.
The case went to trial last year, and a jury acquitted Snyder of soliciting Cortina's alleged bribe.
Witness and lawyers for Snyder told jurors the $12,000 was a legitimate political contribution and Cortina always was eager to donate money and services to the city.
The same jury did find Snyder guilty of taking a $13,000 bribe from a Portage truck firm seeking city business. The jury also found Snyder guilty of evading federal taxes due by the former mayor's private business.
Van Bokkelen, who had presided over the case from the beginning, sounded relieved that Cortina's sentencing was the last act he would perform in it.
"I can't think of another case where more has gone wrong," Van Bokkelen said.
Snyder's trial was preceded by months of contentious arguments between Snyder's defense team and federal prosecutors on whether federal investigators violated Snyder's rights by tapping into email traffic between Snyder, his former defense attorney and others.
Snyder defense team then pursued an aggressive campaign to overturn the guilty verdicts on the remaining bribery and tax counts, claiming there wasn't enough evidence for the jury to convict and prosecutorial misconduct denied Snyder the right to a fair trial.
Van Bokkelen last November overturned the bribery verdict on the $13,000 payment and ordered a new trial for Snyder, citing irregularities by the federal prosecutors.
Van Bokkelen then bowed out of Snyder's case, which is now being overseen by U.S. District Court Judge Theresa Springmann.
Snyder attorneys have been seeking dismissal of that bribery charge and acquittal of tax evasion allegations against Snyder.
Springmann denied their request earlier this week. Federal prosecutors have asked for some time to reconsider whether to proceed further with the bribery count or dismiss it.
Man indicted along with former Portage mayor in bribery scheme sentenced to time served, $12,000 fine
Chicago Tribune·
January 22, 2020
https://www.chicagotribune.com/suburbs/post-tribune/ct-ptb-cortina-sentencing-st-0123-20200122-vwxjvo3aq5cctfhrhyueb62chy-story.html
John Cortina, who was indicated alongside former Portage Mayor James Snyder in a bribery scheme in 2016, was sentenced Wednesday to time served and a fine.
Judge Joseph Van Bokkelen sentenced Cortina, 80, to one-day time served, a $12,000 fine and an additional $100 special assessment fine in Hammond’s federal court.
Before the sentencing, Cortina’s attorney, Kevin Milner, and the prosecutors agreed to a form of probation and home detention.
Prosecutors had recommended probation and eight months of home detention. Milner argued that the length of house arrest should be less based on Cortina’s “age and lifestyle."
Milner also stated that Cortina’s business is located near his home, and argued that home detention should be adjusted so he can continue working. Prosecutors agreed that home detention could include Cortina’s business.
Ultimately, Van Bokkelen decided on a sentence that excluded home detention. During the sentencing, Cortina addressed the judge politely with “yes, sir” or “no, sir," but he otherwise did not address the judge.
Van Bokkelen said he was pleased the case was over for him and Cortina, and referenced other aspects of the case still “going on.”
“I couldn’t think of a case that has as much wrong with it as this one,” Van Bokkelen said.
Cortina, 80, in January 2019 pleaded guilty to a charge that he paid bribes to Snyder to get a spot on the city’s tow list. Cortina did not testify during the trial, invoking his Fifth Amendment right to not incriminate himself, according to court documents.
In February 2019, Snyder, 41, was convicted of taking a $13,000 bribe in exchange for contracts to sell five garbage trucks to the city, and using a shell company to hide income and assets from the IRS while owing back personal and business taxes. The jury acquitted Snyder, a Republican, of a third count that alleged he took a $12,000 bribe to get a company on Portage’s tow list.
Snyder was indicted in November 2016 and charged with allegedly violating a federal bribery statute and obstructing or impeding the IRS.
One of the counts against Snyder said while owing tens of thousands of dollars to the IRS, funneled income through a shell company, and failed to disclose any of those assets to the IRS.
Snyder was cleared of taking a bribe in an alleged pay-to-play towing scheme.
Federal prosecutors said the mayor allegedly solicited money from Cortina, of Kustom Auto Body in Portage, and “Individual A” and gave them a towing contract for Portage.
Snyder’s defense said during the trial that prosecutors presented no evidence that Snyder knowingly accepted any money that was purported to be a bribe. The defense said that Snyder considered the money a loan from Cortina, a friend and political supporter, to help cover his legal fees.
Former Lake County Sheriff John Buncich, a Democrat, was indicted the same day as Snyder in a similar towing scheme. Buncich was found guilty and began serving a 15-year 8-month sentence in January 2018.
New judge denies motions to dismiss criminal counts against former Portage Mayor James Snyder
Chicago Tribune·
January 22, 2020
https://www.chicagotribune.com/suburbs/post-tribune/ct-ptb-snyder-update-st-0123-20200122-tlowtym5m5evbbfz4pvrjup2ue-story.html
A new judge in the federal public corruption case against former Portage Mayor James Snyder, who was convicted of bribery and obstructing the IRS almost a year ago, denied motions to dismiss the two counts Tuesday.
In February 2019, Snyder filed a motion for a new trial to the two counts “due to alleged prosecutorial misconduct," according to a court order. Snyder also filed a motion for acquittal because “the Government failed to present sufficient evidence from which a rational jury could find the defendant guilty” regarding corruptly interfering with the administration of the Internal Revenue Service laws, according to the order.
In November, U.S. District Court Judge Joseph Van Bokkelen denied Snyder’s motion for acquittal to both charges, according to the court order.
In December, after Chief Judge Theresa L. Springmann was reassigned to the case, Snyder filed motions to dismiss the two counts and a motion to “strike, or in the alternative, an extension of time to seek reconsideration,” on Van Bokkelen’s ruling on the corruptly soliciting bribes count, according to the court order.
Springmann issued an order Tuesday denying the motions.
Even though Snyder argues that the soliciting bribes count should be dismissed “because of purported prosecutorial misconduct," Van Bokkelen “explicitly did not find prosecutorial misconduct,” Springmann wrote. Springmann also wrote that “under the law of the case doctrine” she won’t revisit Van Bokkelen’s findings.
Snyder also argues that the IRS charges should be dismissed because of the statute of limitations, according to the court order. But, Springmann wrote, after Snyder was convicted, Van Bokkelen “held that the government presented sufficient evidence to support this conviction.”
Additionally, Springmann denied Snyder’s motion for clarification regarding the immunity status the former owners of Great Lakes Peterbilt, Robert and Steve Buha were granted, according to the order.
Springmann denied Snyder’s motion to strike sentencing memorandum because Van Bokkelen ultimately vacated the sentencing hearing, which he had previously scheduled, according to the order.
“Based upon the procedural posture of this case and the vacated sentencing hearing," Springmann also denied motions for clarification and to strike sentencing memorandum “as moot,” according to the order.
Springmann also denied a motion for order to show cause, in which Snyder requested the court “hold a hearing where the prosecution can explain why they should not be lightly censured for violating their obligations to accurately represent case law and the factual record to the court,” because Van Bokkelen “was in a far better position” to make that determination.
Snyder, 41, declined to comment on the most recent court order Wednesday.
Snyder was convicted of taking a $13,000 bribe in exchange for contracts to sell five garbage trucks to the city and using a shell company to hide income assets from the IRS while owning back personal and business taxes. The jury acquitted Snyder of a third count that alleged he took a $12,000 bribe to get a company on Portage’s tow list.
Snyder has agreed to forfeit $13,000 to the federal government, documents said.
The U.S. Attorney’s Office for the Northern District of Illinois, which oversaw the prosecution, said that Snyder could face up to 10 years in prison on the bribery charge, and up to three years in prison on the obstruction charge.
The U.S. Attorney’s Office for the Northern District of Indiana was recused from the case, absent two prosecutors, as U.S. Attorney Thomas Kirsch II previously represented Snyder.
Snyder, a Republican, was indicted in November 2016 and charged with allegedly violating a federal bribery statute and obstruction or impeding the IRS.
Prosecutors said that when Snyder ran for mayor in 2011, he told residents he planned to automate Portage’s trash pickup, but wound up steering contracts for $712,882.50 and another for $425,355 to Great Lakes Peterbuilt, which was then owned by Robert and Stephen Buha.
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 advice Great Lakes Peterbilt about making similar changes.
A second count said that Snyder, while owing tens of thousands of dollars to the IRS, funneled income through a shell company, and failed to disclose any of those assets to the IRS.
Federal prosecutors said Snyder allegedly solicited money from co-defendant John Cortina, of Kustom Auto Body in Portage, and “Individual A” and gave them a towing contract for Portage.
Cortina, 80, in January 2019 pleaded guilty to a charge that he paid bribes to Snyder to get a spot on the tow list. Cortina did not testify during the trial, invoking his Fifth Amendment right to not incriminate himself, according to court documents.
Snyder has maintained his innocence during the more than two years since he was indicted. Snyder’s sentencing has been rescheduled multiple times, and a new sentencing hearing date has not been set.
Snyder faces new trial on one count, second felony count stands following Tuesday ruling
NWI Times
January 21, 2020
https://www.nwitimes.com/news/local/porter/portage/snyder-faces-new-trial-on-one-count-second-felony-count/article_673db72e-3f50-5981-b678-281b084d60ed.html
HAMMOND — A new judge is refusing to dismiss two felony counts of corruption against former Portage Mayor James Snyder.
U.S. District Court Judge Theresa Springmann ruled Tuesday that Snyder still may face a new trial on a bribery charge and remains guilty of tax evasion.
Springmann entered the case last month after U.S. District Court Judge Joseph Van Bokkelen bowed out after presiding over it for three contentious years.
Snyder's team of defense attorneys and government prosecutors both invited Springmann to overturn rulings Van Bokkelen made last November that left both sides dissatisfied.
Springmann declined to upset Van Bokkelen's decisions, ruling federal case law encourages a new judge to abide by the decision of the first judge.
Snyder's attorneys still can appeal to a higher court to dismiss the federal charges and guilty verdict still pending against the former mayor.
Federal prosecutors first charged Snyder in November 2016 with two bribery counts and one tax evasion count.
A jury heard the case against Snyder between Jan. 14, 2019, and Feb. 14, 2019.
Jurors acquitted Snyder of one bribery count alleging he corruptly arranged for the city of Portage to award public vendor contracts for towing services.
But the same jurors did find Snyder guilty of the other bribery count — he corruptly arranged for Portage to award garbage truck purchases.
The jury also convicted Snyder of obstructing the Internal Revenue Service’s collection of income taxes by falsifying documents to conceal from the IRS the true financial status of his private business ventures.
Those two verdicts removed Snyder from public office.
His defense team pressed Van Bokkelen over the course of the next nine months to overturn the two guilty verdicts and either acquit Snyder of all wrongdoing or grant him a new trial.
The defense argued there was insufficient evidence to support the guilty verdicts and that misconduct by federal prosecutors denied Snyder a fair trial.
Van Bokkelen ruled Nov. 27 that Snyder deserves a new trial on the garbage truck bribery count.
Van Bokkelen stopped short of condemning prosecutors of misconduct. But Van Bokkelen did conclude “gamesmanship” by the prosecution prevented the jury from hearing testimony from the former owners of the truck dealership, who paid Snyder $13,000.
Snyder’s defense team argued to Van Bokkelen and the new judge that Steve and Bob Buha, owners of Great Lakes Peterbilt, would have convinced a jury, had they testified, that they didn’t pay Snyder a bribe, but rather paid him for legitimate consulting services he had earned in working for Great Lakes.
The defense contended the prosecutorial irregularities cannot be cured by a new trial, so the bribery count must be dismissed, making a new trial unnecessary.
Federal prosecutors still may choose to dismiss the bribery count on their own. They have asked for time to review that bribery count before deciding whether to proceed on it with a new jury.
Although Van Bokkelen upheld the tax count, Snyder’s lawyers argued to Springmann the government failed to prove Snyder committed any violations still punishable under the statute of limitations, which sets the deadline for the government to file charges.
Springmann let stand Van Bokkelen's decision last year that Snyder's misrepresentations to the IRS were timely charged and there is enough evidence for a jury to find Snyder guilty of corruptly obstructing tax collections.
