Criminal hearing for former Portage official delayed until May
NWI Times
March 24, 2020
https://www.nwitimes.com/news/local/crime-and-courts/criminal-hearing-for-former-portage-official-delayed-until-may/article_5ba3a83b-2cca-59a6-92a6-d3b5ea8c351e.html
PORTAGE — The initial hearing has again been postponed for Christopher Stidham, the former Democratic Portage clerk-treasurer charged last month with a felony count of official misconduct.
The hearing, which had been scheduled to take place Tuesday afternoon after being continued from a week earlier, is now set for 1 p.m. May 26 before Porter Circuit Court Judge Mary DeBoer, according to court records.
Many cases in Porter County courts have been delayed due to the response to the COVID-19 pandemic.
The charge accuses 37-year-old Stidham of "creating obligations in excess of appropriations by issuing a bond, certificate or warrant for the payment of money in excess of an appropriation" while performing his official duties.
The offense occurred between Jan. 1, 2015, and Dec. 31, 2016, according to the charge.
Stidham is alleged to have paid Keeping the Books, ERG Advisors and Paramount Technology Solutions a combined total of $70,000, contracting them without the city Board of Public Works' approval. All three companies were registered to Rachel E. Glass, Stidham's then-girlfriend and now wife.
The allegations against Stidham originated in April, when then-Mayor John Cannon, a Republican, appointed a bipartisan executive investigative committee to look into potential malfeasance in the clerk-treasurer's office.
Stidham has denied any wrongdoing and previously has said the allegations stem from personal political motivations.
The State Board of Accounts is calling on Stidham to reimburse the city and the state a total of $14,564.55 following its investigation into his alleged misconduct in office.
Retrial delayed for second time in case against former Portage Mayor James Snyder
Chicago Tribune
March 16, 2020
https://www.chicagotribune.com/suburbs/post-tribune/ct-ptb-snyder-update-st-0317-20200316-lab63fvwn5gxrjpi4xqqq5vyya-story.html
The April retrial for Former Portage Mayor James Snyder has been delayed for the second time, and a new retrial date has not been set.
On March 10, following a telephonic conference, Chief Judge Theresa Springmann vacated the April 27 retrial date to allow prosecutors to respond to Snyder’s attorney’s motions to dismiss the soliciting bribes charge Snyder will be retried on, according to court records.
The first motion to dismiss argues double jeopardy and a separate motion to dismiss appeals to the court to “exercise its supervisory power and order him acquitted of, or otherwise dismiss,” the count, according to court records.
Prosecutors have until April 10 to respond to the motions and Snyder’s attorneys can reply to the prosecutor’s response by April 24, according to court records. The April 27 retrial date -- which was initially scheduled for March 23 -- was vacated, and a new retrial date hasn’t been set, according to court records.
In a supporting motion, filed March 5, Snyder’s attorneys argued that the double jeopardy standard applies in this case because brothers Robert and Steve Buhas, former owners of Great Lakes Peterbilt, were granted immunity with “no-notice, mid-trial” following a grand jury testimony that took “the Court completely by surprise,” according to court records. With their testimony, according to the document, “there is a strong likelihood that Mr. Snyder would have been acquitted.”
In a separate motion, also filed March 5, Snyder’s attorney’s argued that the court should use its “supervisory power” to acquit him because the prosecutors “deprived Mr. Snyder of eyewitnesses as to what happened between him and the Buhas ... much of the evidence he had expected to place before the jury,” according to court records.
Snyder, who was indicted in November 2016, 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 owing 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.
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.
Cortina was sentenced Jan. 22 to time served and a $12,000 fine.
Federal bribery trial for ex-Portage mayor put on hold
NWI Times
March 12, 2020
https://www.nwitimes.com/news/local/federal-bribery-trial-for-ex-portage-mayor-put-on-hold/article_d4674dd5-5257-5d80-aaa1-4922ec30b4b7.html
HAMMOND — The federal bribery trial of former Portage Mayor James E. Snyder is on indefinite hold while a judge decides whether to hold such a trial at all.
U.S. District Court Judge Theresa L. Springmann canceled a jury trial that had been set to begin April 27 to give lawyers for the government and Snyder’s defense team time to present written argument whether Snyder would be a victim of double jeopardy if the trial were to go forward.
Snyder is pleading not guilty to allegations he used his office as Portage mayor to steer $1.125 million in city contracts to a trucking firm and then solicited and received $13,000 from the firm’s former owners in return.
A federal jury found Snyder guilty of bribery Feb. 14, 2019, but his defense lawyers succeeded in getting a judge to set that verdict aside on grounds of prosecutorial irregularities that denied Snyder a fair trial.
Having won a new trial, his lawyers now argue a second trial would violate the U.S. Constitution’s rule against putting a person on trial twice for the same crime.
Snyder’s lawyers argue there would be no need for a second trial because last year’s jury would likely have acquitted Snyder, but for prosecutorial misconduct.
Judge Springmann is giving federal prosecutors until April 10 to respond to the double jeopardy question. The judge then will give Snyder’s lawyers until April 24 — only three days before the trial was set to begin — to reply to the federal prosecutors' arguments before ruling on the matter.
Springmann didn’t schedule a new beginning for a second trial, if she decides such a trial is still necessary.
Federal prosecutors first charged Snyder in November 2016 with two bribery counts and one tax evasion count.
A jury, overseen by U.S. District Court Judge Joseph Van Bokkelen, heard evidence in the case against Snyder early last year.
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 jury found Snyder guilty of bribery for the $13,000 payment.
Snyder contends the $13,000 was for legitimate work as a consultant for the trucking firm.
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 guilty verdicts removed Snyder from public office.
Snyder’s defense team pressed Van Bokkelen to overturn the two guilty verdicts, arguing misconduct by federal prosecutors denied Snyder a fair trial.
Van Bokkelen ruled Nov. 27 Snyder deserves a new trial on the garbage truck bribery count before dropping out of the case. Springmann entered to oversee the new trial.
Van Bokkelen stopped short of condemning prosecutors of misconduct, but 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 has argued to Van Bokkelen and now Springmann that Steve and Bob Buha, owners of Great Lakes Peterbilt, would have convinced a jury, had they testified, they didn’t pay Snyder a bribe, but rather paid him for legitimate consulting services he had earned in working for Great Lakes.
Ex-Portage mayor's law team pursues double jeopardy argument
NWI Times
March 06, 2020
https://www.nwitimes.com/news/local/crime-and-courts/ex-portage-mayor-s-law-team-pursues-double-jeopardy-argument/article_48875950-f930-5bff-8887-640facbdcfcf.html
HAMMOND — Lawyers for former Portage Mayor James E. Snyder are asking a judge to cancel his upcoming bribery charge.
Snyder’s defense team is making new arguments that this second jury trial, now scheduled to begin April 27, is barred by the constitution ‘s prohibition against double jeopardy — trying someone twice for the same crime.
The defense also argues Snyder can never get a fair trial now because of prosecutorial misconduct that took place in his first trial last year.
Federal prosecutors have yet to respond to this new defense motion.
Federal prosecutors first charged Snyder in November 2016 with two bribery counts and one tax evasion count.
A jury, overseen by U.S. District Court Judge Joseph Van Bokkelen, heard evidence in the case against Snyder early last year.
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 jury found Snyder guilty of the other bribery count, that he corruptly arranged for Portage to award a truck sales firm $1.125 million in government contracts before he solicited their paying him a $13,000 bribe in return.
Snyder contends the $13,000 was for legitimate work as a consultant for the trucking firm.
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 guilty verdicts removed Snyder from public office.
Snyder’s defense team pressed Van Bokkelen to overturn the two guilty verdicts, misconduct by federal prosecutors denied Snyder a fair trial.
Van Bokkelen ruled Nov. 27 Snyder deserves a new trial on the garbage truck bribery count. Van Bokkelen dropped out of the case afterward and Springmann was assigned to oversee the new trial.
Van Bokkelen stopped short of condemning prosecutors of misconduct, but 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 has argued to Van Bokkelen and now Springmann that Steve and Bob Buha, owners of Great Lakes Peterbilt, would have convinced a jury, had they testified, 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.
State Board of Accounts investigated former Portage clerk-treasurer Stidham
Chesteron Tribune
March 03, 2020
http://www.chestertontribune.com/PoliceFireEmergency/state_board_of_accounts_investig.htm
The criminal charge of official misconduct filed late last month in Porter Superior Court against former Portage clerk-treasurer Chris Stidham followed an investigation conducted by the State Board of Accounts (SBA) at the request of a special committee appointed by former Portage mayor John Cannon.
According to a summary of that investigation by SBA, dated Nov. 12, 2019, several irregularities were discovered in Stidham’s Accounts Payable Vouchers (APVs):
--In 2015 and 2016, Stidham made payments to three vendors--Keeping the Books, E.R.G. Advisors, and Paramount Technology Solutions--owned and operated by Rachel Glass. “Stidham and Glass had a personal relationship during the time period that payments were made to the three companies,” SBA said.
--Payments made in 2015 to these three companies totaled $28,416.16; and in 2016, $30,000. In 2015, one of the 11 APVs for goods or services received from the three companies was not authorized, as required, by the Portage Board of Public Works. In 2016, only one of eight APVs was authorized by the Board of Public Works, SBA said.
--Among the services provided by the three companies was “bank reconcilements.” The total amount paid for bank reconcilements in 2016 was $8,000. SBA subsequently determined that the 2016 bank reconcilements were not prepared monthly but in fact were prepared in January 2018. Based on that finding, SBA said, “it is our position that the city paid for services not received” and accordingly has “requested Stidham reimburse the city $8,000 for disbursing funds without authority and for services not rendered.”
SBA is also asking Stidham to reimburse the costs of its investigation, totaling $6,564.55.
Other findings by SBA relating to Glass’ three companies:
--“There were no written contracts describing the services to be performed, terms of the contracts, and the rates to be paid.”
--“The minutes of the (Board of Public Works) did not include its approval of any contracts with the three companies.”
--“An invoice dated Nov. 6, 2015, described the work as ‘August, September, October 2016 bank recs’; thus, the city would have paid in advance for services not yet performed.”
--“Invoices did not include pertinent information such as dates that the work was performed and lacked sufficient detail of services. Only a total number of hours was included.”
--“Only one check out of the eight checks issued in 2016 was posted to the ledger. All others, totaling $26,000, were posted as an adjustment at the conclusion of the 2016 audit.”
--“Six invoices were mathematically incorrect when compared to the amount of check issued, with the check issued being either more or less than the computed invoice amounts.”
The SBA report notes that an investigation of Stidham’s activities “is being conducted by a special prosecutor and the Indiana State Police,” and adds that its report “was forwarded to the Office of the Indiana Attorney General and the appointed special prosecuting attorney.”
Audit demands Stidham repay $14,000 in misconduct case
NWI Times
March 02, 2020
https://www.nwitimes.com/news/local/govt-and-politics/audit-demands-stidham-repay-in-misconduct-case/article_7c75909d-560c-547d-91cf-1bfb533a106f.html
PORTAGE — Former Clerk-Treasurer Christopher Stidham now faces a call to reimburse the city and the state a total of $14,564.55 following a State Board of Accounts investigation into misconduct in his office.
The State Board of Accounts made public a “Special Investigative Report of the Clerk-Treasurer, City of Portage.”
The report’s conclusions echo allegations made earlier this week by Special Prosecutor Stanley Levco, who is charging Stidham with a felony count of official misconduct.
The criminal charge alleges Stidham misused his position as the city’s top fiscal officer in 2015 and 2016 to illegally pay city funds to companies registered to his then-girlfriend, now-wife, Rachel E. Glass.
Stidham, who served as Portage’s clerk-treasurer from 2013 until last year, declined comment on the criminal count. He previously denied all wrongdoing, claiming he was a victim of a political smear.
Stidham is scheduled to appear March 13 in Porter Superior Court for an initial hearing on the criminal matter.
The State Board of Accounts, which oversees public spending by municipal and other branches of local government, conducted an independent probe of Stidham and the city’s financial transactions late last year.
State auditors said they were called into the case by Portage. Former Mayor James Snyder first appointed a committee of city investigators to look into allegations of misconduct in Stidham's office three years ago. Former Mayor John Cannon resumed the investigation last year.
The mayor’s committee discovered records showing Stidham had made questionable use of public funds to three vendors: Keeping the Books, E.R.G Advisors and Paramount Technology Solutions — all established under the name of Rachel Glass — without the approval of the Board of Public Works, a panel of the mayor’s advisers.
City investigators contend the three vendors were shell corporations with Valparaiso addresses for two houses and a United Parcel Service store.
State Board of Accounts auditors concluded from their own probe Stidham paid vendors, associated with his wife, $8,000 in 2016 to assist the city in routine confirmation of the accuracy of the city’s financial records by comparing them to bank account records.
But state auditors found the bank reconcilements for which the city paid $8,000 in 2016 weren’t performed until 2018, two years later.
The report explains state law forbids public officials paying private vendors until after the work is performed and documented, usually by an itemized invoice.
State auditors allege the city had no written contracts with the three vendors associated with Stidham’s wife officially setting the term of services the city expected or the rates she would be paid.
The report states, “It is our position that the City paid for services not received (or approved by the city’s Board of Works.)"
State officials want Stidham to reimburse the city for the $8,000 he wrongly disbursed.
State auditors also are calling for Stidham to reimburse their agency $6,564.55 for the cost of conducting their special investigation.
State auditors forwarded their report on Stidham to the Office of the Indiana Attorney General and special prosecutor, so civil or criminal courts can enforce the payment of the reimbursement demanded.
Former Portage Clerk-Treasurer Stidham charged with official misconduct
NWI Times
March 01, 2020
https://www.nwitimes.com/news/local/crime-and-courts/former-portage-clerk-treasurer-stidham-charged-with-official-misconduct/article_e4af774f-63e0-57c4-bba5-995f7469628b.html
PORTAGE — Former Democratic Portage Clerk-Treasurer Chris Stidham, who kicked off last year's failed bid for mayor by calling to take the city back from "scandal and chaos," was charged Wednesday with a felony count of official misconduct.
The charge accuses 37-year-old Stidham of "creating obligations in excess of appropriations by issuing a bond, certificate or warrant for the payment of money in excess of an appropriation" while performing his official duties.
The offense occurred between Jan. 1, 2015, and Dec. 31, 2016, according to the charge.
The charge was filed by Special Prosecutor Stanley Levco, a former county prosecutor and judge from Evansville, who was brought in to investigate the case.
Levco could not be reached Wednesday afternoon to elaborate on the charge.
Stidham, an attorney, referred all comments to his defense attorney, Paul Stracci, who was not immediately available for comment.
Stidham is alleged to have paid Keeping the Books, ERG Advisors and Paramount Technology Solutions a combined total of $70,000, contracting them without the city Board of Public Works' approval. All three companies were registered to Rachel E. Glass, Stidham's then-girlfriend and now wife.
The allegations against Stidham originated in April, when then-Mayor John Cannon, a Republican, appointed a bipartisan executive investigative committee to look into potential malfeasance in the clerk-treasurer's office.
Stidham has denied any wrongdoing and previously has said the allegations stem from personal political motivations.
Cannon said in a prepared statement issued Wednesday, "My administration successfully rooted out corruption in Portage, in the face of obstruction by my own Democrat-controlled City Council. We are gratified that today’s charges vindicate our work."
Stidham served two terms as clerk-treasurer before losing a primary battle last year for mayor to fellow Democrat Sue Lynch, who went on to unseat Cannon for the city's top job.
Lynch said Wednesday afternoon she is disappointed by the news.
"I'm troubled to know he knowingly abused the public's trust," she said.
"We're trying to rise above all that in this administration," Lynch said. "We're trying to rebuild the public's trust."
Stidham had sparred with former Republican Portage Mayor James Snyder, who was found guilty last year in federal court of a corrupt truck purchase as well as obstructing the Internal Revenue Service’s collection of income taxes by falsifying documents.
He was granted a new trial on the garbage truck bribery charge and that is now set for April 27.
An initial hearing on Stidham's charge is scheduled for 1 p.m. March 17 before Porter Circuit Court Judge Mary DeBoer.
Portage officials react to official misconduct charge against former clerk-treasurer
NWI Times
March 01, 2020
https://www.nwitimes.com/news/local/govt-and-politics/portage-officials-react-to-official-misconduct-charge-against-former-clerk/article_c09a48b8-5475-5011-8bf0-62111009fdd8.html
PORTAGE — City officials said timing of an official misconduct charge lodged against the former clerk-treasurer unfortunately comes just as they are trying to reform the city away from its past corrupt practices.
Chris Stidham, 37, of Portage, faces a felony count alleging he misused his position as the city’s top fiscal officer in 2015 and 2016 to illegally pay $70,000 in city funds to companies registered to his then-girlfriend and current wife, Rachel E. Glass.
She is not accused of any wrongdoing in the case.
“This isn’t an epidemic of corruption in Portage. We are doing good work and we just keep getting knocked over the head with this," Councilman Collin Czilli, D-5th, said Thursday. “It makes residents question whether government is working in the best interests of the city. Its our duty and responsibility to prove we are. We have nine people in place, committed to making the city work for the residents again."
Stidham is scheduled to appear March 13 in Porter Superior Court to answer the corruption charge. Stidham, who previously denied all wrongdoing, declined to comment Wednesday in the wake of Special Prosecutor Stanley Levco filing the felony count.
Current officials regretted this “new” black eye for the city. Former Portage Mayor James Snyder has been fighting public corruption charges for three years. He is pleading not guilty and is scheduled to stand trial beginning March 27 on an unrelated bribery count.
John Cannon, a Republican who served 10 months as mayor last year, used the filing of the criminal charge to criticize city council opponents in a prepared statement Thursday.
Cannon said other city officials abdicated their responsibility to investigate Stidham, even if he was a fellow Democrat.
Cannon said instead of leaving that just to law enforcement, they should have joined his investigation into Stidham last year.
But there was general agreement among city officials that Stidham faces a reckoning while they must repair the damage done.
Cannon said he will oppose any effort by Stidham to negotiate a plea agreement to reduce the severity of the charge against him.
“The biggest thing is, we want him convicted of a felony because we don’t want him running for office again or to continue to be a lawyer,” Cannon said.
Cannon said he uncovered evidence last year Stidham purportedly paid his wife money to clean up the city’s financial books.
Cannon said his investigation found no evidence of a written contract between the city and what Cannon said were shell corporations listing Valparaiso addresses at residences and a UPS store.
The official misconduct charge alleges Stidham paid the money without the approval of then-Mayor Snyder or members of the city’s board of works.
Cannon said no one questioned Stidham’s actions at the time. He said former Mayor Snyder was too busy defending himself against Stidham's demands that Snyder resign over an FBI investigation that resulted in Snyder being charged with soliciting a bribe in connection with the award of garbage collection trucks.
Although the new audit wasn’t available Thursday, a previous state audit made public last fall stated there were “several deficiencies in the internal control system of the City related to financial transactions and reporting.”
Cannon said other city officials refused to join his investigation, claiming it would be viewed as a politically-motivated smear, rather than an objective inquiry.
“This investigation did not have politics in mind, they had what is right in mind," Cannon said in response. "This is what happens when a city government is all pals and they breakfast and all hang out together.”
Councilwoman Debbie Podgorski, D-at large, said Thursday, “I know some from the other party have (taken credit) for cracking the case. But, I agree we had to wait and let proper authorities handle it."
She said it doesn’t matter which party controlled the clerk-treasurer’s office at the time.
“If he is innocent, fine, go to trial," she said. "If not, own up to it, pay the piper and let the city heal.”
Czilli said the State Board of Accounts repeatedly cited the clerk-treasurer’s office, the mayor’s office and redevelopment commission for failing to have internal controls — checks and balances that ensure no one person can misspend money because others are overlooking their work.
“The new clerk treasurer (Nina Rivas) is working to bring (internal controls) forward and we need to put that into place," Czilli said.
Councilman Patrick Clem, D-2nd, said Thursday, “Its disappointing and something we need to move forward from, the practices of the past few years. The voters have put the right people in place.”
Portage Councilman Ferdinand Alvarez, D-at large, said, “This is yet another sad day for Portage. Unfortunately it seems there was a sense of entitlement that transcended political parties during those years. However, I’m confident the clerk-treasurer’s office is in great hands with Nina Rivas and our city officials are working hard to regain the confidence of our residents every day."
Podgorski said she hoped this will be the last of public corruption charges filed.
However, Levco said Thursday he cannot comment on whether any additional charges are forthcoming.
