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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
02042019 - NEWS ARTICLES - PORTAGE INDIANA MAYOR JAMES SNYDER - FEDERAL CORRUPTION TRIAL - WEEK 4
02112019 - NEWS ARTICLES - PORTAGE INDIANA MAYOR JAMES SNYDER - FEDERAL CORRUPTION TRIAL - WEEK 5
02142019 - NEWS ARTICLES - PORTAGE MAYOR JAMES SNYDER GUILTY OF FEDERAL CHARGES
Portage-Mayor-James-Snyder--INDICTMENT--11172016--Case-216CR160
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Tax preparer emails to Snyder reveal concern about what IRS auditors might find
NWI Times
January 16, 2019
https://www.nwitimes.com/news/local/crime-and-courts/tax-preparer-emails-to-snyder-reveal-concern-about-what-irs/article_1d9c7929-ce10-50e7-83d2-89c7dffaa9c3.html
HAMMOND — Emails read Wednesday during Portage Mayor James Snyder's corruption trial revealed Snyder's tax preparer was worried about what IRS auditors might find.
Assistant U.S. Attorney Philip Benson asked IRS agent Gerard Hatagan, who was testifying in federal court for the prosecution, to read emails between Snyder and his tax preparer, Steve Dolton.
The first email, sent to Snyder from Dolton on Oct. 6, 2012, read: "I buried a lot, but I don't think I could risk killing any more of the incomes." Dolton said he was concerned about what auditors might uncover.
The first email also discussed loans from Snyder's company, SRC Properties, to his mortgage company and to himself.
Dolton helped prepare Snyder's income taxes in 2010 and 2011.
U.S. District Court Judge Joseph Van Bokkelen allowed the emails into evidence over the objection of Snyder's lawyer, Neal Brackett, who said they were not relevant and inflammatory.
Snyder was indicted in November 2016 on two counts of bribery and attempting to obstruct the Internal Revenue Service from collecting payroll taxes from his mortgage business, First Financial Trust Mortgage, and his personal income taxes.
Prosecutors allege Snyder schemed to hide income from the IRS as he attempted to negotiate a settlement with the IRS to pay the back taxes.
A second email to Snyder from Dolton, a few days after the one from Oct. 6, 2012, spoke of concerns Dan Pickart, Snyder's accountant, might have with the tax returns.
"He (Pickart) knows we fabricated some of this," Dolton wrote. "He's going to start asking questions on loans and cars and such."
Hatagan testified throughout the morning.
Van Bokkelen also voiced concerns Wednesday morning about the tax charge against Snyder.
As prosecutors and defense attorneys argued about the emails, Van Bokkelen noted concerns involving the charge, though he declined to elaborate further from the bench.
"I have some problems with that count," the judge said in overruling the defense's objections about the emails being admitted as evidence. "If it plays out, that count may be gone."
"I'm sort of talking out loud right now. I have not drawn any conclusions. I have some concerns right now," Van Bokkelen said, adding he wanted to let the testimony play out before deciding.
"I've said too much already."
After Benson completed his questioning of Hatagan Wednesday afternoon, Brackett cross examined the IRS agent, questioning him about some of the forms and suggesting income information was included, but not properly identified.
Van Bokkelen recessed the court, admonishing jurors not to discuss the case over the next five days. Court is scheduled to reconvene at 9 a.m. Tuesday, Jan. 22.
Prosecutors probe Portage Mayor James Snyder's tax documents, income disclosures as trial continues
Chicago Tribune
January 16, 2019
https://www.chicagotribune.com/suburbs/post-tribune/news/ct-ptb-snyder-trial-day-three-st-0117-story.html
Federal prosecutors Wednesday laid out how Portage Mayor James Snyder allegedly failed to disclose information to the IRS as part of a scheme to avoid paying tax debt.
During the third day of Snyder’s trial, federal prosecutors worked through voluminous tax documents and campaign records to show the jury how the mayor allegedly hid assets from the IRS as the federal agency aimed to collect on his personal and business debt.
Judge Joseph Van Bokkelen recessed the trial until next Tuesday, and federal prosecutors will continue presenting evidence.
The defense has said that Snyder was only trying to deal with issues related to his failing mortgage company and did not aim to obstruct the IRS. The defense noted that Snyder paid all of his personal income tax debt and is still making timely payments on what is owned by his mortgage company.
Assistant U.S. Attorney Philip Benson questioned Gerard Hatagan, a special enforcement program revenue agent with the IRS, about the tax debt Snyder aimed to settle and the information he allegedly failed to disclose.
Benson asked about a January 2010 employment agreement with GVC, a mortgage company, and if that was listed by Snyder in forms to settle his debt.
“It was not,” Hatagan said.
Benson showed a W-2 form that showed GVC paid Snyder $141,891.27 in gross wages in 2010.
Hatagan said Snyder represented to the IRS that he had no wages.
In documents seeking a settlement owned by First Financial Trust in 2011, Benson pointed out that not only did Snyder allegedly fail to disclose him employment with GVC, he did not list income from SRC, a company Snyder ran.
Benson said invoices show that SRC was billing the mortgage company for services and getting paid.
Hatagan said information on income from SRC should have been included.
Two sets of those documents were shown to the jury Wednesday: one that the IRS had that was missing two pages, and another from Snyder’s accountant that was complete.
Defense attorney Neal Brackett said based on what Snyder made as mayor and as the head of a city board wouldn’t account for all the salary listed on the IRS form.
Brackett asked if the agent knew if the income line on the form included Snyder’s wages from the mortgage company.
Hatagan said he does not believe that based on the information represented on the form.
Snyder was indicted in November 2016 and charged with allegedly violating federal bribery statutes. Federal prosecutors say the mayor allegedly solicited money from John Cortina, of Kustom Auto Body, and “Individual A” and gave them a towing contract for Portage. Snyder received an additional bribery indictment for allegedly accepting $13,000 in connection with a Board of Works contract.
A third charge alleges Snyder obstructed or impeded internal revenue laws.
Snyder has pleaded not guilty to the charges, according to court documents.
Cortina, who was indicted alongside the mayor, last week 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.
Mayor portrayed as schemer who funneled bribes, didn't think rules applied
NWI Times
January 15, 2019
https://www.nwitimes.com/news/local/crime-and-courts/mayor-portrayed-as-schemer-who-funneled-bribes-didn-t-think/article_d8fb6dd7-b5fa-5b09-bf5d-5295ed053678.html
HAMMOND — Portage Mayor James Snyder is either a consummate schemer or the victim of revenge and an overreaching government.
Those widely contrasting portrayals of Snyder during the second day of his felony public corruption trial in Hammond federal came courtesy of Assistant U.S. Attorney Jill Koster and defense attorney Jackie Bennett.
Koster outlined the charges against Snyder to the jury along with evidence prosecutors expect to present during what is estimated to be a four-week trial.
Snyder "does not think rules applied to him," Koster said, telling jurors the embattled mayor attempted to hide thousands of dollars in debt to the IRS through an elaborate scheme. That scheme included establishing a shell company to hide money from federal investigators in order to avoid paying both personal and business taxes.
Koster also told them Snyder funneled about $1.1 million in contracts to a local business in exchange for receiving a $13,000 bribe and received another $12,000 bribe for securing a towing contract with former co-defendant John Cortina. Cortina pleaded guilty last week to one count of offering the bribe in exchange for being put on the city government's coveted list of towing operators.
Koster said Snyder steered contracts for automated garbage trucks to Great Lakes Peterbilt of Portage in return for the $13,000. The money, she said, was under the guise of health care and internet technology consulting. Yet Snyder is an expert in neither field and holds no state health care license, Koster said.
Bennett painted Snyder as someone who was "socialized a little bit differently," growing up in a fundamental religious home that didn't allow him to watch television or movies. That, Bennett said, causes Snyder to communicate differently.
Bennett also called the charges "false" and "bogus."
He told jurors federal investigators went to great lengths to find evidence against Snyder but have twisted the facts in each of the charges.
Bennett said political opponents within the city fueled the investigation.
Bennett also began to insinuate the entire investigation may be based on revenge, telling jurors about former Portage Police Chief Mark Becker, who, before becoming police chief served as an FBI agent for 30 years.
Becker wanted to stay chief when Snyder was elected mayor, Bennett said, but it was Snyder's intent to replace him.
"He told Snyder 'you are going to regret it,'" Bennett said before the statement drew one of several objections from Koster and Assistant U.S. Attorney Phil Benson.
The two repeatedly objected to Bennett's statements, questioning the relevance of the information ranging from Snyder's childhood to the political make-up of the city.
U.S. District Court Judge Joseph Van Bokkelen repeatedly told jurors to only consider information from the opening statement that could be supported by evidence as the trial continues.
Following the opening statements, prosecutors called their first witness, Elizabeth McQuen, a revenue officer with the Internal Revenue Service.
Witnesses were expected to be called throughout the afternoon as the trial continues.
Prosecutors say Portage mayor 'does not think the rules apply,' while defense says charges are 'lies'
Chicago Tribune
January 15, 2019
https://www.chicagotribune.com/suburbs/post-tribune/news/ct-ptb-snyder-trial-day-two-st-0116-story.html
Federal prosecutors on Tuesday painted Portage Mayor James Snyder as someone who moved from one scheme to another, but defense attorneys say those allegations are lies.
Opening statements in Snyder’s public corruption case started with prosecutors saying Snyder allegedly schemed to hide assets from the IRS; worked a garbage truck contract to net himself $13,000; and took $12,000 to get two men on the city’s towing list. The defense said those allegations are lies, and that the evidence will show the mayor did not engage in unlawful conduct.
“James Snyder does not think rules apply to him,” said Assistant U.S. Attorney Jill Koster.
Defense attorney Jackie Bennett Jr. said the allegations in the indictment seem straightforward, but are false.
“These allegations are lies,” Bennett said. “On behalf of James Snyder, we are going to prove it.”
Snyder was indicted in November 2016 and charged with allegedly violating a federal bribery statue. Federal prosecutors said the mayor allegedly solicited money from John Cortina, of Kustom Auto Body, and “Individual A” and gave them a towing contract for Portage.
Snyder received an additional bribery indictment for allegedly accepting $13,000 in connection with a Board of Works contract, and allegedly obstructing Internal Revenue Service laws.
Snyder has pleaded not guilty to the charges, according to court documents.
Cortina, who was indicted alongside the mayor, last week pleaded guilty to a charge that he paid bribes to Snyder to get a spot on the city’s tow list. Cortina is expected to cooperate with federal investigators against Snyder, according to court documents.
When Snyder first ran for mayor, Koster said he told people he would automate the city’s trash collection. Koster said Snyder helped steer a contract for $712,882.50 and another for $425,355 to Great Lakes Peterbilt for garbage trucks.
After getting those contracts, Koster said Great Lakes Peterbilt gave Snyder a check for $13,000 payable to his shell company.
Koster said Great Lakes Peterbilt submitted a bid that sold the city older trucks than what other companies offered despite the specifications seeking new, unused equipment.
“Everything about the bid process with Great Lakes Peterbilt was fishy,” Koster said.
Since Snyder took office, Bennett said he has bought and paid for the new garbage trucks and lowered costs for the city. Snyder saw that the bids met what the city needed, Bennett said, and had his staff thoroughly research what was available.
Bennett said the owners of Great Lakes Peterbilt will testify that no bribe was paid. Bennett said prosecutors say that Snyder allegedly took $13,000 for contracts worth more than $1 million, but Great Lakes Peterbilt only made roughly $35,000 in profit.
Bennett said that doesn’t seem to add up.
“It was done according to the rules,” Bennett said.
But Snyder didn’t stop there, Koster said.
In 2016, Cortina teamed up with Scott Jurgensen, who was working with the FBI, and wanted to get on Portage’s tow list. The two allegedly gave Snyder $12,000.
“This was a bribe,” Koster said. “John Cortina knew it was a bribe. Scott Jurgensen knew it was a bribe.”
Bennett said that Cortina had partnered with another firm and been removed from the tow list. In 2016, Cortina was no longer on the list but a spot later opened after one of the three firms was not meeting the city’s expectations, Bennett said.
Cortina was a member of the mayor’s roundtable group, Bennett said, and the $2,000 check Snyder got was for that membership. Bennett said it is legal to pay legal expenses out of a campaign committee, and Snyder sought for a $10,000 loan from Cortina, who was a friend and political backer.
Snyder is also charged with obstructing or impeding the IRS, according to court documents.
Koster said that Snyder ran a mortgage company and did not racked up tens of thousands of dollars that he owed the IRS.
“So James Snyder had a problem,” Koster said. “He devised a scheme.”
Another mortgage firm merged with Snyder’s company, Koster said, and he allegedly set up a shell company that submitted invoices and got paid. Snyder was the only employee of the shell company, Koster said.
Snyder also had personal tax debt, Koster said, but did not tell the IRS about his shell company and its bank account.
“James Snyder deceived the IRS,” Koster said.
Bennett said Snyder had to deal with a failing business and has consistently made payments to the IRS to settle his debts. Bennett said there was no effort to hide anything, and an accountant will testify that little money was ever held in Snyder’s company account.
“The account never really held much money,” Bennett said.
Snyder has paid 100 percent of his personal debt to the IRS, Bennett said, and is still making payments on what was owed by his old mortgage company.
Bennett asked if that sounds like it impeded the IRS.
“It did not,” Bennett said.
Judge blocks Portage Mayor Snyder's attempt to get FBI records
Chicago Tribune
January 14, 2019
https://www.chicagotribune.com/suburbs/post-tribune/news/ct-ptb-snyder-trial-day-one-st-0112-story.html
A federal judge has temporarily barred attorneys for indicted Portage Mayor James Snyder from getting personnel records for an FBI agent.
Snyder’s legal team appeared in federal court Monday in Hammond at the start of the mayor’s public corruption trial, and started the day arguing to access records on an FBI agent who handled the case. Judge Joseph Van Bokkelen declined to allow the defense to get those records but will address the issue more as the trial progresses.
The first day of trial began with Van Bokkelen considering the personnel records issue and a second matter involving a conversation between a confidential source and the mayor. Once the judge handled those issues, he began the nearly five-hour process of seating 12 jurors and three alternates.
Opening arguments and witness testimony starts Tuesday.
Snyder was indicted in November 2016 and charged with allegedly violating a federal bribery statue. Federal prosecutors said the mayor allegedly solicited money from John Cortina, of Kustom Auto Body, and “Individual A” and gave them a towing contract for Portage.
Snyder received an additional bribery indictment for alleged accepting $13,000 in connection with a Board of Works contract, and allegedly obstructing Internal Revenue Service laws.
Snyder has pleaded not guilty to the charges, according to court documents.
Cortina, who was indicted alongside the mayor, last week 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 defense sought to subpoena the personnel records on an FBI agent who worked the Snyder case to investigate possible allegations that the agent “overreached” while seeking records during the investigation into the mayor.
Defense attorney Jackie Bennett Jr. said an attorney who once represented a witness in the case alleged that the FBI agent demanded attorney-client privileged material and even screamed at the attorney for not providing the records. Bennett said the attorney also alleged that the agent had been disciplined and transferred to another office because of his reported conduct.
“We don’t know if it’s true,” Bennett said. “It’s entirely possible it’s utterly false.”
Bennett said the defense sought the personnel records to explore the allegations made against the agent.
“This is a serious allegation,” Bennett said. He said what could be revealed in the personnel file would speak to the agent’s credibility.
Federal prosecutors asked the judge to block the subpoena, according to court records, and even a top FBI lawyer said that the information being sought was not subject to disclosure.
Assistant U.S. Attorney Jill Koster said any subpoena for records presented to the attorney would have come from the U.S. Attorney’s Office and not an individual FBI agent. Koster said there is nothing improper about the government seeking billing invoices from an attorney, and rebuffed comments about the agent’s temperament.
“I have never seen him lose his temper,” Koster said.
The agent had testified during prior evidentiary hearings, Koster said, and the defense had an opportunity to raise those questions. Koster said they likely didn’t because they knew the agent’s response would be no.
Koster said the agent took a promotion and was transferred to a new position in another office.
“This whole story, none of it adds up,” Koster said.
Van Bokkelen agreed to block the subpoena but left room for the defense to bring those issues up later in the trial.
The second issue involved a conversation Snyder had with a confidential source, later identified as his brother, Jon Snyder, that was reported back to the FBI. Van Bokkelen has agreed to suppress the contents of that conversation.
UPDATE: Both sides to lay out their cases in Portage Mayor James Snyder's public corruption case Tuesday morning
NWI Times
January 14, 2019
https://www.nwitimes.com/news/local/crime-and-courts/update-jury-selection-begins-in-portage-mayor-s-federal-public/article_1613ce87-4924-5d93-aa0a-54bdf4bf33e2.html
HAMMOND — Twelve jurors will begin hearing testimony Tuesday to decide whether Portage Mayor James Snyder took two bribes and manipulated a scheme to evade paying federal taxes.
The 12, along with three alternates were chosen after nearly five hours of closed door questioning by both defense and prosecuting attorneys in Snyder's public corruption case which began Monday nearly 26 months after he was indicted on the three counts. There were 10 men and five women chosen.
The jury selection process was closed to the media and public with officials citing the 68-person jury pool filled the courtroom to its capacity and outsiders weren't allowed to possibly mingle with potential jurors inside U.S. District Court Judge Joseph Van Bokkelen's court room.
The jury will, beginning Tuesday at 9 a.m., hear opening statements from both sides. Each side has been given an hour to lay out their case. Following arguments, presentation of evidence and the calling of witnesses in the estimated four week-long case will begin.
Snyder gained a small victory as his case began Monday morning before prospective jurors were brought into the room.
Van Bokkelen ruled a conversation between Snyder and his brother, Jon Snyder, will not be admitted into court.
The conversation happened two days after the indictment was handed down.
While Van Bokkelen stated he didn’t believe there was anything worthwhile in the conversation, he said it should not have happened.
Van Bokkelen said the demarcation line should have been when the indictment was issued. Prosecutors crossed that line when a report was made on that conversation.
“At the end of the day, it probably makes no difference, other than it was wrong,” Van Bokkelen said.
Prosecutors received a boost when the judge ruled in their favor that the defense team had no right, for the time being, to view the full personnel file of an FBI agent involved in the investigation.
Snyder's attorney Jackie Bennett of Indianapolis argued they requested the personnel file of FBI agent Eric Fields after they received word Fields may have stepped over the line in demanding privileged information from Jon Snyder's attorney.
Bennett said Jon Snyder's attorney Christopher Buckley, now a Lowell judge, would testify Fields "screamed at him" to turn over the information. Only later, Bennett said, former U.S. Attorney David Capp and Assistant U.S. Attorney Philip Benson told Buckley they didn't need the information for the grand jury because "Fields made a mistake."
Bennett said they wanted to review the personnel file to see if Fields overstepped and was disciplined for his behavior, including being transferred from the Merrillville office.
"This dog won't hunt," Assistant U.S. Attorney Jill Koster told the judge, saying they have no right to see Fields' personnel file. Citing a 1951 law protecting such files, Koster said it could set a dangerous precedent.
Koster said Fields' record was reviewed by the FBI's assistant counsel; that Fields was never disciplined and had applied for and received a promotion to work at the FBI headquarters.
Koster said there is nothing in Fields' file that would help the defense.
Van Bokklen said the Snyder team's subpoena was over broad and premature. Will granting the motion to suppress, he added he could reconsider the right to re-raise the issue if it becomes relevant in Fields' testimony.
The investigation
Snyder, a Republican in his second term as Portage's mayor, was indicted in November 2016 and charged with two counts of bribery and one count of tax evasion. He has been under investigation by the FBI for about five years.
John Cortina, 79, owner of Kustom Auto Body in Portage, pleaded guilty on Friday to paying Snyder a $12,000 bribe and has agreed to fully cooperate with federal prosecutors. He is expected at some point to testify against Snyder.
Also expected to testify is James Snyder's brother, Porter County Assessor Jon Snyder, who worked with the FBI as a confidential informant, secretly audio taping conversations with his brother and others. Jon Snyder pleaded guilty last year to a misdemeanor federal tax charge and is awaiting a February sentencing date.
Scott Jurgenson, owner of Sampson Towing, is also anticipated to testify during the trial. Jurgenson also worked as an undercover agent with the FBI during its investigation into corruption in government tow contracts in the Region.
Several other Portage officials and employees are also expected to take the stand.
Court documents have indicated there will be some 120,000 pages/pieces of evidence introduced during the trial along with some 20 undercover audio tapes.
UPDATE: Jury selection begins in Portage mayor's federal public corruption trial
NWI Times
January 14, 2019
https://www.nwitimes.com/news/education/undercover-tapes-alleged-bribes-and-schemes-accused-portage-mayor-to/article_b0dfddcd-a6c4-5d90-9db1-a08e15485258.html
HAMMOND — Shortly before noon Monday, 68 people were led into a federal courtroom.
For 15 of them, their lives will change over the next four weeks as jury selection begins in the Portage Mayor James Snyder public corruption case.
Snyder gained a small victory as his case began Monday.
U.S. District Court Judge Joseph Van Bokkelen ruled a conversation between Snyder and his brother, Jon Snyder, will not be admitted into court.
The conversation happened two days after the indictment was handed down.
While Van Bokkelen stated he didn’t believe there was anything worth while in the conversation, he said it should not have happened.
Van Bokkelen said the demarcation line should have been when the indictment was issued. Prosecutors crossed that line when a report was made on that conversation.
“At the end of the day, it probably makes no difference, other than it was wrong,” Van Bokkelen said.
Prosecutors received a boost when the judge ruled in their favor that the defense team had no right, for the time being, to view the full personnel file of an FBI agent involved in the investigation.
The investigation
Snyder, a Republican and in his second term as Portage's mayor, was indicted in November 2016 and charged with two counts of bribery and one count of tax evasion. He has been under investigation by the FBI for about five years.
Van Bokkelen said Friday during a status hearing he anticipates the selection of a jury will be completed Monday and opening statements will be made Tuesday before prosecutors begin calling witnesses. The trial is anticipated to last four weeks.
John Cortina, 79, owner of Kustom Auto Body in Portage, pleaded guilty on Friday to paying Snyder a $12,000 bribe and has agreed to fully cooperate with federal prosecutors. He is expected at some point to testify against Snyder.
Also expected to testify is James Snyder's brother, Porter County Assessor Jon Snyder, who worked with the FBI as a confidential informant, secretly audio taping conversations with his brother and others. Jon Snyder pleaded guilty last year to a misdemeanor federal tax charge and is awaiting a February sentencing date.
Scott Jurgenson, owner of Sampson towing, is also anticipated to testify during the trial. Jurgenson also worked as an undercover agent with the FBI during its investigation into corruption in government tow contracts in the Region.
Several other Portage officials and employees are also expected to take the stand.
Court documents have indicated there will be some 120,000 pages/pieces of evidence introduced during the trial along with some 20 undercover audio tapes.
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