Thursday, February 14, 2019

02142019 - NEWS ARTICLES - PORTAGE MAYOR JAMES SNYDER GUILTY OF FEDERAL CHARGES


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02142019 - NEWS ARTICLES - PORTAGE MAYOR JAMES SNYDER GUILTY OF FEDERAL CHARGES

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Juror from Portage mayor's bribery trial: 'No one thought he was not dirty'
Chicago Tribune
February 15, 2019
https://www.nwitimes.com/news/local/govt-and-politics/james-snyder-s-legacy-leaves-a-mix-of-scandal-and/article_b92909d0-b26e-5694-8aaa-ce8d0f1c24e1.html




For the jury that convicted former Portage Mayor James Snyder, the decision was “obvious” on two guilty verdicts but reasonable doubt led to one not guilty verdict.

Erin Guerra, one of the Snyder jurors, talked about what went into the four women and eight men of the jury finding the now former Portage mayor guilty of bribery for taking a kickback off garbage truck contracts and obstructing the IRS, but cleared him of a second bribery count that made allegations of pay-to-play towing. Guerra is a former Post-Tribune employee.

Guerra said during deliberations, the jurors worked their way through each count, listened to each other’s perspectives on the facts of the case, and eventually reached unanimous verdicts.

For both bribery counts, Guerra said the jury was split at the beginning.

“No one thought he was not dirty,” Guerra said.

Guerra said the jury argued over reasonable doubt on both bribery counts.

After a 19-day trial, Snyder was convicted Thursday. His sentencing is tentatively set for May.

When the jury began deliberations Wednesday morning, they first tackled the obstructing the IRS charge.

Guerra said the jury quickly made up its mind, but still discussed the charge, even though they didn’t need to.

“It was very obvious,” Guerra said.

Prosecutors said 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. Snyder had money flow through a company called SRC, but did not tell the IRS about that bank account.

“We could not see any good purpose for the account other than to hide assets,” Guerra said.

With the garbage truck deal, Guerra said all the facts gathered up were against Snyder.

Prosecutors said 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 Peterbilt, which was then owned by Robert and Steve Buha.

Great Lakes Peterbilt is now owned by a different firm.

Defense attorneys said Snyder used his experience in offering health insurance to city employees through the Affordable Care Act, and making technology upgrades to advise Great Lakes Peterbilt about making similar changes.

Some jurors almost bought that Snyder was consulting for the Buhas, Guerra said, but the timing of the payment and the purchase order the then-mayor signed looked suspicious.

The defense couldn’t even decide what Snyder was consulting on, Guerra said.

Throughout the trial, Snyder’s attorneys said he consulted on health care and information technology, but testimony from defense witnesses told jurors it was about phones, payroll, or referring Great Lakes Peterbilt to a tax attorney.

Guerra said a contract for the work couldn’t be produced, either by a subpoena from federal investigators or by the defense.

The bulk of deliberations centered on allegations of pay-to-play towing, she said.

Federal prosecutors said the mayor allegedly solicited money from John Cortina, of Kustom Auto Body in Portage, and “Individual A” and gave them a towing contract for Portage.

Cortina, 79, who was indicted alongside the mayor, in January 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’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 Snyder considered the money a loan from Cortina, a friend and political supporter, to help cover his legal fees.

Part of the first day and the entire second day centered on that one count, Guerra said. Jurors listened to some of the undercover recordings, read over transcripts of those conversations, and pored over the evidence, which was packaged in roughly 10 binders and a large box.

The jurors deliberately tried to see other people’s perspective on the charge as they discussed it, Guerra said.

Guerra said there wasn’t a smoking gun. She said there was concern about how much time had lapsed from the time of the payment to when Cortina and Jurgensen got on the list, and that Snyder and Cortina had known each other for several years.

“We thought it was fishy,” Guerra said. “It feels wrong but the evidence is just not there.”

When the trial was over, Guerra said she started reading articles about the case, and watched a video of Snyder discussing the verdict after it was announced.

“Today, we were able to knock one of the charges out. Thankfully the jury can see through that one,” Snyder said, after the verdict was announced. “The journey is still ongoing. We have two more counts to deal with.”

Guerra said she was surprised to see what Snyder told reporters outside the courthouse.

“Not one of us thought you were innocent,” Guerra said. “You weren’t technically guilty.”

Snyder said he will appeal the convictions.

“It’s weird making a decision knowing the whole thing will be appealed,” Guerra said.

When Guerra arrived at the federal courthouse in Hammond for jury selection on Jan. 14, many prospective jurors were worried about the fact the trial could run for a month. Guerra said when the judge said what case the jury would hear, she thought, “OK, at least it’ll be interesting.”

“I’m glad I did it,” Guerra said.

The jurors spent much of deliberations in a room that left just enough room for a conference table and chairs. The jurors had a white board they used to work through the charges, Guerra said, and a “nice, big” window.

When they were first picked, Guerra said it was quiet as the jurors hadn’t gotten to know each other yet, and they weren’t used to not having their phones accessible. As time wore on, Guerra said the jurors started joking around to help pass the time.

The judge, staff and court security officers were accommodating, Guerra said,

“They did everything they could to make sure serving was not a burden,” Guerra said.












Jury finds Portage mayor guilty of bribery, obstructing the IRS
Chicago Tribune
February 14, 2019
https://www.chicagotribune.com/suburbs/post-tribune/news/ct-ptb-portage-mayor-snyder-verdict-st-0215-story.html





A federal jury Thursday found Portage Mayor James Snyder guilty of bribery and obstructing the IRS.

Snyder, 38, 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 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.

The verdict came on the 19th day of Snyder’s trial, and after the four women and eight men on the jury deliberated for nearly 12 hours.

“It’s been a really long road,” Snyder said, after the verdict was announced.

“Today, we were able to knock one of the charges out. Thankfully the jury can see through that one,” Snyder said. “The journey is still ongoing. We have two more counts to deal with.”

Snyder’s defense attorneys had indicated in court that they would appeal the conviction.

“The jury had their facts in front them and made the decision the best they could do with what they had in front of them,” Snyder said. “We’ll continue to work through this.”

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. Snyder’s sentencing is tentatively set for May 14, according to court documents.

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.

The jury arrived in Judge Joseph Van Bokkelen’s courtroom to announce the verdict just after 2:30 p.m. Thursday.

Van Bokkelen asked the jury’s foreman if they had reached a verdict.

“Yes, we have come up with a verdict,” the foreman said.

As the jury’s verdict was announced in court, Snyder was first cleared of one count of bribery before the guilty verdicts on the other two counts were read.

Snyder kept his eye affixed on the judge as the verdict was read, his wife, family and a group of friends sat in the courtroom behind him.

Snyder, a Republican, was indicted in November 2016 and charged with allegedly violating a federal bribery statute and obstructing or impeding the IRS.

Prosecutors say 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 Peterbilt, which was then owned by Robert and Steve Buha.

Great Lakes Peterbilt is now owned by a different firm.

Defense attorneys say that Snyder used his experience in offering health insurance to city employees through the Affordable Care Act, and making technology upgrades to advise Great Lakes Peterbilt about making similar changes.

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.

Snyder was cleared of taking a bribe in an alleged pay-to-play towing scheme.

Federal prosecutors said the mayor allegedly solicited money from John Cortina, of Kustom Auto Body in Portage, and “Individual A” and gave them a towing contract for Portage.

Former Lake County Sheriff John Buncich, a Democrat, was indicted the same day as Snyder is a similar towing scheme. Buncich was found guilty and began serving a 15-year 8-month sentence in January 2018.

Cortina, 79, who was indicted alongside the mayor, in January 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’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.

Snyder has maintained his innocence during the more than two years since he was indicted.












SNYDER GUILTY
UPDATE: Felony bribery conviction knocks Portage mayor out of office
NWI Times
February 14, 2019
https://www.nwitimes.com/news/local/crime-and-courts/update-felony-bribery-conviction-knocks-portage-mayor-out-of-office/article_e1bb6742-0ec0-543a-961d-2ffd17c715cb.html







HAMMOND — A federal jury's verdict ensured two title changes for James Snyder Thursday: He is now the former Portage mayor and is a convicted felon.

After a trial spanning three weeks, the Hammond federal court jury found Snyder guilty of two felonies — one bribery count and another tax-related felony. The panel acquitted Snyder of a third bribery charge.

The bribery conviction is punishable by up to ten years in prison, while the obstruction count is punishable by up to three years, according to the U.S. Attorney's Office, Northern District of Illinois, which has been overseeing the case.

After walking from the Hammond courthouse, Snyder highlighted the dismissed charge.

Standing on the courthouse plaza holding the hand of his wife, Deborah, the disgraced former mayor said the jury "knocked one of the charges out."

But in posting the guilty verdict to two other felony charges, the jury also knocked Snyder out of the mayor's office.

Under Indiana law, a felony conviction immediately removes an elected official from public office.

Snyder, who was in the last year of his second term, will temporarily be replaced by Portage City Council President Sue Lynch, D-at-large.

She will serve as acting mayor until Portage Republican precinct committee members can elect someone to fulfill Snyder's term in a special caucus. Snyder's existing term was set to expire Dec. 31.

Jurors found Snyder guilty of accepting a $13,000 bribe from former Great Lakes Peterbilt owners Bob and Steve Buha in exchange for some $1.25 million in garbage truck bids. They also found him guilty of a tax obstruction charge in which he was accused of creating a sham company to hide money from the IRS.

Snyder was acquitted on a third charge, which alleged he accepted a $12,000 bribe from former co-defendant John Cortina and Samson Towing owner Scott Jurgensen, also an undercover FBI informant, to put the duo on the city's tow list.

Snyder contended throughout the 19-day trial the funds were a $2,000 contribution to his campaign committee and a $10,000 loan to his campaign.

Cortina pleaded guilty last month to a felony charge of paying Snyder the bribe and is scheduled to be sentenced in April.

Jurors deliberated nearly 12 hours over two days in the trial, which saw more than 20 witnesses and more than 15 days of testimony.

The investigation into Snyder began in September 2013 and led to a November 2016 grand jury indictment of Snyder and Cortina.

"This has been a really long road," Snyder said as he left the courthouse.

As the verdict was read, neither Snyder, his wife nor his parents showed any emotion to the convictions.

Snyder's contempt for the government prosecution, however, was evident.

Following the reading of the verdict, U.S. District Court Judge Joseph Van Bokkelen and others discussed Snyder's decision to waive a jury hearing on the forfeiture of $13,000 resulting from the bribery conviction.

Van Bokkelen, who said he had never dealt with the issue in a similar way, asked Assistant U.S. Attorney Philip Benson for advice.

Snyder asked the judge why he was asking the government prosecutor for advice and not Snyder's own attorney.

"It's really hard to take his word for anything," Snyder said, directing his comment toward Benson.

Unlike during Tuesday's closing arguments, which saw a packed courtroom of Snyder's friends and family, only a handful of family members and friends were present when the verdict was read Thursday.

Snyder said the jurors saw beyond the allegations in the towing-related bribery charge, which led to an acquittal on that charge.

He said he will continue to fight the conviction, presumably through appeal.

One of his attorneys, Jackie Bennett, said during the afternoon courtroom session they have "reserved a number of issues for appeal."

Snyder is scheduled to be sentenced at 11 a.m. May 24 before Van Bokkelen.












NW Indiana mayor convicted of taking bribe that impacted city contracts
Chicago Sun-Times
February 14, 2019
https://chicago.suntimes.com/crime/nw-indiana-mayor-convicted-of-taking-bribe-that-impacted-city-contracts/


A federal grand jury found a northwest Indiana mayor guilty of bribery Thursday after he allegedly solicited and took a payoff that influenced lucrative city contracts.

Portage Mayor James Snyder, 38, was found guilty of the bribery charge, as well as a single count of obstruction of internal revenue laws, according to a statement from the U.S. Attorney’s Officer for the Northern District of Illinois. He was acquitted of an additional count of bribery.

From 2012 to 2014, Snyder solicited and pocketed a $13,000 check that was used to influence a series of contracts the city awarded, including contracts approved by the Portage Board of Works that totaled more than $1.1 million, prosecutors said.

Snyder was also convicted of hiding cash to avoid paying the IRS personal taxes and taxes owed by his mortgage business, Financial Trust Mortgage LLC in Portage, prosecutors said.

In addition to secretly diverting funds from his business to a sole proprietorship he created, Snyder also submitted tax forms that failed to disclose the existence of the holding and its bank account, among other things, prosecutors said.

The bribery conviction is punishable by up to 10 years in prison, while the obstruction count carries a maximum prison sentence of 3 years, prosecutors said.












Portage Mayor Convicted Of Accepting $13000 In Bribes
CBS Chicago
February 14, 2019
https://chicago.cbslocal.com/video/4029467-portage-mayor-convicted-of-accepting-13000-in-bribes/













Northwestern Indiana mayor convicted of bribery, tax charge
WGN-TV
February 14, 2019
https://wgntv.com/2019/02/14/northwestern-indiana-mayor-convicted-of-bribery-tax-charge/
HAMMOND, Ind. — A jury has convicted a northwestern Indiana mayor of one count each of bribery and tax obstruction while acquitting him of a second bribery count.

The jury returned the verdicts Thursday against 38-year-old Portage Mayor James Snyder during its second day of deliberations. Under Indiana law, a felony conviction immediately removes an elected official from public office.




Snyder, a Republican, was found guilty of accepting $13,000 from a Portage company after it received contracts worth more than $1.25 million for garbage trucks. The tax charge stems from a mortgage company he once managed and back personal income taxes.

He was acquitted of a charge alleging he solicited $12,000 from towing operators.

Snyder has maintained his innocence. His attorneys indicated he will appeal the convictions.

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