Portage mayor's defense says charges based on lies; prosecutors say guilty verdict is deserved
By Craig Lyons
Portage Mayor James Snyder arrives with his representation to the first day of his trial at the federal courthouse in Hammond on Monday, Jan. 14, 2019. (Kyle Telechan / Post-Tribune)
The defense for Mayor James Snyder has not been "treated fairly" as the government brought false charges, but prosecutors say it is the mayor who wronged the citizens of Portage by allegedly taking bribes.
During closing arguments Tuesday, Snyder's defense sought to show that he did nothing wrong and that the government took information from the mayor's political opponents to find something to charge him with. Federal prosecutors say Snyder "didn't think the rules applied" to him, and moved from scheme to scheme to enrich himself.
The jury will begin its deliberations Wednesday morning.
Defense attorney Jackie Bennett Jr. said the defense has found holes in every aspect of the prosecutors' case.
"This man has not been treated fairly by his government," Bennett said.
Assistant U.S. Attorney Philip Benson said that by taking bribes and obstructing the IRS, it is the mayor who wronged Portage and its citizens of honest government.
Closing arguments came after 15 days of testimony and evidence, as prosecutors worked through a three-count indictment, but the defense worked to show the men and women of the jury that nothing criminal happened.
"We have proven James Snyder is guilty," said Assistant U.S. Attorney Jill Koster.
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.
Cortina, who was indicted in November 2016 alongside the mayor, in January pleaded guilty to a charge that he paid bribes to Snyder to get a spot on the tow list.
Koster said the jury heard Cortina say that what he and Scott Jurgensen, of Samson's Towing, was "juice money."
Koster said Snyder, by 2016, knew he was under investigation by the FBI and IRS, so put off putting Samson's on the tow list, but the tapes indicate they all knew it was coming.
"They were going to take Waffco off and they knew it a month in advance," Koster said.
Bennett said the jury heard no evidence that Snyder knew the payment to be anything more than a loan from Cortina to help pay for the mayor's legal fees. Bennett said Cortina had been a long-time friend and political supporter.
Snyder had no knowledge that $6,000 of the $12,000 came from Jurgensen, Bennett said, and that Cortina's comments about it being a bribe are false. Bennett said $2,000 went otward Cortina's membership in the mayor's round table, and the $10,000 was properly documented in campaign filings as a loan.
"There's no evidence that James Snyder ever knowingly accepted money from Scott Jurgensen," Bennett said.
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, then owned by Steve and Robert Buha, for garbage trucks.
Great Lakes Peterbilt is now owned by a different firm.
Koster said Snyder put Randy Reeder, the assistant superintendent of the streets department, in charge though he lacked qualifications for the job.
"He was a yes man," Koster said.
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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 specs seeking new, unused equipment.
The mayor claims that the $13,000 payment was for consulting work, Koster said, but testimony showed that Snyder was not capable of consulting on health care or information technology. Koster said no one from Great Lakes Peterbilt could produce a contract, work product or anything that showed Snyder performed any work for that payment.
"The $13,000 payment, ladies and gentlemen," was not for consulting," Koster said.
Bennett said the investigation was triggered by lies and the government pushed forward to find something.
Bennett said the mayor had nothing to do with the development of specs or bidding process for the garbage trucks. Bennett said Snyder told Reeder to move the automation of trash pickup forward and to do it quickly.
The defense has said the contracts went to Great Lakes Peterbilt as it was the lowest and most responsive bidder.
Koster said that Snyder ran a mortgage company and did not rack up tens of thousands of dollars that he owed the IRS.
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.
The defense said the tax charge was nothing more than "smoke and mirrors" and that the jury wasn't getting the "full picture."
"There's no evidence of intent to impede or obstruct," said defense attorney Neil Brackett.