Lake County Sheriff John Buncich, Public Corruption, Indiana 2016

Public Corruption Charges Rock Lake County

HAMMOND, Indiana - United States Attorney David Capp announced today the return of two public corruption indictments; one naming Lake County Sheriff John Buncich and the other naming Portage Mayor James Snyder.

Buncich, his chief deputy Timothy Downs, and William Szarmach were named in a multi-count indictment alleging a deprivation of honest services and receipt of illegal money in connection with towing contracts in Lake County.

According to the indictment, from February 2014 continuing into October 2016, Buncich, Downs, and Szarmach devised a scheme to deprive the citizens of Lake County of their right to the honest services of the sheriff’s office. The scheme was designed to enrich Buncich personally and his campaign committee, known as Buncich Boosters.

The indictment details a number of checks and cash payments, often collected by Downs, from Szarmach and an Individual A in exchange for Buncich awarding county towing business and towing in the City of Gary for ordinance violations. Individual A is the owner of a tow truck business who voluntarily came forward and cooperated with the United States during the course of this investigation.

Buncich is also charged individually with a violation of the federal bribery statute. Specifically, Buncich is alleged to have corruptly solicited, demanded, and received over $25,000 in cash and $7,000 in checks in exchange for favorable actions by Buncich regarding the towing contracts.

The second indictment names Portage Mayor James Snyder and John Cortina. Snyder was first elected as mayor in 2011 and was re-elected to a second four-year term in 2015. Cortina owns and operates a towing business, Kustom Auto Body, 5409 US Highway 6 in Portage.

Snyder and Cortina are both charged with a violation of the federal bribery statute. Snyder is alleged to have corruptly solicited and received two checks totaling $12,000 from Cortina and Individual A, in exchange for a towing contract in the City of Portage. Cortina is charged with corruptly offering those checks to Snyder.

Snyder is also charged with a second violation of the federal bribery statute. That count alleges that between January 1, 2012, and January 10, 2014, Snyder corruptly solicited and agreed to accept a bank check in the amount of $13,000 in connection with Portage Board of Works contracts, a Portage Redevelopment Commission project, and other consideration.

The final charge against Snyder alleges obstruction of the internal revenue laws. This count sets forth an alleged scheme, undertaken by Snyder between January 2010 and April 2013, to obstruct and impede the IRS’s collection of personal taxes he owed and payroll taxes owed by his mortgage business, First Financial Trust Mortgage, LLC. Snyder is alleged to have diverted funds away from FFTM to a sole proprietorship he created, and submitted three forms to the IRS which failed to disclose, among other things, the existence of the sole proprietorship and its bank account – all during a time when the IRS was attempting to collect the aforementioned tax debt.

United States Attorney Capp stated, “These investigations are not over. Our public corruption team will continue its work, particularly into the towing contracts in both Lake and Porter counties.”

Anyone with information related to these public corruption charges is encouraged to call the FBI at 219-769-3719.

Defendant: John Buncich, Lake County Sheriff

Crime: Deprivation of honest services, receipt of illegal money, and violation of the federal bribery statute

City and State: Hammond, Indiana

Date: 2014-2016

Sentence: Indicted

Dollar Amounts: Over $25,000 in cash and $7,000 in checks

Source: https://www.justice.gov/usao-ndin/pr/lake-county-sheriff-john-buncich-and-portage-indiana-mayor-james-snyder-indicted