Pevita Pearce
Former Portage Mayor James Snyder has filed an appeal seeking a new trial and challenging the denial of his motions for acquittal, following his three-year probation sentence for obstructing the Internal Revenue Service (IRS). The appeal, filed Monday, marks the latest development in a protracted legal saga that has spanned nearly a decade and involved multiple federal charges, including bribery allegations that were partially vindicated by the U.S. Supreme Court.
U.S. District Court Northern District of Indiana Chief Judge Holly Brady handed down the sentence on March 10, which coincidentally fell on Snyder’s 48th birthday. The probation is accompanied by a restitution order of $78,111.57, representing the outstanding amount owed to the IRS. Snyder is to make monthly payments of $570, and court records indicate he has already paid $18,000 towards this debt. The appeal, detailed in a two-page notice, specifically targets the conviction for obstructing the IRS and argues for a new trial based on alleged legal errors during the proceedings. Snyder’s legal counsel, Joshua Minkler, has not yet provided a statement regarding the specific grounds for the appeal.
During the sentencing hearing, Snyder acknowledged the gravity of his actions, stating to the court, "this crime is extremely serious." He described the indictment, trials, and ensuing media attention as having taken a significant toll on him and his family. Snyder, a father of four, emphasized his commitment to his family and his work at his church, expressing a desire to move past the legal challenges. When asked by his attorney how the ordeal had impacted him, Snyder responded that it had "humbled him," adding, "Every time you seem to fight, you think you win and you don’t. I just want to be done, get it right and get it behind me."
Background of the Legal Proceedings
The legal challenges facing James Snyder began in November 2016 when he was indicted on one count of defrauding the IRS and two counts of bribery. The bribery charges were related to alleged misconduct concerning towing contracts and garbage truck contracts during his tenure as mayor of Portage, a position he held from 2011 to 2019. A Republican, Snyder was reelected in 2015 but his second term was cut short by his federal conviction.
A jury in the U.S. District Court in Hammond acquitted Snyder on the towing contract bribery charge. However, he was convicted on the garbage truck bribery charge. This conviction was later subject to scrutiny by the U.S. Supreme Court. In a significant ruling in June 2024, the Supreme Court determined that a $13,000 payment Snyder received in connection with a garbage truck contract was a gratuity, not a bribe, because the payment was made after the contract was awarded, not before. The Supreme Court remanded the case to the lower courts for further proceedings.
The IRS obstruction charge, which remains a central point of contention, stemmed from Snyder’s personal business dealings and was not directly tied to his mayoral duties at the time of the offense. Prosecutors argued that between January 2010 and April 2013, Snyder engaged in a scheme to hinder the IRS’s efforts to collect his unpaid business and personal taxes.
The IRS Obstruction Scheme Detailed
According to sentencing memoranda filed by prosecutors, the obstruction scheme originated with Snyder’s creation of First Financial Trust Mortgage LLC (FFTM) in 2007. This mortgage loan origination business was responsible for withholding portions of employee paychecks for various taxes, including payroll, income, Medicare, and Social Security. However, for the tax years 2007, 2008, and 2009, Snyder allegedly failed to remit these withheld funds to the IRS. Furthermore, he did not file the necessary IRS forms in a timely manner.
By November 2009, the IRS had identified that FFTM owed approximately $97,000 in unpaid taxes. During this period, Snyder reportedly paid himself around $110,000 from the company’s bank account.
The situation escalated in January 2010 when Snyder entered into an employment agreement with GVC, a mortgage company. He established a "branch office" for GVC operating out of his existing FFTM premises. Under this arrangement, GVC officially hired Snyder as an employee and assumed responsibility for paying all his employees. In 2010 alone, GVC paid Snyder approximately $141,891.27.
Further complicating matters, prosecutors alleged that in 2010, Snyder began creating fraudulent invoices from a company named SRC, ostensibly for "consulting" work billed to FFTM. Between 2010 and 2012, GVC paid SRC over $400,000, and SRC, in turn, received deposits totaling more than $640,000 within the same timeframe. Prosecutors characterized this intricate financial maneuvering as a "shell game" designed to conceal FFTM’s true financial standing from the IRS, thereby obstructing the agency’s tax assessment and collection responsibilities.
On his personal tax returns, Snyder owed the IRS $31,369 for the tax years 2005, 2006, and 2007. However, in March 2010, under penalty of perjury, he declared his personal tax debt as uncollectible and offered a settlement of $1,000. Crucially, prosecutors stated that Snyder failed to disclose his employment and income from GVC to the IRS, nor did he report his ownership of SRC or its associated bank accounts. For instance, the March 2010 tax form did not reflect the $141,891.27 in wages he received from GVC.
The total tax loss attributed to Snyder’s actions in this case is calculated at $125,149.57, comprising $96,111.57 that FFTM failed to remit and $29,038 in Snyder’s personal tax liabilities.
Sentencing Arguments and Appeal Grounds
During the sentencing phase, prosecutors had recommended a prison sentence of 21 months. In contrast, Snyder’s attorney, Joshua Minkler, advocated for a sentence of three years of probation, or probation coupled with home confinement, as an alternative to incarceration.
This is not the first time Snyder has sought post-conviction relief. In October 2025, he had previously filed for a new trial on the IRS fraud conviction, a request that federal prosecutors opposed, deeming it untimely and without merit. The current appeal broadens the scope of challenges, seeking a new trial on the IRS obstruction charge and specifically contesting the court’s earlier denials of his motions for acquittal and for leave to file a motion for a new trial related to that charge.
The IRS charge, unlike the bribery allegations that saw partial vindication at the Supreme Court, has remained a standalone conviction that Snyder is now actively contesting through his appeal. The implications of this appeal could potentially lead to a retrial or a reconsideration of the sentence, depending on the arguments presented and the appellate court’s findings. The protracted nature of these legal battles underscores the complexities of federal tax law and the significant consequences of non-compliance and alleged obstruction. The outcome of Snyder’s appeal will be closely watched, particularly in the context of his former public service and the substantial financial penalties involved.
