United States District Court, N.D. Ohio, Eastern Division
MEMORANDUM OF OPINION & ORDER [RESOLVING ECF NOS.
20, 21, 22, & 32]
Y. Pearson United States District Judge
before the Court are four motions, three from Defendant
Charles David Snyder and one from the Government: (1)
Defendant's Motion to Compel (ECF No. 20); (2)
Defendant's Motion to Dismiss the Indictment (ECF No.
21); (3) Defendant's Motion to Disclose Grand Jury
Transcripts (ECF No. 22); and (4) the
Government's Motion to Quash Subpoenas Issued to the IRS
and DOL (ECF No. 32). The Government has responded
to all three of Defendant's motions. See ECF Nos.
25, 26, & 27. Defendant has responded to
the Government's motion. ECF No. 35. Defendant
has filed a reply to his motion to disclose grand jury
transcripts. ECF No. 34. After receiving new
evidence through discovery, Defendant has filed a
supplemental brief to his motions to disclose grand jury
transcript and to dismiss indictment. ECF No. 44. In response
to Defendant's supplement, the Government has filed a
supplemental brief of its own. ECF No. 49. For the reasons
that follow, Defendant's motions are denied, and the
Government's motion is granted in part.
Government has indicted Defendant on seven counts of Willful
Failure to Collect, Account for, or Pay Over Taxes, 26 U.S.C.
§ 7202, 18 U.S.C. § 2, and one count of
Embezzlement from an Employee Benefit Plan, 18 U.S.C.
§§ 664, 2. ECF No. 1. The indictment
alleges Snyder embezzled approximately $130, 416.75 from his
company's 4Ol(k) retirement plan between July 31, 2010
and December 19, 2012. Id. at PagelD #: 8. The
Department of Labor filed an ERISA suit against Snyder and
others on November 7, 2013. Perez v. Snyder, 1:13CV2474
(N.D.Ohio) (Boyko, J.). The parties resolved the lawsuit
by entering into a consent judgment. ECF No. 33 of
was chairman, president, and chief executive officer of
Attevo, Inc., a technology consulting services corporation.
ECF No. 1 at PagelD #: 1. Defendant is alleged to
have failed to pay taxes Attevo owed and embezzled money from
Attevo's 401(k) retirement plan.
discovery in the present case, the Government provided over
41, 000 pages of documents under Criminal Rule 16. ECF
No. 25 at PagelD #: 171. After the Government made this
production, Defendant requested 12 categories of materials he
claimed the Government did not produce. ECF No.
25-2. The list is as follows:
1. Copies of all subpoenas issued;
2. Copies of all grand jury testimony;
3. Copies of all Memorandums of Interviews (MOI's);
4. Entire Attevo IRS "Archive History Transcript"
not just IRS Revenue Officer Evelyn Terry;
5. IRS "Archive History Transcript" for all related
entities, including, but not limited to, Cirric, Ruralogic,
Awerrock and Superior Tech Partners;
6. IRS "Archive History Transcript" for C. David
Snyder, including all trust fund penalty investigation
7. IRS "Archive History Transcript" for Joseph
Burmester, including all trust fund penalty investigation
8. Copies of all DOL notes and internal memoranda related to
its investigation of the Attevo/Ruralogic 4Ol(k) Plan;
9. Copies of all memoranda related to Attevo/Ruralogic 401(k)
Plan employee withholdings, deposits and dates corresponding
10. Copies of all notes and recordings related to DOL civil
suit styled as Thomas E. Perez, Sec. of Labor v. Charles
David Snyder, et al, No. 13-cv-2474;
11. Copies of all IRS memoranda and notes related to the
transfer of Form 941 designated payments through the EFTPS
online payment system; and
12. Copies of all documents obtained from payroll companies
utilized by Attevo and Ruralogic.
Id. at PagelD #: 191. After receiving the request,
the Government asked Defendant for authority to support the
request. Id. at PagelD #: 190-91. Defendant complied
with this demand, and the Government provided further
response. Id. at PagelD #: 188-90. In its final
response, the Government explained that it would not produce
documents related to requests 1-3, because it believed it had
no authority to do so, and that requests 4-12 only applied to
documents held by the prosecution team, not the entire
federal government. Id. at PagelD #: 188.
Grand Jury Testimony
has requested grand jury transcripts on the theory that
"some form of conduct must have occurred before the
Grand Jury in order for the Grand Jury to find that
[Defendant] willfully failed to pay Attevo's payroll
taxes for the first and third quarters of 2010." ECF
No. 22atPageID#: 151.
November 5, 2010, Defendant and Joseph Burmester wrote a
letter to Evelyn Terry, a revenue officer at the IRS. ECF
No. 27-1. In that letter, Defendant acknowledged that a
payment Attevo had made could "be credited to a prior
quarter, " not the period in which it made the payment.
Id. at PagelD #: 250.