Day seven of the federal trial of former Mayor Jasiel Correia focused on testimony from those who worked along side Corriea in the development and operation of his SnoOwl app company.
First up was software developer Joshua Harding. Harding and his company Statewide Software were approached by Correia in 2014 to take over the development of SnoOwl. Harding and two other employees worked on the initial development of the application.
Harding and his two associates were interested in acquiring shares of the company and were asked by Correia to join SnoOwl as employees in 2015. As Correia was making his first run for mayor, Harding testified that he and his associates were no longer being paid for their work. After Correia was elected mayor in November 2015, Harding became concerned over the lack of payment and the future of the application. He reached out to Correia and company chief operating officer (COO) Nick Bernier seeking an update but did not receive a response. Harding also said he contacted investors Mark Eisenberg and Dr. David Cabeceiras seeking information.
Harding and his associates no longer worked to develop SnoOwl in late 2015 and were eventually reimbursed for their past work in August of 2017.
As with previous witnesses, defense attorney Kevin Reddington focused his cross-examination on why, when Correia was running for mayor, Harding did not follow up on his concerns about the company directly with Bernier. who, Reddington claimed, was effectively in charge of SnoOwl. Harding said he was unaware of Bernier’s role with the company and continued to attempt to communicate with Correia.
Bernier was called as the next witness just before 11:00 am. The local tax and energy attorney said he first met Correia in 2013 when both men were running for Fall River City Council. He was asked to work in conjunction with attorneys working on incorporating SnoOwl in late 2014. He was asked to work on overseeing the incorporation process and manage the company finances as COO in exchange for a 15% share of founders’ stock. He did not receive a salary for what he considered part-time work. His goal for the company was for venture capital to be raised to allow him to draw a salary or benefit from the company being sold.
As Correia ran for mayor in 2015 Bernier said he talked to him over concerns about the financials of the company. According to bank statements entered into evidence by the prosecution, the company had a negative bank balance through the early months of 2016.
After the 2015 election Bernier was interested in becoming the City of Fall River’s Corporation Counsel. Correia did not appoint him to the position. Correia did find Bernier a job with the Fall River Housing Authority.
Bernier also introduced Correia to Genoveva Andrade, who became Correia’s campaign manager and future mayoral chief of staff. Andrade had also been charged in the case in relation to the allegations Correia extorted funds from potential recreational marijuana businesses seeking mayoral approval. Andrade has pled guilty to the charges and may appear as a witness for the prosecution when that portion of the trial takes place.
Bernier resigned from his position with SnowOwl in June of 2016.
During cross-examination, Reddington asked Bernier if he was disappointed for not being appointed corporation counsel. Bernier said he was.
Reddington also pressed Bernier on oversight of SnowOwl in his role at COO. He asked if Bernier looked at the company’s financial record, which Bernier said he did not. Reddington accused Bernier of turning a blind eye to the financials. Bernier responded by saying Correia denied him access to the financial reports.
Next on the stand was Dr. Stafford Sheehan. Sheehan was approached by Cabeceiras to help with the operation of SnoOwl in late 2015 around the time Correia was elected mayor and questions arose about the viability of the company.
Sheehan had an interest in becoming CEO of SnoOwl as Correia began his term as mayor. A memorandum of understanding (MOU) was drafted in April of 2016 proposing that Sheehan become the CEO with Correia stepping down as CEO to become chief innovation officer. Before accepting the role of CEO Sheehan sought access to a number of corporate documents, including financial reports. Sheehan did not receive the required financial documents to execute the MOU. Sheehan did not become CEO.
“I was very concerned,” Sheehan said.
The trial will resume Thursday at 9:30 am.
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