Two former Akron-based FirstEnergy executives and former Ohio Public Utilities Commission Chairman Sam Randazzo are involved in a state legislative scandal that benefited powerful power companies at the expense of Ohio ratepayers. He was indicted on Friday.
The executives, former CEO Chuck Jones and former senior vice president for external affairs Michael Dowling, have been arrested in connection with the massive pay-to-play scandal that has already sent former Ohio House Speaker Larry Householder to federal prosecution. He was indicted for the first time. 20 years in prison.
Ohio Attorney General Dave Yost announced the charges, which include engaging in corrupt practices, at a press conference Monday. He detailed how Randazzo, an appointee of Gov. Mike DeWine, betrayed customers and the people of Ohio to benefit FirstEnergy and its executives, who were paying millions of dollars to public officials. mentioned. Randazzo has repeatedly denied wrongdoing.
And for the first time since the scandal broke in 2020, those accused of paying bribes could be in trouble.
Ohio House Bill 6 Corruption Case:Who is Chuck Jones?
“There can be no justice without holding the check issuers and the ringleaders accountable,” Yost said Monday. “Shout it from the public square to the boardroom, from Wall Street to the loudest. Those crooks who seek to twist government to their private ends will face the destruction of everything they worked for. .”
Mr. Dowling, Mr. Jones and Mr. Randazzo were secretly indicted Friday in Summit County, Akron. The men's attorney told Yost that his client would appear in court Monday morning, but that did not happen. “They didn't deliver on that promise, and I wouldn't be surprised if they didn't deliver on this promise,” Yost said. Their arraignments are scheduled for Tuesday afternoon.
It's not yet clear what Monday's announcement means for the ongoing federal investigation into corruption at the Ohio Statehouse that led to the convictions of Hausder and others. “Today's announcement was solely related to the state's charges, and we will continue to work to pursue justice,” said Ken Parker, U.S. Attorney for the Southern District of Ohio.
What is the plan for House Bill 6?
To the detriment of Ohio ratepayers and his legitimate customer, Industrial Energy Users Ohio, a trade association of large energy users seeking to lower their bills, Randazzo He is accused of working for FirstEnergy.
Randazzo worked as a consultant for FirstEnergy from 2013 to January 2019. In that role, Randazzo earned millions of dollars lobbying key legislators to benefit FirstEnergy. One such payment was the $4.3 million FirstEnergy paid Randazzo in January 2019, just before Mr. DeWine appointed him as chairman of the Ohio Public Utilities Commission.
“It was not a gift; Randazzo would work diligently for FirstEnergy from within the government,” Deputy Attorney General Carol O'Brien wrote in the indictment.
During his time as PUCO Chairman, Randazzo supported FirstEnergy in several ways. He helped craft House Bill 6, which provided more than $1 billion in relief to two nuclear power plants owned by FirstEnergy subsidiaries at the time. Mr. Randazzo also helped add a budget provision called decoupling to temporarily delay interest rate negotiations that could hurt FirstEnergy's profits and help the company weather the recession.
The indictment alleges that both Jones and Dowling worked with Randazzo and benefited financially from Randazzo's assistance in the form of an increase in FirstEnergy's stock price.
“Chuck Jones and Michael Dowling worked with Randazzo to overthrow the state government in ways that greatly enriched themselves,” said Deputy Attorney General Carol O'Brien. “The ultimate betrayal of his legitimate customers, and frankly the people of Ohio, is that FirstEnergy paid $4.3 million to Sam Randazzo, who was seeking appointment to the Public Utilities Commission of Ohio. This money was paid for a purpose: to influence Mr. Randazzo in the performance of his duties as PUCO Chairman.”
Randazzo is also accused of skimming funds from his client, the Ohio Industrial Energy Users Association. The indictment alleges that Randazzo funneled FirstEnergy's settlement with IEU Ohio into two shell companies and received a portion of the proceeds.
Federal investigators recently charged Randazzo with accepting funds from FirstEnergy to support his role as a utility regulator. Randazzo has pleaded not guilty and is awaiting trial.
What are the charges?
Randazzo was charged with 22 felonies, including:
- One count of engaging in corrupt practices, a first-degree felony.
- one count of grand larceny, a first-degree felony;
- two counts of aggravated theft, second-degree felonies;
- One count of bribery, a third-degree felony.
- three counts of wire fraud, first-degree felonies;
- Eight counts of money laundering, third-degree felonies.
- six counts of falsifying records, a third-degree felony;
Jones and Dowling were each charged with:
- Engaging in corrupt practices is a first-degree felony.
- two counts of aggravated theft over $1.5 million, first-degree felonies;
- One count of bribery, a third-degree felony.
- two counts of wire fraud, first-degree felonies;
- four counts of money laundering, third-degree felonies;
Dowling was also charged with two counts of falsifying records, each a third-degree felony. Randazzo's two “shell” companies, the Ohio Sustainability Funding Alliance and the IEU Ohio Bureau, also faced criminal charges.
How does this relate to Householder?
A separate federal investigation resulted in Householder being sentenced to 20 years in prison and former Ohio Republican Party Chairman Matt Borges to five years in prison. They were convicted as part of a massive pay-to-play scheme in which Akron-based FirstEnergy financed Householder's return to power in exchange for House Bill 6, which included more than $1 billion in nuclear bailouts. received.
Previous coverage:Ohio corruption scandal, what you need to know about Larry Householder's conviction
Three others were indicted along with Householder and Borges. The two men pleaded guilty, agreed to cooperate with the investigation, and are currently awaiting sentencing. The third was lobbyist Neil Clarke, who died by suicide in 2021.
Yost was subpoenaed to testify at the trial, but was ultimately not called to the stand.
As the federal case progressed, Yost's Ohio Organized Crime Investigation Commission also investigated whether anyone violated state law. In a call to investors Friday, FirstEnergy officials said they were cooperating with the investigation and had nothing new to report about it.
Yost also filed a civil lawsuit against FirstEnergy and others shortly after his arrest by the FBI in 2020. That case was recently put on hold pending a criminal investigation.
Who are Chuck Jones and Michael Dowling?
FirstEnergy fired Jones, Dowling and another senior vice president, Dennis Chuck, in October 2020 following an internal investigation into the statehouse scandal.
Jones, an Akron native, joined Ohio Edison in 1978 as a substation engineer and was named CEO in January 2015. Mr. Dowling rose through the ranks at Akron-based FirstEnergy, starting in communications in 1986 and rising to senior vice president. before he was fired in October 2020.
Regarding House Bill 6:Who is Michael Dowling and what kind of felony is he accused of?
The Householder trial revealed how Jones and Dowling coordinated with top lawmakers to pass the nuclear bailout. The two also met with Randazzo at his German Village condominium shortly before he took over as PUCO chairman.
FirstEnergy has completely revamped its board of directors and several executives since the scandal broke in 2020. The company agrees to pay a $230 million penalty as part of a 2021 deferred prosecution agreement in which FirstEnergy admits to bribing Householder and Randazzo and assists in the ongoing federal investigation. Agreed. investigation.
“FirstEnergy has taken significant steps moving forward, including reconfiguring our senior leadership team and instilling a culture of ethics, integrity and accountability at every level of our organization,” FirstEnergy spokeswoman Jennifer Young said on Monday.
Read the indictment here:
Stephanie Warsmith of the Akron Beacon Journal contributed to this article.
Jesse Balmert is a reporter for the USA TODAY Network's Ohio bureau, serving the Columbus Dispatch, Cincinnati Enquirer, Akron Beacon Journal and 18 other affiliate news organizations across Ohio..
