Two former executives from an energy company surrendered to authorities on Friday in connection with their alleged involvement in Ohio’s largest corruption scandal to date. The scandal revolved around the payment of over $60 million in bribes to secure a $1 billion bailout for FirstEnergy’s struggling nuclear plants and to eliminate regulatory obstacles. The scandal has already led to the imprisonment of a prominent Ohio politician.
Former FirstEnergy CEO Chuck Jones, 69, and former Senior Vice President of External Affairs Michael Dowling, 60, were charged under the Racketeer Influenced and Corrupt Organizations Act, a law designed to combat organized crime and target drug kingpins. The FBI Cincinnati Special Agent in Charge Elena Iatarola stated that the alleged racketeering scheme defrauded Ohioans and enriched the defendants, emphasizing the FBI’s commitment to combat political corruption and corporate fraud.
The indictments of these executives are the latest development in a case that has gripped the state since the initial indictment of former Ohio House Speaker Larry Householder and four others linked to the scheme in 2020. Householder received a 20-year sentence in 2023 for his role in orchestrating the scheme, while others involved are either in prison, awaiting sentencing, or have died by suicide.
Ohio Governor Mike DeWine declined to comment on the indictments during a press conference. Defense attorney Steve Grimes was seen speaking with his client, Michael Dowling, before Dowling’s arraignment in Summit County. Prosecutors allege that Jones and Dowling engaged in bribery, money laundering, and obstruction to boost the company’s stock price and benefit themselves. Both men were terminated by FirstEnergy in October 2020.
FirstEnergy previously admitted guilt to bribing Householder and former Public Utilities Commission of Ohio Chairman Sam Randazzo, who were key individuals in positions to assist the company. The company paid a substantial fine and agreed to cooperate with federal investigators. FirstEnergy expressed that it has evolved into a stronger, reformed company over the years.
Householder’s involvement in the scheme included recruiting Republicans to secure control of the House and passing House Bill 6, which included the bailout for the nuclear plants. Former Ohio Republican Party chairman Matt Borges was sentenced to five years in prison for his involvement. Randazzo was accused of receiving a bribe to facilitate the passing of the law and to ease regulatory challenges for FirstEnergy. The case against Randazzo was dropped after his death by suicide.
The scandal has had significant repercussions, with convictions, imprisonments, guilty pleas, and tragic deaths among those involved. The latest development marks a significant shift, as federal authorities have now charged the individuals behind the bribery, rather than just the recipients.
The indictment paints a picture of how FirstEnergy executives utilized money and influence for their own gain at the Ohio Statehouse. Following the passage of House Bill 6, Jones forwarded a photoshopped rendition of Mount Rushmore, depicting Randazzo’s and other individuals’ faces on it. The accompanying caption stated: “HB 6 F*** ANYBODY WHO AINT US.”
In October 2016, the executives assured the FirstEnergy board that the company’s value would see a 27% increase. However, at the same time, the utility was grappling with a sluggish energy market and substantial losses amounting to hundreds of millions of dollars, primarily from FirstEnergy Solutions, its nuclear power subsidiary. In an effort to revamp the company’s fortunes, Jones and his team pursued bailouts from federal and state authorities.
By 2018, FirstEnergy Solutions had filed for bankruptcy and announced plans to shutter its nuclear power plants unless a government bailout was provided. FirstEnergy utilized dark money entities to aid Householder in amassing political influence and ascending to the position of Ohio House speaker. In April 2019, Householder introduced House Bill 6, mandating that 4.5 million Ohio consumers pay additional fees on their monthly electric bills to help maintain the operation of the nuclear plants.
Text messages included in the indictment between Jones and Dowling reveal their jubilation as their scheme to rescue the company using Ohio taxpayers’ funds unfolded. “Huge bet and we played it all right on the (state) budget and HB6, so we can go back for more!” Dowling messaged Jones on the day Ohio’s governor signed the bailout into law. Following the success of the bailout bill, the duo set a new objective: “Win the National Championship,” alluding to securing favorable measures in the state budget that would secure the company millions annually besides other preferential treatment.
As FirstEnergy’s stock surged, Jones messaged Randazzo – the state utilities commissioner implicated in bribery who subsequently took his life: “Those guys are good but it wouldn’t happen without you,” he acknowledged. “My Mom taught me to say Thank you.” The indictment also includes remarks by Jones and Dowling concerning Householder. “[t]alked to Speaker today,” Jones informed an undisclosed party in the indictment about Householder. “He’s an expensive friend.”
Laura A. Bischoff and Jessie Balmert serve as reporters for the USA TODAY Network Ohio Bureau, while Michael Loria contributes as a national news reporter for USA TODAY.
For those interested, the federal indictment can be accessed here: Jones Dowling Indictment by Jessie Balmert on Scribd. This is a developing story and updates will follow.
This article was originally published on the Akron Beacon Journal: Former executives charged in Ohio bribery scheme.
