Two former executives of an energy company surrendered to authorities on Friday for their suspected involvement in the largest corruption scandal in Ohio’s history. The scandal revolved around more than $60 million in bribes to secure a $1 billion bailout for FirstEnergy’s struggling nuclear plants and eliminate regulatory obstacles. Notably, former Ohio House Speaker Larry Householder was sentenced to 20 years in federal prison for orchestrating the scheme.
Former FirstEnergy CEO Chuck Jones, 69, and ex-Senior Vice President of External Affairs Michael Dowling, 60, were indicted under the Racketeer Influenced and Corrupt Organizations Act. The FBI’s Cincinnati Special Agent in Charge, Elena Iatarola, condemned the alleged conspiracy that defrauded Ohioans and enriched the defendants. She emphasized the FBI’s commitment to combating political corruption and corporate fraud to safeguard taxpayers.
The charging of Jones and Dowling is the latest development in a case that has gripped the state since the initial indictments in 2020. Ohio Governor Mike DeWine refrained from commenting on the indictments during a recent press conference. Prosecutors claim that the executives engaged in bribery, money laundering, and obstruction to boost the company’s stock price and line their own pockets. Despite FirstEnergy firing both men in October 2020, the company had previously admitted to bribing public officials to benefit its interests.
The scandal involved manipulating legislation, with Householder recruiting Republicans to seize control of the House and pass House Bill 6, which included a hefty bailout for the nuclear plants. Former Ohio Republican Party chairman Matt Borges was sentenced to five years for his involvement. The scheme also implicated former Public Utilities Commission of Ohio Chairman Sam Randazzo, who was accused of accepting bribes to push through favorable policies for FirstEnergy. Tragically, Randazzo died by suicide before the case could be resolved.
The scandal has had far-reaching consequences, with several individuals either convicted, awaiting sentencing, or deceased. Federal authorities’ decision to charge the individuals offering bribes, rather than those receiving them, marks a significant development in the ongoing investigation.
A recent indictment paints a troubling picture of how FirstEnergy executives utilized money and influence for their own benefit within the Ohio Statehouse. Following the passage of House Bill 6, a shocking revelation came to light when it was discovered that a photoshopped version of Mount Rushmore had been circulated by one of the executives, Jones, showcasing the faces of individuals like Randazzo. The caption accompanying this doctored image brazenly read, “HB 6 F*** ANYBODY WHO AINT US.”
In October 2016, these same executives made a bold commitment to the FirstEnergy board, asserting that the company’s value would experience a substantial 27% increase. However, this optimistic projection clashed with the stark reality of a weakened energy market and significant financial losses amounting to hundreds of millions of dollars, particularly stemming from FirstEnergy Solutions, the company’s nuclear power subsidiary. To address these challenges, Jones and his team embarked on a strategy of seeking bailouts from both federal and state officials.
By 2018, the situation had escalated to the point where FirstEnergy Solutions had declared bankruptcy and announced intentions to shutter its nuclear power plants unless a government bailout was secured. Notably, FirstEnergy resorted to utilizing dark money groups to bolster the political influence of Householder, ultimately aiding his ascent to the position of Ohio House speaker. In April 2019, Householder introduced House Bill 6, a controversial piece of legislation that would necessitate 4.5 million Ohio consumers to pay additional fees on their monthly electric bills to ensure the continued operation of the nuclear plants.
Further revelations from included text messages shed light on the dubious tactics employed by Jones and Dowling, showcasing their elation as they maneuvered to safeguard the company’s interests at the expense of Ohio taxpayers. “Huge bet and we played it all right on the (state) budget and HB6, so we can go back for more!” remarked Dowling in a text exchange with Jones on the day of the bailout bill’s enactment by Ohio’s governor. Subsequently, the duo set their sights on a new objective: securing favorable provisions in the state budget to ensure ongoing financial benefits for the company.
In a particularly telling exchange, Dowling urged Jones to prompt action from an unidentified individual, emphasizing the importance of their dealings with Householder by remarking, “[t]alked to Speaker today. He’s an expensive friend.” Amidst these revelations, references to the late Randazzo, the state utilities commissioner implicated in bribery allegations, highlighted the interconnected nature of these dubious dealings, with Jones expressing gratitude for his involvement in their schemes.
The indictment also featured candid commentary from the accused individuals regarding Householder, shedding further light on the extent of their questionable interactions and alliances within the political sphere. This unfolding narrative underscores the intricate web of deceit and self-serving actions that permeated the corridors of power within the Ohio Statehouse, ultimately resulting in severe repercussions for those involved.
Reported by Laura A. Bischoff
