Two companies created by the former head of the state’s utilities regulating panel to take bribes from FirstEnergy in the House Bill 6 case have made a deal with the state to close out proceedings against them. It's the latest development in what’s been called the largest corruption scandal in Ohio history.
Summit County Prosecutor Elliot Kolkovich announced the deal, in which the companies pleaded guilty to:
- one count of engaging in a pattern of corrupt activity,
- two counts of telecommunications fraud
- two counts of aggravated theft
- six counts of money laundering
The first three counts are first-degree felonies. The telecommunications fraud and aggravated theft counts are second-degree felonies, and the money laundering counts are third-degree felonies.
The Sustainability Funding Alliance of Ohio and the Industrial Energy Users of Ohio Administration Co. were created by Sam Randazzo, and worked as shell companies to accept $4.3 million in bribes. That happened just before Randazzo became chair of the Public Utilities Commission of Ohio in April 2019, as House Bill 6, the billion-dollar nuclear power plant bailout, was being introduced and championed by Republican then-speaker Larry Householder. Randazzo helped write House Bill 6, and publicly advocated for it.
FirstEnergy has admitted to bribing both Randazzo and Householder. The utility agreed to a $230 million penalty in July 2021. Householder is serving 20 years in federal prison. Randazzo, who resigned as PUCO chair after federal agents searched his home in November 2020, died by suicide in April.
The companies will pay around $2.25 million in fines.
Former FirstEnergy executives Michael Dowling and Chuck Jones face trial on state charges in the spring. Jones is facing 10 counts and Dowling faces 12. Randazzo had been charged along with them, but the case against him was dismissed following his death.
