A former CEO and a senior executive from an Ohio-based energy firm have been formally charged with racketeering in connection with a $60 million bribery scheme, as announced by federal prosecutors on Friday.
The former executives of FirstEnergy Corp., Chuck Jones, who served as CEO, and Senior Vice President Michael Dowling, are implicated in a scheme alleged to involve bribing state officials to secure a significant $1 billion bailout for the company’s nuclear facilities.
Both executives, who are already dealing with related charges at the state level, now face federal charges stemming from an indictment that was made public this week. According to the indictment, the prosecutors claimed the two men were involved in a conspiracy that included bribery, money laundering, and obstruction of justice, all with the aim of boosting the company’s stock value for their own financial gain.
Following the announcement of their state charges last year, both Jones and Dowling have proclaimed their innocence. Efforts to reach their legal representatives through email on Friday did not yield any responses.
The bribery operation, which resulted in a lengthy prison sentence for a former Ohio House speaker, focused on FirstEnergy’s attempts to influence state legislators to approve a bailout for two of its nuclear plants, as well as to fend off attempts to repeal the supportive legislation.
In the previous fall, FirstEnergy was directed by the U.S. Securities and Exchange Commission to pay a hefty civil penalty of $100 million for misleading investors regarding its involvement in the scandal. Additionally, the company entered into an agreement with state prosecutors to remit $20 million to avoid facing criminal prosecutions.
The utility’s admission of guilt in relation to the bribery emerged from a deferred prosecution agreement established with the U.S. Department of Justice in July 2021. Under the terms of this agreement, FirstEnergy consented to pay $230 million in penalties and to enact reforms aimed at preventing future criminal prosecutions on federal conspiracy charges.
In June 2023, former House Speaker Larry Householder was sentenced to a significant 20-year prison term for his involvement in orchestrating this extensive bribery scheme. Federal prosecutors have stated that those implicated utilized funds that were covertly provided by FirstEnergy to ensure the election of candidates selected by Householder for the House in 2018, aiding him in securing the speakership. These illicit funds were critical in facilitating the passage of the controversial energy legislation and thwarting efforts to bring a repeal referendum before voters.
