Former energy executives face federal charges in massive Ohio bribery scheme

Two former energy company executives turned themselves into authorities Friday for their suspected role in facilitating the biggest corruption scandal in Ohio state history.

The scheme involved over $60 million in bribes to secure a $1 billion bailout of FirstEnergy's faltering nuclear plants and eliminate regulatory hurdles. The scandal has already landed one of Ohio's most powerful politicians in federal prison.

Prosecutors indicted former FirstEnergy CEO Chuck Jones, 69, and ex-Senior Vice President of External Affairs Michael Dowling, 60, under the Racketeer Influenced and Corrupt Organizations Act, a charge created to prevent organized crime and fight against drug kingpins.

“This alleged $60 million racketeering conspiracy defrauded Ohioans to enrich the defendants," FBI Cincinnati Special Agent in Charge Elena Iatarola said. “The FBI will continue to pursue political corruption and corporate fraud to protect taxpayers and hold white-collar criminals responsible for their actions.”

The charging of the pair of executives is the latest in a case that's racked the state since the U.S. Attorney's Office for the Southern District of Ohio first indicted former Ohio House Speaker Larry Householder and four others linked to the scheme in 2020. Householder was dealt a 20-year sentence in 2023 for orchestrating the scheme. Others tied to scheme are in prison, awaiting sentencing or have committed suicide.

Ohio Gov. Mike DeWine would not comment on the indictments during a press conference on Friday.

Prosecutors allege that Jones and Dowling participated in bribery, money laundering and obstruction to increase the company stock price and enrich themselves. FirstEnergy fired the two men in October 2020.

The Akron-based company previously pleaded guilty to bribing Householder and former Public Utilities Commission of Ohio Chairman Sam Randazzo − two public officials in powerful positions to help the company. The company paid a $230 million fine and agreed to cooperate with federal investigators.

FirstEnergy spokesperson Jennifer Young said the company can't comment on the new indictment but noted that in the intervening years "FirstEnergy is a different, stronger company that has taken significant steps to move forward."

Householder's role in the scheme involved recruiting Republicans to win control of the House and passing the controversial House Bill 6, which included a $1 billion bailout for two nuclear plants then-owned by a FirstEnergy subsidiary. Former Ohio Republican Party chairman Matt Borges received a five-year prison sentence for his role.

Randazzo was accused of accepting a $4.3 million bribe to help pass that law and ease regulatory hurdles for the company. He had pleaded not guilty. The case was dismissed after he died by suicide last April.

A statehouse scandal fueled by dark money

Even before Friday's announcement, the case has had a huge impact: Householder and Borges are convicted and imprisoned, two co-conspirators Jeff Longstreth and Juan Cespedes pleaded guilty and are awaiting sentencing, lobbyist Neil Clark and Randazzo both died by suicide, and FirstEnergy changed its leadership and board.

The latest development marks the first time federal authorities have charged the bribers instead of the bribe recipients.

The indictment paints a picture of how FirstEnergy executives used money and influence to their own advantage at the Ohio Statehouse. After House Bill 6 passed, Jones sent a photoshopped version of Mount Rushmore, featuring Randazzo's and others' faces on it. The caption read: “HB 6 F*** ANYBODY WHO AINT US.” 

In October 2016, the executives pledged to the FirstEnergy board that the company value would be increased by 27%. But at the same time, the utility faced a weak energy market and hundreds of millions of dollars in losses, especially from FirstEnergy Solutions, its nuclear power subsidiary. To turn the company around, Jones and his team pursued bailouts from federal and state officials.

In 2018, FirstEnergy Solutions filed for bankruptcy and said it would close its nuclear power plants absent a government bailout.

FirstEnergy used dark money groups to help Householder amass political power and become Ohio House speaker. In April 2019, Householder unveiled House Bill 6, which would require 4.5 million Ohio consumers to pay fees on their monthly electric bills to help keep the nuclear plants open.

'An expensive friend': Gleeful texts show fruits of bribery

Text messages Jones and Dowling included in the indictment show the glee the pair shared as their scheme to save the company on the backs of Ohio taxpayers took shape.

"Huge bet and we played it all right on the (state) budget and HB6, so we can go back for more!" Dowling said in a text to Jones the day that Ohio's governor signed the bailout into law.

The pair followed the success of the bailout bill with a new goal: "Win the National Championship" − a reference to getting favorable action in the state budget that would guarantee the company millions of dollars per year as well as other favorable treatment.

"Tell LH to put on his big boy pants. Ha," Dowling told Jones as they continued the scheme.

As FirstEnergy's stock climbed Jones texted Randazzo - the state utilities commissioner accused of accepting bribes who committed suicide: "Those guys are good but it wouldn't happen without you," he wrote. "My Mom taught me to say Thank you."

The indictment also includes the pair's remarks on Householder.

"[t]alked to Speaker today," Jones wrote to someone unidentified in the indictment about Householder. "He's an expensive friend."

Laura A. Bischoff and Jessie Balmert are reporters for the Paste BN Network Ohio Bureau; Michael Loria is a national news reporter for Paste BN.

Read the federal indictment here:

This is a developing story that will be updated.