A former CEO and a top executive of an Ohio energy company have been indicted on racketeering charges in connection with a $60 million bribery scheme, federal prosecutors announced recently.
Chuck Jones, the former CEO of FirstEnergy Corp., along with Senior Vice President Michael Dowling, is accused of participating in a conspiracy to bribe state officials in order to secure a $1 billion bailout for the company’s nuclear plants.
Both executives already face related charges at the state level and have now been hit with federal racketeering conspiracy charges, following an indictment that was unsealed.
According to prosecutors, the accused engaged in bribery, money laundering, and obstruction with the intent to increase FirstEnergy’s stock price and unlawfully enrich themselves.
Since their indictment on state charges last year, both individuals have denied any wrongdoing. Attempts to reach their attorneys for comment were unsuccessful.
The bribery scheme, which led to a lengthy prison sentence for a former Ohio House speaker, focused on FirstEnergy’s efforts to persuade lawmakers to approve a bailout for two associated nuclear plants while also defending against efforts to repeal the legislation.
In a related development, last fall, FirstEnergy was ordered by the U.S. Securities and Exchange Commission to pay a $100 million civil penalty for misleading investors regarding its involvement in the scandal. The company also agreed to pay $20 million to resolve potential criminal charges.
In a prior agreement with federal authorities, FirstEnergy admitted its role in the scheme, paying $230 million in penalties and committing to reforms to avoid criminal prosecution on conspiracy charges.
Former House Speaker Larry Householder was sentenced to 20 years in June 2023 for his part in orchestrating the bribery scheme.
Federal prosecutors allege that individuals involved leveraged funds secretly provided by FirstEnergy to support Householder’s preferred candidates in the 2018 House elections and to assist in securing his speakership, using those resources to push through the controversial energy bill and avoid a repeal referendum.
