5 years after Ohio's $60M bribery scandal, critics say more could be done to prevent a repeat

5 years after Ohio's $60M bribery scandal, critics say more could be done to prevent a repeatNew Foto - 5 years after Ohio's $60M bribery scandal, critics say more could be done to prevent a repeat

COLUMBUS, Ohio (AP) — Five years after a $60 million bribery scheme funded by FirstEnergy Corp. came to light in Ohio, expert observers say the resulting prosecutions, lawsuits, penalties and legislation haven't led to enough change and accountability to prevent politicians and corporate executives from cutting similar deals in the future. The scheme — whose prospective $2 billion-plus pricetag to consumers makes it the largest infrastructure scandal in U.S. history — surfaced with thestunning arrestsof a powerful Republican state lawmaker and four associates on July 21, 2020. That lawmaker, former House SpeakerLarry Householder, is serving20 yearsin federal prison for masterminding the racketeering operation at the center of the scandal. Jurors agreedwith prosecutors that money that changed hands wasn't everyday political giving, but an elaborate secret scheme orchestrated by Householder to elect political allies, become the House speaker, pass a$1 billion nuclear bailoutlaw in House Bill 6 and crush a repeal effort. One of the dark money groups Householder used alsopleaded guiltyto racketeering. Householder and a former lobbyist haveunsuccessfully challengedtheir convictions. Two of the arrested associatespleaded guilty, and the otherdied by suicide. Dark money keeps flowing Any hope that the convictions would haveclarified federal lawaround 501(c)4 nonprofit "dark money" groups or prompted new restrictions on those hasn't materialized, said former U.S. Attorney David DeVillers, who led the initial investigation. "I think it's actually worse than it was before," he said. "Nationally, you have both Democrats and Republicans using these, so there's no political will to do anything about it." Indeed, astudy released in Mayby the Brennan Center for Justice found that dark money unleashed by the 2010Citizens Uniteddecision hit a record high of $1.9 billion in 2024 federal races, nearly double the $1 billion spent in 2020. The vast majority of money from undisclosed donors raised into dark money accounts now goes to super PACs, providing them a way to skirt a requirement that they make their donors public, the study found. DeVillers said one positive result of the scandal is that Ohio lawmakers appear genuinely concerned about avoiding quid pro quos, real or perceived, between them and their political contributors. Anti-corruption legislation perennially introduced by Ohio Democrats since the scandal broke has gone nowhere in the GOP-dominated Legislature. Republican legislative leaders have said it is outside their authority to amend federal campaign finance law. The U.S. Attorney's office declined to discuss the investigation because prosecutions remain ongoing. Two fired FirstEnergy executives havepleaded not guiltyon related state and federal charges and await trial. Former Public Utilities Commission of Ohio ChairmanSamuel Randazzo, to whom FirstEnergy admitted givinga $4.3 million bribein exchange for regulatory favors, had faced bothfederalandstatecharges. Hedied by suicideafter pleading not guilty. State regulator hasn't penalized FirstEnergy Akron-based FirstEnergy — a $23 billion Fortune 500 company with 6 million customers in five states — admitted using dark money groups to bankroll Householder's ascendance in exchange for passage of the bailout bill. Itagreed to pay $230 millionand meet other conditions to avoid prosecution, and faced other sanctions, including a$100 million civil penaltyby the U.S. Securities and Exchange Commission. But FirstEnergy hasn't yet faced consequences from the state regulator. "They never actually got penalized by regulators at the PUCO level," said Ohio Consumers' Counsel Maureen Willis, the lawyer for Ohio utility customers. Testimony infour PUCO proceedingsstemming from the scandal finally began last month after the cases were delayed for nearly two years, in part at the request of the Justice Department. They're intended to determine whether FirstEnergy used money for bribes that was meant for grid modernization and whether it improperly comingled money from its different corporate entities. FirstEnergy spokeperson Jennifer Young said it invested $4 billion in grid upgrades in 2024 and plans to spend a total of $28 billion through 2029. Young said FirstEnergy has redesigned its organizational structure, established a dedicated ethics and compliance office, overhauled the company's political activity and lobbying practices and strengthened other corporate governance and oversight practices. "FirstEnergy is a far different company today than it was five years ago," she said. The PUCO also made changes in response to the scandal. Chair Jenifer French told state lawmakers that ethics training has been enhanced, staff lawyers and the administrative law judges who hear cases now report to different directors to ensure legal independence, and she never takes a meeting alone. Some tainted money hasn't been returned to customers Ashley Brown, a retired executive director of the Harvard Electricity Policy Group who previously served as a PUCO commissioner, said the commission is the only state entity with the power to order FirstEnergy to return tainted cash — including the bribe money — to customers. That largely hasn't happened. He said the Ohio commission had vast power to hold FirstEnergy accountable for its misdeeds but hasn't conducted its own management audit of the energy giant, demanded an overhaul of FirstEnergy's corporate board or pressed for public release of FirstEnergy's own internal investigation of the scandal, whose findings remain a mystery. Shareholders won some accountability measures as part ofa $180 million settlementin 2022, but they continue to fight in court for release of the investigation.Willis does, too. "How do you allow a utility to operate a vast criminal conspiracy within the utility (with) consumer dollars, and you don't even look at what went wrong?" Brown said. PUCO spokesperson Matt Schilling reiterated that the commission's probes are ongoing. He said the panel has vowed to take its proceedings "wherever the facts lead." The portion of HB 6 that bailed out two FirstEnergy-affiliated nuclear plants was repealed in 2021, and$26 million was refundedto customers. The scandal investigation revealed that other power distribution companies got a lucrative payout of their own added to the bill in exchange for their buy-in: subsidies for two unprofitable Cold War-era coal plants. It wasn't until April thata law was passedrepealing those subsidies. Until that takes effect Aug. 14, the charges cost Ohio ratepayers $445,679 a day — and it's unclear if or when they'll get that money back. A ticker onWillis' websiteputs the total they've paid at more than $500 million and counting.

 

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