Huge nuclear corruption case – Ohio House Speaker Larry Householder arrested
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Ohio House Speaker Larry Householder arrested in $60 million bribery case https://www.cincinnati.com/story/news/2020/07/21/ohio-bribery-case-state-official-charged-federal-prosecutors/5477862002/
Sharon Coolidge, Dan Horn, Jessie Balmert Cincinnati Enquirer Marc Kovac, Randy Ludlow and Lucas Sullivan contributed to this report 21 Jul 20 CINCINNATI – Federal officials arrested Ohio House Speaker LarryHouseholder and four others Tuesday as part of a $60 million racketeering and bribery investigation that prosecutors describe as one of the largest public corruption cases in Ohio history.
All of the charges are tied to what federal prosecutors describe as a criminal enterprise dedicated to securing a bailout for two nuclear power plants in northern Ohio, which is expected to cost the state’s utility ratepayers $1 billion. A criminal complaint unsealed Tuesday describes the effort as “Householder’s Enterprise” and states that he and his associates sought to expand their political power, enrich themselves and conceal their criminal conspiracy. “This is likely the largest bribery, money laundering scheme ever perpetrated against the people of the state of Ohio,” said U.S. Attorney David DeVillers, whose office will lead the prosecution of the case. “This was bribery, plain and simple. This was a quid pro quo. This was pay to play.” Also charged Tuesday were four lobbyists and Republican operatives:
DeVillers said the arrests Tuesday will not end the investigation and that agents will continue to interview potential witnesses and execute search warrants in the coming days and weeks. “We’re not done with this case,” he said. “There are a lot of federal agents knocking on a lot of doors.” The criminal complaint accuses Householder of creating an enterprise to collect large sums of money for him and others involved in the conspiracy. “The millions paid into the entity were akin to bags of cash,” the complaint states. “Unlike campaign or PAC contributions, they were not regulated, not reported, not subject to public scrutiny — and the enterprise freely spent the bribe payments to further the enterprise’s political interests and to enrich themselves.” The arrests are the result of a nearly two-year FBI investigation that included undercover federal agents who met with Householder and Clark, as well as surveillance that allowed investigators to obtain text messages, emails and other communications between those who have been charged. …… According to the criminal complaint, the arrests are the result of a nearly two-year investigation into bribes and money laundering by the FBI. Householder oversaw the controversial, Republican-led bailout of the two nuclear plants, owned by FirstEnergy Solutions, of Akron. House Bill 6, signed by Gov. Mike DeWine in June, authorized using ratepayer fees for the $1 billion bailout. The fight to approve the money was long and costly, extending even after the bill was signed into law. An effort to overturn the bailout ultimately failed after it met fierce resistance from well-funded competition. One group was Generation Now, a 501(c)(4) “dark money” operation that was not required to disclose donors under federal law. The group hired blockers to stall signature collectors working for those opposed to the bailout. The second group, Ohioans for Energy Security, paid for millions of dollars in advertisements, including ones that warned Ohioans that the Chinese would take over Ohio’s power grid if voters repealed the bailout. FirstEnergy, which spun off FirstEnergy Solutions in bankruptcy proceedings, gave more than $1.1 million to Ohio politicians, including Householder, between 2017 and 2019. FirstEnergy Solutions was later renamed Energy Harbor Corp. Cespedes was listed by the state as a lobbyist last year for Energy Harbor and Borges works for the Columbus-based firm 17 Consulting Group, which contributed $90,000 to a pro-nuclear energy group called Ohio Clean Energy Jobs Alliance, which has ties to FirstEnergy Solutions. Disclosure: 17 Consulting advises The Enquirer on legislative activity affecting the media industry. The documents unsealed Tuesday afternoon did not name the companies involved, though they noted that “Company A entities paid Householder’s enterprise $60,886,835.86 in secret payments over the approximately three-year period in exchange for the billion-dollar-bailout. The enterprise concealed the payments … to receive the bribe money and then transferring the payments internally to a web of related entities and accounts.”……… Investigators allege the nonprofit used energy company money to back the campaigns of 21 different state candidates in the 2018 primary and general elections, including Householder. More than $1 million was spent on negative ads against those candidates’ opponents, with additional funds paying for Householder’s campaign staff, according to documents. Most of the backed candidates won in 2018, and all supported Householder’s election as Speaker, investigators said. Additionally, Householder received $400,000-plus in personal benefits, including funds to settle a personal lawsuit, to pay off credit card debt and for costs associated with his home in Florida, according to documents. |
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