
Two former executives from the utility company FirstEnergy Corp. have found themselves in legal hot water as a federal grand jury has indicted each with a count of racketeering conspiracy. Charles E. Jones, the former President and CEO, and Michael Dowling, the former Senior Vice President, are set to make a federal court appearance in Cincinnati following the unsealing of their indictment on Wednesday. According to an announcement from the U.S. Attorney's Office for the Southern District of Ohio
The charges brought against Jones, 69, and Dowling, 60, stem from allegations that they were involved in a scheme, using their corporate positions, which included bribery, money laundering, and obstruction to manipulate the company's stock price, all while lining their own pockets, the indictment details show a complex web of financial transactions used to exert influence over state politics and to facilitate legislation that would benefit FirstEnergy financially all at the expense of the public trust. The indictment, a 42-page document, lays out the purported racketeering activity which occurred between 2017 and March 2020.
These activities reportedly included bribing key figures such as the former Ohio House Speaker Larry Householder and former PUCO Chairman Samuel Randazzo in schemes to pass and retain House Bill 6, legislation central to a billion-dollar nuclear plant bailout intended for FirstEnergy's benefit, "This alleged $60 million racketeering conspiracy defrauded Ohioans to enrich the defendants," stated Elena Iatarola via the U.S. Attorney's Office official website, Special Agent in Charge for the FBI's Cincinnati Division. The bribe funds reportedly circulated through non-profit entities controlled by the involved public officials, notably using a 501(c)(4) labeled Energy Pass-Through as a "political tool," Dowling is alleged to have remarked.
According to the U.S. Attorney’s Office, actions taken under Randazzo's leadership at PUCO were directly beneficial to FirstEnergy, with Jones even referring to the orchestrated political movements as a payoff from his "expensive friend," while consequently the FBI vows to tackle such instances of corporate fraud and political corruption to serve as protectors of the taxpayer's interests and to bring individuals committing white-collar crimes to justice, the seriousness of the RICO conspiracy charge carries up to 20 years in prison if convicted. Representatives Emily N. Glatfelter and Matthew C. Singer from the United States Attorney’s Office will prosecute the case against Jones and Dowling with the reminder that the indictment only contains allegations at this stage and that the defendants are presumed innocent unless proven guilty in a court of law.