CINCINNATI, Ohio — Former Ohio House Speaker Larry Householder has been found guilty of federal corruption charges related to a bribery scheme involving $60 million in dark money from FirstEnergy and its affiliates. The scheme was orchestrated to pass legislation bailing out two Ohio nuclear plants and involved funding a campaign to elect Householder as Speaker and defeat opponents of the bailout.
Householder and four associates were arrested and charged with racketeering conspiracy in July 2020. FirstEnergy was not named in the initial complaint, but later revealed its role in providing the dark money used in the scheme.
The scandal resulted in Householder’s removal from his position as speaker in July 2020 and his expulsion from the legislature in November of the same year. The scandal also led to calls for the repeal of the bailout legislation.
Apart from criminal charges against Householder, several lawsuits have been filed against FirstEnergy and its executives, alleging securities law violations and breach of fiduciary duty. The company is also reportedly cooperating with a Department of Justice investigation into the matter.
The scandal has been one of the biggest corruption cases in Ohio’s history, raising concerns about the influence of dark money in politics.
“As presented by the trial team, Larry Householder illegally sold the statehouse, and thus he ultimately betrayed the great people of Ohio he was elected to serve,” said U.S. Attorney Kenneth L. Parker. “Matt Borges was a willing co-conspirator, who paid bribe money for insider information to assist Householder. Through its verdict today, the jury reaffirmed that the illegal acts committed by both men will not be tolerated and that they should be held accountable.”
“The FBI’s top criminal priority is investigating public corruption to hold elected officials accountable when they commit illegal acts,” stated FBI Cincinnati Special Agent in Charge J. William Rivers. “I commend the special agents who investigated this historic case, the FBI analysts and staff who provided integral support, and the U.S. Attorney’s Office for their successful prosecution.”
Householder’s sentencing is yet to be announced. The racketeering conspiracy charge, in this case, carries a maximum statutory sentence of 20 years in prison, as set by Congress. The court will determine the sentencing of the defendants based on advisory sentencing guidelines and other statutory factors.