CINCINNATI, Ohio – Two former executives of FirstEnergy Corp., a prominent Ohio energy company, have been indicted by a federal grand jury on charges of participating in a racketeering conspiracy (RICO), marking a major development in one of Ohio’s most notorious political corruption scandals.
Charles E. Jones, 69, of Akron, and Michael Dowling, 60, of Massillon, are accused of orchestrating an elaborate bribery and money laundering scheme to advance FirstEnergy’s interests, inflate the company’s stock value, and personally enrich themselves. Both are scheduled to appear in federal court in Cincinnati today. The indictment, filed on January 15 and unsealed this morning, lays out the latest allegations in the fallout of the FirstEnergy scandal.
The Allegations
Prosecutors allege that Jones, FirstEnergy’s former President and CEO, and Dowling, the company’s former Senior Vice President, used the company and its subsidiaries as a vehicle for corrupt activities between 2017 and 2020. They allegedly funneled tens of millions of dollars in bribes to Ohio officials, including former Ohio House Speaker Larry Householder and former Public Utilities Commission of Ohio (PUCO) Chairman Samuel Randazzo.
The indictment details a scheme in which FirstEnergy paid over $59 million to a 501(c)(4) dark money group, Generation Now, controlled by Householder. These funds were allegedly used to help Householder secure the position of Speaker of the Ohio House and pass House Bill 6—a controversial $1 billion nuclear bailout that directly benefited FirstEnergy.
Jones and Dowling are also accused of using another nonprofit, Energy Pass-Through, as a “political tool” to funnel FirstEnergy money to public officials and entities supporting the company’s goals.
In a shocking detail from the indictment, Jones allegedly referred to Householder as his “expensive friend” and credited Randazzo for PUCO decisions that raised FirstEnergy’s stock price. FirstEnergy reportedly paid Randazzo’s companies over $4.3 million in 2019 to secure favorable regulatory actions.
After the passage of House Bill 6, Dowling allegedly boasted in a message, “Huge bet and we played it all right on the budget and HB 6 – so we can go back for more!”
FirstEnergy Scandal: A Dark Chapter for Ohio
The indictment is a continuation of the massive FirstEnergy scandal that rocked Ohio in 2020. The scandal revealed how corporate executives and public officials conspired to use dark money groups to manipulate legislation, defraud taxpayers, and prioritize corporate interests over public good.
The scheme first came to light when Larry Householder and several associates were arrested in 2020 in what federal investigators called the largest bribery scandal in Ohio’s history. Householder was later convicted in 2023.
Both Jones and Dowling were fired by FirstEnergy in 2020, shortly after federal investigations began. Jones had earned approximately $65 million in compensation during his tenure, with most of it tied to performance-based incentives linked to FirstEnergy’s stock price.
Law Enforcement Pushes for Accountability
“This indictment is yet another step toward holding people accountable for actions that have harmed Ohioans,” said U.S. Attorney Kenneth L. Parker. “We will continue to work tirelessly to ensure justice in this case.”
FBI Cincinnati Special Agent in Charge Elena Iatarola described the alleged $60 million racketeering conspiracy as a betrayal of public trust. “The FBI will continue to pursue political corruption and corporate fraud to protect taxpayers and hold white-collar criminals responsible for their actions,” she stated.
What’s Next?
If convicted, both Jones and Dowling face up to 20 years in prison for the RICO conspiracy charges. The indictment represents a significant escalation in the federal government’s effort to root out corruption tied to FirstEnergy, with more potential charges expected as investigations continue.
As Ohio grapples with the fallout of the FirstEnergy scandal, the case serves as a stark reminder of the lasting damage caused by corporate greed and political corruption.
