FirstEnergy facing organized crime probe from AG’s office over bribes to Ohio officials

COLUMBUS, Ohio – A state office focused on organized crime is investigating Akron-based FirstEnergy Corp. in connection with the company’s admission of bribing Ohio’s former House speaker and top utility regulator, according to the company.

In a financial report filed Monday, the company disclosed receiving a subpoena on June 29 from the Ohio Organized Crime Investigations Commission, part of the state attorney general’s office.

The company said it was not aware of the state investigation, which focuses on the conduct the company admitted to in a 2021 deferred prosecution agreement FirstEnergy entered with federal prosecutors. The agreement called for the company to, among other provisions, cooperate with the investigation and pay a $230 million penalty.

In that filing, FirstEnergy admitted to separate, multi-million dollar bribery schemes. One of the plots involved bankrolling ex-Ohio House Speaker Larry Householder’s political ascendance in exchange for bailout legislation worth more than $1 billion to the company. In a second, the company paid Public Utilities Commission of Ohio Chairman Sam Randazzo $4.3 million shortly before his appointment for favorable regulatory treatment.

Householder and Matt Borges, a lobbyist and conspirator, were convicted at trial this year and sentenced to 20 and 5 years in prison, respectively. Two other conspirators pleaded guilty. Randazzo has not been charged with a crime and maintains his innocence.

FirstEnergy spokeswoman Jennifer Young said the company believes that the OCIC investigation is in an early stage. She declined to comment further.

“FirstEnergy has accepted full responsibility for its past actions and has addressed them by entering into the Deferred Prosecution Agreement with the Department of Justice and paying a substantial penalty in connection with that resolution,” she said.

Bethany McCorkle, a spokeswoman for Ohio Attorney General Dave Yost, said her office would be legallly prohibited from discussing an investigation prior to filing charges, “if such an investigation existed.” She declined to provide a copy of the subpoena as well, citing state law requiring secrecy around the organized crime unit.

Yost recently filed early paperwork indicating plans to run for governor in 2026.

The latest subpoenas add to the pile on of legal scrutiny FirstEnergy faces. In April, the company’s former CEO and top lobbyist said in a court filing they faced “looming potential indictments,” though no such charges have been filed. A U.S. Securities and Exchange Commission probe of the company continues. Several shareholder lawsuits against the company continue, plus a similar civil lawsuit from Yost.

However, no current or former executives with the company have been convicted of paying the bribes Householder was convicted of receiving.

RELATED: Who paid the bribes? Plot hole grows after Householder conviction, as FirstEnergy execs remain unscathed

A spokeswoman for Kenneth L. Parker, the U.S. Attorney for the Southern District of Ohio, didn’t respond to an inquiry about the subpoena or the possibility of future indictments.

An earlier version of this article contained out-of-date information in a photo caption. FirstEnergy no longer owns the Bruce Mansfield plant.

Jake Zuckerman covers state politics and policy for Cleveland.com and The Plain Dealer.