FirstEnergy Corp. has been federally charged with conspiring to commit honest services wire fraud, stemming from the corruption case involving former Ohio Speaker of the House Larry Householder, the U.S. Attorney’s Office Southern District of Ohio announced Thursday.The U.S. Attorney’s Office said the company has agreed to pay a $230 million monetary penalty and has signed a deferred prosecution agreement, that could potentially result in dismissal of the charge.The charge and agreement stem from the U.S. Attorney’s Office’s ongoing public corruption prosecutions that involve Householder.Householder, a Republican, and four others are accused of shepherding $60 million in energy company money for personal and political use, in exchange for passing a legislative bailout of two nuclear power plants and then derailing an attempt to place a rejection of the bailout on the ballot.According to Thursday's court filings, FirstEnergy Corp., an Akron, Ohio-based public utility holding company, admits it conspired with public officials and other individuals and entities to pay millions of dollars to public officials in exchange for specific official action for the company's benefit.FirstEnergy Corp. acknowledged in the agreement that it paid millions of dollars to an elected state public official through the official’s alleged 501(c)(4), or tax exempt social welfare organization, in return for the official pursuing nuclear legislation for FirstEnergy Corp.’s benefit.The company also acknowledged that it used 501(c)(4) entities, including one it controlled, to further the scheme because it allowed certain FirstEnergy Corp. executives and co-conspirators to conceal from the public the nature, source and control of payments.FirstEnergy Corp. further acknowledged that it paid $4.3 million to a second public official. In return, the individual acted in their official capacity to further the company's interests related to passage of nuclear legislation and other company priorities.FirstEnergy Corp. has cooperated substantially with the government, and according to the deferred prosecution agreement, the company must continue to cooperate fully with the United States in all matters related to the company’s conduct described in the agreement and other conduct under investigation by the government, among other obligations.The U.S. Attorney’s Office said that within 60 days of today’s filing, FirstEnergy Corp. must pay $115 million to the United States and $115 million to the Ohio Development Service Agency’s Percentage of Income Payment Plus Plan, a program that provides assistance to Ohioans in paying their regulated utility bills.Other terms in the agreement include publicly disclosing on its website any FirstEnergy Corp. contributions to 501(c)(4) entities and entities known by FirstEnergy Corp. to be operating for the benefit of a public official, either directly or indirectly, and making various provisions to improve corporate compliance moving forward, the U.S. Attorney’s Office said Thursday. The U.S. Attorney’s Office will hold a news conference Thursday to detail the charges. It's set to begin at 11:30 a.m.
FirstEnergy Corp. has been federally charged with conspiring to commit honest services wire fraud, stemming from the corruption case involving former Ohio Speaker of the House Larry Householder, the U.S. Attorney’s Office Southern District of Ohio announced Thursday.
The U.S. Attorney’s Office said the company has agreed to pay a $230 million monetary penalty and has signed a deferred prosecution agreement, that could potentially result in dismissal of the charge.
The charge and agreement stem from the U.S. Attorney’s Office’s ongoing public corruption prosecutions that involve Householder.
Householder, a Republican, and four others are accused of shepherding $60 million in energy company money for personal and political use, in exchange for passing a legislative bailout of two nuclear power plants and then derailing an attempt to place a rejection of the bailout on the ballot.
According to Thursday's court filings, FirstEnergy Corp., an Akron, Ohio-based public utility holding company, admits it conspired with public officials and other individuals and entities to pay millions of dollars to public officials in exchange for specific official action for the company's benefit.
FirstEnergy Corp. acknowledged in the agreement that it paid millions of dollars to an elected state public official through the official’s alleged 501(c)(4), or tax exempt social welfare organization, in return for the official pursuing nuclear legislation for FirstEnergy Corp.’s benefit.
The company also acknowledged that it used 501(c)(4) entities, including one it controlled, to further the scheme because it allowed certain FirstEnergy Corp. executives and co-conspirators to conceal from the public the nature, source and control of payments.
FirstEnergy Corp. further acknowledged that it paid $4.3 million to a second public official. In return, the individual acted in their official capacity to further the company's interests related to passage of nuclear legislation and other company priorities.
FirstEnergy Corp. has cooperated substantially with the government, and according to the deferred prosecution agreement, the company must continue to cooperate fully with the United States in all matters related to the company’s conduct described in the agreement and other conduct under investigation by the government, among other obligations.
The U.S. Attorney’s Office said that within 60 days of today’s filing, FirstEnergy Corp. must pay $115 million to the United States and $115 million to the Ohio Development Service Agency’s Percentage of Income Payment Plus Plan, a program that provides assistance to Ohioans in paying their regulated utility bills.
Other terms in the agreement include publicly disclosing on its website any FirstEnergy Corp. contributions to 501(c)(4) entities and entities known by FirstEnergy Corp. to be operating for the benefit of a public official, either directly or indirectly, and making various provisions to improve corporate compliance moving forward, the U.S. Attorney’s Office said Thursday.
The U.S. Attorney’s Office will hold a news conference Thursday to detail the charges. It's set to begin at 11:30 a.m.
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