CINCINNATI — Former chair of the Public Utilities Commission of Ohio Samuel Randazzo, 74, was charged by a federal grand jury with bribery and embezzlement crimes.
Randazzo self-surrendered at U.S. District Court in Cincinnati Monday morning, and is charged in an 11-count indictment that was returned Nov. 29. He will be scheduled for an initial appearance later Monday.
“Public officials, whether elected or appointed, are tasked with upholding the highest level of integrity in their duties and responsibilities. Such service to the public must be selfless, not selfish,” said U.S. Attorney Kenneth L. Parker in a news release. “Through the indictment unsealed today, we seek to hold Randazzo accountable for his alleged illegal activities.”
Randazzo faces one count of of conspiring to commit travel act bribery and honest services wire fraud, two counts of travel act bribery, two counts of honest services wire fraud, one count of wire fraud and five counts of making illegal monetary transactions.
“Today’s indictment outlines an alleged scheme in which a public regulatory official ignored the Ohio consumers he was responsible for protecting, instead taking a bribe from an energy company seeking favors,” stated FBI Cincinnati Special Agent in Charge J. William Rivers. “The FBI will remain vigilant in investigating allegations of corruption at all levels of government and hold those who violate the law accountable for their actions.”
Randazzo was chair from April 2019 until he resigned in Nov. 2020. According to the indictment, he received more than $4.3 million from an energy company and its affiliates to provide favorable actions for the company through PUCO proceedings.
Allegedly in Nov. 2019 Randazzo included language in a PUCO Opinion and Order to address an issue for the energy company that was slated to occur in 2024.
“Stock is gonna get hit with Ohio 2024. Need Sam to get rid of the ‘Ohio 2024 hole,’” an energy executive text message read. Another executive messaged, in part: “I spoke with Sam today. Told me 2024 issue will be handled next Thursday.” The next Thursday, the PUCO decision included language alleviating the 2024 issue.
It is alleged Randazzo received the bribe money from the energy company through his consulting business, Sustainability Funding Alliance of Ohio, Inc., which was registered in the state in March 2010. Compnay filings name him as the president and sole representative of the business and his home address as the business address.
The charging document alleges he used the consulting business to carry out an embezzlement scheme, funneling to himself at least a million dollars meant for an association of large, industrial energy users in the state.
He was the general counsel of the industry group for multiple years, including from 2010 until his appointment as chair. He controlled the industry group’s bank accounts and at times served as its executive director.
Allegedly, Randazzo entered settlements with companies on behalf of the industry group and kept portions of the payments for himself. One method he used to conceal his embezzling, allegedly, was to create a fictitious member of the group who received payments alongside legitimate members.
If convicted as charged, the defendant could face up to 20 years in prison.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio, and J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the charges and acknowledged assistance provided by the Ohio Ethics Commission. Deputy Criminal Chief Emily N. Glatfelter and Assistant United States Attorney Matthew C. Singer are representing the United States in this case.
An indictment merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.