CINCINNATI — The fallout from what prosecutors are calling the largest bribery scandal in the state’s history has moved forward. 

On Thursday, the Department of Justice announced criminal charges and heavy fines against Akron-based electric utility company FirstEnergy.

What You Need To Know

  • FirstEnergy is criminally charged and fined $230M in connection to its role in the HB6 scandal

  • U.S. Attorney Vipal Patel said its the largest fine recorded by the Southern District of Ohio

  • FirstEnergy vows to ensure this type of scandal will never happen again

  • FirstEnergy has 30 days to pay the fine 

Acting United States Attorney for the Southern District of Ohio Vipal Patel brought forth the largest criminal penalty ever collected by his office. 

“By way of this agreement, FirstEnergy has to pay a criminal monetary penalty totaling $230 million,” Patel said. 

FirstEnergy is charged with honest services fraud in connection with the notorious House Bill 6 scandal surrounding former Ohio Speaker of the House Larry Householder.  The bail created a bailout for two nuclear power plants.

“To devise a scheme to defraud the public of the right of the honest services, the honest services of a public official in a very specific way,” Patel said. “That’s through bribery or kickbacks.”

FirstEnergy has 30 days to pay the $230 million fine that will be divided between the federal government and a program to benefit fixed utility customers.

“This is a humbling moment for our company,” FirstEnergy President and CEO Steve Strah said in a taped statement. "And we should take this moment to recognize that this type of conduct, at the highest levels in the company, was wrong and unacceptable. We have to ensure that something like this never happens again.”

 

 

But the question some are asking is whether this penalty is strong enough.

“Criminal monetary penalties are meant to hurt,” Patel said. “We can’t put corporations in jail. The principle here is to try to come up with a number that strings but doesn’t annihilate. Because if we annihilate, then we have the concern that Zach Hoffman raised, what about the innocent employees and customers.” 

FBI Special Agent Zack Hoffman said this should serve as a stern warning to other corporations to stay away from attempting a similar bribery scheme. 

“I would challenge them to practice corporate responsibility on your own now and forthcoming or you will face this fierce accountability later,” Hoffman said. 

Patel said as long as FirstEnergy complies with the settlement all charges will be dropped. 

“They first and foremost have to continue what they’ve been doing — and that’s cooperating with the government and its investigation,” Patel said.

If FirstEnergy does not comply to the terms of the settlement, the case will reopen. 

FirstEnergy said it will not raise rates for its customers to pay for the fine.