Two ex-FirstEnergy executives charged with federal racketeering
A federal grand jury has charged Charles E. Jones, 69, of Akron, and Michael Dowling, 60, of Massillon, with participating in a racketeering (RICO) conspiracy. The indictment alleges that the two individuals engaged in bribery, money laundering, and obstruction to inflate the company’s stock price and line their pockets with ill-gotten gains. Jones, who served in various senior executive roles, including president and CEO from 2015 until his termination in 2020, earned approximately $65 million during his tenure, with most of it coming from performance-based compensation tied to FirstEnergy’s stock performance. Dowling, who held the position of senior vice president, also benefited financially from the company’s stock prices.
In addition to the federal charges, Jones and Dowling were previously indicted on state charges for their alleged involvement in illegal activities. The federal indictment specifically accuses them of supporting a RICO conspiracy by participating in schemes to bribe former Ohio House Representative Larry Householder and former PUCO Chairman Samuel Randazzo. The indictment claims that FirstEnergy paid close to $60 million to Generation Now, an organization controlled by Householder, to secure his position as Speaker of the House and pass House Bill 6, a billion-dollar nuclear plant bailout that favored FirstEnergy’s interests. Householder was subsequently convicted and imprisoned for his role in the bribery scheme.
Jones and Dowling are also accused of advocating for appointments to the state public utilities board, including the appointment of Randazzo as the PUCO chairman. Randazzo, who held the position from April 2019 until November 2020, allegedly received more than $4.3 million from an energy company and its affiliates to influence PUCO proceedings in their favor. Randazzo was later indicted on numerous charges, entered a plea of not guilty, and tragically died by suicide.
Following these revelations, the U.S. Securities and Exchange Commission imposed a $100 million civil penalty on FirstEnergy for deceiving investors about its involvement in the scandal. The company also reached a $20 million settlement with state prosecutors to avoid criminal charges in the preceding month. Jones and Dowling now face a possible sentence of up to 20 years in federal prison for their role in these criminal activities. The legal proceedings continue to unfold, shedding light on the dark underbelly of corporate corruption and illicit dealings within the energy sector.
