Generation Now pleads guilty

Nonprofit admits role in House Bill 6 bribery scandal

Representatives for the political nonprofit Generation Now have pleaded guilty to its role in an alleged bribery scandal surrounding a nuclear subsidy bill for Ohio’s two power plants.

The plea comes after Ohio Speaker of the House Larry Householder and four others were arrested on federal racketeering charges in July. U.S. Attorney for the Southern District of Ohio David DeVillers has called the $61 million case “likely the largest bribery scheme ever perpetrated against the state of Ohio.”

Federal investigators

Federal investigators alleged that Generation Now was incorporated in 2017 as a 501(4), a “social welfare entity purporting to promote energy independence and economic development,” but was secretly controlled by Householder.

alleged that Generation Now was incorporated in 2017 as a 501(4), a “social welfare entity purporting to promote energy independence and economic development,” but was secretly controlled by Householder.

Millions of dollars from the electric company known in the complaint as “Company A” were allegedly used to support Householder’s bid to become speaker, to support House candidates believed to back Householder for the position and for personal benefit.

Pursuant to federal law, the names and addresses of contributors to 501(c)(4)s are not made available for public inspection.

In its plea, Generation Now admitted to conspiring with Householder and the other defendants.

“As part of the conspiracy, Generation Now was organized at Householder’s discretion for the benefit of Householder and the Householder enterprise, knowing that the purpose of Generation Now was for it to be used as a mechanism to receive undisclosed donations to benefit Householder and to advance Householder efforts to become Speaker of the House of Representatives,” Generation Now admitted, according to court records.

“As part of the conspiracy Generation Now received money from Company A (as defined in the indictment) for the benefit of the defendants and other in return for specific official action by Householder relating to the passage and preservation of legislation that would go into effect and save the operation of two nuclear power plants; and Generation Now engaged in financial transactions that were designed to conceal the nature, source, ownership and control of the payments made by Company A to Generation Now,” the court records stated.

Generation Now’s plea agreement calls for it to plead guilty to one count of racketeering, the seizure of nearly $1.5 million from two bank accounts and a sentence of five years’ probation.

Jeffrey Longstreth signed the plea agreement on behalf of Generation Now, court records show.

Longstreth was one of the four men arrested along with Householder in July. Longstreth, a political strategist, pleaded guilty to racketeering charges in late October. Another of the men charged, FirstEnergy lobbyist Juan Cespedes, also pleaded guilty in late October.

House Bill 6 was signed into law in July 2019. It, among other things, gives North Perry’s Perry Nuclear Power Plant and Ottawa County’s Davis-Besse Nuclear Power Plant more than $1 billion in subsidies. The funds are raised through charges paid by residential, commercial and industrial electric customers. Residential customers will be charged 85 cents per month.

Following the arrests, calls were made by both Republican and Democratic lawmakers to repeal and/or replace the bill, but so far the bill remains in effect. A Franklin County judge in December granted a preliminary injunction blocking the nuclear plant subsidies that were set to be added to every electric bill in the state starting Jan. 1.

Shortly after the arrests, Householder, R-Glenford, was stripped of his role as speaker, but remains a member of the Ohio House. He won reelection in November after running unopposed.

He can be removed from office by a two-thirds vote by members of the House, according to the state constitution, however no vote has yet been held.