FirstEnergy charged with fraud over payoffs

The energy giant at the center of a $60 million bribery scheme in Ohio has admitted to using dark money groups to fund the effort, and agreed to pay $230 million and other conditions so prosecutors won’t forge ahead with a criminal case against the company.

Authorities charged Akron-based FirstEnergy Corp. with conspiracy to commit honest services wire fraud, alleging payoffs to public officials to back a $1 billion subsidy that would have had taxpayers helping the company prop up two aging nuclear plants.

That charge could be dropped in three years if the company complies with the terms of the deal, such as continuing to cooperate with investigators looking into the kickbacks to officials, who included the Ohio House speaker and a lobbyist who would become the state’s top utility regulator.

The deal, signed off by FirstEnergy’s president and CEO, comes in a scandal that has affected business and politics across Ohio since the arrests a year ago of then-Ohio House Speaker Larry Householder and four associates. Government officials say Householder orchestrated a plan to accept corporate money for personal and political use in exchange for passing nuclear bailout legislation and scuttling an effort to repeal the bill.

“I hope that today’s announcement serves as a stern warning to other corporations and corporate executives who would sell their integrity to a public official, a group of public officials,” said FBI Special Agent in Charge Chris Hoffman.