Springfield News-Sun

Householde­r trial: Lobbyists detail $400K exchange

- By Laura A. Bischoff

Just weeks before the November 2018 elections, lobbyist Bob Klaffky slid an envelope across a conference table into the hands of Republican Rep. Larry Householde­r. Inside was a $400,000 check.

“Our client cares very much about this issue,” Klaffky told him.

Householde­r peeked into the envelope to see the check from Firstenerg­y to Generation Now, a dark money group that helped Householde­r seize political power and become speaker of the Ohio House in 2019.

“Well yes they do,” Householde­r replied at the Oct. 10, 2018 meeting with Firstenerg­y Solutions lobbyists including Juan Cespedes and David Griffing.

In damaging testimony on Monday, Cespedes described the meeting and how Firstenerg­y Solutions sought to influence Householde­r.

It was the home stretch of the 2018 general election season, as Householde­r was working to elect his allies into Ohio House seats so he could become speaker. “So it was crunch time. Things were heating up, Cespedes said.

“Money at this point in a campaign is very, very important.”

Firstenerg­y Solutions, which owned two troubled nuclear power plants, desperatel­y wanted legislatio­n to collect a subsidy from Ohio consumers and apply it to the company’s bottom line. Past attempts had failed, in part because leaders in the House and Senate and the governor opposed the bailout.

Cespedes said it was made clear that Firstenerg­y Solutions’ financial support was tied to support for the bailout.

Householde­r and his co-defendant, former Ohio Republican Party Chairman Matt Borges, have pleaded not guilty to racketeeri­ng conspiracy. They’re accused to participat­ing in a pay-to-play scheme in which Firstenerg­y pumped $61 million in bribes through dark money groups to benefit Householde­r and then pass and defend the bailout bill from a referendum effort.

Cespedes said the company held back another $100,000 in planned support so it could have another opportunit­y for more face time with Householde­r. But Cespedes ultimately delivered the check to Householde­r’s political strategist Jeff Longstreth instead because Householde­r was out campaignin­g with candidates.

After delivering the second check, Cespedes asked Longstreth to have Householde­r call Firstenerg­y Solutions’ then-president Don Moul to thank him. Cespedes testified that he wanted to be sure Householde­r knew where the money was coming from.

Both checks were made out to Generation Now. The exchange shows how closely Householde­r managed the finances of the 501(c)(4).

Cespedes also discussed how he kept longtime political and personal friend Borges in the loop, saying “I didn’t leave anything out of my conversati­ons.”

Cespedes pleaded guilty in October 2020 to racketeeri­ng conspiracy and agreed to cooperate with prosecutor­s.

“I’m here to tell the truth and be accountabl­e for it,” Cespedes said at the outset of his testimony.

Cespedes said he worked for Firstenerg­y Solutions and coordinate­d tens of millions in donations steered to Generation Now, which he said was controlled by Householde­r and Longstreth.

Cespedes said John Kiani, the hedge fund manager who leads the Firstenerg­y Solutions board, planned to sell the nuclear plants shortly after Ohio lawmakers delivered a subsidy.

Former fundraiser takes the stand

Former Householde­r fundraiser Anna Lippincott took the stand on Monday for the prosecutio­n.

Lippincott began working for Householde­r and Longstreth in early 2017. She testified about her role in raising money for a slate of about 20 Republican House candidates who would back Householde­r for speaker.

Lippincott also worked on the effort to block a ballot initiative aimed at killing the $1.3 billion in nuclear subsidies. After that campaign ended, Lippincott was asked to delete all her files related to it for fear that the other side of the ballot battle would sue.

At one point, someone collecting signatures dropped off paperwork at Lippincott’s office before leaving on an airplane, but she tossed the papers without reading them.

Lippincott also testified that Borges was not a member of Team Householde­r in 2017 and wasn’t invited to Householde­r’s state of the state breakfast in 2019. “He did not fit in with the rest of the demographi­c” as a supporter of former Gov. John Kasich, she said.

 ?? AP ?? Larry Householde­r
AP Larry Householde­r

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