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HomeEXTRABUSINESSGrand Jury Indicts Former FirstEnergy Executives Charles E. Jones, Michael Dowling in...

Grand Jury Indicts Former FirstEnergy Executives Charles E. Jones, Michael Dowling in $60m Racketeering, Bribery Schemes

Two former FirstEnergy executivesCharles E. Jones, 69, of Akron, and Michael Dowling, 60, of Massillon, have been indicted by a federal grand jury and charged with one count of participating in a racketeering (RICO) conspiracy.

It is alleged that Jones and Dowling participated in an enterprise (FirstEnergy Corp. and its subsidiaries) through a pattern of racketeering activity – including bribery, money laundering and obstruction – to increase the company’s stock price and enrich themselves.

Although the defendants helped pursue the legal interests of FirstEnergy, Jones and Dowling also corrupted FirstEnergy by allegedly abusing their positions of trust and engaging in criminal activities in pursuit of personal and commercial gain.

Jones served in senior executive positions for FirstEnergy, including as President and CEO, from approximately 2015 until his employment was terminated in 2020. During that time, Jones made approximately $65 million in compensation.

Approximately $60 million of his earnings came from performance-based pay tied, in part, to FirstEnergy stock prices. Dowling served as Senior Vice President at the time of his termination in 2020. Part of his pay was also tied to company’s financial performance and growth.

The 42-page indictment details the ways in which Jones and Dowling allegedly acted in support of the RICO conspiracy, including schemes to bribe former Ohio House Representative Larry Householder and former PUCO Chairman Samuel Randazzo.

According to the indictment, between 2017 and March 2020, FirstEnergy paid more than $59 million to 501(c)(4) entity Generation Now, which Jones and Dowling knew was operated for the benefit of and controlled by Householder.

The bribe money helped Householder gain the position of Speaker of the House and pass and uphold House Bill 6, a billion-dollar nuclear plant bailout to benefit FirstEnergy.

It is alleged Jones and Dowling used a different 501(c)(4) entity, Energy Pass-Through, to fund with FirstEnergy money and direct payments to Generation Now and other entities they believed were associated with public officials for FirstEnergy and the officials’ benefit. Dowling allegedly referred to the 501(c)(4) as a “political tool.”

The indictment also alleges that Jones and Dowling pushed for FirstEnergy-approved appointments to the state public utilities board, including Randazzo as PUCO Chairman.

In January 2019, FirstEnergy allegedly paid Randazzo’s companies more than $4.3 million for Randazzo providing favourable official actions for FirstEnergy through PUCO proceedings.

The indictment alleges that Jones referred to Householder as his “expensive friend” and thanked Randazzo after PUCO, under Randazzo’s leadership, took action in 2019 that Jones attributed to raising FirstEnergy’s stock price.

After the passage of House Bill 6, Dowling wrote, “Huge bet and we played it all right on the budget and HB 6 – so we can go back for more!”

“I stated following the jury conviction of Householder and Borges that this office would continue to work tirelessly to hold more people accountable for their actions to harm Ohioans, and we have,” said U.S. Attorney Kenneth L. Parker. “This indictment is yet another step in the direction of that accountability.”

“This alleged $60 million racketeering conspiracy defrauded Ohioans to enrich the defendants,” stated FBI Cincinnati Special Agent in Charge Elena Iatarola. “The FBI will continue to pursue political corruption and corporate fraud to protect taxpayers and hold white-collar criminals responsible for their actions.”

The RICO conspiracy, as charged in this case, is punishable by up to 20 years in prison.

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