AKRON, Ohio — A shell company charged for its role in the Ohio House Bill 6 scandal has agreed to plead guilty, Summit County Prosecutor Elliot Kolkovich announced Tuesday.
The Sustainability Funding Alliance of Ohio, originally established by the late Sam Randazzo, admitted to 11 criminal counts as part of its deal with the state. The company will also be forced to pay more than $2 million in penalties, including the forfeiture of $1.42 million to the Ohio Organized Crime Investigation Commission.
SFA-Ohio played a key part in Ohio's multi-million-dollar bailout of two nuclear power plants that, at the time, were owned by a subsidiary of Akron-based FirstEnergy Corp. In particular, prosecutors say FirstEnergy used SFA-Ohio to funnel a $4.3 million bribe to Randazzo, who then used his power as chairman of the Public Utilities Commission of Ohio to advance FirstEnergy's interests, such as the tainted legislation that eventually cleared the General Assembly and was signed into law by Gov. Mike DeWine.
Several individuals, including former Ohio House Speaker Larry Householder, have since been convicted for their roles in what has been called Ohio's largest bribery scandal. FirstEnergy has already paid hundreds of millions in penalties after admitting to its role in the scheme, including the bribe to Randazzo.
The FBI raided Randazzo's home in November of 2020, after which he resigned as PUCO chairman. Federal prosecutors finally indicted him in December 2023, and the state of Ohio followed suit this past February. However, the criminal cases against him came to a close in April when he died by suicide in Columbus, his body found inside a building owned by SFA-Ohio.
"By holding Sam Randazzo's shell company accountable for its role in the HB 6 scandal, we send a clear message to those who would hold Ohio’s government hostage to their private interests — you will not escape justice," Kolkovich said following Tuesday's guilty plea. "It is time for those in the backrooms of this state to realize that the days of rigging government for their own ends are over."
DETAILS OF SFA-OHIO'S CRIMES
According to prosecutors, SFA-Ohio's offenses spanned between January 2010 and January 2021, with Randazzo forming the shell organization "to conceal and further his criminal activities" as the company's sole "employee." During this time, Randazzo was also receiving millions from FirstEnergy for purported "consulting" work while additionally representing Industrial Energy Users of Ohio, a nonprofit which specialized in "obtaining reliable, cost-effective energy for its members."
While working with IEU-Ohio, Randazzo would negotiate legal settlements with FirstEnergy that were supposed to benefit IEU-Ohio's members, all while not disclosing his "consulting" work with FirstEnergy. Authorities say he would funnel money from the settlements through SFA-Ohio and take a large part of the proceeds for himself, and as a result, IEU-Ohio lost more than $1.2 million.
Later, just before DeWine nominated Randazzo to be PUCO chairman in January of 2019, then-FirstEnergy CEO Chuck Jones and Senior Vice President of External Affairs Michael Dowling are accused of sending $4.3 million to SFA-Ohio's accounts. This, prosecutors say, was meant to bribe Randazzo and influence his actions on the commission.
While both FirstEnergy and now SFA-Ohio have admitted to their illegal actions as entities, Jones and Dowling still await trial in Summit County over their alleged crimes after initially being indicted along with Randazzo. Both have pleaded not guilty to various felony corruption charges.
"I am proud that my Office has worked closely with the Ohio Attorney General's Office, the Summit County Sheriff's Office, and so many other partners in the law-enforcement community to bring about this result in the prosecution against Randazzo’s shell company," Kolkovich added. "We look forward to continuing our collaboration with a successful prosecution against the remaining co-defendants."
Tuesday's plea agreement saw SFA-Ohio cop to the following offenses:
- 1 count of engaging in a pattern of corrupt activity (first-degree felony)
- 2 counts of telecommunications fraud (F1)
- 2 counts of aggravated theft (F2)
- 6 counts of money laundering (F3)
Besides the $1.4 million payment to the OCIC, Summit County Judge Susan Baker Ross also slapped SFA-Ohio with a $95,000 fine, the maximum allowed under Ohio law. The company will also have to pay more than $190,000 directly to IEU-Ohio (now doing business as the Ohio Energy Leadership Council) and sell its real estate in Franklin County worth roughly $550,000. Those proceeds will also go to the Ohio Energy Leadership Council.
OTHER FACTS FROM THE SCANDAL
After news of HB6's corrupt origins became public, the Ohio General Assembly partly repealed the legislation. Energy Harbor, the independent company spun off from FirstEnergy as part of the law, was acquired by Texas-based Vista last year.
DeWine's office has admitted the governor knew of Randazzo's ties to FirstEnergy when he nominated him to be PUCO chairman, but that this was seen as a positive aspect of his resume at the time and stressed there was no reason for officials to believe Randazzo was engaged in nefarious behavior. Following Randazzo's indictment earlier this year, DeWine told 3News media partner Cleveland.com that the decision to make him PUCO chairman was a mistake.
Householder is currently serving a 20-year sentence in federal prison for his crimes. He has sought a pardon from incoming President Donald Trump (whose DOJ first indicted Householder in 2020), but now also faces charges from the state of Ohio.
