OHIO — A federal grand jury has indicted two former FirstEnergy executives on charges of participating in a racketeering (RICO) conspiracy, alleging their involvement in bribery, money laundering, and obstruction to benefit the company and themselves.
Charles E. Jones, 69, of Akron, and Michael Dowling, 60, of Massillon, are scheduled to appear in federal court in Cincinnati Friday. The indictment was filed on Jan. 15 and unsealed Friday morning.
According to the indictment, Jones and Dowling engaged in a scheme to use FirstEnergy and its subsidiaries to increase the company’s stock price while enriching themselves.
Jones, who served as FirstEnergy’s President and CEO from 2015 until his termination in 2020, made approximately $65 million in compensation, with $60 million tied to company stock performance.
Dowling, a former Senior Vice President, also had part of his pay linked to the company’s financial success.
The 42-page indictment details allegations that Jones and Dowling participated in a scheme to bribe former Ohio House Speaker Larry Householder and former Public Utilities Commission of Ohio (PUCO) Chairman Samuel Randazzo.
Between 2017 and 2020, FirstEnergy allegedly funneled more than $59 million to Generation Now, a 501(c)(4) organization controlled by Householder, to secure his rise to Speaker and pass House Bill 6, a billion-dollar bailout for FirstEnergy’s nuclear plants.
Prosecutors also claim Jones and Dowling used another entity, Energy Pass-Through, to direct additional funds to Generation Now and other organizations connected to public officials.
Dowling allegedly referred to the 501(c)(4) as a “political tool.”
The indictment further alleges that Jones and Dowling influenced appointments to the state utilities board, including supporting Randazzo’s selection as PUCO Chairman.
In January 2019, FirstEnergy reportedly paid Randazzo’s companies over $4.3 million in exchange for favorable regulatory actions.
Jones allegedly referred to Householder as his “expensive friend” and thanked Randazzo for PUCO actions that he believed boosted FirstEnergy’s stock price.
Following the passage of House Bill 6, Dowling reportedly 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,” said 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.”
If convicted, Jones and Dowling each face up to 20 years in prison for the RICO conspiracy charge.
U.S. Attorney Parker and FBI Special Agent Iatarola announced the charges, with Deputy Criminal Chief Emily N. Glatfelter and Assistant U.S. Attorney Matthew C. Singer handling the prosecution.
An indictment is a formal accusation and does not constitute proof of guilt. The defendants are presumed innocent unless proven otherwise in a court of law.
