Prosecutors said that companies owned by the late Sam Randazzo, accused of taking a $4.3 million bribe, could enter a guilty plea this week.
Former Public Utilities Commission of Ohio Chairman Sam Randazzo is seen leaving his arraignment at the Summit County Court of Common Pleas on Feb. 13, 2024. COLUMBUS, Ohio – A prosecutor told a Summit County judge Friday that the state has reached a plea agreement “in principle” with businesses owned by Sam Randazzo, the state’s former top utility regulator who died shortly after he was charged with accepting a $4.
3 million bribe from FirstEnergy Corp. Assistant Attorney General Matt Meyer told Summit County Common Pleas Judge Susan Baker Ross that two companies owned by Randazzo are set to enter guilty pleas. Prosecutors say Randazzo used the two companies to accept and conceal millions in bribes from FirstEnergy shortly before Gov. Mike DeWine appointed him as chairman of the Public Utilities Commission of Ohio, which regulates power companies like FirstEnergy. Meyer said the agreement, which Ross would need to approve, would be ready for her review as soon as Friday., while under both state and federal indictments. It’s unclear who has rights to make decisions on the companies’ behalf. Randazzo is survived by his wife and several adult children. Attorneys for Randazzo told Ross on Friday that they’re motivated to get the charges resolved, although they were less certain that a final decision this week would be possible. Attorney Roger Sugarman told Ross that a hearing by Friday this week might be a bit “ambitious” and there are still “significant discussions” to be had with state prosecutors, but he didn’t rule it out. Neither the state nor Randazzo’s attorney responded to questions about the terms of the deal. But Randazzo made millions from FirstEnergy, and a charge against his business could lead the way to the state reclaiming what it argues are ill gotten gainsProsecutors indicted Randazzo on an array of financial crimes, saying he, in concert with top FirstEnergy officials, stole from his legal clients, secretly colluded with FirstEnergy despite his clients' adverse interests, accepted a $4.3 million bribe from FirstEnergy’s executives just before he started as PUCO chairman, and then did the company’s bidding from inside state government at a senior level. After his death, state prosecutors dropped the charges against Randazzo personally but maintained those against his companies. One, the Sustainability Funding Alliance of Ohio, was solely owned by Randazzo, had no other employees, and its income flowed to him and his wife. The other was IEU-Ohio Administration Company. Both companies, prosecutors say, were paper-only instruments used to execute and conceal the scheme. They allowed him to play “all sides” of a case – representing interests of his clients, FirstEnergy, and himself. They accused Randazzo as a private lawyer of skimming money from his client, Industrial Energy Users of Ohio, a coalition of large-scale electric buyers. FirstEnergy, via Randazzo’s companies, discreetly paid him millions of dollars in exchange for the coalition’s agreement to not oppose FirstEnergy’s request to the PUCO to collect more money from customers. Of the $13.2 million FirstEnergy paid between 2016 and 2019 for the coalition’s silence, prosecutors have said, Randazzo pocketed $5.4 million. They say he deployed similar tactics to steal $1.2 million from his clients’ settlement with another electric utility. By 2019, FirstEnergy – via CEO Chuck Jones and senior vice president of external affairs Mike Dowling – saw an opportunity to persuade a new governor to appoint Randazzo to head the PUCO. They succeeded in convincing DeWine, and paid Randazzo $4.3 million in January 2019 before DeWine appointed him one month later. The three men denied wrongdoing and pleaded not guilty, holding that the $4.3 million wasn’t a bribe but the buyout fee on Randazzo’s consulting contract. Randazzo never publicly disclosed his relationship with the company. His financial disclosures list no consulting income from FirstEnergy or ownership of the two companies at issue. As PUCO chairman, he led several regulatory rulings in FirstEnergy’s favor, and he lobbied in support of bailout legislation the company aggressively pushed. Ex-Ohio House Speaker Larry Householder is currently serving a 20-year sentence for his championing of the bailout. In July 2020, the FBI arrested Householder and four conspirators, setting into motion a series of events that would include two convictions, three guilty pleas, three more indictments and two alleged conspirators’ suicides. Before Randazzo was arrested, he appeared before state lawmakers as PUCO chairman and was directly asked if he was paid by FirstEnergy. At the time, he said he had never worked for FirstEnergy as a lawyer or registered lobbyist, a statement that while technically true was highly misleading. He resigned as PUCO chairman after FBI agents were seen raiding his condominium in Columbus in October 2020. By the next summer, FirstEnergy struck a deal with federal prosecutors, agreeing to pay a $230 million penalty and admit to bribing both Randazzo and Householder.out of fear he’d spend down the proceedings before the state could win any criminal or civil judgements. The justices sided with the state, a ruling that mounted new financial pressure against Randazzo as prosecutors moved toward criminal charges. Jones and Dowling still await trial, and Ross has yet to set a date. At their hearing Friday, Ross indicated she was likely to side with FirstEnergy on a pre-trial motion to compel the limited release of grand jury testimony. State prosecutors indicated they plan to appeal, meaning further delays are likely. Both men have pleaded not guilty, insisting the money they paid to Randazzo amounted to lawful consulting work and not a bribe.As leadership vote looms, House Speaker Jason Stephens is giving up the gavel: Capitol LetterJake Zuckerman covers state politics and policy for Cleveland.com and The Plain Dealer. If you purchase a product or register for an account through a link on our site, we may receive compensation.and agree that your clicks, interactions, and personal information may be collected, recorded, and/or stored by us and social media and other third-party partners in accordance with our
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