CINCINNATI (CN) — Ohio's former top utility regulator was released on his own recognizance and surrendered his passport Monday after he pleaded not guilty to multiple wire fraud charges, accused taking millions in bribes from FirstEnergy Corp. in exchange for favorable treatment from the commission.
Randazzo, 74, of Columbus, self-surrendered after the indictment was unsealed. Prosecutors say he accepted a $4.3 million bribe from FirstEnergy just before being appointed chairman of the utilities commission by Republican Governor Mike DeWine.
He served in the position from April 2019 until November 2020, when he resigned following a search of his condo by FBI agents and admissions by FirstEnergy that its executives had bribed him.
FirstEnergy confessed its involvement in the bribery scheme as part of a deferred prosecution agreement related to the indictment and trial of former Ohio Speaker of the House Larry Householder. He was found guilty on a single charge of racketeering in June and was sentenced to 20 years in federal prison for using his power in the House of Representatives to pass House Bill 6, a $1 billion taxpayer-funded bailout of FirstEnergy's failing nuclear power plants.
The former speaker and his lobbyists took over $61 million in bribes to pass HB 6 and ensure a statewide recall effort was unsuccessful. Householder is currently serving his prison sentence and has an appeal pending.
A press release from
The U.S. Attorney's Office for the Southern District Court of Ohio detailed Randazzo's scheme, which included favorable language in an order by the utilities commission to alleviate FirstEnergy executives' concerns over a "2024 issue" that would hurt the company's stock.
The indictment included screenshots of text messages between Randazzo and several executives. One featured a meme of Mount Rushmore with Randazzo's face on the monument, and the caption, "HB 6 FUCK ANYBODY WHO AIN'T US."
Other texts included messages between executives that Randazzo "told me 2024 issue will be handled," and a picture of stock prices sent to Randazzo in the wake of a favorable order by the commission.
Kenneth Parker, U.S. Attorney for the Southern District Court of Ohio, released the following statement:
"Public officials — whether elected or appointed — are tasked with upholding the highest level of integrity in their duties and responsibilities. Such service to the public must be selfless, not selfish.
"Through the indictment unsealed today, we seek to hold Randazzo accountable for his alleged illegal activities," he said.
Randazzo is also accused of using his consulting firm, Sustainability Funding Alliance of Ohio Inc., to embezzle over $1.1 million meant for a group of industrial energy users in the state.
Parker alleges Randazzo helped negotiate settlement agreements with the industrial group — whom he previously represented as legal counsel — and then took a cut of the proceeds.
"Today's indictment outlines an alleged scheme in which a public regulatory official ignored the Ohio consumers he was responsible for protecting, instead taking a bribe from an energy company seeking favors," FBI Special Agent in Charge J. William Rivers said in a statement. "The FBI will remain vigilant in investigating allegations of corruption at all levels of government and hold those who violate the law accountable for their actions."
FirstEnergy attempted to distance itself from the indictment in a statement provided to Courthouse News.
"While we can’t comment on the actions taken by the U.S. Attorney’s Office for the Southern District of Ohio," spokesperson Jennifer Young said, "FirstEnergy has taken significant steps to put past issues behind us. Today we are a different, stronger company with a sound strategy and focused on a bright future."
Randazzo is not allowed to travel outside the state of Ohio without permission from the court and approval from federal prosecutors.
The case will be overseen by Senior U.S. District Judge Timothy Black, an Obama appointee who also presided over the Householder trial.
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