Utility ordered to pay $100 million for its role in Ohio bribery scheme
An Ohio-based energy company at the center of a $60 million bribery scheme has been ordered by the U.S. Securities and Exchange Commission to pay a $100 million fine
An energy company at the center of a $60 million bribery scheme in Ohio has been ordered by the U.S. Securities and Exchange Commission to pay a $100 million civil penalty for misleading investors about its role in the scandal.
Akron-based FirstEnergy Corp. violated antifraud provisions by misrepresenting its role in the political corruption scheme and failing to disclose related payments, according to the SEC.
It said in a cease and desist order that the utility’s former CEO made a “series of misrepresentations to investors” in a news release and later during a July 2020 earnings conference call.
The action comes a month after FirstEnergy agreed to pay $20 million to avoid criminal charges as part of a deal with state prosecutors.
The bribery scheme, which has already resulted in a lengthy prison sentence for a former Ohio House speaker, centered on FirstEnergy's efforts to convince state lawmakers to pass a $1 billion bailout of two of its affiliated nuclear plants and defend the bill from a repeal effort.
FirstEnergy President and CEO Brian Tierney said the company is pleased it was able to reach a settlement with the SEC, which said the company has to pay the penalty within 14 days or face interest charges.
Two former FirstEnergy executives were indicted in April as part of the long-running investigation: CEO Chuck Jones and Senior Vice President Michael Dowling, both of whom were fired in October 2020 for violating company policies and code of conduct. They have denied wrongdoing.
Another man who was charged alongside them, Sam Randazzo, former
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