Former PUCO chairman Sam Randazzo indicted on bribery, fraud charges in federal court

Ohio's former top utility regulator, Sam Randazzo, pleaded not guilty to an 11-count indictment on bribery and fraud charges in U.S. District Court on Monday.

Following his appearance in court, Randazzo's attorney, Roger Sugarman, declined comment. Assistant U.S. Attorney Emily Glatfelter also declined to comment.

The government allowed Randazzo, 74, of Columbus to self-surrender to court in Cincinnati instead of being arrested.

While Randazzo initially appeared in court in shackles, prosecutors did not ask that he be held. Randazzo was released with conditions, including that he cannot travel outside of Ohio without permission.

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“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,” said U.S. Attorney Kenneth L. Parker in a written statement. “Through the indictment unsealed today, we seek to hold Randazzo accountable for his alleged illegal activities.”

Randazzo is charged with one count of conspiring to commit travel act bribery and honest services wire fraud, two counts of travel act bribery, two counts of honest services wire fraud, one count of wire fraud and five counts of making illegal monetary transactions.

The conduct is related to his time serving as chairman of the Public Utilities Commission of Ohio and to when he represented the Industrial Energy Users of Ohio.

In a deferred prosecution agreement signed in July 2021, Akron-based FirstEnergy Corp. admitted that it bribed Randazzo. The company paid Randazzo $4.3 million shortly before Gov. Mike DeWine picked him as PUCO chairman in 2019.

In exchange for the $4.3 million, Randazzo gave the energy company favorable treatment at the PUCO. For example, in November 2019, Randazzo included language in a PUCO order that would help FirstEnergy address an issue looming in 2024.

Text messages demonstrate a coordinated effort with Randazzo and FirstEnergy, according to the indictment.

“Stock is gonna get hit with Ohio 2024. Need Sam to get rid of the ‘Ohio 2024 hole,’” an energy executive text message read. Another executive messaged, in part: “I spoke with Sam today. Told me 2024 issue will be handled next Thursday.” That following Thursday, the PUCO decision included language alleviating the 2024 issue.

FirstEnergy spokeswoman Jennifer Young said the company could not comment on Randazzo's indictment, however, "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."

In addition to the allegations about Randazzo's conduct with FirstEnergy and the PUCO, the indictment accuses him of embezzling $1.1 million from a group of clients he represented in utility matters.

For decades, Randazzo represented the Industrial Energy Users - Ohio. The indictment says between 2010 and 2019, Randazzo funneled money away from the group and created fictitious members to receive payments.

Who is Sam Randazzo?

Long before DeWine picked him to be PUCO chairman, Randazzo had built a reputation as a sharp lawyer with deep expertise in energy policies.

Randazzo began his career as a staff attorney at the Public Utilities Commission of Ohio and later as an assistant attorney general before entering private practice. He represented Industrial Energy Users-Ohio from 1992 to 2019, and he been a critic of Ohio’s renewable energy mandates put in place in 2008.

In February 2019, DeWine appointed Randazzo to the Public Utilities Commission of Ohio, which regulates telecom, natural gas, and electric companies. It's a powerful position that impacts mega utilities and millions of consumers.

FirstEnergy quietly pitched Randazzo for the PUCO job.

And Randazzo went on to advocate for House Bill 6, which would've provided a $1.3 billion bailout to help FirstEnergy and other utilities. DeWine signed it into law in July 2019.

A year later, federal prosecutors pulled back the curtain on an alleged pay-to-play scheme that involved FirstEnergy funneling $61 million in bribes through political dark money groups. The money helped position Republican Larry Householder as Ohio House speaker, push the bill through and then fund a counter-campaign against a referendum attempt.

In the months after that bombshell, FBI agents searched Randazzo's condo in Columbus and FirstEnergy disclosed it paid Randazzo and his companies $22 million over 10 years, including $4.3 million paid out just weeks before he went to lead the PUCO.

Randazzo resigned from the PUCO after the FBI search and disclosure of the FirstEnergy payments in November 2020. He has said he did nothing wrong.

Asked about the indictment, DeWine spokesman Dan Tierney said Monday: "While our office was not privy to the indictment and have not yet reviewed it, the indictment alleges very serious acts. Our office has full faith in the criminal justice system to adjudicate these serious allegations in an appropriate manner."

Rachael Belz, CEO of Ohio Citizen Action, said in a written statement that the consumers group is hopeful the indictment will help clear the "cloud of corruption hanging over energy policy in Ohio and ending the cycle of deceit perpetrated by FirstEnergy and their allies."

A quick recap of the House Bill 6 bribery case

The House Bill 6 public corruption scandal is the biggest case in state history because of the big money, key players and scope.

Here is a quick recap of where the case stands.

Householder is serving 20 years in federal prison after being convicted in March 2023 by a federal jury of racketeering conspiracy. The Perry County Republican, who plans to appeal his conviction, is considered the mastermind behind the scheme.

Matt Borges, the former chairman of the Ohio Republican Party and former lobbyist, is serving five years in federal prison and planning to appeal his racketeering conspiracy conviction. He stood trial with Householder.

Householder's political consultant Jeff Longstreth and former FirstEnergy Solutions lobbyist Juan Cespedes, who both pleaded guilty and cooperated with federal prosecutors, are awaiting sentencing.

Former lobbyist Neil Clark, the fifth man charged in the initial indictment, died by suicide in March 2021 before trial.

FirstEnergy fired key executives in October 2020, re-vamped its board of directors and agreed in July 2021 to cooperate with federal prosecutors for three years.

Randazzo's case is assigned to U.S. District Court Judge Timothy Black, who held the Householder and Borges trial.

Running parallel to the criminal cases are multiple civil lawsuits filed by investors who claim FirstEnergy's participation cost them money.

Last month, attorneys suing FirstEnergy subpoenaed records from DeWine and want to question Lt. Gov. Jon Husted under oath.

Read the Randazzo indictment below:

Randazzo Indictment by Jessie Balmert on Scribd

Laura Bischoff is a reporter for the USA TODAY Network Ohio Bureau, which serves the Columbus Dispatch, Cincinnati Enquirer, Akron Beacon Journal and 18 other affiliated news organizations across Ohio.

This article originally appeared on The Columbus Dispatch: Former PUCO chairman Sam Randazzo indicted on federal bribery charges