The former chairman of the Public Utilities Commission of Ohio has pleaded not guilty after being charged with a dozen crimes related to bribery and embezzlement after he allegedly received more than $4.3 million from FirstEnergy, according to DOJ officials.
A federal grand jury indicted Samuel Randazzo, 74, of Columbus, for his part in the largest corruption scandal in Ohio history.
Charges
Randazzo self-surrendered Monday morning at the U.S. District Court in Cincinnati after being charged in an 11-count indictment that was returned on Nov. 29 that includes charges for 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, according to a news release from the office of U.S. Attorney Kenneth L. Parker in the Southern District of Ohio.
“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,” stated FBI Cincinnati Special Agent in Charge J. William Rivers. “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.”
A somber-looking Randazzo was brought into the courtroom around 1:30 p.m. in shackles and handcuffs. Within minutes, he pleaded not guilty to the charges and was released to his own recognizance.
Who is Sam Randazzo?
Randazzo was the PUCO chairman from April 2019 until November 2020, when he resigned. He allegedly received more than $4.3 million from “an energy company and its affiliates to provide favorable actions for the company through PUCO proceedings,” the DOJ states.
The DOJ news release does not specifically name FirstEnergy, but Randazzo is implicated in the FirstEnergy bribery and bailout scandal that has rocked the statehouse since 2020 and led to the conviction and 20-year prison sentence for former Ohio House Speaker Larry Householder. FirstEnergy has already admitted it bribed Randazzo.
Randazzo was also general counsel of an association of large industrial energy users in Ohio group for years up until his appointment to PUCO and served as the industry group’s executive director, controlling the group’s bank accounts.
This bribery scandal has been covered extensively by News 5, which followed the legislation all the way through the Statehouse, the arrests, trial, conviction and sentencing of Householder and former GOP leader Matt Borges.
Alleged crimes
Randazzo is allegedly a major player behind the House Bill 6 scandal.
As mentioned, FirstEnergy has already admitted to bribing Randazzo with a $4.3 million payment so the former chairman could help the company behind the scenes — in one way — by pushing and helping to create H.B. 6.
"What this indictment does is outline all of the various acts that went into, and quite frankly, where he was giving the benefits back to FirstEnergy to result in these 11 counts," Case Western Reserve University law professor Mike Benza said.
One example of Randazzo’s alleged crimes is his inclusion of language in a PUCO Opinion and Order that would address an issue for the energy company expected to impact them in 2024 after the company texted that the issue would be “handled” by him.
“Stock is gonna get hit with Ohio 2024. Need Sam to get rid of the ‘Ohio 2024 hole,’” an energy executive text message read, according to the DOJ news release. Another executive messaged, in part: “I spoke with Sam today. Told me 2024 issue will be handled next Thursday.”
The next Thursday, the PUCO decision included language alleviating the 2024 issue.
The U.S. Attorney’s office alleges Randazzo received bribe money from the company through his consulting business, Sustainability Funding Alliance of Ohio — SFA — which was registered in 2010 and lists Randazzo as the president and sole representative of the business. The business’s address is listed as Randazzo’s home address.
Randazzo is also alleged to have used the SFA business to embezzle at least a million dollars meant for the energy industry group, the U.S. Attorney’s Office news release states.
To cover up his alleged embezzlement, Randazzo at one point created a fictitious member of the industry group that received payments, the DOJ alleges.
20-year sentence possible
"What do you think that this means for Randazzo?" Statehouse reporter Morgan Trau asked Benza.
"It means he will probably spend the rest of his life in prison," the professor responded. "He would be looking at probably dying in prison."
If convicted as charged, Randazzo faces up to 20 years in prison, officials state.
Benza is confident in his assessment because of the overwhelming amount of evidence the FBI has.
"There will be a trial and he is presumed innocent, but we've already seen a huge chunk of the government's evidence in the Householder trial and the FirstEnergy nonprosecution agreement," Benza said, referencing the fact that the energy company already admitted to bribery. "There's probably going to be an uphill battle for the defense team in this case to prevail at trial."
News 5 reached out to the former chairman's attorney, asking for comment and if they are working on a plea deal, but has not heard back.
Householder received 20 years, the maximum sentence, for his role in the state’s largest bribery scheme. He and ex-GOP chairman Matt Borges were found guilty of including racketeering and conspiracy for their roles in passing a nearly $61 million scheme for a billion-dollar bailout, House Bill 6, at the expense of taxpayers.
Watch our report on Householder's sentencing below:
RELATED: Jury finds former Ohio House Speaker Larry Householder and co-defendant Matt Borges guilty
Governor subpoenaed in FirstEnergy civil suit
Plaintiffs in a civil suit related to the massive bribery and money-laundering scandal have subpoenaed documents from Ohio Gov. Mike DeWine, and they’re scheduling a sworn deposition with Lt. Gov. Jon Husted.
While there has been no indication from the DOJ that DeWine or Husted are being investigated as suspects of any criminal charges in the scandal, members of the DeWine-Husted administration were significant players in the FirstEnergy scheme.
RELATED: Ohio Gov. Mike DeWine addresses subpoena in bribery scandal civil case, until AG Yost stops him
"The indictment that is here very clearly indicates that they are continuing to look at other people," Benza said.
While neither DeWine nor Husted are accused of any wrongdoing, the administration did put Randazzo into power, appointing him to his role on PUCO soon after he accepted the bribe.
"I think anybody in any of the executive branch who vetted him in terms of going through that process, this may be a really big issue," Benza added.
News 5 reached out to DeWine and Husted's offices. The lieutenant governor's team declined to respond and recommended we ask the governor's office about the situation.
"While our office was not privy to the indictment and have not yet reviewed it, the indictment alleges very serious acts," DeWine spokesperson Dan Tierney said. "Our office has full faith in the criminal justice system to adjudicate these serious allegations in an appropriate manner."
Trau had pressed Tierney the week prior about DeWine's relationship with Randazzo. He said he wasn't aware of any communication between the governor and Randazzo since the former chairman resigned from his post in 2020.
RELATED: Ohio Gov. Mike DeWine and Lt. Gov. Jon Husted subpoenaed in civil suit over bailout scandal
