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Householder pleads not guilty on state charges that could ban him from running for office

HOUSEHOLDER PIC.png
Householder after verdict
Posted at 6:19 AM, May 31, 2024

CLEVELAND — Disgraced former Ohio lawmaker Larry Householder entered a not guilty plea Friday in Cuyahoga County Court. He's charged with 10 felony state charges connected to a trial for what's been called the largest public corruption scandal in Ohio Statehouse history.

You can watch his arraignment below:

Larry Householder arraigned on state charges

STATE CHARGES

Friday, the 2-time former speaker of the Ohio House of Representatives faced a judge via video conference from prison.

His legal team entered a not guilty plea and the judge set his bail at $100,000.

Householder has been indicted on the following charges:

  • One count of theft in office (F1)
  • Two counts of aggravated theft (F2)
  • One count of telecommunications fraud (F2)
  • One count of money laundering (F3)
  • Five counts of tampering with records (F3)

According to the Ohio Attorney General's Office, the charges allege misuse of campaign money and other ethics violations. One count would permanently ban him from holding public office again in Ohio.

STATE INVESTIGATION

In March, Attorney General Dave Yost announced the new charges filed in Cuyahoga County Federal Court. He said the Summit County Prosecutor requested an investigation by a task force under the Ohio Organized Crime Investigations Commission (OOCIC).

The task force said it uncovered Householder had stolen more than $750,000 from a campaign account to use for his criminal defense.

The indictment further alleges he never finished Joint Legislative Committee Filings, and he did not disclose gifts, fiduciary relationships and creditors.

“The evidence will demonstrate that Mr. Householder was aware that he did not have the authority to pay for his criminal defense with his money from his supporters in his campaign account,” said Deputy Attorney General Carol O'Brien during the March 2024 indictment announcement.

The case was filed in Cuyahoga County because that's where the financial transactions allegedly occurred.

FEDERAL CONVICTION

Householder is currently serving a 20-year sentence in federal prison for his role in the $60 million bribery plot involving FirstEnergy Corp and House Bill 6.

He was ultimately convicted on federal charges for accepting bribes from FirstEnergy Corp in exchange for working to pass the billion-dollar bailout for the company's two nuclear power plants.

Larry Householder files appeal, says bribe payment was within rights

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He’s currently appealing his federal conviction.

STATE CHARGES HAVE DIFFERENT IMPLICATIONS

Ohio Attorney General Dave Yost says the state case is about holding Householder accountable for his actions and could potentially prevent him from seeking public office again.

"[A conviction] means the 'Comeback Kid' will never come back to the General Assembly," Yost said in March.

The former lawmaker earned the nickname after a surprise election to the Ohio House in 2016. He had left his previous term more than a decade earlier and was accused of overpaying vendors in exchange for kickbacks.

In 2006, the Justice Department declined to pursue charges in that case. Householder resumed his public duties in 2017 and was elected Speaker for a second time in 2019.

“Should the conviction be overturned on appeal, he might well try for a third bite at the apple," Yost said. "[It's] a possibility that legislators have raised in private with me, citing deep concern.”

News 5 spoke with Jonathan Entin, emeritus professor with Case Western Reserve University School of Law. He said the state charges, particularly the theft in office charge, carry significant weight with long-term implications.

"Getting a conviction on a state charge, that would permanently disqualify Householder from office. It would effectively guarantee that he could never again serve in public office. And I think that that may be part of what's driving the state prosecution," Entin said.

WHAT'S NEXT

Householder's next pre-trial appearance is scheduled for June 24 at 9 a.m.

If convicted in the state case, Householder could also face additional prison time and be ordered to pay restitution.

He was expelled from the Ohio House in 2021. Prosecutors said they hope a state conviction could keep him out of the general assembly for good.

“He committed crimes against the state of Ohio, he violated his oath of office, he committed offenses against justice and public administration and he violated the trust of the people who financially supported his campaign and the trust of the people of Ohio,” O'Brien said in March.

Attorneys for both parties declined to comment after Friday's proceedings. Householder's legal team said it is reserving the right to challenge both the case's venue and statute of limitations.