Two-state bribery scandals involving utilities and lawmakers are a cautionary tale about money in government politics and the bipartisan nature of corruption.
Ohio House Speaker Larry Householder, a Republican, and four other political figures were arrested in July in connection with the corruption scandal. A federal criminal complaint states that the utility (later revealed to be Akron-based FirstEnergy Solutions) paid Househouse and employees $61 million to provide the company with more than $1 billion in financial assistance for its two nuclear power plants above Lake Erie.
The Columbus Post reported the shipment that Householder was charged with conspiring to funnel energy company funds through a obscure money group called Generation Now, set up by a longtime associate of his. Some of this money was allegedly used to finance the campaigns of legislative candidates who were Householder’s allies. Some of the money ended up in Householder’s pocket, federal prosecutors say.
U.S. Attorney Dave DeVillers said it was “probably the largest bribery and money laundering scheme ever conducted against Ohioans.”
The homeowner faces up to 20 years in prison.
The federal criminal complaint alleged that the bribes were funneled through the Dark Money group to shield them from scrutiny.
“The millions paid to the entity were like bags of cash — unlike campaign or PAC contributions, they were not regulated, reported, or subject to public scrutiny — and the company freely paid bribes to further its political interests and enriched itself,” the complaint said.
Chris Hoffman, special agent in charge of the FBI’s Cincinnati field office, called the bribery program a “disgraceful betrayal of the public trust.”
“Today’s announcement contains a warning: from the city council to the state office, all forms of corruption in the public sector are unacceptable,” he said.
The U.S. Department of Justice also announced that Chicago-based Commonwealth Edison will pay a $200 million fine for trying to bribe Illinois House Speaker Michael Madigan, a Democrat.
John R. Lausch Jr., a U.S. attorney for northern Illinois, said ComEd had been trying to influence the Illinois Legislature through Madigan for a decade and that the Speaker had successfully pushed legislation to change the way gas and electric rates were set in the state. Lausch said ComEd benefited to the tune of $150 million.
Federal prosecutors have not charged Madigan, who has served in the position since 1987, but Lausch suggested that an investigation into Madigan may be ongoing. The Justice Department’s statement said ComEd admitted to arranging labor, supplier subcontracts and cash payments to those in Madigan’s circle “in order to influence and reward the official’s efforts to assist ComEd with respect to legislation affecting ComEd and its activities.”
The Justice Department also said that ComEd, at Madigan’s request, appointed a person to its board and, at his suggestion, used the services of a law firm.
In addition to the fine, ComEd must cooperate with federal investigators for three years and meet certain conditions before pending criminal charges can be dropped.
Maryland State Senator Brian J. Feldman (D-Montgomery) he said Maryland Affairs The scandals show how much money circulates in the energy industry and why strict controls must be in place to ensure compliance with ethical rules.
“This is another wake-up call about money in politics,” Feldman said. “This reinforces a topic we have been covering in Maryland for the last several years. As policymakers, we must be especially careful.”
These alleged crimes are also a reminder that transparency is integral to controlling public officials. We must hold bureaucrats accountable for the taxpayer money we entrust to them, so that it is spent wisely and not used to line the pockets of shady lawmakers or businessmen.
Johnny Kampis is a senior fellow and investigative reporter at the Taxpayers Protection Alliance.
