Former PUCO chairman Sam Randazzo indicted on bribery, fraud charges in federal court
Ohio's former top utility regulator, Sam Randazzo, is charged with crimes related to bribery and embezzlement and was scheduled to appear in federal court Monday afternoon.
Randazzo, 74, of Columbus, self-surrendered at U.S. District Court in Cincinnati, according to federal prosecutors. Randazzo is charged in an 11-count indictment that was returned on Nov. 29.
His attorney could not be immediately reached for comment.
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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 faces 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, according to Parker's office.
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 chairman of the Public Utilities Commission of Ohio in April 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.” The next 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."
Read the 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
