CINCINNATI, Ohio (WCMH) — Federal prosecutors on Monday announced an indictment against the former leader of Ohio’s utilities regulator.

Former Public Utilities Commission of Ohio chairman Samuel Randazzo, 74, surrendered himself to the U.S. District Court in Cincinnati Monday morning, according to U.S. Attorney Kenneth Parker. He faces 11 counts in the case, including:

• 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
• Five counts of making illegal monetary transactions

Randazzo served as PUCO chairman from April 2019 to November 2020 when he resigned. He first came under scrutiny, including a search of his home by the FBI, as part of the investigation into the Larry Householder bribery scandal. A company of Randazzo’s was listed in bankruptcy documents from a FirstEnergy subsidiary.

While Parker did not name FirstEnergy or Householder in his statements Monday, he referenced a $4.3 million payment Randazzo received from the energy company as the basis for some of the charges. Ohio Attorney General Dave Yost requested the freeze of Randazzo’s assets in 2021 when FirstEnergy admitted it was a bribe for the chairman’s help passing House Bill 6, a $1.3 billion ratepayer-funded nuclear power plant bailout.

“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,” said FBI Cincinnati Special Agent in Charge J. William Rivers.

Investigators backed up their findings with the $4.3 million payment with text messages from FirstEnergy executives. One of these conversations preceded favorable language in November 2019 for FirstEnergy in a PUCO opinion and order, according to Parker.

“Stock is gonna get hit with Ohio 2024. Need Sam to get rid of the ‘Ohio 2024 hole,'” one executive’s text read.

“I spoke with Sam today. Told me 2024 issue will be handled next Thursday,” another text read.

Another conversation hinted that by March 2020, some at PUCO were aware of Randazzo’s relationship with FirstEnergy.

“…a lot of talk going on in the halls of PUCO about does he work there for for us? He’ll move it as fast as he can,” a text message read.

Charging documents then explained how Randazzo received the $4.3 million payment alongside other transactions. The chairman maintained a consulting business called Sustainability Funding Alliance of Ohio, Inc. It listed Randazzo as its sole representative, with his home address also included as the business address. Not only did FirstEnergy wire its bribe to SFA, but Parker said Randazzo also used the business for embezzlement. The chairman funneled at least $1 million intended for an association of Ohio industrial energy users to himself.

David DeVillers was the U.S. attorney at the time this was all said to be unfolding. He said it was only a matter of time before this news came out.

“I wasn’t at all shocked by it. I think I was almost surprised with one of the counts, count six, which seems to be something new than what anyone is expecting. Anyone that read the deferred prosecution agreement that was filed against FirstEnergy a year or two ago, then you kind of saw this coming,” DeVillers said.

Randazzo’s career included time as general counsel for the industry group prior to his appointment to chairman of PUCO. He controlled the industry group’s bank accounts, according to Parker. From here, the charging documents claimed Randazzo entered into settlements with companies on behalf of the industry group and kept portions of the settlement payments for himself. As part of the embezzlement scheme, he created a fake member of the group that also received payments alongside real members.

If convicted, Randazzo could face up to 20 years in prison. Federal court records did not show a scheduled date for the next proceeding in his case.

Governor DeWine appointed Randazzo back in 2019. NBC4 reached out to his office for a comment. A spokesperson responded back with this statement:

“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.”

NBC4 also reached out to PUCO, who reiterated it is fully cooperating with these investigations wherever they may lead. 

“It is of utmost importance that our investigations do not interfere with the criminal investigation by the United States Attorney or the action brought by the Ohio Attorney General”, and, “to follow the facts wherever they may lead,” said a spokesperson.

A spokesperson for FirstEnergy also sent a statement to NBC4:

“While we can’t comment on the actions taken by the U.S. Attorney’s office for the Southern District of Ohio, 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.”

FirstEnergy

NBC4 asked DeVillers what to expect to see next in this case. He said that’s of course up to the current U.S. Attorney’s office, but so far no person from FirstEnergy has been charged.