In a significant legal development, Mathew Borges, the former chair of the Ohio Republican Party, has been sentenced to five years in prison for his involvement in a racketeering conspiracy. Borges and former Ohio House Speaker Larry Householder were found guilty of violating the racketeering statute, following a six-week trial. The conspiracy centered around nearly $61 million in bribes paid to a 501(c)(4) entity to pass and uphold House Bill 6, a billion-dollar nuclear plant bailout. Borges’ conviction and sentencing highlight the accountability faced by those who willingly participate in criminal enterprises, especially individuals with long-standing political careers like Borges.
Former chair of Ohio Republican Party sentenced to 5 years in prison for role in racketeering conspiracy
The former chair of the Ohio Republican Party, Mathew Borges, has been sentenced to 5 years in prison for his involvement in a racketeering conspiracy. Borges and former Ohio House Speaker Larry Householder were found guilty of violating the racketeering statute in a conspiracy that involved nearly $61 million in bribes. The conspiracy was centered around House Bill 6, a billion-dollar nuclear plant bailout. Borges was accused of seeking out, soliciting, and bribing an individual for insider information related to the bill.
Verdict and Sentencing
Borges was sentenced to 60 months in federal prison following a six-week trial. The verdict was announced on March 8, and the sentencing serves as a strong message that illegal conduct will not be tolerated, especially when it involves public officials and political corruption.
Racketeering Conspiracy
The racketeering conspiracy that Borges was involved in was a complex web of corruption. The government proved at trial that Borges conspired with others to violate the racketeering statute, which involves engaging in patterns of illegal activity for financial gain. In this case, the conspiracy revolved around the payment of bribes to a 501(c)(4) entity to pass and uphold House Bill 6. The bribes totaled nearly $61 million, making it a significant case of political corruption.
House Bill 6
House Bill 6 was a controversial piece of legislation that involved a billion-dollar bailout for nuclear power plants in Ohio. It was passed in July 2019 and has since received widespread criticism due to the illegal activities surrounding its passing. The bill provided financial support for the nuclear plants while also giving a blow to renewable energy sources. The involvement of Borges and others in a bribery conspiracy highlights the extent to which corruption can infiltrate the political process.
Bribes Paid to a 501(c)(4) Entity
One of the key elements of the racketeering conspiracy was the payment of bribes to a 501(c)(4) entity. This type of organization is considered a social welfare nonprofit, but it can engage in political activities. In this case, the 501(c)(4) entity received nearly $61 million in bribes to ensure the passage and preservation of House Bill 6. The use of a nonprofit organization for this purpose shows the level of sophistication and planning involved in the conspiracy.
Involvement of Mathew Borges
Primary Role in the Enterprise
Mathew Borges played a primary role in the criminal enterprise. His role was to prevent Ohioans from having the opportunity to overturn what he knew to be corrupt legislation. He was given a budget of $25,000, which he funneled through his own bank accounts to bribe a political operative for insider information. Borges was an experienced political figure, having worked with public officials for over 20 years. His involvement in the conspiracy demonstrates a betrayal of the public’s trust and a willingness to engage in illegal activities.
Bribery and Insider Information
Borges actively sought out, solicited, and bribed an individual for insider information related to House Bill 6. This information was valuable in shaping the conspiracy and ensuring the success of the racketeering enterprise. The exchange of money for insider information is a clear example of bribery and corruption within the political system. Borges’s actions were deliberate and calculated, indicating a high level of involvement and knowledge of the illegal activities taking place.
Creation of 17 Consulting Group LLC
As part of the conspiracy, Borges created a new entity called 17 Consulting Group LLC. This entity served as a channel for the transfer of laundered money. Borges agreed to funnel $1.62 million to 17 Consulting Group LLC, which had already been laundered through Householder’s 501(c)(4) organization, Generation Now. The creation of this new entity allowed for the movement of illicit funds and further disguised the illegal activities of the conspirators.
Money Laundering
Borges was directly involved in money laundering as part of the racketeering conspiracy. He used his own bank accounts to facilitate the laundering of funds and covered up the illicit origins of the money. Borges personally laundered $360,000 of the laundered money, further benefiting from his involvement in the criminal enterprise. Money laundering is a serious crime that involves disguising the proceeds of illegal activities, and Borges’s actions show a clear intent to commit this offense.
Guilty Pleas of Jeffrey Longstreth and Juan Cespedes
The racketeering conspiracy involving House Bill 6 also implicated Jeffrey Longstreth, a campaign and political strategist, and Juan Cespedes, a lobbyist. Both Longstreth and Cespedes pleaded guilty to their roles in the conspiracy. They await sentencing, and their guilty pleas further reaffirm the extent of the corruption and illegal activities associated with the passage of House Bill 6.
Deferred Prosecution Settlement of FirstEnergy Corp.
As part of the investigation into the racketeering conspiracy, FirstEnergy Corp. signed a deferred prosecution settlement in July 2021. The settlement required FirstEnergy Corp. to pay a $230 million penalty for conspiring to bribe public officials and others. This settlement highlights the involvement of a major corporation in the corruption scheme and serves as a reminder that corporate entities can also be held accountable for their illegal actions.
Sentencing of Larry Householder
Larry Householder, the former Ohio House Speaker, was also found guilty of participating in the racketeering conspiracy surrounding House Bill 6. He was sentenced to 240 months in prison, which demonstrates the severity of his involvement in the illegal activities. Householder’s sentencing, along with Borges’s, sends a clear message that those who engage in political corruption will face significant consequences.
Announcement of Sentence by U.S. Attorney and Special Agent in Charge
The sentencing of Mathew Borges was announced by U.S. Attorney Kenneth L. Parker and Special Agent in Charge J. William Rivers. Their announcement highlighted the willingness of Borges to cross ethical and legal boundaries for personal gain and the importance of holding individuals accountable for their actions. The announcement serves as a reminder that public officials and political figures are not above the law and will face prosecution for their involvement in criminal activities.
Prosecution Team
The prosecution team in the case against Mathew Borges consisted of Deputy Criminal Chief Emily N. Glatfelter and Assistant United States Attorneys Matthew C. Singer, Megan Gaffney Painter, and Timothy S. Mangan. These individuals worked diligently to present the evidence and build a strong case against Borges and the other defendants. Their efforts resulted in a conviction and a significant prison sentence for Borges, demonstrating the commitment of the prosecution to combat corruption and uphold the rule of law.
Conclusion
The sentencing of Mathew Borges to 5 years in prison for his role in a racketeering conspiracy highlights the seriousness of political corruption and the consequences that await those who engage in illegal activities. Borges’s involvement in the bribery and money laundering scheme surrounding House Bill 6 demonstrates a betrayal of public trust and a disregard for the law. The guilty pleas of Jeffrey Longstreth and Juan Cespedes, as well as the deferred prosecution settlement of FirstEnergy Corp., further underscore the extent of the corruption that took place. The sentencing of Larry Householder to 240 months in prison, along with Borges’s sentence, sends a strong message that political corruption will not be tolerated in the state of Ohio. The prosecution team’s efforts in this case exemplify their commitment to justice and their dedication to holding individuals accountable for their illegal actions.
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