Former Ohio House Speaker, Larry Householder, has been sentenced to 20 years in prison for his involvement in a racketeering conspiracy that involved $60 million in bribes. Householder led a criminal enterprise responsible for one of the largest public corruption conspiracies in Ohio history, according to U.S. Attorney Kenneth L. Parker. The scheme revolved around accepting bribes to pass and uphold a billion-dollar nuclear plant bailout. Householder was found guilty along with former Ohio Republican Party chair Mathew Borges, and the verdict was announced in March following a six-week trial. The FBI, who investigated the case, hopes that Householder’s sentence sends a clear message that corruption does not pay.
Former Ohio House Speaker sentenced to 20 years in prison for leading racketeering conspiracy involving $60 million in bribes
Overview
Former Ohio House Speaker, Larry Householder, has been sentenced to 20 years in prison for his involvement in a racketeering conspiracy. Householder led a criminal enterprise that received nearly $61 million in bribes to pass and uphold a billion-dollar nuclear plant bailout. This case represents one of the largest public corruption conspiracies in Ohio history.
Statement from U.S. Attorney Kenneth L. Parker
U.S. Attorney Kenneth L. Parker stated that Larry Householder led a criminal enterprise that orchestrated one of the biggest corruption schemes in Ohio’s history. He emphasized that elected officials have a duty to provide honest services to their constituents, and corruption undermines the principles of transparency, integrity, and accountability that are foundational to democracy. Despite once holding one of the most powerful offices in the State of Ohio, Householder will now serve a significant prison sentence.
Statement from FBI Cincinnati Special Agent in Charge J. William Rivers
FBI Cincinnati Special Agent in Charge J. William Rivers emphasized that the people of Ohio are the true victims of Larry Householder’s corrupt scheme. Householder’s attempts to increase his own power and secure a billion-dollar corporate bailout resulted in significant harm to the people of Ohio. Rivers stated that corruption does not pay, and the FBI will continue to investigate and pursue those who abuse their positions and take advantage of the public.
Verdict and Trial Details
Larry Householder and former Ohio Republican Party chair Mathew Borges were found guilty of participating in a racketeering conspiracy. The verdict was announced after a six-week trial that included over 1,000 exhibits and 25 witnesses. The government successfully proved beyond a reasonable doubt that Householder and his enterprise conspired to violate the racketeering statute through honest services wire fraud, receipt of bribes, and money laundering.
Racketeering Conspiracy
Larry Householder and his conspirators exploited the lack of transparency in 501(c)(4) entities to conceal their corrupt scheme. They accepted nearly $61 million in bribes to pass and uphold a billion-dollar nuclear plant bailout. The enterprise traded millions of dollars in bribery campaign donations in exchange for Householder’s and the enterprise’s assistance in passing House Bill 6. Additionally, they worked to ensure that HB 6 went into effect by defeating a ballot initiative to overturn the legislation.
Exploitation of 501(c)(4) Entities
Householder and his enterprise took advantage of the opaqueness of 501(c)(4) entities to hide their corrupt activities. From March 2017 to March 2020, Householder began receiving quarterly $250,000 payments from related energy companies into the bank account of his 501(c)(4) organization, Generation Now. These funds were used for various purposes, including supporting Householder’s political bid to become Speaker and benefiting House candidates who aligned with him. Householder also misused more than half a million dollars for personal expenses, such as paying off credit card balances, repairing his Florida home, and settling a business lawsuit.
Timeline of Bribery Campaign Donations
According to court documents and trial testimony, the enterprise conducted a bribery campaign from March 2017 to March 2020. They traded millions of dollars in campaign donations for Householder’s and the enterprise’s support in passing House Bill 6. The donations were given by energy companies and were used to fund Householder’s political ambitions and advance the interests of the enterprise. These illegal campaign donations played a significant role in their corrupt activities.
House Bill 6 and the Ballot Initiative
House Bill 6 was a billion-dollar nuclear plant bailout legislation that Householder and his enterprise sought to pass and uphold. The enterprise used their influence, gained through bribery campaign donations, to ensure the success of this legislation. They also worked to defeat a ballot initiative that aimed to overturn House Bill 6. By corruptly manipulating the political process, Householder and his conspirators were able to secure the passage of House Bill 6.
Misuse of Funds by Larry Householder and Mathew Borges
Both Larry Householder and Mathew Borges misused the funds they received through the corrupt scheme. Householder spent over half a million dollars of the dark money on personal expenses, including credit card payments, home repairs, and settling a business lawsuit. Borges used approximately $366,000 for his personal benefit and even attempted to bribe an Ohio Republican operative with a $15,000 check. The funds provided by the enterprise were misappropriated by Householder and Borges for their personal gain.
Guilty Pleas and Deferred Prosecution Settlement
Jeffrey Longstreth, Householder’s longtime campaign and political strategist, and lobbyist Juan Cespedes, both pleaded guilty to their roles in the racketeering conspiracy. They await sentencing, and their hearings have not yet been scheduled. Additionally, FirstEnergy Corp. signed a deferred prosecution settlement in July 2021, agreeing to pay a $230 million penalty for conspiring to bribe public officials and others. This settlement demonstrates the consequences faced by those who participate in corrupt activities.
Sentencing and Next Steps
Larry Householder has been sentenced to 20 years in prison for his leading role in the racketeering conspiracy. He was remanded to the custody of the U.S. Marshals following the sentencing. Mathew Borges is scheduled to be sentenced tomorrow. The sentencing of the other individuals involved in the conspiracy will be determined at a later date. The successful prosecution of Larry Householder and his conspirators sends a strong message that public corruption will not be tolerated, and individuals who abuse their positions for personal gain will be held accountable.
In conclusion, the sentencing of former Ohio House Speaker Larry Householder to 20 years in prison for leading a racketeering conspiracy involving $60 million in bribes is a significant milestone in the fight against public corruption. This case serves as a reminder that no individual is above the law and that the justice system will hold accountable those who engage in corrupt activities. The successful prosecution and conviction of Householder and his conspirators demonstrate the commitment of law enforcement to safeguarding the principles of democracy and ensuring the integrity of public officials.