Utility ordered to pay $100 million for its role in Ohio bribery scheme

An energy company at the center of a $60 million bribery scheme in Ohio has been ordered by the U.S. Securities and Exchange Commission to pay a $100 million civil penalty for misleading investors about its role in the scandal.

Akron-based FirstEnergy Corp. violated antifraud provisions by misrepresenting its role in the political corruption scheme and failing to disclose related payments, according to the SEC.

It said in a cease and desist order that the utility’s former CEO made a “series of misrepresentations to investors” in a news release and later during a July 2020 earnings conference call.

The action comes a month after FirstEnergy agreed to pay $20 million to avoid criminal charges as part of a deal with state prosecutors.

The bribery scheme, which has already resulted in a lengthy prison sentence for a former Ohio House speaker, centered on FirstEnergy’s efforts to convince state lawmakers to pass a $1 billion bailout of two of its affiliated nuclear plants and defend the bill from a repeal effort.

FirstEnergy President and CEO Brian Tierney said the company is pleased it was able to reach a settlement with the SEC, which said the company has to pay the penalty within 14 days or face interest charges.

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