Ohio House Speaker Larry Householder Arrested in $61 Million Bribery Scheme

Strategic Insights -

Ohio House Speaker Larry Householder was arrested on Tuesday along with four others, including a lobbyist and a political consultant, as part of a federal investigation into a $61 million bribery scheme. The scheme, which the U.S. Attorney described as the worst in Ohio political history, was tied to the passage of a law bailing out nuclear power plants and the subsequent defense of the law.

The arrest came just a day after Governor Mike DeWine called on Speaker Householder to resign immediately, citing the nature of the charges. The governor expressed his deep concern about the allegations of wrongdoing and stated that Speaker Householder's leadership in the Ohio House of Representatives would be impossible due to the charges.

The indictment charges Speaker Householder, Matt Borges, Neil Clark, Jeff Longstreth, and Juan Cespedes with racketeering conspiracy, a charge punishable by up to 20 years in prison and a $250,000 fine. The investigation alleges that the group diverted nearly $61 million from an energy company to fund the group's own activities, including Speaker Householder's re-election campaign.

Key Takeaways:

  • Ohio House Speaker Larry Householder was arrested on Tuesday, along with four other individuals, in connection with a $61 million bribery scheme.
  • The scheme was tied to the passage of a law bailing out nuclear power plants and the subsequent defense of the law.
  • The arrested individuals include:

* Matt Borges, a former Ohio Republican Party chairman and lobbyist

* Neil Clark, a high-profile Columbus lobbyist and Speaker Householder's "proxy"

* Jeff Longstreth, a political consultant and key Householder adviser

* Juan Cespedes, a Columbus lobbyist and middleman for Speaker Householder

  • Speaker Householder is accused of conspiring with Generation Now to enact bills and kill subsequent ballot efforts.
  • The alleged scheme used a nonprofit organization called Generation Now to funnel dark money to House candidates loyal to Speaker Householder.
  • Speaker Householder allegedly received an estimated $400,000 in personal benefits, including settling a personal lawsuit, paying for costs associated with a Florida residence, and paying off credit card debt.
  • The FBI and Ohio Attorney General have launched investigations into the scheme.
  • The Ohio House Republican leadership has declined to comment on the allegations.
  • Two statewide officeholders, Governor DeWine and Secretary of State LaRose, have called for Speaker Householder's resignation.
  • Preliminary hearings for the individuals and Generation Now are scheduled for August 6.

Statistics:

  • $61 million: The amount allegedly diverted in the bribery scheme.
  • 20 years: The maximum prison sentence for racketeering conspiracy.
  • $250,000: The maximum fine for racketeering conspiracy.
  • 4,000: The number of jobs directly and indirectly supported by the Davis-Besse and Perry plants.
  • 700: The number of full-time employees at each of the two plants.
  • $1 billion: The estimated amount of money that would have been funneled to the nuclear power plants through the bailout law.

Sources:

  • The Blade (Toledo, Ohio)
  • The Associated Press