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Supreme Court Declines Appeal, Upholds Convictions in $60M FirstEnergy Bribery Scheme

Supreme Court Declines Appeal, Upholds Convictions in $60M FirstEnergy Bribery Scheme
FILE - Ohio House Speaker Larry Householder sits at the head of a legislative session in Columbus, Ohio, Oct. 30, 2019. The convicted former Ohio House speaker was recently transferred to Oklahoma to begin his time in federal prison. (AP Photo/John Minchillo, File)(ASSOCIATED PRESS)

The U.S. Supreme Court refused Monday to review the racketeering convictions of former Ohio House Speaker Larry Householder and ex-lobbyist Matt Borges, leaving intact a 6th Circuit ruling tied to a $60 million bribery scheme. The Department of Justice secured the convictions in March 2023 after a years-long probe and a more than six-week trial. Householder received a 20-year prison term for orchestrating payments linked to FirstEnergy to pass and defend House Bill 6; Borges was sentenced to five years and is currently in a Cincinnati halfway house with a Nov. 12 release date.

The U.S. Supreme Court on Monday declined to review appeals by former Ohio House Speaker Larry Householder and former lobbyist Matt Borges, leaving intact federal racketeering convictions tied to a long-running $60 million bribery scheme connected to Ohio energy legislation.

Background

The high court's action preserves a unanimous ruling from a three-judge panel of the 6th U.S. Circuit Court of Appeals in Cincinnati issued last May. Householder and Borges had sought an en banc rehearing by all active judges after the panel rejected their challenges.

Investigation and Trial

The Department of Justice won the convictions in March 2023 following a multi-year investigation and a trial that lasted more than six weeks. Prosecutors said the scheme was secretly funded by Akron-based FirstEnergy Corp. to elect political allies, consolidate influence, pass legislation, and block efforts to repeal it.

Supreme Court Declines Appeal, Upholds Convictions in $60M FirstEnergy Bribery Scheme
FILE - Ohio Republican Party Chairman Matt Borges participates in a question-and-answer session in Columbus, Ohio, Feb. 11, 2016. (AP Photo/Andrew Welsh-Huggins, File)(ASSOCIATED PRESS)

Sentences

Larry Householder, 66, was sentenced to 20 years in prison after jurors found he orchestrated payments tied to a campaign to pass and defend the legislation known as House Bill 6, which included roughly $1 billion in subsidies for two affiliated nuclear plants.

Matt Borges, 53, a former chair of the Ohio Republican Party, received a five-year sentence for his role in undermining repeal efforts. According to the Bureau of Prisons, Borges was transferred to a Cincinnati halfway house in October and is scheduled for release on Nov. 12.

Significance

Prosecutors and observers called the convictions a landmark enforcement outcome in one of Ohio's largest political corruption cases, underscoring federal scrutiny of pay-to-play schemes in state politics.

The Supreme Court's refusal to take the case means the convictions and sentences will stand while legal experts consider whether any further appeals or post-conviction remedies remain available to the defendants.

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