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FirstEnergy, a big utility company based in Akron, agreed to pay $100 million to settle a federal investigation on Thursday, September 12.
The US Securities and Exchange Commission (SEC) was looking into the company's role in a bribery scandal connected to a failed Ohio law, known as House Bill 6. The law was supposed to help a nuclear power plant, but it became controversial because of bribery.
FirstEnergy Bribery Scandal
The SEC said FirstEnergy paid over $60 million in secret money to help pass the law and keep it from being repealed. The company was accused of hiding information from its shareholders and the public. As part of the settlement, FirstEnergy also agreed to stop making misleading statements about its political contributions.
Brian Tierney, the president and CEO of FirstEnergy, said the company is happy to resolve the issue and is now focusing on improving its services and supporting clean energy. He promised that the company will work on bettering its electric services and customer support.
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Lawsuit Filed Against Former FirstEnergy CEO
In addition to settling with the SEC, the agency also sued former FirstEnergy CEO Chuck Jones. The lawsuit says that Jones committed fraud by lying about the bribery payments. The SEC wants Jones to repay any money he made from the scandal and pay extra fines. The lawsuit claims that Jones was dishonest with both investors and the public about the bribery scheme, according to Cleveland.com.
This bribery scandal has already caused major problems for FirstEnergy. Last year, the company agreed to pay $230 million to the US Department of Justice and make changes to avoid criminal charges. They also paid $20 million last month to settle another investigation by Ohio state officials.
The scandal had serious consequences for several people involved. Larry Householder, the former Ohio House Speaker, was sentenced to 20 years in prison for his role in the bribery scheme.
Matt Borges, a lobbyist and former Ohio Republican Party chair, was sentenced to five years. Two former FirstEnergy executives, Chuck Jones and Michael Dowling, were also indicted but have denied any wrongdoing.
FirstEnergy has been under a lot of scrutiny due to this scandal. The company now has to pay the $100 million settlement within 14 days to avoid extra charges. They are working hard to move past this issue and regain trust from shareholders and the public.
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