Former FirstEnergy CEO Jones, vice president Dowling paid bribes in scheme, affidavit says

Who paid the bribes in the House Bill 6 scandal?

It was former FirstEnergy Chief Executive Officer Chuck Jones and senior vice president Michael Dowling, according to an affidavit filed Wednesday in U.S. District Court in Akron.

The two men are identified in the affidavit as being the unnamed executives who "devised and orchestrated FirstEnergy's payments to public officials in exchange for favorable legislation and regulatory action."

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Order issued: Federal judge orders lawyers to go under oath and name who at FirstEnergy paid bribes

The document was filed in response to U.S. District Court Judge John Adams, who on Tuesday ordered lawyers representing FirstEnergy in a shareholders lawsuit to answer, under oath, who at the utility paid bribes in the ongoing $60 million House Bill 6 scandal that engulfed the Akron utility.

Filing just meets court deadline

The affidavits were due before noon Wednesday. The filing came in just minutes before the deadline.

The document — signed by Jeroen van Kwawegen, a New York-based lawyer who is lead FirstEnergy counsel in the shareholders lawsuit case, and co-counsel Thomas Curry, out of Delaware — notes that both "defendants Jones and Dowling have vehemently denied acting improperly, and neither Jones nor Dowling have been charged by the Department of Justice."

The document refers to the 2021 deferred prosecution agreement, or DPA, between FirstEnergy and the Department of Justice, in which FirstEnergy admitted to conspiring to pay millions of dollars to public officials on behalf of the utility to support and pass House Bill 6. The bill provided substantial subsidies to two Ohio nuclear plants previously owned by FirstEnergy, now owned and operated by former FirstEnergy subsidiary Energy Harbor.

Affidavit in lawsuit involving FirstEnergy by Darrin Werbeck on Scribd

Discovery process identifies executives

Based on discovery in the shareholder lawsuit case, "Plaintiffs' counsel understand that Defendant Jones is the individual identified in the DPA as 'Executive 1' and that Defendant Dowling is the individual identified as 'Executive 2.' The DPA describes Executive 1's and Executive 2's central roles in the events giving rise to this litigation," the five-page document said.

Calls were out Wednesday seeking comment from lawyers representing Jones and Dowling.

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The U.S. Attorney for the Southern District of Ohio declined to comment.

FirstEnergy has said it does not comment on pending litigation.

"Plaintiffs' counsel believe that the discovery received would have shown at trial that two senior executives of FirstEnergy devised and orchestrated FirstEnergy's payments to public officials in exchange for favorable legislation and regulatory action," the affidavit said.

Chuck Jones, Michael Dowling fired in 2020

Both Jones and Dowling were fired by the FirstEnergy board in late October 2020 as part of the fallout from the HB-6 investigations. FirstEnergy said the two men had violated certain company policies and code of conduct. Dowling, the former senior VP for external affairs, later resigned as a University of Akron trustee. Other FirstEnergy executives have also been fired in connection with the case.

Late Tuesday morning, Adams ordered lawyers to name who at FirstEnergy paid tens of millions of dollars in bribes in the House Bill 6 scandal.

The Akron-based federal judge told the lawyers to file affidavits under oath no later than noon Wednesday, giving them 24 hours to respond.

Judge says public confidence undermined

By attempting to deprive the court of being able to review the proposed settlement, "the parties undermine any public confidence in their outcome," Adams wrote. "The public will have no confidence that a fair resolution was reached when so few details are made public, especially when the parties have gone to such great lengths to attempt to shield discovery from the public."

First Energy Bribery: 'Who paid the bribe?' Federal judge tells FirstEnergy lawyer to name names in HB6 scandal

The order came out of a court hearing on March 9 before Adams in which the judge ordered the lead lawyer for FirstEnergy in a shareholders' lawsuit case to name who paid the bribes in the HB-6 scandal. The lawyer said FirstEnergy executives paid the bribes but he could not legally divulge the names.

The judge strongly disagreed with that assertion.

In his order Tuesday, Adams wrote, "It is not only the trust of FirstEnergy that must be rebuilt. This bribery scheme has undoubtedly shaken whatever trust that Ohioans may have had in the political process used by their elected officials. The public has a right to know how it is that the political process was so easily corrupted."

'Forum shopping' accusation

Adams wants the shareholders lawsuit settlement to take place in his court. Lawyers for the parties involved in the case, on the other hand, want a Columbus-based judge to rule on the proposed settlement.

Adams has accused the parties of "forum shopping" to get a favorable ruling on their proposed settlement.

Among the issues at stake is a proposed insurance payment to FirstEnergy of $180 million.

Adams previously noted that FirstEnergy admitted to paying millions of dollars to influence public officials to pass and support House Bill 6 as part of the deferred prosecution agreement with the Department of Justice. FirstEnergy had to pay a $230 million fine as part of the agreement with the Department of Justice.

The ongoing case involving federal and state investigations also resulted in former Ohio Speaker of the House Larry Householder being removed from office and criminally indicted.

Beacon Journal reporter Jim Mackinnon can be reached at 330-996-3544 or jmackinnon@thebeaconjournal.com. Follow him @JimMackinnonABJ on Twitter or www.facebook.com/JimMackinnonABJ.

This article originally appeared on Akron Beacon Journal: Former FirstEnergy CEO, vice president named in bribery scheme