In 2018, Larry Householder had his eyes on claiming the Speakership of the Ohio House of Representatives. He had a complex scheme in mind to make it happen, but needed a lot of untraceable cash to make it work.
FirstEnergy desperately needed a massive influx of taxpayer money to bail out their failing nuclear power plants. After being rejected by the federal government, they hoped to make a deal with a state politician to turn on the money spigot.
It was a match made in criminal heaven. Householder got his dream and became Speaker in 2019, but his tenure was a short one. Ousted from the state legislature in 2021, Householder and his co-conspirators were convicted of racketeering in 2023. They were sentenced to 20 years in federal prison.
At his appeal on May 6, 2025, Householder again used the argument that receiving over $60 million in bribes from FirstEnergy in return for a taxpayer-funded bailout was part of the "wheeling and dealing" that makes up how politics works. The panel of judges from the Sixth Circuit found his pleas no more credulous than a jury had. Determining the lower court had made no errors, they affirmed the previous judgment.
You Scratch My Back, I'll Scratch Yours (and Get You a Billion-Dollar Bailout)
Householder's career in the Ohio House started in 1997. In 2001, he was elected Speaker of the Ohio House of Representatives. He survived an investigation into money laundering and irregular campaign practices, serving until his term limit in 2004.
After a decade or so, Householder decided he wanted to both return to politics and reclaim the Speaker's seat. According to court documents, he felt doing so would require him to have allies in other House seats, so he planned on making sure the people he trusted got elected. For that, he'd need a source of untraceable money. A lot of it.
Opportunity presented itself in the form of FirstEnergy, an Akron-based company. FirstEnergy's nuclear power plants were a financial fiasco, and a desperately needed federal bailout request had been denied. A bailout by Ohio taxpayers was Plan B, and Householder could possibly provide the keys to the state's vaults.
Through Generation Now, a nonprofit 501(c)(4) company, Householder began accepting bribes from FirstEnergy in 2018. The fake company's nonprofit status meant that political contributions didn't have to be reported. While some money went for personal expenses such as house renovations, the bulk was used to support his chosen candidates. His scheme proved successful as he was elected House Speaker in 2019.
Back in the seat of power, Householder championed House Bill 6, which earmarked a billion-dollar taxpayer-funded bailout for FirstEnergy. Once passed, he made sure it stayed in place. Unbeknownst to Householder, the FBI had taken an interest in his activities.
Householder's second run as Ohio Speaker lasted about 18 months. On July 21, 2020, he was arrested by the FBI on bribery charges. Claiming innocence, he vowed not to resign. His fellow House members had different ideas. On July 30, the Ohio House voted unanimously to remove him as Speaker. Almost a year later, they voted 75-21 to expel him from the House.
Householder and his co-conspirators were convicted in 2023. Still proclaiming his innocence, Householder appealed the decision.
Still Not Convincing
As he had during the previous trial, Householder insisted that the payments from FirstEnergy were all legitimate campaign donations. As for perks like flights in the company's private jet, expensive dinners, and World Series tickets in the corporate suite, Householder claimed that was all part of the wheeling and dealing involved with firms seeking public money.
The Sixth Circuit Court of Appeals wasn't swayed by Householder's arguments, finding that none of his claims met the criteria for reversal. The court also felt the 20-year sentence applied by U.S. District Judge Timothy Black was justified and rejected Householder's request to reduce it given his age (64 at the time of sentencing) and his statement that he'd be unlikely to commit further crimes.
Householder's RICO conviction remains one of the largest public official corruption cases ever in Ohio. He's serving his sentence in federal prison, but his legal journey isn't over yet. In bringing charges against executives at FirstEnergy, the state has also charged Householder with one count of money laundering, one count of theft in office, two counts of aggravated theft, one count of telecommunications fraud, and five counts of tampering with records.
Related Resources
- Bribery (FindLaw's Criminal Charges)
- Racketeering/RICO (FindLaw's Criminal Charges)
- Are Politics About To Get Even More Corrupt? Federal Courts Allow Gambling on Elections (FindLaw's Federal Courts)
