July 27, 2020 will be remembered by Larry Householder as a very bad day.
While the Ohio House of Representatives met to remove him as speaker in Columbus by a unanimous vote, federal indictments were being announced against Householder and four associates.
Householder remains in the house as an elected representative, at least for now. The vote to remove him was 90-0, with nine members absent including Householder.
Following the vote, House District 66 Representative Doug Green said about the Householder situation that “It’s disappointing and frustrating and it’s an embarrassment to the institution.”
Green continued, “To serve in public office is not about personal gain, it’s about making the best effort to provide the services needed and necessary for our constituents.”
Green described the mood in the house chamber as somber and disappointed.
House District 65 Representative John Becker said, “He got fired this morning. After the house cleared out the maintenance people came in and removed his name from the dais. It was painful to be a part of, but it had to be done.”
House members chose Representative Bob Cupp of Lima to replace Householder.
Meanwhile, the United States Justice Department released a statement regarding a 43 page indictment against Householder and four other individuals on July 27.
“A federal grand jury has indicted the Ohio Speaker of the House in a federal racketeering conspiracy involving approximately $60 million paid to a 501(c)(4) entity to pass and uphold a billion-dollar nuclear plant bailout.”
The DOJ press release also released the following information on the other individuals that were indicted.
“Mathew Borges, 48, of Bexley, a lobbyist who previously served as chair of the Ohio Republican Party; Jeffrey Longstreth, 44, of Columbus, Householder’s longtime campaign and political strategist; Neil Clark, 67, of Columbus, a lobbyist who owns and operates Grant Street Consultants and previously served as budget director for the Ohio Republican Caucus; and Juan Cespedes, 40, of Columbus, a multi-client lobbyist.
Generation Now, a corporate entity registered as a 501(c)(4) social welfare organization, was also charged.”
Householder and the others could face 20 years in prison on the charges.
According to the U.S. Department of Justice, “It is alleged that the enterprise conspired to violate the racketeering statute through honest services wire fraud, receipt of millions of dollars in bribes and money laundering,” said the press release.
It continued, “According to court documents, from March 2017 to March 2020, the enterprise received millions of dollars in exchange for Householder’s and the enterprise’s help in passing House Bill 6, a billion-dollar bailout that saved two failing, Ohio nuclear power plants from closing. The defendants then also allegedly worked to corruptly ensure that HB 6 went into effect by defeating a ballot initiative to overturn the legislation. The Enterprise received approximately $60 million into Generation Now from an energy company and its affiliates during the relevant period.”
“Dark money is a breeding ground for corruption. This investigation continues,” U.S. Attorney David M. DeVillers said when the indictments were announced.
Much of the information in the indictment and criminal complaint focuses on the 2018 election and the passage and protection of House Bill 6 from repeal.
However, the time period listed on the indictment runs through the primary election in 2020, where hundreds of thousands of dollars were spent on the House District 65 and 66 races in Brown and Clermont counties among others.
“I think that the Householder supported candidates got a lot of money in March and April of 2020.” said District 66 candidate Nick Owens. Certainly that money had to come from somewhere.”
The federal indictment confirms Owen’s assertion by stating “During the 2020 primary election, Householder’s enterprise wired over $1,000,000 from Generation Now…to pay for media buys…to help candidates supported by Householder.”
Later in the indictment, it states that “The advertising purchased…benefited Householder’s enterprise and its candidates.”
When asked if he felt that the candidacies of House District 65 representative elect Jean Schmidt and failed House District 66 candidate Allen Freeman’s 2020 campaigns were supported with illegal activity by Householder, Owens replied “Absolutely, yes.”
Neither Schmidt nor Freeman responded to requests for comment by The Brown County Press.
Owens revealed to The Brown County Press that he is “Individual 1” named in the federal complaint against Householder as providing relevant information to the investigation.
Owens said that he called the FBI in March and expressed concern that campaign finance violations were being committed by him and his associates.
Owens did not know at the time that the FBI investigation had already been underway for months.
“It was obvious during the campaign for House District 66 that something improper was happening.” Owens said.
“The arrests just confirm the suspicion that something illegal was going on between the Larry Householder operation the candidacies of those he was supporting in the republican primary.”
When asked how he felt about the arrests, Owens said, “Unfortunately for me as a candidate, hundreds of thousands of dollars were spent against me in the campaign and you can’t take that back, but I do find satisfaction in the fact that people where were clearly committing illegal acts hopefully will be held accountable in a court of law.”
Owens said the interest level of the FBI rose when they heard that Householder had spoken on the record to The Brown County Press about his role in raising money for the Growth and Opportunity political action committee.
“They were very interested in that statement and wanted to get an audio recording, but there was fear that if the FBI asked Wayne Gates for the recording, it would reveal to him that the investigation was underway before they were ready to make arrests,” Owens said.
When asked how he thought the case would progress from this point, Owens said, “Using my experience as an assistant prosecutor, I think there are a lot of difficult conversations going on right now between individuals in the Columbus area and the FBI. I think that with the amount of money involved, to say that only five people will face repercussions is unrealistic.”
Owens said that he hoped the arrests and attention will lead to reform in state election laws.
“I’m hoping his arrest will have a chilling effect on similar actions by elected officials in the future and hopefully we will have a better and more ethical government for all.”
The legal exposure of Householder and others is not limited to federal charges. Ohio Secretary of State Frank LaRose referred nineteen apparent or alleged violations of Ohio campaign finance laws to the Ohio Elections Commission following the release of the federal complaint against Householder and co-defendants Longstreth, Clark, Borges and Cespedes.
“For those of us who answer the call to public service with a sincere desire to serve as good stewards of the public trust, today’s events are deeply disappointing,” said LaRose. “Sadly, today’s Criminal Complaint is a reminder that some enter public life seeking to accumulate personal power and to enrich themselves. Those who do so are not fit to hold public office.”
Among the alleged and apparent violations of Ohio’s campaign finance laws are:
• acceptance of direct corporate contributions
• failure to file a complete and accurate campaign finance statement
• converting campaign funds for personal benefit
LaRose added, “These nineteen items likely do not represent a comprehensive list of violations of Ohio laws by the named defendants. Secretary LaRose, his elections law team, and his campaign finance division will continue to review the relevant campaign finance reports and make additional referrals as violations become known.”
If you have information related to the public corruption alleged in this case, please contact the FBI at 614-849-1777.
.neFileBlock {
margin-bottom: 20px;
}
.neFileBlock p {
margin: 0px 0px 0px 0px;
}
.neFileBlock .neFile {
border-bottom: 1px dotted #aaa;
padding-bottom: 5px;
padding-top: 10px;
}
.neFileBlock .neCaption {
font-size: 85%;
}