Ohio House speaker among 5 facing federal racketeering charges

COLUMBUS, Ohio — Ohio’s Speaker of the House and four associates face racketeering charges for receiving approximately $60 million to pass and uphold a bill that funneled state funds to two failing nuclear power plants.

Speaker Larry Householder, 61, of Glenford and Mathew Borges, Jeffrey Longstreth, Neil Clark and Juan Cespedes, were arrested and charged with conspiring to violate racketeering laws through wire fraud, receipt of millions of dollars in bribes, and money laundering, WHIO reported.

Borges,48, of Bexley, is a lobbyist and is the former chairman of the Ohio Republican Party, WCMH reported. Longstreth, of Columbus, is a political strategist who has served in Householder’s campaigns. Clark, 67 of Columbus, is a lobbyist and consultant who previously served as budget director for the Ohio Republican Caucus. Cespedes, 40, of Columbus, is a lobbyist, the television station reported.

Federal prosecutors allege that from March 2017 to March 2020, Householder and others received millions of dollars to help pass a bill that prevented two failing Ohio nuclear power plants from closing, WBNS reported. The five men are also accused of receiving approximately $60 million placed with Generation Now, a political operative group, on behalf of an energy company and its affiliates, the television station reported.

U.S. Attorney David DeVillers said Householder personally benefited from more than $400,000, including money used to pay off a lawsuit, buy a home in Florida and eliminate credit card debt, WHIO reported.

A criminal complaint unsealed Tuesday calls the effort “Householder’s Enterprise” and states that he and his associates sought to expand their political power while enriching themselves, according to USA Today.

“This is likely the largest bribery, money laundering scheme ever perpetrated against the people of the state of Ohio,” U.S. Attorney David DeVillers, whose office will lead the prosecution of the case, said at a news conference Tuesday. “This was bribery, plain and simple. This was a quid pro quo. This was pay to play.”

 A conviction on the racketeering charge could carry a penalty of up to 20 years in prison, WBNS reported.

“All forms of public corruption are unacceptable,” FBI Cincinnati special agent Chris Hoffman said. “When the corruption is alleged to reach some of the highest levels of our state government, the citizens of Ohio should be shocked and appalled.”

The arrests are the culmination of an FBI investigation that took nearly two years, USA Today reported. Undercover federal agents met with Householder and Clark, while surveillance video allowed investigators to obtain text messages and emails among the men charged to build its case. 

Ohio Gov. Mike DeWine said he was “deeply concerned” over the allegations and urged Householder to resign.

“Every American has the presumption of innocence until proven guilty,” DeWine said.  “Because of the nature of these charges, it will be impossible for Speaker Householder to effectively lead the Ohio House of Representatives; therefore, I am calling on Speaker Householder to resign immediately.”

The FBI said more search warrants and subpoenas are being served in connection to the investigation will be served in the next few days, WHIO reported.

“This is the end of the beginning,” Hoffman said.“We’re not done with this case,” DeVillers said. “There are a lot of federal agents knocking on a lot of doors.”

Cox Media Group