“Explain Things Like He Doesn’t Know Anything”
Eye-Opening Details from ANOTHER Ohio/First Energy Indictment
*** HUGE win in New York yesterday, extending the remarkable pro-democracy winning streak that goes back to mid-2022. More on that later this week—but thanks to all those who worked tirelessly to propel Tom Suozzi to his decisive victory. ***
Meanwhile, more indictments (these from the state of Ohio) came down Monday in Ohio’s First Energy scandal. And boy is the fine print interesting. Read on…
Two First Energy executives and their long-time consultant who became chair of the PUCO (named Sam Randazzo)—the (supposed-to-be) utility regulator of Ohio—were each indicted by a grand jury in Summit County (Akron). Here they are (seated between standing lawyers) being arraigned yesterday:
A Big “Thank You !!”
In case it wasn’t already clear how much that former consultant was serving at the behest of First Energy (who paid him $4 million just before he took the role regulating them) when he was supposed to be regulating them, there was one exhibit in the indictment that will sicken you:
Look closely — that’s the CEO of First Energy texting that day’s stock jump to the regulator, and thanking him (“Thank you!!”) for the favorable regulatory action that led to the stock’s uptick. The regulator thanks him back.
By the way, First Energy knew in advance this was going to happen. How? Randazzo had already given another executive a heads up, who texted: “I spoke with Sam today. Told me 2024 issue will be handled next Thursday.”
And that perfectly sums up Ohio these days: Ohio politicians are turning state government over to private interests…including, here, the very private interests Ohio is supposed to be regulating.
The “capture of a significant portion of Ohio’s state government”….
But Who Let It Happen?
We already know this is Ohio’s largest bribery scandal, and that private officials did wrong. But if you’re like me, you’re looking to see how much the facts of the indictment implicate Ohio government officials.
Because when year after year, there’s a repeated pattern of pay-to-play and illegality involving crucial Ohio government decisions and resources, it’s pretty clear that the private side (in this case, First Energy) is only one half of the equation.
As the Attorney General summed up well: “It is about the hostile capture of a significant portion of Ohio’s state government by deception, betrayal and dishonesty.”
That “capture” is what that text exchange above symbolizes. And as the indictment says: “Randazzo used his position as PUCO Chair to advance FirstEnergy’s regulatory and legislative priorities.”
I, for one, want to get to the bottom of who on the public side facilitated that capture.
Who is so willing to give Ohio away to the highest bidders? Who on the government side is working hard to make it happen?
Because if there are public officials willing to hand government functions and assets over to private players, there will always be private players lining up to consummate those deals.
Helpfully, outside of indicting the private interests, Monday’s indictment casts some bright light on the question about the public side:
The Dining Room Where It Happened
As I’ve explained in past videos, the key moment of the Sam Randazzo (that First Energy consultant) appointment to lead the PUCO came over a single dinner.
The federal indictment from late last year walks through the basic timeline, weeks before DeWine became Governor:
Sam Randazzo texted First Energy executives about the PUCO chair vacancy on December 17, 2018.
The next day, First Energy executives met with Randazzo in person; following that meeting, Randazzo texts the executives about the $4.3M payment.
The next day, they agree to make the payment, all in one chunk. They then make the entire payment weeks later, on January 2, 2019.
But between that first text, and the in-person meeting with Randazzo that prompted the text discussion of the $4.3M payment, came…that dinner.
It took place at the Athletic Club of Columbus on December 18, 2018. And over the course of that meal, First Energy executives clearly gained great confidence that Randazzo would be selected chair of the PUCO. I mean, who parts with $4 million on a hope and a prayer?
Who’d the executives meet with?
Turns out, those (now indicted) First Energy executives dined with none other than Governor-elect Mike DeWine and Lt. Gov-elect Jon Husted (now running hard to be Ohio’s next Governor). The very people who have the most control over the PUCO chair selection.
Based on what happened before and after the dinner, it seems pretty logical what was discussed, doesn’t it?
But to this point, DeWine and Husted both claim they don’t remember what was discussed: “Husted didn’t dispute that the dinner occurred but said he doesn’t remember if they talked about Randazzo’s appointment. DeWine too has said in the past he doesn’t remember what was discussed.” (Send in Robert Hur!!!)
Well, something tells me Monday’s indictment might refresh their recollections.
FIRST, the indictment says outright: “During the dinner, Randazzo’s name was discussed as a candidate for PUCO Chairman.” And later text messages revealed that “Jones and Dowling learned that Randazzo was the incoming administration’s preferred candidate.”
SECOND, the indictment included a copy of the written crib notes of a First Energy executive of what they planned to discuss at the dinner, and advice on how to approach the conversation.
On DeWine: “Explain to him why PUCO and the chair spot specifically is so important to our business and our success.”
And perhaps most interesting, if you’ve watched DeWine bob and weave through scandal as if he’s clueless as to what’s happening under his watch, the following advice was also written: “explain things like he doesn’t know anything about it—and be surprised when he does. Sometimes, he knows what you’re talking about, sometimes he doesn’t, sometimes he does and pretends he doesn’t.”
Call me crazy, but it’s almost as if this is a strategy so that when asked later about what was discussed at the dinner, DeWine can claim he doesn’t remember?!?
On the next page, Jon Husted’s name comes up, and these notes make it clear that “Jon H.” is not as oblivious to details as the Governor tries to appear:
The notes refer to a “2-person PUCO deal” that a lobbyist has already discussed with “boss.”
“…he has discussed with Jon H. and Laurel Dawson & Mike Dawson” (DeWine’s chief of staff and her lobbyist husband—yes, the chief of staff’s husband is also a First Energy lobbyist!)
“Jon is getting some negative feedback (maybe from Sam R.?)”
So while DeWine plays dumb, Jon Husted knows going into this dinner key details of ideas being pushed within the First Energy world, as does DeWine’s Chief of Staff and lobbyist husband. And the note-writer thinks Husted may even have heard directly back from Randazzo about one of those details.
THIRD, the day after the dinner, in another text exchange, the First Energy CEO texted Randazzo that “When the Gov-elect asked me about attributes I listed integrity, work ethic, creativity, thick skin, circumspection in all public statements. You fit all those.”
Bottom line: at the dinner, DeWine and Husted were to be told that “PUCO and the chair spot specifically is so important to [First Energy’s] business and our success.” DeWine asked about attributes First Energy felt were important. According to the indictment, “Randazzo’s name was discussed as a candidate…,” and First Energy learned that Randazzo “was the incoming administration’s preferred candidate.” When the dinner ended, those same executives met with Randazzo, and arranged to pay him $4.3M, which they did within two weeks. DeWine nominated Randazzo weeks after that; and, according to Randazzo, Husted “recruited” him.
So if we’re looking for which public officials allowed for the capture of state government by private interests, I think we just found our men.
One (DeWine) apparently works hard to ensure plausible deniability. The other (Husted) is up on the latest details.
Husted the Detail Guy
There are additional tidbits of evidence that also underscore Husted as the guy keeping up on the details of things—the go-to, problem-solver when First Energy faced obstacles.
On January 18, 2019, First Energy Executives text one another about another PUCO appointment that they worry will turn into a “high hurdle”:
FE Executive: “‘Jason has a high hurdle and I don’t know if he will be able to clear it."“
FE CEO: “It’s called Jon Husted but hopefully you lowered that hurdle today.”
A text chain a week after that shows that the FE Executive had a call with Husted to keep tabs on the Randazzo appointment. “Had a great conversation with Gov this morning,” Husted had told him.
And on another occasion, Husted comes through for them. When Randazzo’s nomination hit a rough patch, DeWine and Husted “perform[ed] battlefield triage.”
Later, in public testimony, Randazzo would say it was Husted and Laurel Dawson who “recruited” him.
Who Knew About the $4 Million Payment? And When?
Now, another big question surrounding the case is whether and when Governor DeWine or Husted knew about the $4 million First Energy payment made to Randazzo, the terms of which were finalized within 24 hours of their fateful dinner.
Well, the indictment sheds light on that as well.
DeWine has said all along that “he didn’t know about the $4.3 million payment”.
He later said he didn’t learn about the payment until October 2020.
But, as Jake Zuckerman of Cleveland.Com points out in a story last night. the indictment makes clear that Laurel Dawson, the chief of staff referenced above, did know. And she knew early:
“Randazzo did, however, tell the Governor-elect through his incoming Chief of Staff that he had received $4.3 million from FirstEnergy, which he claimed was final payment of a “consulting agreement.””
The phrasing here matters.
First, the indictment suggests that DeWine was told “through” his Chief of Staff.
Second, the indictment uses the term “Governor-elect,” which means Laurel Dawson, at least, was told before DeWine was even sworn in. Meaning January 14, 2019, or earlier. But the indictment also uses the words “had received” the money. So apparently Laurel Dawson was told between January 2 and January 14.
The Governor didn’t formally nominate Randazzo to become PUCO Chair until February 4, 2019.
So if Laurel Dawson learned this detail in the first two weeks of January, did she tell the Governor?
If you’re the new Governor’s Chief of Staff, and you thought a payment like that would be something that might be a problem, you’d do that, right? The phrasing of the indictment suggests that DeWine was told through Dawson.
Could this be another case where he “pretends he doesn’t know” what’s going on? Apparently that’s his thing.
Or, if she didn’t tell DeWine this whopping fact, why not?
And if she kept it from DeWine, and the Governor wasn’t happy about it (that’s quite a secret to keep from the boss), why does she still work for him now? She remained as Chief of Staff for several years—until May 2021—and still serves as counselor and senior advisor to the Governor today. Last year, she made $182,000 in that role.
One other thing: if you follow the indictment, it always appears that Husted and Dawson were working in concert. Sort of a tag-team operation. They knew the same details, according to First Energy’s own notes. Randazzo said he was recruited by them both. So if Dawson knew about the $4.3M in early January, did Husted as well?
Whether and when she told DeWine remains a big question, as does what Husted knew when. But we may soon know the answer—because we learned last night that Laurel Dawson was one of the witnesses who testified to the Summit County grand jury.
One other twisted tidbit: Monday’s indictment also charged Randazzo with violating another aspect of Ohio law. Two years prior to all this, he “failed to disclose that he had loaned $10,000 in 2016 to Michael Dawson, who was also Laurel Dawson’s husband and a paid FirstEnergy lobbyist.”
And on reading that plot twist, adding yet another potential conflict in all of this, my only response is—what the HELL is going on in Ohio?!?
More to come, have no doubt.
And at long last, can we finally, collectively decide to do better?
Gotta love "no paper" written on ... paper.
"Oh, what a tangled web we weave, when first we practice to deceive!" Sir Walter Scott
Anyone taking bets on how long DeWine holds out?