FirstEnergy Bribery Scheme: Energy Company Admits Role, Settles for $20 Million
Updated: August 13, 2024
Key Points:
* FirstEnergy admitted to its role in the bribery scheme as part of a deferred prosecution agreement in July 2021. * The company will pay $20 million to avoid criminal charges. * This settlement follows a similar $230 million fine paid in 2021 to avoid federal charges.
Background:
* FirstEnergy is the energy company at the center of the bribery scheme. * The scheme involved $60 million in bribes to pass legislation favorable to FirstEnergy. * The legislation, known as House Bill 6, was signed into law in 2019 but was later repealed after the bribery scheme was uncovered.
Consequences:
* FirstEnergy admitted to its role in the bribery scheme as part of a deferred prosecution agreement with the U.S. Department of Justice. * The agreement allows FirstEnergy to avoid criminal charges if it meets certain conditions, including paying the $20 million settlement. * The settlement also requires FirstEnergy to cooperate with the government's ongoing investigation and to implement new ethics and compliance programs.
Impact:
* The settlement is a major victory for prosecutors who have been investigating the bribery scheme for years. * The payment of $20 million will help to compensate for the damage caused by the bribery scheme. * The settlement also sends a strong message to other companies that bribery will not be tolerated.
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