Jobsohio Chairman to Be Deposed in Federal Firstenergy Lawsuit

Josh Rubin, the chairman of the JobsOhio board, is scheduled for deposition on September 30 and October 1. The deposition is in advance of a federal civil trial where Akron-based FirstEnergy is the defendant, according to court records.

In the lawsuit, state pension systems and other investors accuse FirstEnergy of failing to disclose “an illicit campaign to corrupt high-profile state legislators in order to secure legislation favoring the company,” court records state. The allegations stem from a scheme that prosecutors have called one of the biggest bribery scandals in state history, centering on a $1.3 billion ratepayer bailout.

Rubin has a history with FirstEnergy, having served as an advisor to the company's executives before formally signing on as a lobbyist, the source material notes. He and JobsOhio did not immediately respond to requests for comment regarding the upcoming deposition.

The controversy revolves around FirstEnergy's payments of more than $60 million between 2018 and 2019. These funds were funneled through 501(c)(4) dark money groups to pass and protect the ratepayer bailout, the source states.

Former Ohio House of Representatives Speaker Larry Householder is currently serving a 20-year federal prison sentence for his involvement in the scheme. FirstEnergy's former top executives are also facing a second state criminal trial regarding their involvement, after an earlier trial resulted in a hung jury.

Connections to the legislation extended into Governor Mike DeWine's administration, the source indicates. Governor DeWine signed the law and initially defended it as good policy, even after the FBI began making arrests in 2020. His administration had numerous ties to FirstEnergy and the legislation. For instance, a legislative affairs director within DeWine's administration, who had previously lobbied for FirstEnergy, started one of the dark-money groups that funneled $25 million from the utility. Jon Husted, then Governor DeWine's lieutenant governor, was also a staunch supporter of the bailout. In 2017, FirstEnergy made a $1 million dark money contribution to an independent political group that supported Husted, though a spokeswoman for the group stated it was not affiliated with him.

Sam Randazzo, Governor DeWine’s nominee to chair the Public Utilities Commission of Ohio (PUCO), received a $4.3 million bribe from FirstEnergy just prior to his appointment, according to the source. While leading the state utility regulator, Randazzo assisted in drafting the bailout legislation. Randazzo was later criminally charged and was one of two participants in the scandal who died by suicide.

Rubin, the individual slated for deposition, is a longtime advisor to Governor DeWine. In September 2023, Governor DeWine appointed Rubin as chairman of JobsOhio, the state’s economic development agency. JobsOhio itself is not without controversy; it is legally exempt from most open meetings and records laws despite being created by the legislature, having its board appointed by the governor, and leasing the state’s lucrative liquor franchise for significantly less than its market value.

JobsOhio has utilized over $2 billion in proceeds from this arrangement to issue grants and loans to private businesses, including FirstEnergy, in the name of economic development. Rubin’s appointment to chair the JobsOhio board has also drawn criticism from good government watchdogs because he is a lobbyist with numerous clients, many of whom are seeking funds from JobsOhio. For example, one of Rubin’s clients, Intel, has received over $150 million in commitments from JobsOhio and more than $2 billion from Governor DeWine’s executive branch, with Intel reportedly paying Rubin to lobby on its behalf.

Before his role on the JobsOhio board, Rubin advised FirstEnergy's top executives. Court proceedings showed that on December 18, 2018, shortly after they were elected, Governor DeWine and Lieutenant Governor Husted attended a dinner meeting with FirstEnergy CEO Chuck Jones and Vice President Michael Dowling at the Columbus Athletic Club. Rubin, who would become a FirstEnergy lobbyist within weeks, was present at this meeting. The discussions included Randazzo’s suitability to become the state’s top regulator for the monopoly industry FirstEnergy was part of, court proceedings revealed. The Associated Press reported in February that Rubin advised the executives not to inform Governor DeWine that they were proceeding directly from the dinner to meet with Randazzo. Prosecutors stated that it was at this subsequent meeting, held at Randazzo’s German Village condo, that the $4.3 million bribe was negotiated.

An audit conducted by the utility commission after the conspiracy was exposed found that FirstEnergy paid Rubin’s lobbying firm, the CJR Group, $300,000 between 2018 and 2019, according to the source material.