ORIGINAL CASE DETAILS: Larry Householder, Ohio Speaker of the House

Ohio Speaker of the House Larry Householder is facing federal charges after being indicted by a federal grand jury for a federal racketeering conspiracy. The case involves Householder, four other individuals, and a 501(c)(4) entity called ‘Generation Now.’ A 501(c)(4) is a corporate entity that is supposed to be designated as a social welfare organization. Generation Now was purported to promote energy independence and economic development. It is alleged that Generation Now was actually secretly controlled by Householder. It is alleged that Householder and his group worked as an ‘enterprise’ and received approximately $60 million dollars into Generation Now to help ensure the passing of Ohio House Bill 6, a $1.3 billion bailout aimed at saving two Ohio nuclear power plants from closing. It is also alleged that the enterprise corruptly worked to defeat a ballot initiative which was aimed at stopping House Bill 6. The enterprise is accused of spending millions of dollars to help Householder win the 2018 election to become the Ohio Speaker of the House by flooding the airways with negative ads against any enterprise opponents. These ads were all allegedly paid for by Generation Now. This case is an example of the Department of Justice’s recent trend towards attempting to expand the use of the RICO Act in targeting political corruption and bribery. The RICO Act was originally passed to fight organized crime.

CRIMINAL CHARGES AND POTENTIAL PENALTIES

Larry Householder, Generation Now, and four other individuals face federal corruption charges under the Racketeer Influenced and Corrupt Organizations (RICO) Act. A person is guilty of a RICO charge when:

1. He or she commits at least two acts of racketeering activity;
2. Within a 10-year period; and
3. The acts were deemed made in an enterprise.

The ‘acts of racketeering activity’ come from a list of 35 different crimes that are listed within the RICO statute. If someone is convicted of racketeering under the RICO statute, he or she faces a sentence of up to 20 years in federal prison and up to $25,000 in fines for each count. Someone convicted under the RICO statute will also have to forfeit any gains due to the illegal activity.

The defense in this case will likely rely heavily on the decision of Kelly v. United States, where the United States Supreme Court made its position clear that the federal government should be limited in its attempt to expand the federal criminal code to the political process.

HOW THIS CASE IS IMPORTANT

This case has the potential to shape how RICO charges can be used going forward in federal corruption cases. A successful prosecution under the RICO statute will potentially put political donors at risk for future similar charges. Companies should be mindful of how they engage in politics and be certain of the legality of their political contributions. Seemingly harmless acts of making campaign contributions or creating a nonprofit organization can lead to criminal charges when certain factors are present. If you or your organization are involved in making political contributions, then the outcome of this case can affect you directly. If Householder is convicted, it will continue to pave the way for federal authorities to prosecute people with RICO charges for their involvement in political campaign contributions. If you have any questions about the legality of your political contributions, then it is important to seek the advice of an experienced federal public corruption attorney who can best answer your questions.