FirstEnergy Ordered to Pay $100 Million Penalty

FirstEnergy Corp., embroiled in a $60 million bribery scandal in Ohio, has been ordered by the U.S. Securities and Exchange Commission (SEC) to pay a $100 million civil penalty for misleading investors regarding its involvement in the scheme. The SEC's cease and desist order highlighted that the utility's former CEO made significant misrepresentations during a news release and a July 2020 earnings call. This penalty follows a $20 million payment to avoid criminal charges and comes amidst broader investigations that have already cost the company over $200 million in total settlements. The bribery scheme sought to secure a $1 billion bailout for two nuclear plants, resulting in severe legal consequences for several individuals involved, including the former Ohio House Speaker, who received a 20-year prison sentence. FirstEnergy's president expressed satisfaction with reaching the settlement, noting the necessity to pay the penalty within 14 days to avoid interest. The company's leadership, including two former executives indicted earlier this year, continues to deny any wrongdoing.