3 Electric Co-op Officials Convicted Of Misuing Federal Funds

NORWICH, CT — Three people associated with the Connecticut Municipal Electric Energy Corporation (CMEEC) have been found guilty of misusing taxpayer funds, according to a statement from federal prosecutors. The three men were accused of spending the money on lavish trips unrelated to the electric cooperative's business.

The three officials are Drew Rankin, 60, the former chief executive officer of the CMEEC; James Sullivan, 55, former chairperson of the CMEEC Board of Directors; and John Bilda, 57, former City of Norwich representative on the CMEEC Board of Directors.

The jury found Rankin, Sullivan, and Bilda guilty of one count of theft concerning a program receiving federal funds, and not guilty of conspiracy and a second count of theft concerning a program receiving federal funds, according

CMEEC is a cooperative public corporation that permits municipal electric utilities in the state to join together to furnish electric power in the municipalities’ areas of operation.

The CMEEC membership agreement provides that excess revenues are designated as “CMEEC Margin,” and that the excess revenues are to be returned to the member towns to help keep electricity costs stable for ratepayers.

Between 2010 and 2015, CMEEC received more than $9 million from the U.S. Department of Energy. CMEEC member towns also received funds from federal grants.

According to prosecutors, "Rankin, Sullivan, Bilda, and others planned, organized, and directed lavish trips outside of Connecticut, including trips to the Kentucky Derby in 2015 and 2016, and to a luxury golf resort in West Virginia in 2015. These trips did not relate to CMEEC business or CMEEC Member business, but were intended to personally benefit, compensate and reward the defendants, their family members, friends and associates."

The cost for the trips totaled more than $800,000, including private chartered airfare, first-class hotel accommodations, meals, tickets to sporting events, golf fees, souvenirs, and gifts.

"In response to reporter inquiries about the Kentucky Derby and golf trips, Rankin underreported the costs of the trips, omitted the names of attendees who were not CMEEC employees or board members, and made other false statements related to how the trips were funded," prosecutors said in a statement.

CMEEC canceled a reservation it had made for the 2017 Kentucky Derby after the trip was publicized, and was refunded only approximately $90,000 of the $298,960 it had prepaid for the trip in May 2016.

Rankin, Sullivan, and Bilda face up to 10 years in prison at sentencing.