Ohio AG: Phony charity pockets donations purported to go to East Palestine residents

A man who set up a charity claiming to raise funds for East Palestine residents affected by the devastating train derailment in February is accused of pocketing more than $131,000.

Ohio Attorney General Dave Yost filed a lawsuit Monday that alleges Mike Peppel presented his Ohio Clean Water Fund as a nonprofit organization acting on behalf of Second Harvest Food Bank of the Mahoning Valley to provide residents with emergency aid and bottled water after a Norfolk Southern train derailed, burst into flames released toxic chemicals into the air, soil and creeks in East Palestine. Peppel reportedly took at least $131,000 of the roughly 141,000 raised from more than 3,000 donors.

“The idea that somebody would so brazenly exploit a disaster situation and the good hearts of people who want to help is unconscionable,” Yost said. “I’m mad as hell about this, and we’re going to make sure this sham charity gets shut down.”

Yost is seeking a temporary restraining order and preliminary injunction to halt Peppel and prohibit him from engaging in additional charitable solicitations and preserve existing charitable assets, the release said.

Second Harvest Food Bank representatives complained to the Ohio Attorney General’s Office that they did not give permission for Peppel to make any solicitations on their behalf.

The organization said they met with Peppel twice to stop advertising the non-existent partnership. In addition, they said he paid only $10,000 to the food bank, about 7% of what Peppel said he raised, according to the attorney general’s office.

Yost recommended the following tips to check if a charity is legitimate:

  • Visit the attorney general’s Good Giving Guidelines and Research Charities webpage to check whether charities have complied with registration requirements. Media articles and other postings can also provide useful details about groups, board members and key employees.
  • View 990 forms, which most tax-exempt groups must file with the Internal Revenue Service. These forms describe where organizations get their funding and how they spend it.
  • Support familiar, established organizations, or, if considering a donation to an unfamiliar group, check its website first. Does the information match what you received when you were asked to contribute? Does the group’s programs and services make sense?
  • Talk with friends and family about unfamiliar solicitations. Have they heard of the group? Do they know of anyone who has been assisted by it?

“Here’s a message for anybody else who might hope to profit from the situation in East Palestine: Don’t even think about it,” Yost said.

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