Bogus Charity Stole $131,000 Meant for Toxic Rail Derailment, Ohio Lawsuit Alleges

Ohio’s top legal official, Attorney General Dave Yost, has filed a lawsuit against a shady charity that allegedly pocketed most of the $141,000 it raised instead of using it to help residents who had problems with toxic fumes and contaminated water after a train derailment and fire in East Palestine, Ohio. Leetonia, Ohio resident Mike Peppel solicited donations for his newly-founded nonprofit organization Ohio Clean Water Fund, but according to Yost, he diverted the money away from its intended purpose. Yost says he is “mad as hell” about the situation and plans to make sure the charity gets shut down.

In his lawsuit against Peppel, filed in Columbiana County Common Pleas Court, Yost is asking a judge to issue a temporary restraining order and preliminary injunction against Peppel, to “prohibit him from engaging in additional charitable solicitations and preserve existing charitable assets.”

Partnership ‘Non-Existent’

The Norfolk Southern Railway train derailed on Feb. 3, 2023, in East Palestine, sparking one of America’s worst environmental disasters as the carloads of hazardous materials were burned. State and national agencies have since been helping with air and water testing. In a separate lawsuit, Yost’s office sued Norfolk Southern, accusing it of negligence.

Peppel’s alleged fraud came to light when representatives of Second Harvest Food Bank complained to Yost’s office that they had not authorized any partnership with his organization, as he claimed in mass emails and text messages. The food bank urged Peppel “to stop advertising the non-existent partnership.” Peppel has since paid about $10,000 to the food bank, roughly 7% of what was raised.

If you’re planning to make a charitable donation, Yost encourages you to check his website’s Good Giving Guidelines and Research Charities pages, to perform internet searches and to ask friends and family if they know anything about a charity’s reputation.