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

Bogus Charity Stole $131,000 Meant for Toxic Rail Derailment, Ohio Lawsuit Alleges
A black plume rises over East Palestine, Ohio, as a result of a controlled detonation of a portion of the derailed Norfolk Southern Monday, Feb. 6, 2023. (AP Photo/Gene J. Puskar)
Janice Hisle
4/12/2023
Updated:
4/12/2023
0:00

An organization raked in $141,000 but “pocketed” nearly all of that amount instead of using it to help East Palestine, Ohio, residents struggling with toxic fumes and contaminated water after a train derailment and fire, the state’s top law official says.

Ohio Attorney General Dave Yost filed a lawsuit alleging that a Leetonia, Ohio, man named Mike Peppel has solicited donations to a nonprofit organization that he founded last month but diverted the money away from its intended purpose.
Ohio Attorney General David Yost (Courtesy of ohioattorneygeneral.gov)
Ohio Attorney General David Yost (Courtesy of ohioattorneygeneral.gov)
Peppel represented that donations to his Ohio Clean Water Fund would be used “to provide residents with emergency aid and bottled water,” Yost said in an April 11 news release.

Instead, when money poured in from more than 3,000 donors, Peppel and others kept all but about $10,000, Yost alleges.

“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.”

The Epoch Times has asked attorney Kimberly Land, who is listed as the charity’s statutory agent in Columbus, Ohio, for comment. No response was received prior to publication time.

Yost’s lawsuit against Peppel was filed April 10 in Columbiana County Common Pleas Court. In the suit, Yost is asking a judge to issue a temporary restraining order and preliminary injunction against Peppel. That order is intended to “prohibit him from engaging in additional charitable solicitations and preserve existing charitable assets,” Yost’s statement said.

Partnership ‘Non-Existent’

On Feb. 3, a Norfolk Southern Railway train went off the tracks in East Palestine. The situation turned into one of America’s worst environmental disasters after emergency officials decided to burn the train’s carloads of hazardous materials. State and national agencies have been assisting with air and water testing since then. Yost’s office has sued Norfolk Southern, accusing the company of negligence.

The controversy involving Peppel’s fund came to light after representatives of Second Harvest Food Bank complained to Yost’s office that they had not authorized any partnership with Peppel’s organization, as he had claimed in mass emails and text messages, Yost’s release said.

The food bank urged Peppel “to stop advertising the non-existent partnership,” Yost said. Since then, Peppel has paid about $10,000 to the food bank, about 7 percent of the amount raised, Yost said in the release.

“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.

Yost’s office has a Charitable Law Section dedicated to such cases. He encourages people who are wishing to make charitable donations to visit two internet pages on his website, ohioattorneygeneral.gov, which show whether charities are in good standing. People can check the Good Giving Guidelines and Research Charities webpages.

Other smart steps to take include internet searches and asking friends and family if they’ve ever heard of the charity or know anyone the organization has helped.

Janice Hisle reports on former President Donald Trump's campaign for the 2024 general election ballot and related issues. Before joining The Epoch Times, she worked for more than two decades as a reporter for newspapers in Ohio and authored several books. She is a graduate of Kent State University's journalism program. You can reach Janice at: [email protected]
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