Settlements reached after Ohio AG sues charity claiming to help East Palestine residents

EAST PALESTINE, Ohio (WOIO) - The Ohio attorney general said Thursday a lawsuit against a charity claiming to benefit the East Palestine community has resulted in settlements.

Attorney General Dave Yost said $116,904.88 raised by the Ohio Clean Water Fund will be given to Second Harvest Food Bank of the Mahoning Valley.

Yost said Michael Peppel, founder of the now dissolved charity, had raised money from more than 3,000 donors.

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According to Yost, people donated after receiving text messages soliciting funds to give water bottles to East Palestine residents.

Yost said the settlement requires Ohio Clean Water Fund to pay a $15,000 civil penalty, and Peppel must pay a $25,000 civil penalty.

He is also “permanently banned from incorporating, operating or soliciting for any charity in Ohio.”

The settlement also resulted in financial penalties against the Ohio Clean Water Fund’s main fundraiser WAMA Strategies.

Owners Isaiah Wartman and Luke Mahoney must pay $22,077.48 in restitution to Second Harvest Food Bank, the attorney general said, in addition to other fees.

Ohioans who suspect misuse of charitable funds or fraudulent fundraising activities should contact the Ohio Attorney General’s Office at 800-282-0515 or charitable.ohioago.gov.

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