The Ohio Attorney General's Office has reached a settlement with the Ohio Clean Water Fund, a sham charity, that must turn over more than $131,000 in "pocketed donations so the money truly does benefit East Palestine residents, Ohio Attorney General Dave Yost announced Wednesday.

Yost’s initial lawsuit alleged that the Ohio Clean Water Fund (OCWF), while claiming to be operating on behalf of Second Harvest Food Bank, raised more than $141,000 to provide bottled water and emergency aid to the residents of East Palestine following the February train derailment disaster.

Second Harvest had not permitted OCWF to fundraise on its behalf, and Yost’s lawsuit revealed that the fake charity had taken at least $131,000 of the donated funds while sending only $10,000 to the local Valley food bank.

The settlement includes dismissing the claims against the OCWF and one of its board members, Patrick Lee.

The agreement stipulates:

  • The Ohio Clean Water Fund must pay $131,904.88, including $116,904.88 in restitution and $15,000 in civil penalties.
  • The Ohio Clean Water Fund must dissolve.
  • Lee is barred from being a board member of or soliciting money for a charity in the future.

The state's lawsuit against OCWF creator Michael Peppel remains open as the AG's office works to finalize details of an agreement "that will protect the charitable sector from any similar misconduct by Peppel and others involved in this scheme," the release stated.

The Attorney General’s Office plans to disburse recovered funds to Second Harvest Food Bank, the state beneficiary.

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