LISBON — Settlements reached with Ohio Clean Water Fund founder Michael Peppel and the group’s fundraiser WAMA Strategies will ensure all money raised via the sham charity will go to Second Harvest Food Bank as advertised.

That includes additional funds found after the June settlement with OCWF, which required a court-mandated review of the group’s financial records. Funds raised by OCWF actually totaled $149,000, which is more than the $141,183 originally reported.

Peppel, of Leetonia, and OCWF claimed to be representing Second Harvest Food Bank while soliciting donations to benefit East Palestine, site of a Feb. 3 train derailment, but that was not the case. The food bank had not given permission to the group to raise funds on its behalf and complained to the Ohio Attorney General’s office, which then opened an investigation, resulting in a lawsuit filed in April in Columbiana County Common Pleas Court.

The case against Peppel had been set for a trial to the judge next year, but Ohio Attorney General Dave Yost announced Thursday the case was settled.

“I have said from the beginning that we will continue to fight for the people of East Palestine, which is exactly what we did here. Our Charitable Law Section was able to recover and return every cent intended to aid the community,” he said in a press release.

“These scammers preyed on generous donors to try to line their own pockets but ultimately were stopped and shut down,” he said.

According to the court document signed by Judge Scott Washam, Peppel must pay $25,000 in civil penalties and is permanently barred from incorporating, operating or soliciting for any charity in Ohio.

WAMA and its owners, Isaiah Wartman and Luke Mahoney, must pay $22,077 in restitution to Second Harvest Food Bank, which allows the attorney general to distribute 100 percent of the donations raised to Second Harvest Food Bank. WAMA and its owners also must pay $3,000 in investigative costs and fees to the attorney general.

WAMA is prohibited for four years from soliciting for a charity in Ohio and Mahoney is prohibited for four years from incorporating, operating or soliciting for a charity in Ohio.

According to the settlement document, Peppel can’t hold any position as a board member, trustee, officer, director, member, employee, independent contractor, agent or volunteer of any charitable trust or organization in Ohio. The only exception is if he volunteers and has no involvement or responsibility concerning any charitable funds.

The court document said Peppel disputed the allegations in the complaint and did not take responsibility or admit to anything related to the complaint, but agreed to resolve all the claims.

“The attorney general and Mr. Peppel represent that such a resolution will avoid the long and costly litigation process while also honoring the intentions of the citizens who donated to help the East Palestine community,” the court document said.

Any hearings set for 2024 related to the case have been canceled.

A voluntary dismissal of the lawsuit against the OCWF was filed by Yost in June, requiring OCWF to dissolve and pay $131,904 in restitution and civil penalties.

In the lawsuit, claims were made that OCWF raised $141,183 from donors, with $91,769 going to administrative fees and only $10,000 from the $35,295 remaining going to Second Harvest Food Bank.

“Our thanks to Attorney General Yost for the quick response in fighting for the community of East Palestine to recover contributions that were solicited improperly. Second Harvest will be announcing soon how the funds will be used to assist residents,” Second Harvest Food Bank Executive Director Michael Iberis said in the press release.