Congressman Mike Rulli is standing by a decision to hire as his congressional communications director a man who was forced to repay tens of thousands of dollars as part of an alleged fake charity scheme set up purporting to assist the residents of East Palestine in the immediate aftermath of the 2023 train derailment.

Mike Peppel is now serving in Rulli's congressional office after settling civil litigation with the Ohio Attorney General's office last year over his role as cofounder of Ohio Clean Water Fund.


That fund collected nearly $149,000 from donors seeking to help East Palestine residents after chemicals were released into their community following the Norfolk Southern train derailment and subsequent "vent and burn" that sent a plume of black, toxic smoke into the atmosphere, sparking health worries, business closures and mountains of litigation.

The fund solicited donations from people claiming they were working in conjunction with the Second Harvest Food Bank, who had no affiliation with Peppel or the group. About $10,000 was donated to the Food Bank, but not the remaining funds.

Michael Iberis, executive director of the Second Harvest Food Bank, told 21 News that he was shocked and disappointed to hear about Peppel's hiring.

"It affected this community a great deal. It shook a lot of confidence in people to have a local person be a scammer," Iberis said.

Peppel, along with two other defendants, Isaih Wartman and Luke Mahoney of WAMA Strategies, were taken to court by the Ohio Attorney General's office over the scheme and eventually settled the case in order to avoid a prolonged and expensive court battle.


Under the terms of the agreement, Wartmne and Mahoney both agreed to pay $22,000 to the food bank, along with $3,000 in investigative costs and fees.


Peppel was given three days to pay a $25,000 civil penalty, as well as agree to a lifetime ban on starting, running or soliciting money for any charity in the state of Ohio.


He is also barred from holding any position with any charity in Ohio as a "board member, trustee, officer, director, member, employee, independent contractor, agent, or volunteer of any charitable trust," with the exception that he is allowed to volunteer with a charity as long as it does not involve handling money.

Under the terms of the settlement, Peppel does not admit to any wrongdoing on the court record


21 News became aware of Peppel's hiring by Rulli on Tuesday when Peppel sent the newsroom an unrelated email regarding a congressional vote.


When asked for any statement on hiring Peppel in light of his past and the fact that East Palestine residents were Rulli's constituents in the Ohio Senate at the time the funds were being solicited, Rulli issued a statement that did not acknowledge the alleged fraud directly, only saying:


"We are happy to have Mike Peppel join our team as our Communications Director, after spending nearly a decade in public service. Mike’s extraordinary work ethic, loyalty and dedication to the people of our region assisted me in nearly every aspect of what I was able to accomplish during my time in the Ohio Senate. In light of the dismissal of any and all civil complaints against Mr. Peppel, we are ready to move forward and focus on serving our constituents with a proven leader joining our team."


Peppel has previously worked for Rulli in the Ohio Statehouse, as well as Bill Johnson during his time in Congress.