Trump Inauguration Official’s “Phony Charity” Allegedly Pocketed East Palestine Train Disaster Funds

To help plan the inauguration, President-elect Donald Trump’s team tapped a man who was on the board of a charity accused by the Ohio attorney general of pocketing money it claimed to be collecting for victims of the Norfolk Southern train derailment in East Palestine, Ohio.

Patrick Lee, the deputy director public liaison for the inaugural committee, was a member of the board of the Ohio Clean Water Fund, an LLC formed in Ohio days after the train derailed in February 2023. Trump’s appearance in East Palestine after the disaster became a major talking point in his presidential campaign.

The Ohio Clean Water Fund claimed it was operating on behalf of the Second Harvest Food Bank of the Mahoning Valley, a group providing bottled water and other aid to those affected in East Palestine. The Ohio Clean Water Fund managed to raise over $141,000 in less than five weeks, according to a preliminary injunction and the terms of a June 2023 settlement with Ohio Attorney General Dave Yost. 

The partnership it touted, however, was not real, the attorney general’s office charged. After the food bank said publicly that there was no relationship between the two groups, the Ohio Clean Water Fund provided the Second Harvest Food Bank with a $10,000 check, keeping the remaining $131,000, according to the attorney general’s office. Yost later declared the Ohio Clean Water Fund to be a “phony charity” run by “scammers.” 

“The sham charity must turn over more than $131,000 in pocketed donations so the money truly does benefit East Palestine.”

A lawyer representing Lee said the settlement is not an admission of wrongdoing by Lee or the charity. “Mr. Lee vigorously disputes the allegations,” attorney Michael Columbo wrote in a letter threatening legal action against The Intercept.

Lee was not named as a defendant and did not answer questions about his role with Ohio Clean Water Fund, which, according to court documents, shared an address with Lee’s home in Alexandria, Virginia. The Intercept used business documents and public records to confirm Lee’s identity. 

In exchange for choosing to forgo claims against Lee and his group, Yost’s settlement barred Lee from certain charitable activities in Ohio and required him and the Ohio Clean Water Fund to pay a six-figure restitution. 

“Under a settlement reached with the Ohio Clean Water Fund, the sham charity must turn over more than $131,000 in pocketed donations so the money truly does benefit East Palestine residents,” Yost’s office said in a press release. “The food bank had not given OCWF permission to fundraise on its behalf, and Yost’s lawsuit revealed that the ‘charity’ had pocketed at least $131,000 of the donated funds, while sending only $10,000 to the food bank.”

In his letter to The Intercept, Columbo, of the Dhillon Law Group — helmed by Harmeet Dhillon, Trump’s pick to run the Justice Department’s Civil Rights Division — noted that Lee, the Ohio Clean Water Fund, and the Ohio attorney general settled to avoid lengthy and expensive litigation with no admission of wrongdoing. 

“The agreement speaks for itself,” Columbo wrote. “It appears that the Intercept will be misusing an agreement that settled allegations as evidence the allegations were true.” 

As part of a subsequent investigation into the Ohio Clean Water Fund’s finances, the attorney general’s office found that the group had raised nearly $150,000 and had paid a fundraiser to collect the sum through text message solicitations. 

As part of the settlement, Lee and the Ohio Clean Water Fund were jointly liable, leaving them responsible to pay over $116,000 in restitution, and another $15,000 in civil penalties. 

Lee is barred from forming an Ohio charitable trust and from soliciting donations on behalf of any charity in Ohio, according to the settlement. And he is not allowed to be a director, officer, contractor, or board member of any charitable organization in Ohio for the rest of his life. 

The settlement permits Lee to volunteer at an Ohio-based charity if his role does not involve donations or funds.

The East Palestine train derailment, which released hazardous materials and toxins in the surrounding community, became a political football in the 2024 presidential campaign. Trump’s team touted his appearance — and Joe Biden’s absence — at the disaster site. And Trump invited East Palestine Mayor Trent Conaway to speak at the Republican National Convention last summer. 

After his victory, Trump staffers hailed his handling of East Palestine as a crucial moment in the race. 

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“This was the moment that really set the campaign on a trajectory to victory,” incoming White House communications director Steven Cheung posted to X last month. “The ripples from that day do not get enough attention.” 

Lee has worked in national and state politics for years, including with the Republican National Committee. 

He was the field director for the Congressional Leadership Fund, a super PAC that was criticized for spreading misinformation. His consulting firm, LCM Strategies, contracted with the Georgia Republican Party last year. 

Since the June 2023 settlement, LCM Strategies has received payments from Ohio Republican state Reps. Justin Pizzulli and Adam Mathews. 

“I was not familiar with Patrick Lee, the Ohio Clean Water Fund, or the details of the alleged misuse of donations until receiving your email,” Pizzulli told The Intercept, noting that LCM had been hired as a subcontractor, rather than directly by his campaign. “These allegations are concerning, and I trust the Attorney General’s office is ensuring restitution and accountability.”

While FEC records indicate neither the Trump campaign nor the RNC directly hired Lee during the 2024 campaign season, prior reporting and sources confirm he was involved in logistics for the convention. 

Lee’s duties as deputy director of public liaison for Trump’s inaugural committee were not clear.

Lee was not the only political operative involved with the alleged “sham charity.” Ohio Clean Water Fund founder Mike Peppel worked for U.S. Rep. Mike Rulli, R-Ohio, before becoming involved with the East Palestine group. As part of a separate settlement with Yost in August, Peppel was also required to pay restitution and forgo certain charitable activities. The settlement notes that Peppel disputed the allegations and reached the deal to avoid costly litigation.

Earlier this month, The Vindicator reported that Rulli had rehired Peppel. Rulli’s campaign had also contracted with Lee’s group, LCM Strategies, in 2021 and 2022. 

“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,” Yost said in a statement after the second settlement. “These scammers preyed on generous donors to try to line their own pockets, but ultimately were stopped and shut down.”

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