A Newcap sign outside of its Green Bay office. PC: Fox 11 Online
(WTAQ-WLUK) – A federal investigation into Newcap and its former leaders is underway, according to Rep. Tony Wied.
Former Newcap employees allege the nonprofit was not using taxpayer money for its intended purposes, there was excessive spending on trips for work conferences, and the board of directors was signing off on bloated salaries for executives.
Newcap, a poverty-fighting organization that received millions of dollars in taxpayer funding each year, shut its doors in March and filed for bankruptcy shortly after.
Wied sent a letter to U.S. Department of Housing and Urban Development Secretary Scott Turner in March asking for an investigation. He says the Office of Inspector General recently told him an investigation of the organization and its leaders has started.
“We don’t have the details and it’s not complete,” said Wied. “It is underway and I’m glad it’s underway. That’s why I’m glad I called on an investigation because your hard earned tax dollars should not go to enrich people, executives of Newcap, and that’s what they were doing.”
The former Newcap employees who originally raised concerns about the organization say they were asked not to share any details, but were happy an investigation is underway.
Federal officials said, “as standard practice, we can neither confirm nor deny the existence of any investigations, should there be any.”
State agencies have previously said the same thing.
Cheryl Detrick, Newcap’s former CEO who was put on administrative leave, has denied misusing taxpayer money. She has maintained strict government rules for grant money were followed.
Former Newcap board members have previously said Detrick withheld details of work trips and didn’t present financial concerns with the urgency they warranted.
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