GREEN BAY (NBC 26) — Wisconsin State Rep. David Steffen (R) on Tuesday urged the attorney general to investigate a northeast Wisconsin charity for possible fraudulent activities, just hours after the group announced it would close its doors.
Newcap officials said the nonprofit, which provided support to individuals and families in 10 counties, was closing because of "mounting financial challenges."
Interim executive director Deb Barlament said in a news release the decision came despite cost-saving measures, staff reductions, and attempts to secure alternative funding and partnerships.
“This is one of the most difficult moments in our organization’s history,” Barlament said in a statement. “Our thoughts are with the individuals and families who depend on these services, as well as with the staff who have dedicated themselves to this mission.”
But Steffen noted that Newcap's closure came after the state had placed the group on enhanced financial monitoring. He also cited "findings of mismanagement and extensive whistleblower allegations of fraud and corruption."
"I urge the Department of Justice to launch a full investigation into Newcap to uncover any instances of fraudulent activity," Steffen wrote in a letter to attorney general Josh Kaul.
The letter states Newcap that earlier this month the state refused to renew Newcap’s Weatherization Assistance Program contract because of its current financial state and “outstanding funds” that must be repaid.
Your Green Bay neighborhood reporter Claire Peterson will have more on this story on NBC 26 News at 6 & 10.
