Newcap, the deeply troubled non-profit in northeastern Wisconsin, abruptly shut down Tuesday amid growing calls for criminal investigations into potential fraud.
A northeast Wisconsin nonprofit that received tens of millions of taxpayer dollars for housing and assistance programs abruptly shut its doors Tuesday, leaving 134 low-income households at risk of losing rent support and prompting Republican lawmakers to demand a criminal investigation into suspected mismanagement and potential misuse of public funds.
Newcap, a community action agency serving 10 counties, announced its immediate closure after months of financial turmoil, including multimillion-dollar deficits, dwindling cash reserves and questions about how it spent federal and state grants.
In 2023, the organization reported $19.3 million in revenue against $21.3 million in expenses, and its 2024 audit flagged “substantial doubt” about its ability to continue operating. Federal spending through Newcap reached $10.9 million in 2024, with another $3 million from the state.
The sudden shutdown blindsided employees, who were informed they no longer had jobs, and clients relying on HUD-funded housing assistance. Nearly 100 families in the Green Bay area, including dozens experiencing chronic homelessness, face disruption. Community groups stepped in to help transfer services, but advocates warned of potential gaps that could push vulnerable residents back onto the streets. Newcap’s former CEO Cheryl Detrick, who received more than $218,000 in compensation in 2023, was placed on administrative leave in February and is no longer with the organization.
State Rep. David Steffen is calling for Attorney General Josh Kaul to open a criminal investigation into what appears to be massive fraud.
“There needs to be some accountability,” Steffen said. “The only way we’re going to get to the bottom of it is if we have a comprehensive criminal investigation.”
This comes after U.S. Reps. Bryan Steil and Tony Wied called for a federal investigation into Newcap’s finances.
In a statement released Tuesday, Newcap expressed “profound sadness” and said it had exhausted efforts to stay open after implementing staff cuts and cost-saving measures.
