(WLUK) — FOX 11 has learned that Newcap made layoffs Thursday as part of an effort to get the organization back on track financially.

It comes 17 days after FOX 11 Investigates first reported on allegations that the nonprofit has been mishandling taxpayer money meant to help low-income residents.

FOX 11 Investigates: Newcap cuts jobs amid effort to establish ‘fiscally responsible path’ (WLUK)

For 60 years, Newcap has provided financial assistance to residents in a 10-county region for things like housing, home weatherization and health care.

In recent years, tax filings show Newcap has operated at a $2 million deficit. The state put Newcap on enhanced financial monitoring late last year. An independent audit questions the agency’s ability to continue.

Former employees and board members who initially approached FOX 11 with their concerns about Newcap’s operations have maintained they’d like to see the organization return to a prior form.

“It was an amazing organization,” said Peggy, a former Newcap employee of 16 years who asked us not to use her last name at the request of her current employer. “They helped so many. Somebody came in and we figured out how to help them. I don’t feel that is the attitude anymore at all.”

Newcap’s executive board has been trying to find a path forward. It put CEO Cheryl Detrick on administrative leave a few days after FOX 11 Investigates started airing stories on Newcap’s financial issues.

Since then, officials from other community action agencies in the state have been leading a financial review of Newcap.

“Through that process, it became apparent that the revenues were not enough to support the current staff,” said Tom Sieber, interim Newcap president and CEO, in a statement. He has been on the agency’s board of directors the past five years. “In order to establish Newcap on a fiscally responsible path, we had to make the extremely difficult decision to cut some hardworking and dedicated staff.”

FOX 11 Investigates

FOX 11 is told 14-17 employees were let go.

A few weeks ago, Detrick told FOX 11 Newcap had about 100 employees. That’s down from more than 140 employees, which is what’s currently listed on Newcap’s website.

“If you weren’t a ‘yes’ person, she didn’t like you,” said Holly Clark, a former Newcap board member, about Detrick.

Clark and others have told FOX 11 Detrick would fire employees or find a way to get rid of board members if they questioned the way the nonprofit operates.

“A lot of people were afraid to talk because she threatens and she’ll mail out cease-and-desist,” said Clark.

Before she was put on administrative leave, Detrick told FOX 11 in an email, “Newcap does not use cease-and-desist letters to prevent employees or community members from raising concerns about the organization.”

However, Detrick told us several years ago, there was a situation involving social media posts that included statements about both Newcap and private individuals.

“On advice of counsel, we asked that those posts be removed,” wrote Detrick. “That action was focused on protecting individuals from potentially false and harmful statements, not on preventing people from raising legitimate concerns about the organization.”

FOX 11 obtained a cease-and-desist letter from the situation Detrick eluded to, which involved a former Newcap board member. The lawyer who wrote the letter stated he represented Newcap.

Several former Newcap employees said the fear of legal action from Detrick is likely a main factor in why concerns about the organization weren’t exposed earlier.

“I don’t need that,” said Peggy.

Detrick is not expected to return to Newcap, according to people FOX 11 has spoken to who have knowledge of the situation.

For the people who just lost their jobs, Sieber says outside HR experts were brought in “to ensure the fairest process possible.”

“We thank them for dedication and passion in which they served our communities,” wrote Sieber in his statement.

Sieber tells FOX 11 the situation at Newcap is very fluid, but he’s feeling better about a path forward for the organization after the recent financial review.

As we’ve previously reported, lawmakers have also called for reviews of Newcap, s well as the procedures the state uses to make sure taxpayer money is being used as intended.