BELLINGHAM, WA (MyBellinghamNow.com) – A Bellingham nonprofit co-founder has been sentenced for embezzling money meant for people experiencing homelessness.

A judge sentenced 67-year-old James Peterson to two months in jail, which could include work crew or work release conditions.

Peterson pled guilty to taking over $75,000 from Homes Now! Not Later, which he co-founded in 2017.

Homes Now! Not Later operates the tiny home communities Unity Village and Swift Haven, both located in Bellingham.

Court documents state that Peterson took the money during the nonprofit’s first two years of existence and spent it at casinos, cannabis shops and other businesses across Whatcom and Skagit Counties. He was initially arrested in 2019 after other board members noticed irregularities in their financial records.

Peterson has also been ordered to repay $47,000 of the funds that he stole.