Crime

HomesNOW! ex-president asks to move court case; says he’s been threatened, yelled at

The former HomesNOW! president who is accused of embezzling more than $75,000 from the nonprofit organization will have his case heard in Whatcom County.

James Lee Peterson, 62, of Bellingham, was charged with first-degree theft Nov. 7 in Whatcom County Superior Court. His charge includes two aggravating factors — that Peterson’s alleged offense was a major economic offense or series of offenses and that Peterson used his position of trust, confidence or fiduciary responsibility to commit the crime, according to court records. An aggravating circumstance allows the court to sentence Peterson above the standard range if convicted of his alleged crime, said Whatcom County Deputy Prosecuting Attorney Jonathan Richardson.

Peterson was arrested Nov. 1 after a monthlong investigation by the Bellingham Police Department. Peterson was released from the Whatcom County Jail Nov. 4 after a friend paid his $10,000 bail in cash, according to court and jail records.

Peterson pleaded not guilty Nov. 8 and his jury trial is tentatively scheduled for Feb. 26, 2020.

HomesNOW! is a nonprofit organization that operates a tiny home encampment for the homeless, called Unity Village, in the city-owned parking lot at 210 McKenzie Ave., near the Post Point Water Treatment Plant in the Fairhaven neighborhood. The tiny home encampment, which can house up to 28 people, is permitted to operate at its current location through April 2020.

On Dec. 26, Whatcom County Superior Court Judge Rob Olson denied Peterson’s request to have his case heard outside of Whatcom County. Olson said that Peterson and his attorney had to attempt to try and seat a fair and impartial jury for a trial. If they couldn’t do so, then Peterson and his attorney could file a motion to have the case heard elsewhere.

A week before, on Dec. 16, Peterson and his defense attorney, Bryan Lane, filed motions requesting that his case be heard in Skagit County or elsewhere, saying the publicity surrounding Peterson’s arrest and case has made it unlikely they’ll be able to seat a fair and impartial jury, court records state.

Peterson and his attorney argued that the publicity has been inflammatory, that the police department and a member of the judiciary are responsible for the inflammatory information, and that hundreds, possibly thousands, of people have assumed Peterson is guilty, which has led to him being accosted and threatened in public, the court records state.

“The publicity has been so widely spread that the public mind has been prejudiced. The case should be moved to a more neutral forum,” Lane’s motion states.

In a declaration submitted by Peterson, he stated that throughout the month of November he was approached and yelled at multiple times while shopping at several local grocery stores. In one of the encounters, Peterson was called a thief and was told he should “go straight to jail for years,” the court records state. In another, Peterson was told he was the reason that people hated the homeless and that he should kill himself, records show.

Former HomesNOW! president Jim Peterson, 62, was arrested Nov. 1, 2019, for allegedly embezzling more than $75,000 from the organization, according to Bellingham police.
Former HomesNOW! president Jim Peterson, 62, was arrested Nov. 1, 2019, for allegedly embezzling more than $75,000 from the organization, according to Bellingham police. Paul Conrad The Bellingham Herald file

Lane’s motion also argued that details released from the Bellingham Police Department, such as that Peterson spent some of the money he allegedly stole on fast food, were made to incite the anger of the public.

“Based on these constant interactions with local people, it is clear that Mr. Peterson cannot receive a fair trial in Whatcom County,” Lane’s motion states. “The media focus on Mr. Peterson is obvious and inflammatory. Not unsurprisingly, the public has attributed guilt based upon the focus of those stories, so much so that the release of the government’s ‘findings’ have also incited threats of violence.”

Lane’s motion also stated that Whatcom County Court Commissioner Pamela Englett shared a story by The Bellingham Herald about Peterson’s arrest on her Facebook page, and made a comment that the public and donors to the organization had a “right to know” about the allegations, court records state.

“Little or no thought was given to the presumed innocence of the accused,” the court record states. “His ability to receive a fair and impartial trial has been compromised. That prejudice cannot be undone.”

Englett’s post and the comments have since been deleted, court records state.

Despite the Nov. 1, 2019, arrest of HomesNOW! former president and co-founder James Lee Peterson, 62, for allegedly embezzling more than $75,000 from the organization, the temporary shelter permit remains valid and can continue to be used provided that the conditions of approval are met, according to Rick Sepler, Planning and Community Development Director for Bellingham.
Despite the Nov. 1, 2019, arrest of HomesNOW! former president and co-founder James Lee Peterson, 62, for allegedly embezzling more than $75,000 from the organization, the temporary shelter permit remains valid and can continue to be used provided that the conditions of approval are met, according to Rick Sepler, Planning and Community Development Director for Bellingham. Lacey Young The Bellingham Herald

In a response to Lane’s motion, Richardson, the prosecuting attorney, argued that a decision to change venue should be denied or postponed until the attorneys attempt to seat a jury for trial. Richardson argued that the attorneys should make a “good-faith attempt” before considering whether pretrial publicity was preventing a fair trial, court records state.

Richardson argued that the publicity surrounding Peterson’s case and arrest was not inflammatory or sensational, but instead described the police investigation and state of the evidence, court records state.

In light of Peterson’s arrest, current HomesNOW! Board of Directors Doug Gustafson said in mid-November that HomesNOW! was putting new policies in place and was excited about the future of the nonprofit.

This story was originally published January 2, 2020 at 5:00 AM.

Denver Pratt
The Bellingham Herald
Reporter Denver Pratt joined The Bellingham Herald in 2017 and covers courts and criminal and social justice. She has worked in Montana, Florida and Virginia. She lives in Alger, Wash.
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