HOUSTON – A former director of the Houston Habitat for Humanity ReStore is facing theft charges after being accused of embezzling more than $177,000 from the nonprofit, according to court documents.
Adam McClarin, 44, resigned from his position on Sept. 6, 2024, after an internal investigation revealed financial irregularities tied to unauthorized payment processing, records show.
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Auditors began reviewing operations after discovering significant inventory losses at a ReStore location between Oct. 14, 2022, and Sept. 5, 2024. Employees later told investigators that McClarin instructed them to process credit and debit transactions using a Square device. According to statements, once $500 in sales were processed, McClarin would take the device back to his office, and staff would resume normal sales procedures.
Court records indicate Houston Habitat for Humanity ReStores briefly used Square accounts for payment processing in early 2022, but the system was discontinued in October of that year. Use of the device after that point was unauthorized.
Investigators also reviewed McClarin’s bank records and discovered that on Oct. 4, 2022, his Navy Federal Credit Union account had been linked to the Square account, allegedly allowing him to divert payments.
McClarin is charged with theft in connection with the $177,641.59 loss.
Houston Habitat for Humanity CEO Allison Hay released the following statement in regards to McClarin’s theft case:
“It is very difficult to think we may have been betrayed by people entrusted to be a part of our charitable mission, but the fact is: ReStore is already a stronger operation because of this experience. Our own comprehensive investigation informed a robust action plan to strengthen oversight and accountability across our ReStore operations, including enhanced inventory controls, new operating procedures and improved asset surveillance.
“Donations to Houston Habitat are secure. This incident does not affect donor funds or the impact of donor giving. We value the trust placed in us by our supporters and the communities we serve. Our priority is to restore confidence in ReStore and reassure the public that contributions will continue to support those who depend on our services.
“We remain grateful to our donors and partners for their ongoing support as we work to build a more resilient organization.”