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Former Prescott Habitat for Humanity executive director convicted of embezzling from charity

Hundreds of thousands of dollars were found to be missing from the charity's accounts, says YCAO.
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PRESCOTT, AZ — A former Habitat for Humanity executive director has been found guilty of multiple charges related to stealing from the charity.

Karen Marie Northcutt, 62, of Dewey, Arizona, was found guilty on May 22 of fraudulent schemes and artifices, theft, aggravated taking identification of another, tampering with physical evidence, trafficking in stolen property, and money laundering in the first degree, according to the Yavapai County Attorney's Office.

According to the YCAO, Habitat for Humanity received an anonymous tip to look into Northcutt. The Prescott Police Department then began its investigation in February of 2024.

Hundreds of thousands of dollars were found to be missing from the charity's accounts, says YCAO.

The police investigation revealed Northcutt used the money to pay for her mortgage, vehicles, a credit card, and other items, leading to Habitat for Humanity losing approximately $826,000.

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Yavapai County Attorney Dennis McGrane stated, “Ms. Northcutt’s conviction sends a clear message that no one is above the law. Ms. Northcutt’s selfish choice to steal from a charity hurt many needy local families and tarnished the trust that the public has in our charitable institutions. Her actions are despicable, and I hope the lengthy sentence that Ms. Northcutt will receive will send a strong message that fraud and thefts will always be vigorously prosecuted by my Office.”

Northcutt is scheduled to be sentenced on July 6 at the Yavapai County Superior Court. She faces a minimum of 10.5 years in prison.