YAVAPAI COUNTY, Ariz. — The former executive director of Habitat for Humanity’s chapter in Prescott has been found guilty of embezzling large sums of money.
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A jury has convicted Karen Northcutt, 62, of fraud, theft, evidence tampering, money laundering and trafficking stolen property for offenses committed while leading the charitable organization that builds affordable housing for low-income populations.
The Yavapai County Attorney’s Office said Prescott police opened an investigation into the defendant in 2024 after receiving an anonymous letter about Northcutt.
An investigation revealed Northcutt had used Habitat for Humanity’s accounts to pay her mortgage, buy cars and several other expenditures. Prosecutors said Northcutt withdrew over $100,000 in cash and charged $187,000 to an unauthorized credit card.
In total, the organization lost an estimated $826,000.
Yavapai County Attorney Dennis McGrane called the defendant’s actions “despicable.”
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“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,” McGrane said in a statement.
At the time of Northcutt’s arrest in 2024, the Habitat for Humanity organization in Prescott said it had begun to implement “strict controls” to prevent fraud.
Northcutt is scheduled to be sentenced on July 6 and faces a minimum sentence of about 10 years in prison.
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