In February of 2024 the Prescott Area Habitat for Humanity (PAHH) received an anonymous tip about the possible misuse of PAHH funds by staff. At that time, an internal investigation was launched which ultimately revealed evidence of a large-scale fraud. It was found that the fraud started in 2017 and continued until February of 2024. The primary subject involved in the fraud was identified as the Executive Director, Karen Northcutt, a 60-year-old female, Dewey resident. Prescott Area Habitat for Humanity Board Staff contacted the Prescott Police Department, reported the incident, and a lengthy criminal investigation ensued.
The criminal investigation revealed, to date, over $400,000 in PAHH funds were stolen by Northcutt. These funds were either taken as cash, deposited directly to Northcutt, or used to purchase personal items for Northcutt such as home remodels, appliances, veterinarian bills, vacations, food, recreational vehicles, personal legal fees, personal taxes, and a Conex box. During this same time period, Northcutt had also paid herself a raise which was not approved by the board.
On April 10th, 2024, the Prescott Police Department served a search warrant at Northcutt’s Dewey residence and ultimately seized numerous items related to the investigation. Northcutt was present at the time of the warrant and was arrested. Northcutt was booked into the Yavapai County Prescott Jail for the charges of fraudulent schemes and two counts of felony theft.
This investigation is still ongoing with the possibility of arrests being made on any other subjects involved. Anyone with information related to this incident is encouraged to contact the Prescott Police Department at 928-777-1900.
