A Yavapai County jury has found 62-year-old Karen Marie Northcutt of Dewey guilty on multiple felony counts, including fraudulent schemes and artifices, theft, money laundering, and trafficking in stolen property.
The verdicts were returned May 22 following a lengthy investigation by the Prescott Police Department. The case began in February 2024 after Prescott Area Habitat for Humanity received an anonymous letter urging officials to review the actions of Northcutt, who was serving as executive director at the time.
An internal review found hundreds of thousands of dollars missing from the organization’s accounts. Investigators say Northcutt used charity bank and credit card accounts to pay personal expenses, including her mortgage, utilities, vehicle purchases, and more than $100,000 in cash withdrawals. Authorities also say she opened an unauthorized credit card account and charged about $187,000.
A forensic accountant estimated the total loss to Prescott Area Habitat for Humanity at approximately $826,000.
Sentencing is scheduled for July 6 before Judge Krista Carman. Northcutt faces a minimum of 10½ years in state prison.