Ex-head of Prescott Area Habitat For Humanity to spend decades in prison for fraud: YCAO
PRESCOTT, Ariz. - Prosecutors in Yavapai County say a 62-year-old woman will spend decades behind bars for stealing money from a non-profit organization that she ran.
What we know:
In a statement released on August 4, officials with the Yavapai County Attorney's Office say Karen Marie Northcutt of Dewey was sentenced on Aug. 3 to 62.5 years behind bars.
Karen Northcutt (Courtesy: Yavapai County Attorney's Office.)
Prosecutors say Northcutt's sentencing came after she was found guilty of the following in a May 2026 trial:
- Aggravated Taking Identification of Another
- Fraudulent Schemes and Artifices
- Money Laundering in the First Degree
- Tampering with Physical Evidence
- Theft
- Trafficking in Stolen Property
The backstory:
Officials say an investigation into the matter began in February 2024, when an anonymous tip was given to the Prescott Area Habitat for Humanity that indicated Northcutt, who was then the executive director for the Prescott Area Habitat for Humanity, was stealing money from the group.
"The investigation revealed that Northcutt used the organization’s bank accounts and credit card accounts to pay her mortgage, utilities, renovate her home, purchase vehicles and numerous other items," prosecutors wrote.
Per the statement, Northcutt also made cash withdrawals exceeding $100,000, and opened up an unauthorized credit card account to which she charged about $187.000.
"A forensic account ultimately determined the loss to Prescott Area Habitat for Humanity was approximately $826,000," read a portion of the statement.
Dig deeper:
According to an Instagram post made by Prescott Police in 2024, it was found that the fraud "started in 2017 and continued until February of 2024." The same post also said that Northcutt was arrested on April 10, 2024, the same day Prescott Police served a search warrant at her home.
On Aug. 5, we received a statement from Bruce Rosenberg, the current Executive Director of the Prescott Area Habitat for Humanity, on Northcutt's sentencing. It reads:
After lengthy court proceedings in this case, we are pleased with the outcome and happy to now focus our efforts exclusively on our mission to provide affordable housing to members of our community. The sentence imposed by Judge Carman is reflective of the fact that the Defendant has engaged in a lifetime of criminal activity, as this is her third such conviction in the past 32 years. Our primary request at the time of sentencing was that the sentence be significant enough to prevent this Defendant from ever again harming the members of our community. We believe the sentence accomplishes this.
Despite the distractions that Ms. Northcutt’s arrest and court proceedings created, we courageously moved forward. At all times, our incredible staff and volunteers and donors remained focused on doing everything possible to continue serving families in Yavapai County. This year will be a banner year for Prescott Habitat, as we strive to reach our goal of providing five families with affordable, safe, secure homes of their own.
With the events of the past 30 months, we have learned and been reminded of some very important facts. When communities come together to do good and serve others, there is a combined strength and resilience beyond our everyday recognition. And no one person – no matter their selfish and evil motives and actions – can cause irreparable harm to an organization supported by so many. And finally, we need to consciously remind ourselves to count our blessings every day and be thankful for those who show love and kindness to others, for it is these persons who will always prevail.
The Source: Information for this article was gathered from a statement released by the Yavapai County Attorney's Office. This story was reported on from Phoenix.