On Wednesday, Karen Northcutt, 60, was arrested by the Prescott Police Department following the execution of a search warrant at her Dewey home.

According to authorities, Northcutt is under suspicion for stealing a significant amount of funds from Prescott Area Habitat for Humanity, an organization dedicated to constructing affordable homes for families.

These funds were allegedly used for personal gain, including home renovations, purchasing appliances, covering veterinary expenses, going on vacations, buying recreational vehicles, and settling personal tax debts.

The purported fraudulent activity started in 2017 and persisted until PAHH was notified by an anonymous source in February 2024. As the investigation proceeded, law enforcement discovered that Northcutt had reportedly increased her own salary without proper authorization from the PAHH board.

The PAHH organization announced in a letter to the community their deep disappointment and betrayal towards one of their own members, whom they had placed trust and offered support to. They said that the perpetrator had been fired and they have taken measures to prevent similar fraudulent incidents from occurring in the future, including implementing “stringent measures”

Northcutt has been accused of committing fraud and theft and is currently facing charges. If you have any additional details about this incident, please reach out to the Prescott police at 928-777-1900.