A woman has been arrested in connection to a large scale fraud investigation. According to the Prescott Police Department, the Prescott Area Habitat for Humanity received an anonymous tip about possible misuse of funds by staff. An internal investigation was launched that led to evidence of a large-scale fraud.
PPD says it was discovered that the fraud began in 2017 and continued until February 2024. The suspect of the fraud has been identified as 60-year-old Karen Northcutt who was an Executive Director at PAHH. The PAHH Board Staff reported the fraud to the Prescott Police Department leading to a lengthy criminal investigation.
According to PPD, over $400,000 in PAHH funds were stolen by the suspect. The funds were allegedly taken as cash, deposited directly to Northcutt, or used to purchase personal items for Northcutt. PPD says some of the money was used for home remodels, appliances, vet bills, vacations, recreational vehicles, personal taxes, and a Conex box.
PPD alleged Northcutt also paid herself a raise that was not approved by the board during this time. On April 10, 2024, PPD carried out a search warrant at Northcutt’s Dewey residence and seized multiple items related to the investigation. Northcutt was present at the time and was taken into custody. She is charged with Fraudulent Schemes and two counts of Felony Theft.
Jay Skelton is an independent crime journalist with a passion for covering the uncovered and the under covered.