Former Habitat for Humanity executive director sentenced for embezzling $826K from nonprofit

A former executive director of Habitat for Humanity has been sentenced to 62.5 years in prison for embezzling around $826,000 from the nonprofit’s local chapter, authorities announced Tuesday.

Karen Marie Northcutt, 62, was found guilty of fraudulent schemes and artifices, theft, aggravated taking identification of another, tampering with physical evidence, trafficking in stolen property and money laundering, according to the Yavapai County Attorney’s Office.

“Her actions are despicable, and I hope the lengthy sentence that Ms. Northcutt received will send a strong message that fraud and thefts will always be vigorously prosecuted by my office,” said Yavapai County Attorney Dennis M. McGrane.

The money she stole was intended to support the nonprofit’s mission of helping families in need access safe, affordable homes and eliminating poor living conditions.

What did former Habitat for Humanity executive do with embezzled funds?

Northcutt has been under investigation since February 2024 after an anonymous tip sent to the Prescott Area Habitat for Humanity hinted that Northcutt was stealing money from the organization. At the time, she was the organization’s executive director.

The ensuing investigation found that she used the nonprofit’s bank accounts and credit card accounts to buy vehicles, renovate her home and pay her mortgage and utilities, prosecutors said.

She also withdrew more than $100,000 in cash and charged around $187,000 to an unauthorized credit card account she had opened up.

“Ms. Northcutt’s conviction sends a clear message that no one is above the law,” McGrane said. “Ms. Northcutt’s selfish choice to steal from a charity hurt many needy local families and tarnished the trust that the public has in our charitable institutions.”

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