The former executive director of the Prescott Area Habitat for Humanity has been accused of stealing $400,000 from the organization.

60-year old Karen Northcutt was arrested on suspicion of stealing from the charity over a seven-year period, from 2017 to 2024.

The Prescott Times reported that the organization received an anonymous tip in February about the possible misuse of funds by staff.

An internal investigation was launched which found evidence of large-scale fraud

Current executive director Bruce Rosenburg said it hasn’t stopped them from helping people in need build, repair and renovate homes.

“We put a family into a home about two weeks ago," he said. "We closed on a home that a family is moving into as we speak and in two to three weeks, we will be starting construction on two more homes.”

He says Northcutt was fired a week after they got the anonymous tip and the organization wants to see justice done in this case.