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Executive Councilor Karen Liot Hill calls herself “the top Democrat in state government.”

But a New Hampshire court just called her a deadbeat.

A court declared Liot Hill in default over her failure to repay $4,234 in outstanding credit card debt. It’s the latest in a series of financial faux pas by a state official whose job is to prevent fraud and overspending in state contracts. 

Liot Hill is already under investigation by the New Hampshire Attorney General’s Office Election Law Unit over questions about her campaign spending in her race for executive council. The longtime Lebanon city councilor and four-term Grafton County treasurer spent thousands of campaign dollars on personal items like $190 for a ferry ride to the Hamptons, $181 to register her car, and $250 for a haircut at Rio Blanco Salon. There were also two unexplained checks totaling $1,350 corresponding to two court cases against Liot Hill; one a violation for driving with a suspended license, and another involving a debt collection on a car loan.

In the current credit card debt case, Liot Hill stopped making payments about the same time she started running for executive council.

According to court records, Liot Hill never responded to the complaint filed in February in Lebanon District Court.

Liot Hill did not respond to requests for comment from NHJournal on Monday, either.

In an interview with the Valley News that was published this weekend, Liot Hill touted her important place in the Democratic Party.

“I am an executive councilor, but I’m actually the top Democrat in state government,” Liot Hill said in the interview. “I feel a responsibility to try and communicate with my constituents and also to be a presence and to be a voice for Democratic values across the state.” And her answer to a question about running for governor or Congress was “never say never.”

Republicans say Liot Hill lacks the values — or the record of responsibility — for the job she has now.

“When I applied to be dean at the University of New Hampshire, they ran a full background check, including my credit score, because I was going to be put in charge of a budget of $30 million or so,” said state Sen. Dan Innis (R-Bradford). “It would seem to me that someone who has trouble with her personal finances shouldn’t be trusted with an entire state‘s finances.”

Liot Hill’s campaign finances have been the subject of multiple media reports. Soon after NHJournal published its first story about her extravagant campaign spending, she filed and amended spending reports to remove some items and clarify others. Two mystery checks were switched to reimbursements the campaign made to her for the purchase of software and other more legitimate expenses.

Also noteworthy: Liot Hill’s first campaign filing was signed by her campaign treasurer, Corrinne Morse. When Liot Hill filed the amended version changing the descriptions of her spending to less problematic expenditures, Morse had been replaced as treasurer. Instead, Liot Hill listed herself as treasurer and signed her own amended filing.

Asked by NHJournal if she had actually signed the original filings, Morse declined to answer.

Morse declined to respond to a request for comment on Monday as well. Perhaps with good reason.

Liot Hill has already filed paperwork indicating she plans to seek reelection in 2026. Her amended campaign committee registration form lists Morse as the treasurer for her upcoming campaign.

Controversial Executive Councilor Karen Liot Hill’s 2024 campaign spending made headlines, and now it may be getting attention from the Attorney General’s Office as well. It confirms it is investigating the Lebanon Democrat’s campaign finances.

Questions about Liot Hill’s campaign finances began with NHJournal’s coverage of her lavish spending during the Democratic primary for Executive Council. Her allegedly campaign-related expenditures included charges for house cleaning, home heating oil, clothes, haircuts, groceries, gifts, payments to relatives, out-of-state trips, and more than $15,000 in gas and meal expenses.

Now, the New Hampshire Attorney General’s Office confirms to NHJournal that its Election Law Unit is investigating a complaint filed against Executive Councilor Karen Liot Hill (D-Lebanon).

“The New Hampshire Department of Justice Election Law Unit can confirm that there is an open campaign finance matter involving Executive Counselor Liot Hill,” Election Law Unit Chief Assistant Attorney General Brendan O’Donnell told NHJournal.

Liot Hill, an Upper Valley Democrat who previously served on the Lebanon City Council, refused to answer when NHJournal asked her about the investigation. Liot Hill simply shook her head in response to NHJournal’s questions.

The New Hampshire Attorney General’s Office declined to give details about the investigation, and the original complaint is not being made public at this time. NHJournal’s review of Liot Hill’s campaign finance reports, and her subsequent moves to correct the reports, uncovered curious details.

For example, nestled among her campaign receipts were two mystery checks that corresponded to court dates in two separate legal matters facing Liot Hill.

After NHJournal reported on her spending, Liot Hill filed amended reports with the New Hampshire Secretary of State’s Office that removed some of the spending line items, and attempted to explain the two mystery checks.

Liot Hill’s original reports listed two unexplained checks from December 2023 and January 2024 totaling $1,350. The checks did not include any information on who received the money, or the purpose of the expenses.

NHJournal found the timing of the two checks corresponded with two court cases involving Liot Hill. One was a violation for driving with a suspended license, the other involved a debt collection. The amended reports list those checks as reimbursements to Liot Hill for various software subscriptions, as well as cell phone and internet services.

These aren’t Liot Hill’s first legal troubles. The Democrat has been arrested twice for DUI, once in 2010 and again in 2018.

One interesting element about Liot Hill’s campaign disclosures for investigators to review: the sudden change in the status of her campaign treasurer.

The original reports listed former state Rep. Corrine Morse as the campaign treasurer, and appear to bear her signature. But the amended reports, which are significantly different from the first ones, are signed by Liot Hill, who declared herself her campaign’s treasurer.

Filing campaign documents that make false representations, such as who signed them, is a serious violation of state campaign finance laws.

NHJournal contacted Morse in November about her role in the campaign and asked if she had in fact signed the original reports for Liot Hill.

“I can’t comment on that,” Morse told NHJournal at the time.

Morse has not responded since to NHJournal’s multiple calls or emails about the campaign or the investigation.

It’s past time for the public to get the truth about Liot Hill’s finances, says New Hampshire Republican Party Chairman Jim MacEachern, particularly given the financial duties of her position as an Executive Councilor.

“Councilor Hill, who has a history of breaking the law, is now accused of misusing campaign dollars and fraudulent filings,” MacEachern told NHJournal. “It’s alarming that someone like that is empowered to review state contracts and even pardons. I’m happy to hear this is being investigated and trust that justice will be served,” MacEachern said.

Liot Hill’s GOP colleague, Executive Councilor Joe Kenny (R-District 1), learned about the investigation from NHJournal. He declined to comment on Liot Hill’s campaign spending, but he added,  “I hope it’s cleared up very quickly. We have a lot of work to do.”

Executive Councilor John Stephen (R-District 4) echoed that view.

“At the end of the day, we’re going to serve the people of this state who elected us,” Stephen said.

Amid a flurry of proposed budget cuts coming out of the legislature, the council is also navigating the sudden loss of $80 million in federal funding from the Centers for Disease Control. Stephen would not say if he thought Liot Hill being investigated could tarnish the image of the council as the public watches their decisions.

“I’m going to continue my role representing the people of District 4 in the most accountable way possible, with transparency and integrity in everything I do,” Stephen said.

Republican Kim Strathdee, who unsuccessfully ran against Liot Hill for the Executive Council, filed the complaint now under investigation. Strathdee did not respond to a text message seeking comment, and the phone number listed for her is not in service. Strathdee filed her complaint Oct. 7, days after NHJournal broke the story about Liot Hill’s campaign spending habits.

As for Strathdee’s campaign finances, she has a perfect record. While Liot Hill spent close to $120,000 on the contested primary and general election, Strathdee raised no money and spent no money throughout her entire campaign, according to her reports.