Former Santa Cruz, Arizona County treasurer Elizabeth Gutfahr pleaded guilty Thursday to embezzling more than $38 million she used on personal expenses, including renovating her personal property and on purchasing vehicles. Photo courtesy of KGUN 9.
Nov. 24 (UPI) — A former county treasurer in Arizona has pleaded guilty to stealing over $38-million to pay for upgrades on her personal ranches, purchase at least 20 vehicles and pay for personal items for herself and her family, the Justice Department announced.
Elizabeth Gutfahr, 62, the elected treasurer of Santa Cruz County between 2012 and 2024, pleaded guilty on Thursday to embezzlement, money laundering and tax evasion charges, officials said. She served in that position for a decade, and during that time transferred funds from Santa Cruz County bank accounts to her personal Wells Fargo Bank account, as well as a Bank of Montreal account, according to the U.S. Justice Department.
“I wire transferred the Santa Cruz County funds from the County’s Savings Account and Checking Account for the purpose and as an essential part of carrying out the scheme to defraud to fraudulently obtain the funds for my personal use, all without authorization,” Gutfahr admitted, according to court documents. “I agree I owe restitution in the amount of $38,712,100.00.”
The Justice Department said the scheme involved nearly 190 wire transfers. Gutfahr subverted the two-step approval process by using the credentials of a subordinate Santa Cruz County employee so that Gutfahr could both initiate and approve the wire transfers.
“Additionally, to cover up the scheme, Gutfahr falsified accounting records, cash reconciliation records, and reports of the County’s investment accounts to conceal the millions of dollars that she had stolen from Santa Cruz County. Gutfahr also failed to report any of the stolen funds as income for tax purposes,” the Justice Department said.
Gutfahr has been released from custody and ordered to surrender her passport. She is scheduled to be sentenced in February and could face up to 35 years in prison if convicted in addition to paying restitution to Santa Cruz County
Noting the irony of an employee who oversees the County’s money instead stealing it, Principal Deputy Assistant Attorney General Nicole Argentieri said:
“We expect public officials to serve as stewards of the government … not to loot it,” Argentieri said.
Gutfahr also used fake business accounts to help conceal the illegal funds transfers.
“These account names were materially false and fraudulent representations to intentionally conceal the fact that I was wire transferring Santa Cruz County funds to my Wells Fargo and BMO Accounts to embezzle the County’s funds,” Gutfahr said, according to her plea agreement.
The former treasurer wants “to take responsibility for the harm she has caused to Santa Cruz County,” her attorney, Joshua Hamilton said in a statement.
“She knows that by pleading guilty, and accepting the punishment she will face as a result, she is taking a step in the right direction to be accountable for her actions. She will work to remain on that path for the rest of her life.”
Santa Cruz County has sued the state of Arizona over its alleged lack of oversight.