NOGALES, Ariz. (KGUN) — Santa Cruz County is fighting back against an Arizona Auditor General report that found county officials were partly to blame for failing to notice more than $39 million missing from accounts managed by former Santa Cruz County Treasurer Elizabeth Gutfer.
Santa Cruz County is suing Gutfur in civil court, and while no criminal charges have been filed, the FBI is investigating the case.
The county alleges that Gutfer diverted more than $39 million in taxpayer money into personal accounts over a 10-year period.
The Arizona Auditor General's report argues that Gutfer used various methods to avoid detection but that better county oversight would have uncovered her actions.
Santa Cruz County says the auditor's report is an attempt to shift the blame for the auditor's own failure to find the missing funds for more than a decade. The county has sent the auditor a letter threatening legal action over how he investigated the former treasurer's actions.
In a related development, a judge in a civil case approved a request by the court-appointed trustee to sell 100 to 150 of Gutfahr's cattle to help the trustee save money on raising the cattle.
The judge appointed a receiver to manage Gutfer's assets, ensuring she couldn't hide or sell the things she bought with taxpayer money.
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Craig Smith teeth KGUN 9 reporterWith over 40 years of reporting experience in cities including Tampa, Houston and Austin, Craig has covered over 40 space shuttle launches and historic hurricanes including Katrina, Ivan, Andrew and Hugo. Share your story ideas and important issues with Craig by emailing him at craigsmith@kgun9.com Or connect Facebook and Twitter.
