TUCSON, Ariz. (13News) – Former Santa Cruz County Treasurer Elizabeth Gutfahr, who is accused of embezzling nearly $40 million from the county over a 10-year period, will appear at a “reservation hearing” on Wednesday, Aug. 14. appeared in court for.
The hearing focused on whether Gutfahr’s temporary control over his property and assets should be extended. A judge granted the extension Wednesday.
The court had previously ordered the appointment of a receiver. According to Prosecutor Benjamin W. Reeves, the financial group appointed to oversee the assets: MCA Financial Group withdraws from Phoenix. A “Trustee” is a third party appointed by the court to acquire any property or assets owned by the Gutfahr family.
This is especially important because the Santa Cruz Board of Supervisors is suing Gutfahr for the return of money allegedly stolen.
Gutfahr was silent when asked about the allegations of stolen funds.
The judge said the retirement accounts of Elizabeth’s husband, David Gutfahr, cannot be touched.
“I believe the tremendous amount of evidence we submitted in our application points to $39 million worth of fraud over a 10-year period,” Reeves said. “Common sense would lead to the assumption and presumption that all assets that Gutfahr came into contact with were either contaminated or derived from those funds.”
Prosecutors alleged that after the first trustee was appointed, Mr. Gutfahr transferred more than $500,000 from one account to another.
Prosecutors said this was evidence of why the receivership should be extended. But Gutfahr’s lawyer said there was a reason for that.
“What she was doing was trying to contact criminals (lawyers),” Gutfahr’s lawyer told the judge. “I do not know whether Mr. Reeves is trying to suggest that the retainer should be compensated in any way by the Civil Council to represent him in this case. That is simply a lie.”
The big question was whether David’s retirement account would be included in the receivership.
Gutfahr’s lawyer said his account was not part of the allegedly stolen assets and should be accessible.
“We cannot deny the Gutfahr people their basic living skills, their ability to purchase food, medicine, clothing, and meet their basic needs,” the defense attorney said. “That is the role of the receivership order in its current form.”
They claimed that “Mr. Gutfahr cannot even walk across the street to buy lunch.”
Ultimately, the defense and prosecutors agreed to allow the Gutfahrs to withdraw up to $2,000 a month for necessities.
Elizabeth Gutfahr is scheduled to return to court on Friday, September 20, for an evidentiary hearing. This is where both sides have the opportunity to present evidence to support their claims.
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