Elizabeth Gutfahr, a former treasurer of Santa Cruz County, recently pleaded guilty to serious allegations of embezzling nearly $38 million from taxpayers. Serving in her role from 2012 until 2024, Gutfahr also neglected to pay over $13 million in income taxes during her tenure.
A press release from the Department of Justice details how she embezzled funds by manipulating accounts tied to various “shell companies.” Gutfahr created one such company specifically to deceive county officials and ultimately channel money into her personal bank account.
Her lavish spending habits are quite striking. The DOJ noted that she misused taxpayer money to acquire property, make improvements to her family’s ranch, cover her company’s operational expenses, and even purchase a fleet of at least 20 vehicles.
Court documents indicate that Gutfahr executed this fraud through an astonishing 187 wire transfers. She circumvented the necessary approval process by using tokens from county employees, enabling her to create and authorize transfer requests. Prosecutors allege she forged accounting records, cash settlement documents, and investment reports to conceal the millions taken from the county.
Nicole M. Elgentieri from the DOJ stated, “Elizabeth Gutfahr stole $38 million from the residents of Santa Cruz County, Arizona. After serving as county treasurer for 12 years, this case exemplifies public corruption.”
Gutfahr herself acknowledged her actions, saying, “I was able to access funds without proper authorization as part of my scheme to transfer Santa Cruz County funds for personal use.” She willingly accepted that she owes more than $38 million in restitution.
She further explained that many of the account names used were fraudulent and hidden the fact that she was moving Santa Cruz County funds into her own accounts to commit embezzlement.
According to her attorney, Gutfahr wishes to take full responsibility for the damage caused to the county, expressing her readiness to face the consequences of her actions.
She pleaded guilty to one count of embezzlement, one count of money laundering, and one count of tax evasion. Her sentencing is set for February 6, 2025, and she could potentially face up to 35 years in prison. In addition to this, she must compensate the county and pay associated tax penalties. Reports indicate that only about a third of the funds may be recoverable through court-appointed measures dealing with real estate sales. The county has also initiated civil proceedings against her in an attempt to reclaim the lost funds.
While awaiting sentencing, Gutfahr is released but cannot leave Arizona without the court’s consent.
