A former Santa Cruz County, Arizona, lawmaker has pleaded guilty to embezzling millions of dollars from the county and using the money for personal gain. Elizabeth Gutfahr, who served as Santa Cruz County Treasurer from 2012 to 2024, admitted to stealing more than $38 million in county funds over a 12-year period. Gutfahr also admitted money laundering and tax evasion. The case shocked the community because she was responsible for managing public funds, but instead used that position for personal enrichment.
How Elizabeth Gutfahr carried out her plan
Elizabeth Gutfahr, 62, used her position as county treasurer to carry out an elaborate plan. She used wire transfers to transfer large sums of money from a county bank account to an account she opened for a business she controlled. These businesses were set up for the sole purpose of stealing county money. After transferring funds to these companies, Gutfahr transferred the funds to his personal account.
Once the stolen money was in her account, she used it to pay for personal expenses. She purchased expensive real estate, renovated the family ranch, and financed a cattle business. She also bought at least 20 cars with the stolen money.
Court documents reveal that Gutfahr made approximately 187 wire transfers to carry out the scheme. To make the transfer, she bypassed a security system that required approval from another person in the office. She was able to avoid detection by using a subordinate employee’s security token to both initiate and approve the wire transfer.
In addition to this, Gutfahr falsified records to hide the stolen funds. She falsified county accounting documents, investment account reports, and other financial records to conceal her illegal activities. Even more surprising, she was also charged with tax evasion, as she never reported any of the stolen money on her taxes.
Guilty plea and its consequences
On November 22, 2024, Gutfahr pleaded guilty to three serious charges: embezzlement by a public official, money laundering, and tax evasion. The U.S. Department of Justice has made clear that public officials who abuse their positions of power to steal from taxpayers will be held accountable. In this case, Gutfahr not only stole from the people she was meant to serve, but also undermined the trust the community had in her.
She now faces stiff penalties. Gutfahr could be sentenced to up to 10 years in prison for embezzlement, up to 20 years for money laundering, and up to five years for tax evasion. Additionally, she will be required to pay restitution to the county or other victims affected by her actions.
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This case was investigated by the Federal Bureau of Investigation (FBI) and IRS-Criminal Investigation (IRS-CI). The two agencies worked together to trace the flow of the stolen money and gather evidence to support Mr. Gutfahr’s charges. IRS-CI special agents followed the trail of funds and uncovered the full extent of the crime.
The guilty pleas are part of the U.S. Department of Justice’s continued efforts to combat public corruption. Prosecutors have made it clear that anyone who attempts to exploit their role in the government for personal gain will be arrested and punished.
Violation of social trust
The consequences of Gutfahr’s crimes are significant. The funds she stole were intended for critical public services such as education and local infrastructure. When people in positions of power like Gutfahr take money that doesn’t belong to them, it negatively impacts the entire community. Local property taxes that fund these services were misused for her personal benefit.
As a result of Mr. Gutfahr’s actions, communities in Santa Cruz County must work to recover stolen funds. The court appointed a receiver to track the funds and help return them to the county whenever possible. However, it is still unclear how much of the $38 million will be recovered.
This case also serves as a reminder that those in positions of trust, such as government employees, must be held to the highest standards. Mr. Gutfahr’s actions illustrate the dangers that can occur when someone abuses their power.
The investigation and prosecution of this case was led by the Department of Justice’s Criminal Division, with assistance from the United States Attorney’s Office for the District of Arizona and other law enforcement agencies. The FBI and IRS-CI’s efforts to track this money and gather evidence highlight these agencies’ dedication to combating corruption at all levels of government.
Elizabeth Gutfahr’s guilty plea is an important step in holding her accountable for the harm she caused. It is now up to the courts to determine the full extent of her punishment.
To read the original order, visit the Department of Justice’s website.
