Former County Treasurer Sentenced for Embezzlement
A former civil employee in Santa Cruz County has received a 10-year federal prison sentence after admitting to misappropriating significant taxpayer funds.
On Monday, U.S. District Judge Rosemary C. Marquez sentenced 63-year-old Elizabeth Gutfar of Rio Rico to 120 months in prison, followed by three years of supervised release. She was also ordered to repay approximately $51.8 million to Santa Cruz County and the U.S. Treasury.
Gutfar, who held the treasurer position from 2012 until 2024, was involved in several fraudulent schemes, using about $38.7 million in county money to fund fictitious companies she established. Court filings indicated that these corporations were not engaged in any legitimate activities; instead, they were tools for concealing her embezzlement.
U.S. Attorney Timothy Crussine commented, “This case underscores that abusing public trust comes with consequences. Gutfar didn’t just steal money from the county; she betrayed the faith of the voters who elected her.”
Over a period of ten years, Gutfar executed close to 200 fraudulent wire transfers. She exploited digital authentication tokens from employees to bypass the county’s financial controls, enabling her to initiate and approve transfers undetected. Additionally, she forged county documents and investment reports to mask her actions.
Federal agents revealed that the misappropriated funds were used to support a lavish lifestyle, purchase at least 20 vehicles, invest in real estate, and finance family ranch and cattle operations. Notably, she did not report any of the stolen money on her federal tax returns.
FBI Special Agent Heith Janke remarked, “Every act of greed negatively impacted important elements of the county’s functioning. The FBI is dedicated to investigating corruption on a national scale and will pursue individuals who breach public trust.”
Carissa Messick, a special agent for IRS Criminal Investigation, echoed these sentiments, emphasizing, “Taxpayers deserve assurance that their elected officials are genuinely serving the community’s best interests.”
The investigation was conducted by the FBI and IRS Criminal Investigations, with prosecution led by Assistant U.S. Attorneys Nicholas W. Cannon and Jane L. Westbee from the Department of Justice’s Public Integrity Section.
Gutfar’s scheme came to light after discrepancies were detected during an internal audit, prompting a joint federal investigation that ultimately led to her arrest and guilty plea on charges of embezzlement, money laundering, and tax evasion.
