Phoenix (AZ Family) — Former Santa Cruz County Treasurer Elizabeth Gutfahr has been indicted in federal court on charges of embezzlement by a public official, money laundering and tax evasion.
In recent months, the Arizona State Comptroller’s Office released findings regarding approximately $40 million missing from county accounts.
According to the state investigation, Gutfahr made at least 182 “fraudulent wire transfers from two county accounts to corporate bank accounts associated with her” from March 2014 to March 2024.
Beyond the summer Gutfahr is accused of accepting nearly $40 million for personal benefit.
“To cover up her actions, the treasurer failed to record her fraudulent wire transfers in the county treasurer’s accounting system, lied, and submitted numerous false investment statements, cash adjustments, and financial statements. and/or the Arizona State Comptroller’s Office,” state officials said in a news release.
Nine recommendations were made to county officials at the time to “improve internal controls over public funds and help deter and detect fraud.”
It also requires the Arizona Legislature to amend the statute to provide the department with direct access to financial institution records and to require newly elected or appointed county treasurers and chief deputy treasurers to meet minimum training requirements. There were also two recommendations to consider.
The auditor general said Gutfahr circumvented internal controls and made the wire transfers.
“The Principal Deputy Treasurer told us that the Treasurer requested access to her password and her multi-factor token authentication device because the Treasurer was seeking a better interest rate than the State Treasurer LGIP (Local Government). “This was so that the funds could be transferred to Wells Fargo investment accounts provided by the Government Investment Pool,” the agency wrote in the report. “As a result, the Treasurer and Principal Deputy Treasurer shared passwords with each other and kept token authentication devices accessible to each other. By overriding this internal control, the Treasurer could not be detected. “We created a method to independently and repeatedly conduct fraudulent wire transfers from county treasury accounts.”
Gutfahr may have provided loans or gifts to other county employees from the stolen money, the report said.
“Some of these employees admitted to us that they had received personal financial assistance or gifts from the Secretary of the Treasury,” AAGo wrote. “Specifically, the Principal Deputy Treasurer stated that she had received a $6,000 ‘loan’ from the Treasurer for the purchase of a new air conditioner and that she intended to repay the ‘loan’ upon retirement.” The Chief Deputy Treasurer also said she received a car valued at $3,000 from the Treasurer for her sister’s use and that the Treasurer has not paid for her personal cell phone since 2019 or 2020. He said he is doing so. ”
A senior secretary told the auditor that Gutfahr “occasionally paid personal bills, gave his children $100 on their birthdays, and gave his senior secretary $1,500 on his own birthday.” ” he said.
One tax official claimed that Mr. Gutfahr “gave a generous gift to his son when he got married” and that Mr. Gutfahr hosted his daughter’s wedding at his ranch. She also said she traveled with Mr. Gutfahr to San Carlos, Mexico.
The Santa Cruz County Board of Supervisors called the report “selfish and misleading” and said authorities were at fault for not catching Gutfahr’s theft within a reasonable time.
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