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Tucson, Arizona. — A former Santa Cruz County treasurer admitted Thursday to orchestrating a 10-year embezzlement scheme that stole more than $38 million in public funds, laundered the proceeds and evaded $13 million in taxes, federal prosecutors announced. did.

Elizabeth Gutfahr, 62, served as Santa Cruz County Treasurer from 2012 to 2024. From 2014 to 2024, Gutfahr systematically transferred millions of dollars from county accounts to fraudulent business accounts she controlled, according to court documents. She then moved the money into a personal account and spent it on luxury real estate, renovations to the family ranch, operating costs for her livestock business and the purchase of at least 20 cars.

“Elizabeth Gutfahr stole $38 million from the people of Santa Cruz County, Arizona, during her 12 years as county treasurer,” said Nicole M. Argentieri, principal deputy assistant attorney general in the Justice Department’s Criminal Division. said. “We expect public servants to serve as stewards of government finances, not to plunder them.”

Federal investigators found that Mr. Gutfahr circumvented internal controls by defeating a two-step approval process for wire transfers. She used county employees’ authentication tokens to initiate and approve 187 fraudulent transfers and falsified accounting records and investment reports to conceal the thefts. Gutfahr also failed to report the stolen funds as income, resulting in large amounts of unpaid taxes.

In a plea agreement, Gutfer pleaded guilty to charges of embezzlement by a public official, money laundering, and tax evasion. She faces up to 35 years in prison, including 10 years for embezzlement, 20 years for money laundering and five years for tax evasion, and restitution to Santa Cruz County. Her sentencing is scheduled for February 6, 2025.

“This act of breach of trust not only deprives taxpayers of money, it undermines the integrity of public office,” said Chad Yarbrough, assistant director of the FBI’s Criminal Investigation Division. “The FBI remains steadfast in holding accountable those who use their position for selfish ends.”

The investigation was conducted by the FBI and the IRS Criminal Investigation Division. This case is being prosecuted by Trial Attorney Nicholas W. Cannon of the Department of Justice’s Public Integrity Division and Assistant U.S. Attorney Jane Westby for the District of Arizona.