Former Santa Cruz County Treasurer Elizabeth Gutfahr pleaded guilty Thursday to three federal felonies stemming from charges that she embezzled approximately $40 million from the county over more than a decade.
The Arizona district attorney and the U.S. Department of Justice on Tuesday charged Gutfahr with three felonies: embezzlement by a public official, money laundering and tax evasion.
Gutfahr indicated in court documents that he intended to plead not guilty, but changed his mind in court Thursday. A sentencing hearing is scheduled for February.
“Defendant GUTFAHR used millions of dollars of stolen money deposited in Wells Fargo and BMO accounts for gross personal enrichment, including but not limited to the purchase of real estate,” prosecutors said. officials make the allegations in documents filed in federal district court.
Prosecutors say that in addition to purchasing numerous vehicles, including Jeeps, Ford trucks, Mercedes-Benz, Cadillacs and Airstream touring buses, she also used the stolen funds to pay for business expenses and veterinary treatment. He claims to have used it.
Prosecutors say Gutfahr stole $38.7 million from the county, transferred the money to a fake business bank account to avoid paying income taxes, and concealed the source of his income when he directed wire transfers from the county account. I am doing it.
Prosecutors allege that as of Jan. 25, the Arizona Department of Economic Security had no record of a business called Rio Rico Real Estate & Consulting. It was also not registered with the Arizona Corporation Commission and was not assigned an Employer Identification Number by the Internal Revenue Service. Her other business, Rio Rico Consulting LLC, was not found in a search of the Arizona Corporation Commission’s business database, prosecutors said.
Federal prosecutors also allege Gutfahr made 187 fraudulent wire transfers over a 10-year period to buy multiple properties and renovate his Rancho San Cayetano home. She has also been accused of tax evasion and is said to have paid $13.1 million in taxes.
Civil lawsuit followed by criminal charges
The federal charges come three months after the county filed a civil lawsuit against her in April after being alerted by the county bank. JPMorgan Chase reported 11 fraudulent transactions totaling $375,000 to the county. The findings prompted an investigation by the U.S. Attorney’s Office, Department of Justice, Arizona State Comptroller’s Office, and Santa Cruz County.
Prosecutors allege that Gutfahr successfully evaded detection for 10 years by falsifying investment statements, lying about the total amount of funds in financial reports, and diverting funds in specific months. are.
Prosecutors argue that Gutfahr avoided misappropriating funds in June and July because state officials reviewed the previous year’s June-end financial statements during an annual audit by the Arizona State Comptroller General. There is.
She also reportedly concealed the wire transfers by circumventing a two-step approval process by using a computer token assigned to the county’s chief deputy to initiate the wire transfers that Gutfahr approved. . Gutfahr reportedly told the chief deputy that his Wells Fargo account was a county savings account that was used to earn interest for the county.
“GUTFAHR placed Rio Rico Real Estate & Consulting’s name on Wells Fargo accounts to conceal the embezzlement of public funds by making the transfers appear for legitimate business purposes. and fraudulently used the business name Rio Rico Consulting on the BMO account for the benefit of the County,” state court documents state.
Who is Elizabeth Gutfahr?
Gutfahr, a Democrat, was elected in 2012. She was re-elected in 2016 and 2020 and had planned to run unopposed in the 2024 election until the county filed suit over embezzlement charges.
Prior to becoming county treasurer, he worked in the real estate industry. Gutfahr held a real estate broker’s license issued in 2008 and expired in 2012 for a related business called Rio Rico Real Estate and Consulting, real estate records show. Prosecutors allege that this is a business included in the embezzlement charges.
Here’s where to contact the reporter: sarah.lapidus@gannett.com. The Republic’s southern Arizona coverage is funded in part by a grant from Report for America. Support Arizona news coverage with a tax-deductible donation. supportjournalism.azcentral.com.
(This story has been updated to include video.)
This article originally appeared in the Arizona Republic. Former Arizona county treasurer faces three felonies
