(The Center Square) – A former Santa Cruz County treasurer pleaded guilty Thursday to embezzlement, money laundering and tax evasion while serving as treasurer from 2014 to 2024.
Elizabeth Gutfahr, 62, allegedly stole funds from Santa Cruz County by transferring money directly from a Santa Cruz County account in the name of a company Gutfahr had set up to steal the funds, and then transferring the money to her own personal account. admitted to stealing $38 million in funds. She then used the money to purchase real estate, renovate her family’s ranch, pay for her livestock business, and purchase numerous vehicles, according to a Justice Department press release.
Mr. Gutfahr also failed to pay income taxes on more than $13 million (on embezzled money that accounted for 97% of the funds in his personal bank accounts) while he was treasurer.
According to court documents, Gutfahr’s position with the county is to “collect property and personal property taxes and protect these public funds for the use and benefit of county entities, including the school district and fire district. “I was entrusted with that.”
“We expect public servants to serve as stewards of the government’s treasury, not as plunderers,” Nicole Argentieri, principal deputy attorney general at the Justice Department, said in a statement. “[This] This petition reiterates the Department of Justice’s continued commitment to rooting out public corruption at all levels of government. ”
According to court documents, Mr. Gutfer bypassed the typical two-step approval process for wire transfers by using a subordinate employee’s token to both initiate and approve the wire transfers, resulting in approximately 187 wire transfers. It is said that it has been completed. To hide it, she falsified accounting records and county investment reports.
These charges come three months after the county filed a civil lawsuit against Gutfa after the county’s bank, JPMorgan Chase, issued a warning about 11 fraudulent transactions. The county is seeking compensation for the missing funds and control of a trust established for all properties Gutfahr purchased with county funds.
“The County brings this action to recover money and attorney fees that Mr. Gutfahr illegally received,” the complaint states. “Mr. Gutfahr’s conduct was so outrageous that the county is also seeking treble damages under Arizona’s anti-hunting law.”
Gutfahr is scheduled to be sentenced on February 6th, and in addition to paying restitution to the City of Santa Cruz, he will receive up to 10 years in prison for one count of embezzlement of public servants, 20 years in prison for money laundering, and 20 years in prison for tax evasion. He is scheduled to be sentenced to five years in prison. The county is responsible for all losses.
“Local property taxes fund our communities, enrich our schools, and shape our future,” Gary Restaino, U.S. Attorney for the District of Arizona, said in a statement. “In the plea agreement, the defendant admits that he defrauded the county by embezzling tax dollars. We look forward to working with the administrator appointed by the Superior Court to recover the county’s funds.” ”
