Former Santa Cruz County treasurer pleads guilty to $38 million embezzlement and tax evasion.
A former Santa Cruz County, Arizona, employee has pleaded guilty to multiple criminal charges, including embezzlement, money laundering and tax evasion, for misappropriating more than $38 million in county funds from 2014 to 2024.
Elizabeth Gutfahr, 62, who served as county treasurer for more than a decade, misappropriated these funds for personal gain, resulting in significant losses to the county and more than $13 million in tax violations. He is accused of causing the crime.
Embezzlement schemes and misappropriated funds
Court documents detail Gutfahr’s misconduct during his tenure as county treasurer from 2012 to 2024. Mr. Gutfahr orchestrated a complex scheme to transfer county funds into corporate accounts set up for the sole purpose of funneling funds into his personal estate. .
She diverted funds from these fraudulent accounts to her own personal accounts, where she made various personal payments, including purchasing real estate, purchasing at least 20 cars, paying for her family’s ranch, and managing a cattle operation. I used it for expenses.
“Elizabeth Gutfahr stole $38 million from the people of Santa Cruz County, Arizona, during her 12 years as county treasurer,” said Nicole M. Argentieri, Chief Assistant Attorney General in the Justice Department’s Criminal Division. Ta. “We expect public servants to serve as stewards of government finances, but that is not plunder. I proved once again that I am.”
Execute the plan by bypassing the safeguards
To carry out the embezzlement, Gutfahr utilized a series of wire transfers (187 in total) by circumventing the two-step approval process required for the transfers. She accomplished this by abusing her access to the tokens of subordinate employees, allowing her to initiate and approve wire transfers herself.
In addition, Gutfahr falsified numerous financial documents, including accounting records, cash reconciliation reports, and reports on county investment accounts, in order to conceal his illegal activities and obscure the trail of misappropriation of funds.
Additionally, Mr. Gutfahr failed to report the stolen funds as income, committing tax evasion with over $13 million in unreported income.
Authorities hold public officials accountable
The incident provoked strong reactions from law enforcement and legal authorities, highlighting the importance of accountability for public officials. “Local property taxes fund our communities, enrich our schools, and shape our future,” said Gary Restaino, U.S. Attorney for the District of Arizona.
The FBI and IRS-Criminal Investigation (IRS-CI) are playing a critical role in bringing this case to light. “This is a very serious matter,” said Carissa Messick, Special Agent in Charge of the IRS Criminal Investigation Phoenix Field Office. I am proud of the dedication of our IRS-CI special agents, along with our law enforcement colleagues, in investigating this case. Elizabeth Gutfahr stole money from the very voters who elected her through an embezzlement scheme. Let this guilty plea serve as a reminder to all those who are tempted to use their positions of power to enrich themselves at the expense of the American people. IRS-CI special agents are experts in tracking funds, and we will continue to investigate these allegations. It’s fraud on every level. ”
Elizabeth Gutfahr is scheduled to be sentenced on February 6, 2025. She faces up to 10 years in prison for embezzlement, up to 20 years for money laundering, and up to five years for tax evasion.
Additionally, she is expected to make restitution to Santa Cruz County or other specified victims in the total amount of the stolen funds. A federal district court judge will determine the final sentence based on the U.S. Sentencing Guidelines and other relevant considerations.
