TUCSON, Ariz. (KGUN) — Santa Cruz County is suing a former county treasurer for embezzling millions of dollars, and now a court order has stripped Elizabeth Gutfer of control of her assets, meaning she can no longer hide them.
More than $39 million missing. This one will get attention. Santa Cruz County is suing to get the money back in treble damages, claiming it went missing as a result of the actions of its now-resigned county treasurer.
The lawsuit, filed in Pima County Superior Court, alleges that former Santa Cruz County Treasurer Elizabeth Gutfer stole taxpayer money instead of protecting it. In one allegation, the county attorney stated:
“…For over a decade, Gutfer used county funds as his personal piggy bank and lived an extravagant and lavish lifestyle, purchasing several ranches and vehicles across the state with county funds.”
Santa Cruz County says Gutfer used a complex series of false financial reports and transactions to conceal 181 transfers of more than $39 million to companies he controlled.
County lawyers argue she avoided the notice of state auditors by avoiding sending the money during months when auditors were more likely to track the transactions.
Santa Cruz County is suing in civil court, but attorneys for the county say the FBI is also investigating possible criminal charges.
In the latest development, the judge in the case granted Santa Cruz County's request to appoint someone to manage Gutfault's assets to ensure they are not hidden.
In requesting receivership, the lawyers told the judge, “Gutfall's decade-long plundering of county funds demonstrates her lack of consideration for the county's interests. At this point, there is nothing to stop her attempt to sell these assets in order to transfer the proceeds elsewhere outside the county's control.”
KGUN9 tried to get Gutfahr's side of the story, but when reached by phone, she hung up.
Tuesday's meeting to approve Santa Cruz County's budget was an opportunity for taxpayers to blame supervisors for missing $39 million from county coffers.
Beth Castro told supervisors:
“And that doesn't seem like an excuse at all. And now we have to pay for an attorney to cover that expense. We shouldn't have to pay the price for the mistakes you made as supervisors. So, I'm personally glad that both of you supervisors have actually been fired.”
Supervisors Bruce Blacker and Manny Lewis were defeated in primary elections last month.
While he couldn't say much about the incident, Lewis said:
“There's a lot of suspicion going around today and I understand your frustration. Do you think I'm not angry? I'm angry because I trusted Liz Gutfer. Shake your head and say you're not angry. She was a trusted member of this community.”
