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Santa Cruz County investigates missing funds

Santa Cruz County authorities and the FBI are investigating where the $4.1 million in unaccounted funds went.

SANTA CRUZ COUNTY, Ariz. — Santa Cruz County authorities and the FBI are investigating how millions of dollars disappeared from county bank accounts that fund several school and fire districts.

Sonoita-Elgin Fire Chief Mark Meredith said school and fire department leaders learned about the missing $4.1 million during a meeting Monday.

“The idea that money that was meant to go to public services may have somehow been sent somewhere else for someone's personal gain is extremely disturbing,” Meredith said.

The accounts surveyed were: Santa Cruz County Treasurer's OfficeFormer Treasurer Elizabeth Gutfer resigned on April 12, citing health and personal reasons.


The Patagonia Regional Times reported that Chase Bank had warned county officials about several suspicious transactions days before Gutfer's resignation. The FBI She returned home on April 16 but has not been charged or arrested.

At Monday's meeting, the fire chief and school superintendents were asked to audit their own financial records going back to when Gutfer was first elected more than a decade ago.

“We will certainly do our due diligence and double check to see if there are any discrepancies between what we were supposed to receive and what we actually received,” Meredith said.

The fire chief said he was surprised the bank found the allegedly misappropriated funds before other employees of the Santa Cruz County Treasury Department. Meredith said the fire department has a strong system of checks and balances, but that a procedure requires two signatures.

Despite the seven-figure loss, Meredith said he doesn't expect any disruptions to fire or medical services.

“It's just frustrating to think that there may have been additional funds that we could have utilized to serve the community,” Meredith said.

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