TUCSON, Ariz. (13News) – The Santa Cruz County Board of Supervisors has hired a law firm to take legal action against the county's former treasurer after nearly $40 million in funds were allegedly stolen.
But now the big question from the community is how and where the county will recoup those lost funds.
Santa Cruz County leaders have filed a lawsuit against Elizabeth “Liz” Gutfer, alleging she stole $39 million from county funds over a 10-year period.
Gutphal resigned as Santa Cruz County Treasurer in April.This comes days after the bank discovered “indications of financial irregularities in the county's accounts.”
Gutfahr, He was first elected to the position in 2012.She notified the Santa Cruz County Board of Supervisors of her resignation on April 11, effective the following day, citing “health and personal issues.”
District 1 Supervisor Manuel Ruiz told 13News the county has filed suit to try to recover as much of the lost funds as possible.
“At the end of the day, Liz has done harm to this community,” Lewis said. “She should be really ashamed of what she's done.”
Tuesday, August 6th, Santa Cruz County Board of Supervisors Approved an agreement with Epiq eDiscovery Solutions through Snell & Wilmer LLP to preserve and process electronically stored data related to the litigation.
Dozens of residents from across the county who attended the meeting expressed concern about the disappearance of funds.
“The schools are the biggest losers,” one concerned county resident pointed out. “You can see I'm angry, I am, but I'm more sad than angry.”
Supervisors became aware of 11 fraudulent transactions from financial institutions in April 2024 totaling $375,000 each, according to a news release.
“How can the bank say fraud was going on and you didn't know about it?” a resident asked during public comment. “Something is wrong. Something has to change.”
This message of change was echoed by many members of the community who questioned why supervisors could let this go for so long.
“We know her history. We grew up here. We know where she came from, we know she had no money… but the money has to come from somewhere,” the Santa Cruz County resident said publicly. “She was squandering money in Tubac. You guys missed out.”
There have even been heated arguments between supervisors and residents over the embezzled funds.
“It's really shocking to think that $38 million, which we thought was $5 million a few months ago, has disappeared in just a few years,” questioned one local resident.
Asked how the county plans to recoup the funds, Lewis pointed to the possibility of seizing property and assets.
Lewis told 13News the county won't raise taxes to recoup the funds.
“It's going to take some time for this community to be able to trust their elected officials, but hopefully it will happen sooner,” Lewis said. “What they need to understand is that not everyone is corrupt, not everyone is unethical.”
Lewis said because of this alleged unethical conduct, the county is taking steps to ensure the loss of funds doesn't happen again.
“We're taking a number of steps to ensure protections and to ensure more answers and more accountability,” Lewis said.
But not everyone in the community is convinced.
“Most of us are very familiar with how to balance a checkbook,” said Santa Cruz resident and City Council candidate Jesus V. Guerres, “This roughly $40 million would have been a big hit to everybody's checkbook and should have been considered long ago.”
Lewis said the county is working closely with FBI agents and that county supervisors understand the residents' frustrations, but want to assure area residents that the county is committed to recovering the $39 million and is working toward prosecution.
“Their job as supervisors is to oversee the rest of the county and it's their responsibility to make sure they're holding others accountable, whether they're elected or not,” said Jerry Navarro, a Santa Cruz County resident and candidate for supervisor.
The FBI, Department of Justice, Arizona Office of the Auditor General and B. Riley Financial (Forensic Auditor) are actively investigating.
Be sure to subscribe to the 13 News YouTube channel: www.youtube.com/@13newskold
Copyright 2024 13 News. All rights reserved.
