Elizabeth Gutfahr, former Santa Cruz County Treasurer pleads guilty to embezzling nearly $40 million
NOGALES, Ariz. - Former Santa Cruz County Treasurer Elizabeth Gutfahr will let a judge decide what's next for her after pleading guilty to three felonies for stealing nearly $40 million from the county over 10 years.
In front of a room full of Santa Cruz County elected officials and a district court judge, Gutfahr submitted her guilty plea, admitting the money was used to buy real estate, run various businesses and purchase at least 20 vehicles.
According to a statement by the U.S. Department of Justice, Gutfahr "embezzled and laundered approximately $38 million by wiring funds from Santa Cruz County’s Account directly to accounts in the name of companies that Gutfahr had created for purposes of stealing the county funds" from 2012 through 2024.
"Gutfahr then wired the money from these fraudulent business accounts to her personal account, where she used the money to purchase real estate, pay operating expenses for and renovate her family ranch, pay expenses for her cattle business, and purchase at least 20 vehicles," read a portion of the statement, citing court documents.
Per federal officials, the scheme involved about 187 wire transfers. They said Gutfahr completed them by "subverting the two-step approval process for the wire transfers by using the token of a subordinate Santa Cruz County employee so that Gutfahr could both initiate and approve the wire transfers."
"Additionally, to cover up the scheme, Gutfahr falsified accounting records, cash reconciliation records, and reports of the County’s investment accounts to conceal the millions of dollars that she had stolen from Santa Cruz County. Gutfahr also failed to report any of the stolen funds as income for tax purposes," a portion of the statement reads.
Gutfahr pled guilty to embezzlement, money laundering and tax fraud, and she is scheduled to be sentenced on Feb. 6. Officials say Gutfahr faces up to 10 years in prison for embezzlement, 20 years in prison for money laundering, and five years in prison for tax evasion. Her plea agreement reportedly did not specify a sentencing range.
Gutfahr reportedly owes approximately $38.7 million, more than $10 million in taxes and additional fines.
Watch FOX 10 Phoenix:
The case has sparked discussion on how Santa Cruz County handles its finances moving forward. Some residents believe the county board should have a better handle on where the money is going.
The general sentiment is that the county treasurer has too much unmitigated control.