(The Center Square) – A former Santa Cruz County treasurer pled guilty on Thursday to embezzlement, money laundering and tax evasion during her time serving as the treasurer between 2014 and 2024.
Elizabeth Gutfahr, 62, admitted to stealing $38 million of Santa Cruz County funds by wiring funds from Santa Cruz County’s account directly in the name of companies Gutfahr had created for the purpose of stealing the funds before wiring the money into her personal account. She then used the money to purchase real estate, renovate her family ranch, pay for her cattle business and purchase numerous vehicles, according to a press release from the Department of Justice.
Gutfahr also failed to pay more than $13 million in income taxes (on the embezzled money that made up 97% of the funds in her personal bank account) while she was the treasurer.
In her position with the county, Gutfahr was “entrusted with the collection of real and personal property taxes and the safeguarding of these public funds for the use and benefit of County entities, including school and fire districts,” according to court documents.
“We expect public officials to serve as stewards of the government fisc — not to loot it,” said Nicole Argentieri, principal deputy assistant attorney general for the DOJ, in a statement. “[This] plea demonstrates yet again that the Justice Department remains committed to rooting out public corruption at all levels of government.”
Court documents show that Gutfahr completed approximately 187 wire transfers, bypassing the typical two-step approval process for wire transfers by using the token of a subordinate employee to both initiate and approve the wire transfers. To cover it up, she falsified accounting records and county investment reports.
These charges come three months after the county filed a civil lawsuit against Gutfah after the county’s bank, JPMorgan Chase, issued an alert of 11 fraudulent transactions. The county is asking for compensation for the missing funds and control of a constructed trust over all of the assets that Gutfahr purchased with county money.
“The County now brings this action to reclaim the money that Gutfahr wrongfully took, as well as its attorneys’ fees and costs,” reads the lawsuit. “Because Gutfahr’s actions were so outrageous, the County also seeks treble damages under Arizona’s Anti-Racketeering Statute.”
Gutfahr is scheduled to be sentenced Feb. 6 and will face up to 10 years in prison for one count of embezzlement by a public official, 20 years in prison for money laundering and five years in prison for tax evasion in addition to restitution to Santa Cruz County for all losses.
“Local property taxes fund our communities, enrich our schools and shape our futures,” said U.S. Attorney Gary Restaino for the District of Arizona in a statement. “In her plea agreement the defendant admits to defrauding her County by embezzling those taxes. We look forward to working with the Receiver appointed by the Superior Court to recoup the County’s funds.”
