Ex-Treasurer of Santa Cruz County Admits to $38 Million Taxpayer Embezzlement Scheme

By Matthew Holloway |

Former Santa Cruz County Treasurer Elizabeth Gutfahr, a Democrat, entered a guilty plea last week, admitting to embezzling and laundering nearly $38 million from Arizona taxpayers. Gutfahr, who held the treasurer’s position from 2012 to 2024, is also charged with failing to pay income taxes on over $13 million during her tenure in office.

The Department of Justice (DOJ) revealed that Gutfahr executed a scheme involving wiring funds from the county’s account to various ‘shell companies’ she established for the sole purpose of defrauding Santa Cruz County. This illicit activity enabled her to funnel taxpayer money directly into her personal accounts.

Gutfahr’s spending habits, funded by these embezzled millions, were extraordinarily extravagant. The DOJ’s statements indicated that she utilized the stolen funds to acquire real estate, renovate a family ranch, cover her company’s operational costs, and purchase at least twenty vehicles.

Evidence presented in court demonstrated that Gutfahr bypassed the requisite two-step approval process of wire transfers by exploiting a subordinate’s token, allowing her to create and authorize 187 fraudulent wire transfers. To further obscure her actions, Gutfahr falsified accounting and cash reconciliation records, hiding the financial discrepancies from oversight.

Nicole M. Argentieri, Principal Deputy Assistant Attorney General of the DOJ’s Criminal Division, commented on the case, emphasizing the expectation for public officials to protect government resources rather than exploit them. Gutfahr’s plea underscores the DOJ’s commitment to addressing public corruption across all governmental levels.

In court, Gutfahr admitted to her role in transferring county funds for personal gain, acknowledging her debt of restitution totaling over $38 million. She described the account names used in her scheme as “materially false and fraudulent,” designed to obscure her financial theft.

Gutfahr’s attorney stated her intention to take responsibility for the damage inflicted on Santa Cruz County. She expressed a commitment to accountability and a desire to work towards redemption following her plea.

Gutfahr was convicted on charges of embezzlement, money laundering, and tax evasion, facing potential penalties totaling 35 years of imprisonment. Sentencing is set for February 6, 2025. In addition to her prison term, Gutfahr must also pay restitution and tax penalties, though recovery efforts may yield only about one-third of the embezzled funds. Civil action has also been initiated against her by Santa Cruz County to reclaim the lost money.

While awaiting sentencing, Gutfahr remains released on her own recognizance but must seek court approval before leaving Arizona.

Matthew Holloway is a reporter for AZ Free News. For the latest updates, contact him directly at Matthew@azfreenews.com.