Allegations of Embezzlement in Santa Cruz County Spark Ongoing Controversy

By Daniel Stefanski |

A serious financial misconduct case has emerged in Santa Cruz County, prompting action from Arizona legislators. State Representative Matt Gress, who chairs the Joint Legislative Audit Committee (JLAC), responded to a recent report from the Arizona Auditor General detailing alleged misuse of taxpayer funds amounting to nearly $40 million.

This issue surfaced after the resignation of former Santa Cruz County Treasurer, Elizabeth “Liz” Gutfahr, following irregularities flagged by Chase Bank. Multiple law enforcement agencies are now investigating a decade of financial practices associated with her office.

In a statement, Gress expressed grave concern, calling the findings “deeply disturbing.” He noted that this incident could represent one of the most significant breaches of public trust in Arizona’s history. Gress emphasized the need for enhanced oversight and accountability in managing public resources and highlighted troubling indications that a financial institution may not have fully cooperated with the Auditor General’s investigation, intensifying the call for transparency.

On August 26, Arizona Auditor General Lindsey Perry submitted her report to key state officials, including Governor Katie Hobbs. The investigation found that from March 2014 to March 2024, Gutfahr allegedly misappropriated $39,472,100 through at least 182 unauthorized wire transfers. The report also identified a pattern of deception, as Gutfahr failed to record these transactions and provided false financial statements to various county departments and officials.

The Auditor General’s report included nine recommendations for county officials and two specific suggestions for the Arizona Legislature to address these discrepancies.

Gress expressed his commitment to legislative action aimed at preventing future occurrences of similar misconduct. He plans to propose measures that would enhance the Arizona Auditor General’s authority, including direct access to financial institution records, thereby equipping auditors with essential tools to detect financial abuses. Further, he is considering legislation requiring training for newly appointed or elected county treasurers, ensuring they are better prepared to manage public funds responsibly.

In conclusion, Gress praised the efforts of the Auditor General’s Office and law enforcement in exposing these issues. He stressed the importance of implementing the report’s recommendations to strengthen safeguards against financial misconduct and uphold integrity among public officials. “We owe it to the citizens of Arizona to protect their hard-earned tax dollars from fraud and corruption,” he affirmed.

Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.