Ex-Santa Cruz County Treasurer Gets 10-Year Sentence for Shockingly Large $38 Million Embezzlement

By Jonathan Eberle |

A former public servant in Santa Cruz County is headed to federal prison for a decade after admitting to theft of taxpayer funds. Elizabeth Gutfahr, age 63, from Rio Rico, received a 120-month sentence from U.S. District Judge Rosemary C. Márquez on Monday. Additionally, she must pay approximately $51.8 million in restitution to both Santa Cruz County and the United States Treasury.

Gutfahr, who served as county treasurer from 2012 until 2024, orchestrated a massive fraud scheme diverting around $38.7 million into fictitious companies she created. Court documents reveal these businesses played no legitimate role, serving solely to mask her embezzlement.

“This sentence shows that abuse of public trust will be punished,” remarked U.S. Attorney Timothy Courchaine. “Ms. Gutfahr betrayed the confidence of the voters who elected her.”

Over a decade, Gutfahr executed nearly 200 fraudulent wire transfers. She bypassed financial safeguards using a subordinate’s digital authentication token, enabling her to initiate and approve transactions without scrutiny. To further conceal her actions, she falsified county records and investment reports.

According to federal investigators, Gutfahr misused the stolen money to support a luxurious lifestyle. Her expenditures included at least 20 vehicles, real estate ventures, and enhancements to her family’s ranch and cattle business. Notably, these stolen funds remained unreported on her federal tax returns.

“Each act of greed and dishonor negatively affected fundamental aspects of the county’s operations,” stated FBI Phoenix Special Agent in Charge Heith Janke. “The FBI remains committed to tackling public corruption and holding those who breach public trust accountable.”

IRS Criminal Investigation Special Agent in Charge Carissa Messick added, “Taxpayers deserve assurance that their elected officials prioritize the community’s welfare over personal gain.”

The investigation, which was a collaboration between the FBI and IRS Criminal Investigation, resulted from the discovery of discrepancies during an internal audit, culminating in Gutfahr’s arrest and guilty plea to embezzlement, money laundering, and tax evasion.

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