Former southern Arizona treasurer sentenced to 10 years in prison for embezzling $38 million

PHOENIX — A 63-year-old woman who served as the treasurer of Santa Cruz County in southern Arizona has been sentenced to 10 years in prison, authorities said.

A judge sentenced Elizabeth Gutfahr on Monday for embezzling around $38.7 million, according to the U.S. Attorney’s Office for the District of Arizona.

Over 10 years, Gutfahr used her position to transfer public funds to accounts in the names of fake companies she created, prosecutors said.

She then used the stolen taxpayer dollars to buy real estate and at least 20 vehicles, renovate her family’s ranch and pay expenses for her cattle business.

How did Arizona woman embezzle so much money from the county?

Gutfahr carried out around 187 wire transfers by bypassing a required two-step approval process, according to prosecutors.

She did this by using the security token of a subordinate, allowing her to both initiate and approve the transactions herself.

She also altered accounting records, cash reconciliation statements and investment account reports to conceal the theft of millions of dollars from the county’s funds, prosecutors said.

How embezzling treasurer hurt Santa Cruz County

Gutfahr’s crimes had a massively negative impact on the county’s ability to provide essential services through local schools and fire districts, according to Santa Cruz County officials.

“We would have preferred the maximum sentence to reflect the severity of the crime more accurately and to serve as a stronger deterrent,” the Santa Cruz County Board of Supervisors said in a statement.

Only around $5 million of the $38.7 million she stole has been recovered and returned to public services she stole from, according to the board.

“What matters most to us now is recovering the losses on behalf of the people of Santa Cruz County and restoring public trust in our institutions,” the board’s statement said. “We remain committed to transparency and accountability moving forward.”

County officials expect to recover anywhere from $10 to $12 million through asset forfeiture.

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