Former Santa Cruz treasurer pleads guilty to federal charges on embezzling nearly $40 million

PHOENIX — A former Santa Cruz County Treasurer pleaded guilty on Thursday to federal charges of embezzling nearly $40 million of county funds during her tenure, according to authorities.

Elizabeth Gutfahr, 62, served as the Santa Cruz County Treasurer from 2012 – 2024 and failed to pay taxes on more than $13 million while serving as treasurer. Gutfahr allegedly wired the money from the county’s account into the accounts of fake companies in order to take the money, according to The U.S. Department of Justice.

Gutfahr is accused of wiring the funds into her personal account using the money to purchase real estate, cover expenses and renovations for her family ranch, fund her cattle business and buy at least 20 cars, according to authorities.

“Elizabeth Gutfahr stole $38 million from the people of Santa Cruz County, Arizona, during the 12 years she served as their county treasurer. We expect public officials to serve as stewards of the government fisc — not to loot it,” Principal Deputy Assistant Attorney General head of DOJ’s Criminal Division Nicole M. Argentieri said in a press release.

How was the money stolen from Santa Cruz County?

Gutfahr’s scheme included about 187 wire transfers, which she completed by falsifying a mandatory two-step approval process by using the token of a county employee who worked under her. In doing so, this ensured Gutfahr could both initiate and approve the wire transfers, according to authorities.

Gutfahr allegedly falsified accounting records, cash reconciliation records and reports of the county’s investment accounts to hide the millions of dollars she stole from the county’s accounts, according to DOJ.

She pled guilty to one count of embezzlement by a public official, one count of money laundering and one count of tax evasion.

“Today’s guilty plea is a reminder that those entrusted with public funds are not above the law. Gutfahr deliberately calculated a scheme to embezzle taxpayer dollars and then launder those funds for her own personal use. This breach of trust not only robs taxpayers but undermines the integrity of public office,” Assistant Director of the FBI Criminal Investigative Division Chad Yarbrough said in a press release.

Getfahr is scheduled to be sentenced on Feb. 6 by a federal district judge. She faces a maximum penalty of 35 years if convicted of all charges as well as restitution to Santa Cruz County.