TUCSON, Ariz. — A former Santa Cruz County treasurer admitted Thursday to orchestrating a decade-long embezzlement scheme in which she stole more than $38 million in public funds, laundered the proceeds, and evaded $13 million in taxes, federal prosecutors announced.
Elizabeth Gutfahr, 62, served as the Santa Cruz County Treasurer from 2012 to 2024. According to court documents, from 2014 to 2024, Gutfahr systematically wired millions from county accounts into fraudulent business accounts she controlled. She then transferred the funds to her personal accounts and spent them on luxury real estate, renovations for her family ranch, operating expenses for her cattle business, and the purchase of at least 20 vehicles.
“Elizabeth Gutfahr stole $38 million from the people of Santa Cruz County, Arizona, during the 12 years she served as their County Treasurer,” said Nicole M. Argentieri, Principal Deputy Assistant Attorney General for the Justice Department’s Criminal Division. “We expect public officials to serve as stewards of the government fisc — not to loot it.”
Federal investigators revealed that Gutfahr circumvented internal controls by subverting a two-step approval process for wire transfers. Using the authentication token of a subordinate county employee, she both initiated and approved 187 fraudulent transfers, falsifying accounting records and investment reports to conceal the theft. Gutfahr also failed to report the stolen funds as income, resulting in significant unpaid taxes.
In a plea agreement, Gutfahr pleaded guilty to one count each of embezzlement by a public official, money laundering, and tax evasion. She faces up to 35 years in prison, including 10 years for embezzlement, 20 years for money laundering, and five years for tax evasion, as well as restitution to Santa Cruz County. Her sentencing is scheduled for Feb. 6, 2025.
“This breach of trust not only robs taxpayers but undermines the integrity of public office,” said Chad Yarbrough, Assistant Director of the FBI’s Criminal Investigative Division. “The FBI remains unwavering in its pursuit to hold accountable those who exploit their positions for selfish purposes.”
The investigation was conducted by the FBI and the IRS Criminal Investigation division. The case is being prosecuted by Trial Attorney Nicholas W. Cannon of the Justice Department’s Public Integrity Section and Assistant U.S. Attorney Jane Westby for the District of Arizona.