A former Santa Cruz County Treasurer, Elizabeth Gutfahr, pleaded guilty on Thursday to federal charges of embezzling nearly $40 million from the county during her time in office, according to the U.S. Department of Justice (DOJ).
Gutfahr, 62, served as treasurer from 2012 to 2024. Authorities revealed that she used her position to wire county funds into accounts of fake companies, which she then funneled into personal accounts. The stolen money funded purchases of real estate, renovations for her family ranch, operations for her cattle business, and the acquisition of at least 20 cars.
“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,” said Nicole M. Argentieri, Principal Deputy Assistant Attorney General for the DOJ Criminal Division.
The Embezzlement Scheme
The scheme involved approximately 187 wire transfers. Gutfahr bypassed the county’s two-step approval process by misusing the credentials of an employee under her supervision. This allowed her to initiate and approve wire transfers independently.
To conceal her actions, Gutfahr falsified accounting records, cash reconciliation documents, and reports on the county’s investment accounts, according to federal investigators. She also failed to pay taxes on more than $13 million of the embezzled funds.
Legal Consequences
Gutfahr pleaded guilty to charges including embezzlement by a public official, money laundering, and tax evasion. She is set to be sentenced on February 6 by a federal district judge and faces a maximum penalty of 35 years in prison. She may also be ordered to pay restitution to Santa Cruz County.
“Today’s guilty plea is a reminder that those entrusted with public funds are not above the law,” said Chad Yarbrough, Assistant Director of the FBI Criminal Investigative Division. “This breach of trust not only robs taxpayers but undermines the integrity of public office.”
Broader Implications
The DOJ emphasized the importance of accountability among public officials and commended the efforts of investigators who uncovered the scheme. Gutfahr’s case serves as a stark warning against the misuse of public funds and the potential consequences for those who breach public trust.
