Former Arizona Elected Official Pleads Guilty to Embezzlement of More than $38M of County Funds

A former Santa Cruz County, Arizona, official pled guilty today to embezzlement, money laundering, and tax evasion for her role in stealing more than $38 million of Santa Cruz County funds between 2014 and 2024 and failing to pay income tax of more than $13 million while she was serving as Santa Cruz County Treasurer.

According to court documents, Elizabeth Gutfahr, 62, who served as Santa Cruz County Treasurer from 2012 through 2024, embezzled and laundered approximately $38 million by wiring funds from Santa Cruz County's Account directly to accounts in the name of companies that Gutfahr had created for purposes of stealing the county funds. Gutfahr then wired the money from these fraudulent business accounts to her personal account, where she used the money to purchase real estate, pay operating expenses for and renovate her family ranch, pay expenses for her cattle business, and purchase 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 Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department's Criminal Division. "We expect public officials to serve as stewards of the government fisc - not to loot it. Today's plea demonstrates yet again that the Justice Department remains committed to rooting out public corruption at all levels of government."

"Local property taxes fund our communities, enrich our schools and shape our futures," said U.S. Attorney Gary Restaino for the District of Arizona. "In her plea agreement the defendant admits to defrauding her County by embezzling those taxes. We look forward to working with the Receiver appointed by the Superior Court to recoup the County's funds."

"Today's guilty plea is a reminder that those entrusted with public funds are not above the law," said Assistant Director Chad Yarbrough of the FBI Criminal Investigative Division. "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. The FBI remains unwavering in its pursuit to hold accountable those who exploit their positions for selfish purposes."

"We cannot overemphasize our dedication to rooting out public corruption from our communities," said Special Agent in Charge Carissa Messick for IRS Criminal Investigation (IRS-CI)'s Phoenix Field Office. "I am proud of the dedicated work IRS-CI special agents put into investigating this case alongside our fellow law enforcement agencies. Through her embezzlement scheme, Elizabeth Gutfahr stole from the very constituents who elected her. Let this guilty plea serve as a reminder to all who are tempted to use their positions of power to enrich themselves at the cost of the American people: IRS-CI special agents are experts at following the money, and we will continue to investigate allegations of fraud at all levels."

Court documents detailed that the scheme involved approximately 187 wire transfers, which Gutfahr completed by subverting the two-step approval process for the wire transfers by using the token of a subordinate Santa Cruz County employee so that Gutfahr could both initiate and approve the wire transfers. Additionally, to cover up the scheme, Gutfahr falsified accounting records, cash reconciliation records, and reports of the County's investment accounts to conceal the millions of dollars that she had stolen from Santa Cruz County. Gutfahr also failed to report any of the stolen funds as income for tax purposes.

Gutfahr pleaded guilty to one count of embezzlement by a public official, one count of money laundering, and one count of tax evasion. She is scheduled to be sentenced on Feb. 6, 2025, and faces a maximum penalty of 10 years in prison for the embezzlement count, 20 years in prison for the money laundering count, and five years in prison for the tax evasion count, as well as restitution to Santa Cruz County or other identified victims for all losses. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

FBI and IRS-CI are investigating the case.

Trial Attorney Nicholas W. Cannon of the Criminal Division's Public Integrity Section and Assistant U.S. Attorney Jane Westby for the District of Arizona are prosecuting the case. Assistant U.S. Attorney Carson R. Gilbert, formerly for the District of Arizona, provided assistance.