Arizona’s Tucson.According to federal prosecutors, a former Santa Cruz County treasurer acknowledged Thursday that she had planned a ten-year embezzlement scheme in which she embezzled over $38 million in public monies, laundered the earnings, and avoided paying $13 million in taxes.
From 2012 until 2024, 62-year-old Elizabeth Gutfahr was the Santa Cruz County Treasurer. Court records show that Gutfahr routinely transferred millions from county coffers into fictitious business accounts under her control between 2014 and 2024. After that, she moved the money to her own accounts and used it to buy at least 20 cars, renovate her family ranch, buy luxury real estate, and pay for her cattle business’s operational costs.
Nicole M. Argentieri, the Principal Deputy Assistant Attorney General for the Justice Department’s Criminal Division, stated that Elizabeth Gutfahr embezzled $38 million from the citizens of Santa Cruz County, Arizona, while she was their County Treasurer for 12 years. We anticipate that public servants will act as guardians of the government, not plunder it.
Gutfahr bypassed internal safeguards by evading a two-step wire transfer approval process, according to federal authorities. She started and authorized 187 illicit transactions using a subordinate county employee’s login token, fabricating investment reports and accounting records to hide the theft. Additionally, Gutfahr neglected to declare the pilfered money as income, which resulted to a significant tax debt.
Gutfahr entered a guilty plea to one count each of tax evasion, money laundering, and embezzlement by a public official. She might be imprisoned for up to 35 years, which would include restitution to Santa Cruz County, 10 years for embezzlement, 20 years for money laundering, and 5 years for tax evasion. The date of her sentencing is set for February 6, 2025.
Chad Yarbrough, Assistant Director of the FBI’s Criminal Investigative Division, stated that this betrayal not only defrauds taxpayers but also compromises the integrity of public office. The FBI is steadfast in its efforts to hold people accountable when they misuse their positions for personal gain.
The FBI and the IRS Criminal inquiry division carried out the inquiry. Assistant U.S. Attorney Jane Westby for the District of Arizona and Trial Attorney Nicholas W. Cannon of the Justice Department’s Public Integrity Section are prosecuting the case.
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