A former elected official in Santa Cruz County, Arizona, has pleaded guilty to embezzling more than $38 million in county funds over a decade-long scheme. Elizabeth Gutfahr, 62, who served as Santa Cruz County Treasurer from 2012 to 2024, admitted to stealing taxpayer dollars, laundering the money, and evading taxes, as part of a guilty plea announced today by federal authorities.
Gutfahr’s actions, which took place between 2014 and 2024, involved wiring funds directly from the county’s accounts into companies she created for the sole purpose of stealing public money. She then transferred the stolen funds into her personal accounts, using the money for personal expenses such as real estate purchases, renovations to her family ranch, operating costs for her cattle business, and the purchase of at least 20 vehicles.
“This is a brazen betrayal of the public trust,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri. “Public officials are entrusted with taxpayer dollars, and those who abuse that trust will be held accountable. Today’s plea shows our commitment to rooting out public corruption at all levels of government.”
As part of her scheme, Gutfahr circumvented the county’s two-step approval process for wire transfers, using a subordinate’s security token to initiate and approve fraudulent transfers. To further cover her tracks, she falsified financial records, including accounting and investment reports, to conceal the stolen funds. Additionally, Gutfahr failed to report the embezzled money as income, avoiding paying taxes on the ill-gotten gains.
In her guilty plea, Gutfahr acknowledged 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 February 6, 2025, and faces up to 35 years in prison combined for the three charges, along with potential restitution to Santa Cruz County.
“This guilty plea serves as a reminder that no one is above the law,” said U.S. Attorney Gary Restaino for the District of Arizona. “Gutfahr’s actions defrauded the very people who trusted her to manage their property taxes, which fund vital community services. We will continue working to recover the stolen funds and ensure justice for the people of Santa Cruz County.”
The investigation, which uncovered the scale of the embezzlement, was a collaborative effort involving the FBI and the IRS Criminal Investigation Division. “Gutfahr’s calculated scheme not only exploited taxpayer money, but also undermined the integrity of public office,” said Assistant Director Chad Yarbrough of the FBI’s Criminal Investigative Division.
The case has drawn attention to the importance of safeguarding public funds and maintaining accountability in government offices. Special Agent in Charge Carissa Messick of the IRS Phoenix Field Office emphasized the agency’s commitment to investigating and prosecuting financial fraud at all levels. “IRS-CI agents are experts at following the money,” she said. “We will continue to root out fraud and hold those who steal from taxpayers accountable.”
Gutfahr will be sentenced in February 2025, and restitution to the county or other victims will be determined at that time.
“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.”
