By Matthew Holloway |

Former Santa Cruz County Treasurer, Democrat Elizabeth Gutfahr, pleaded guilty last week to charges that she embezzled and laundered approximately $38 million from Arizona taxpayers. Gutfahr, who served as County Treasurer from 2012 to 2024, also failed to pay income tax on over $13 million while serving in a position of public trust.

According to a press release from the Department of Justice (DOJ), Gutfahr embezzled and laundered the money while in office through a scheme of wiring funds form Santa Cruz County’s account directly to the accounts of various ‘shell companies.’ She had created the companies explicitly for the purposes of defrauding the county and ultimately transferring those funds to her personal bank account.

To say that Gutfahr’s use of the funds was blatant and extravagant may be an understatement. According to the DOJ she used the taxpayers’ millions to purchase real estate, renovate her family’s ranch, pay her company’s operating expenses, and buy at least twenty vehicles.

Court documents reveal that Gutfahr accomplished this feat through an astonishing series of about 187 wire transfers she “completed by subverting the two-step approval process for the wire transfers by using the token of a subordinate Santa Cruz County employee.” This method allowed her to both create and approve the transfers. The prosecution also revealed that to cover her tracks, “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.”

The head of the DOJ’s Criminal Division, Principal Deputy Assistant Attorney General Nicole M. Argentieri, said in a statement, “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. Today’s plea demonstrates yet again that the Justice Department remains committed to rooting out public corruption at all levels of government.”

“I wire transferred the Santa Cruz County funds from the County’s Savings Account and Checking Account for the purpose and as an essential part of carrying out the scheme to defraud to fraudulently obtain the funds for my personal use, all without authorization,” Gutfahr said, according to court documents cited by CNN. “I agree I owe restitution in the amount of $38,712,100.00.”

“These account names were materially false and fraudulent representations to intentionally conceal the fact that I was wire transferring Santa Cruz County funds to my Wells Fargo and BMO Accounts to embezzle the County’s funds,” Gutfahr stated per the terms of her plea agreement.

In a statement to KGUN9, Gutfahr’s attorney wrote, “Liz Gutfahr wants to take responsibility for the harm she has caused to Santa Cruz County. She knows that by pleading guilty, and accepting the punishment she will face as a result, she is taking a step in the right direction to be accountable for her actions. Today was just a step, albeit a major one, along the road to redemption, and she will work to remain on that path for the rest of her life.”

The disgraced Democrat pleaded guilty to one count of embezzlement by a public official, one count of money laundering, and one count of tax evasion. Her sentencing has been scheduled for Feb. 6, 2025, and she could face up to ten years in prison for embezzlement, 20 years for money laundering, and another five for tax evasion. All told, she could face 35 years in prison. Gutfahr will also be required to pay restitution to the county as well as tax penalties. However, as reported by KGUN, a court-appointed receiver working to sell off real estate and property reported the courts may only be able to recover about one-third of the loss. She has also been sued in civil court by Santa Cruz County in an attempt by the county to recover the funds.

Gutfahr was released on her own recognizance pending sentencing but is prohibited from leaving the state of Arizona without prior clearance from the court.

Matthew Holloway is a reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.