by Matthew Holloway | Nov 27, 2024 | News
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 senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.
by Matthew Holloway | Nov 26, 2024 | News
By Matthew Holloway |
With Democrat Commissioner Anna Tovar absent, the Arizona Corporation Commission (ACC) voted 4-0 vote on Friday to direct its Office of General Counsel to launch an investigation into alleged legal and ethical violations by Tovar.
The vote was conducted during a Staff Open Meeting and addressed specific allegations of ACC Code of Ethics and Arizona Administrative Code violations.
At the start of the meeting, Chairman Jim O’Connor said he couldn’t “help but share that I’m disappointed in Commissioner Tovar,” for not “hav(ing) the courtesy to show up,” after she reportedly indicated she would do so. “It’s very, very disappointing,” he added.
The Commission then entered into Executive Session for approximately thirty minutes before returning to the public-facing meeting.
Upon returning to the public meeting O’Connor announced, “It is with a deeply troubled heart that I will now make a motion to authorize our Office of General Counsel to undertake an official inquiry to determine whether Commissioner Tovar and her office staff have violated our code of ethics as amended to include the code of conduct, the Arizona State statutes, and the Arizona Administrative Code regarding: interference in and disclosure of confidential personnel-related information and whether she or her staff have harassed public servants of the State of Arizona employed here at the commission.”
He then directed General Counsel Tom Van Flein: “With respect to two things: that that would go back to include, the examination, all the way back to last year with respect to J.P. Martin in terms of potential harassment there, to investigate that. To do that expeditiously and return to the commission in ten days with a recommendation.”
According to Juan ‘JP’ Martin’s LinkedIn profile, he served as Legislative Liaison & Public Information Officer to the ACC from January to December 2023 before leaving the commission to become Deputy Communications Director to Arizona Secretary of State Adrian Fontes.
Van Flein said in a statement that the ACC Office of General Counsel will begin the investigation immediately and complete the inquiry on behalf of the Commission within ten days. This would put completion of the probe on or about December 2nd or 3rd.
Tovar, formerly an Arizona State Senator and Senate Minority Leader, announced in February that she would not seek reelection. She is due to step down from the Commission in January 2025.
Announcing her decision in a post to X at the time, Tovar wrote, “The current Corporation Commission needs a shake-up to gain renewed focus on actually serving the people of our State and that’s why I will not be seeking a second term on the Commission. I look forward to doing all I can to support candidates who will bring new voices and perspectives to this vital work.”
Tovar is the only Democrat presently serving on the commission. Along with current Chairman Jim O’Connor, she will be replaced by newly elected Republican commissioners Rene Lopez and Rachel Walden in January.
Before serving on the commission and in the Senate, Tovar served as a member of the Arizona House and Mayor of Tolleson after working as an educator.
AZ Free News reached out to Commissioner Tovar requesting comment, however, she did not reply by the time of publishing this article.
Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.
by Matthew Holloway | Nov 26, 2024 | Education, News
By Matthew Holloway |
A Chandler High School alum and co-captain of Utah State University women’s volleyball team, Kaylie Ray, has reportedly joined a lawsuit with others players from the University of Wyoming, San Jose State University (SJSU), the University of Nevada, and Boise State University.
The group is suing the Mountain West Conference (MWC) and its commissioner, claiming that the conference compelled them to compete with a biological male ‘transgender’ athlete, “stealth-edited its rules to stifle their free speech,” and violated the federal Title IX law.
According to Cowboy State Daily, the lawsuit comes after a San Jose University student, Blaire Fleming, was added to the team as an outside hitter. Fleming, a biological male, is now ranked as the top hitter on the team.
The outlet reported that four schools, in addition to the University of Wyoming, have canceled matches against the SJSU team after outcry from players and university community members expressing concerns over fairness and safety of the female players.
In the text of the lawsuit, the plaintiffs allege that the conference drafted a new rule “hastily,” to mark the cancellations as forfeited losses.
Attorneys for the plaintiffs wrote, “The burgeoning controversy, which Commissioner Nevarez apparently believed could lead women’s volleyball players and teams to exercise their constitutional rights to protest and boycott, caused the commissioner and her staff to hastily draft and post on the MWC website a policy designed to penalize First Amendment protests supporting the rights of women’s volleyball players in the MWC.”
They add, “This new MWC policy was clearly intended to chill and suppress the free speech rights of women athletes in the MWC.”
The players are represented by Attorney Bill Bock and the Independent Council on Women’s Sports (ICONS), who filed the suit in the U.S. District Court for Colorado. Bock told reporters in a statement, “The NCAA, Mountain West Conference, university presidents and college athletic directors around the country are failing women. Because the administrators don’t have the courage to do their jobs, we must ask the federal courts to do their jobs for them.”
Teammates of the ‘transgender’ player are also claiming SJSU defrauded them because they joined the school and the team without prior knowledge that they would be playing with, boarding at times, and competing for scholarships against a biological male. The plaintiffs also argue that their rights under the First 14th Amendments to the U.S. Constitution were violated, the right to bodily privacy, discrimination, retaliation, and viewpoint discrimination among others.
Fleming became the subject of national attention in October when he spiked the ball during a match, striking SDSU junior Keira Herron in the face with brutal force and knocking the player to the floor. “Keira Herron has some pink in her hair and her face is starting to look like she’s matching that as obviously she took the contact,” a broadcast announcer said in the now viral video.
In the complaint, a player named Brooke Slusser “estimates that Fleming’s spikes were traveling upward of 80 mph, which was faster than she had ever seen a woman hit a volleyball.” The complaint goes on to explain that, “The girls were doing everything they could to dodge Fleming’s spikes but still could not fully protect themselves.”
Women’s sports activist and college swimmer Riley Gaines shared video of Fleming’s spike in a post to X, writing, “Male player from San Jose State @SanJoseStateVB, Blaire Fleming, leads his team to victory against Iowa @IowaVolleyball. Look how high he jumps. Look at the speed of the ball. Not only is this unfair, it’s dangerous.”
Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.
by Matthew Holloway | Nov 25, 2024 | News
By Matthew Holloway |
An election reform plan to accelerate ballot processing and speed up official returns has been proposed by Maricopa County Supervisor Thomas Galvin. Galvin once defended Maricopa County’s botched elections but now asserts that procedural changes would make it possible for 95% of an election’s votes to be counted on election night.
The Supervisor believes that although it took over eleven days for all Arizona voting precincts to report their unofficial results in the 2024 election, Arizona can avoid future criticism by enacting what he dubs his 95/1 plan.
In a statement to The Center Square Galvin said, “Although the tabulation of early ballots and election day ballots were done in accordance with state law and within the normal timeframe of previous elections, there is growing concern from the public about the time it takes for Arizona to tabulate ballots and call contested races.”
“Since election day, I’ve had productive conversations with Republican leaders at the Arizona Legislature who agree sensible and practical changes are needed to speed up processing while also protecting the integrity of the early voting system that most Arizonans utilize.”
Galvin’s proposal would advance the current cutoff date for early ballot drop off to early polling places. At present, the law sets the deadline as the Friday prior to an election. In addition to the moving the cutoff date, Galvin proposes to close the emergency voting windows on the Saturday and Monday before Election Day, but allows the use of in-person voting. He has also proposed the use of government buildings to host polling locations.
He added in the statement, “By moving up the cutoff date for early ballot drop offs, using government buildings to host polling sites, and eliminate emergency voting for the Saturday and Monday prior to the election while allowing folks to vote in person, we can significantly speed up the process and have nearly 95% of ballots tabulated by election night.”
Galvin concluded, “I urge the Arizona Legislature to make my ‘95/1 Plan’ a top priority in 2025 and look forward to working with county and state leaders on these important reforms.”
In a post to X, Galvin directly called upon Arizona Governor Katie Hobbs to “work with the Arizona Legislature to make my “95/1 Plan” a top priority in 2025,” adding that “Arizona voters & elections workers deserve this reform.”
Pima County Supervisor Democrat Rex Scott expressed support for the proposal writing in a post, “I am grateful to my colleague @ThomasGalvin for putting these timely ideas forth. We may be from different parties and represent different counties, but we share the same concerns. When the new Legislature convenes in January, his proposals should be given serious consideration.”
Fellow Maricopa County Supervisor Mark Stewart also stood beside Galvin’s proposed reforms in a statement to X, “I stand with my colleague @ThomasGalvin in emphasizing the importance of efficient and transparent elections in Maricopa County. This is a standard we must meet, as anything less undermines public trust. I look forward to collaborating with my fellow supervisors @DebbieLesko, @KateMcGeeAZ , and Steve Gallardo, as well as our state legislators and governor, to advocate for legislation ensuring election results are finalized promptly after walk-up tallies are complete. Arizona can and should resolve election delays—our voters and the nation deserve a process that reflects both competence and integrity.”
When asked by KJZZ if she would support the proposal, Hobbs replied that she would veto any changes to the early voting deadline. “My line in the sand has been and will continue to be anything that makes it harder for Arizonans to vote is a no for me, and that includes the flexibility that we have with early voting.”
Galvin rejected the notion that moving the deadline would disenfranchise Arizona voters saying, “I think this would just have to be a shift in behavior among Arizona voters,” Galvin said. “But I think Arizona voters are very smart and will shift their behavior and react accordingly.”
Responding to concerns regarding emergency voting, Galvin said, “If you do want to vote in person before Election Day, you have to do it that weekend, but it has to be for emergency reasons and you have to sign a piece of paper attesting that you have an emergency,” he said. “It’s called emergency voting, so I just want to transition emergency voting to full in person.”
The idea to shift voting locations to government buildings proposed by Galvin actually mirrors a recommendation cited by KJZZ from Hobbs’ election task force in 2023. That recommendation led her to sign an executive order which authorized the use of state buildings for polling centers.
Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.
by Matthew Holloway | Nov 23, 2024 | News
By Matthew Holloway |
Arizona Republicans raised serious allegations Thursday around Democrat Gov. Katie Hobbs’ approval of a $700,000 upgrade of the state logo by Urias Communications, owned by the brother of Office of Tourism Director Lisa Urias. On Friday morning, the Governor’s office announced that Urias would resign. Hobbs told reporters, ”This appearance of conflict is not acceptable.”
Arizona State senator Jake Hoffman laid out his allegations in a lengthy post to X in which he cited a report from Arizona Agenda. The Agenda reported that the Arizona Office of Tourism spent a sum of $700,000 originating from COVID-19 federal relief funds “on 57 in-person and digital listening sessions across the state, not to mention the $27,500 that went to the brother of the CEO of Urias’ marketing agency. He helped work on the logo with a separate graphic design company.”
Hoffman wrote, “’And of all the artists in the state who could have drafted that logo, the contract just happened to go to one who has close ties to the Office of Tourism Director Lisa Urias’—her brother.”
Hoffman added, “Katie Hobbs continues to exploit her office, break the law, and take advantage of the people of Arizona. This is what it looks like when Democrats are in control of your government.”
Senator John Kavanagh, when briefed by the outlet, reportedly called the matter “clearly an ethical violation. Whether or not it’s a legal violation is another issue.”
According to the report from Arizona Agenda, Urias’ mandate upon taking office included the hefty rebranding of Arizona to include “elements of Arizona’s Native American cultures in the design.” To that end the Office of Tourism engaged the services of Urias Communications, a company that is still owned by the director, although she “doesn’t have any role in its day-to-day operations,” as claimed by the tourism department’s communications director Josh Coddington.
The outlet noted that the Office of Tourism under Urias is leveraging a tax-funded budget of $8 million to woo tourists to come to Arizona, adding, “The appointment seems to have been an economic driver for Urias Communications as well.”
The Agenda concluded, “But even if she isn’t involved with the day-to-day operations of the company that she founded, Urias seems to be financially benefiting from the state’s contract with her company at the same time she is pulling a salary from the state.”
The report added that over a year after Urias became Director of Arizona’s Office of Tourism, her firm went on to win a $250,000 five-year contract from the Arizona Department of Education. This led Hoffman to remark that Superintendent of Public Instruction Tom Horne “is wrapped up in this scandal too.”
However, Horne refuted this in a response posted to X saying “Senator, we paid $15K on an expiring 1-year contract with Urias. ADE does not, nor will it, have a $250K contract with Urias. Get your facts straight.”
Hoffman replied, “Public reporting says otherwise. Send the receipts to back up what you’re saying to my Senate office. Would be glad to find out the public reporting is wrong. Need the receipts though.” Horne followed up that the documentation had been sent to Hoffman’s office, even posting an image of the documentation. He added, “Documents are at your office. Unlike the Governor we don’t know Urias personally. Next time ask first.”
In a letter to Arizona Attorney General Kris Mayes and Maricopa County Attorney Rachel Mitchell, Majority Whip Sen. Teresa Martinez called for an investigation into the allegations. Within twenty-four hours, Urias’ resignation was announced.
Urias responded to the allegations in a statement Friday saying, “In light of the Senate Confirmation members making it clear they will not confirm me as Tourism Director—despite the recent allegations being untrue and unfounded—I have tendered my resignation to the Governor.”
Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.
