Ex-treasurer in Arizona pleads guilty to embezzling $38 million

As the elected treasurer in Santa Cruz County, Arizona, for more than a decade, Elizabeth Gutfahr’s job was to safeguard public funds for one of the state’s smallest counties.

But while that money was meant for libraries, fire districts, schools and the like, Gutfahr siphoned off $38 million to acquire about two dozen vehicles — including Cadillacs and a Mercedes — buy real estate and renovate her family ranch, the Justice Department said this week.

Gutfahr, 62, who held the post from 2013 through early 2024, pleaded guilty in U.S. District Court in Tucson, Arizona, on Thursday to one felony count each of embezzlement by a public official, money laundering and tax evasion. She could face up to 35 years in prison when she is sentenced in February.

“We expect public officials to serve as stewards of the government — not to loot it,” Nicole M. Argentieri, head of the Justice Department’s Criminal Division, said in a statement.

Joshua Hamilton, Gutfahr’s lawyer, said in a statement that she wanted 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,” Hamilton said. “Today was just a step, albeit a major one, along the road toward redemption, and she will work to remain on that path for the rest of her life.”

Prosecutors said in court documents that Gutfahr embezzled and laundered the money by wiring funds from the county’s account directly to accounts in the name of companies that she had created solely to steal the county funds. She then wired the money from those business accounts to her personal account. In addition, federal officials said, she failed to pay income tax on more than $13 million of those stolen funds.

Santa Cruz County borders Mexico, and its population of 48,000 has a median income of about $52,000, according to the U.S. Census Bureau.

Before being elected treasurer in 2012, Gutfahr worked for a real estate and land development company, where she gained experience in accounting, according to court documents.

Gutfahr used about 187 wire transfers from 2014 to 2024 to complete her scheme, prosecutors said in court documents.

She was able to circumvent the two-step approval process for the wire transfers by using the token of another county employee for one of the steps, according to court records. That made it possible for her to both open a wire transfer and approve one.

To keep her embezzlement covered up, federal officials said, she falsified records.

In addition to the Cadillac and Mercedes vehicles, Gutfahr used the stolen money to buy Jeeps, Ford trucks and an Airstream travel trailer, according to prosecutors. She also paid to overhaul her family ranch with new plumbing, floors and electrical equipment, they said.

As part of her plea agreement, Gutfahr said that she would work with the government to repay the stolen funds, prosecutors said.

This article originally appeared in The New York Times.

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