Santa Cruz County Treasurer Who Embezzled $38 Million to Be Sentenced June 18
Former Santa Cruz County Treasurer Elizabeth Gutfahr, who pled guilty last year to embezzling more than $38 million in public funds during her 12-year tenure, is now scheduled to be sentenced on June 18, 2025 at 2:30 p.m. in U.S. District Court in Tucson. Nogales is the county seat of Santa Cruz County.
Gutfahr, 63, was originally set to be sentenced on May 7, but a federal judge approved a continuance at the request of her attorney, Joshua Hamilton, to allow more time for a required presentence investigation and review of the related report. The continuance also gives the defense additional time to raise any objections prior to sentencing.
Deeply damaging scheme
The case stems from a long-running and deeply damaging scheme in which Gutfahr, who served as Santa Cruz County Treasurer from 2012 through 2024, diverted tens of millions in taxpayer funds into fake companies she secretly controlled. According to court records, she then funneled that money into her personal accounts — using the stolen funds to purchase real estate, renovate her family ranch, support her cattle business, and acquire at least 20 vehicles.
Other financial crimes
Gutfahr’s financial crimes also included money laundering and tax evasion, as she failed to report more than $13 million in stolen income to the IRS. The fraudulent activity involved at least 187 illegal wire transfers, made possible by her manipulation of Santa Cruz County’s internal controls. Prosecutors say she bypassed the county’s two-step wire approval process by misusing a colleague’s security token, allowing her to both initiate and approve transfers without oversight. She also falsified financial reports and reconciliation documents to conceal the missing funds.
Egregious breach of public trust
Federal prosecutors emphasized the egregious breach of public trust.
“We expect public officials to serve as stewards of the government fisc — not to loot it,” said Nicole M. Argentieri, Principal Deputy Assistant Attorney General of the U.S. Department of Justice.
“Gutfahr deliberately calculated a scheme to embezzle taxpayer dollars,” added Chad Yarbrough, Assistant Director of the FBI’s Criminal Investigative Division. “This breach of trust undermines the integrity of public office.”
Sentencing
Gutfahr pleaded guilty to one count of embezzlement, one count of money laundering, and one count of tax evasion. She faces up to:
- 10 years in prison for embezzlement,
- 20 years for money laundering, and
- 5 years for tax evasion,
along with full restitution to Santa Cruz County and any other victims.
Though out of custody pending sentencing, Gutfahr will learn her fate on June 18. The final sentence will be determined by a federal district judge in accordance with the U.S. Sentencing Guidelines and other statutory factors.
Largest case of public embezzlement
The case serves as one of the largest known cases of public embezzlement in Arizona history and continues to raise questions about financial oversight and accountability in county government(s). When someone can embezzle $38 million over 12 years and not get caught, something is very, very inexcusably wrong in the administration of the Santa Cruz county government. And if it occurred so blatantly in Nogales, perhaps it is time to look into the finances of all Arizona counties and cities to see how and where else public crimes may be.
Let the audits begin!
