Santa Cruz County Ex-Treasurer Jailed 10 Years for $38 Million Theft

A federal judge sentenced former Santa Cruz County treasurer Elizabeth Gutfahr to 10 years in prison for orchestrating one of Arizona’s largest government embezzlement schemes. Gutfahr, who pleaded guilty to embezzlement, money laundering and tax evasion, will serve the terms concurrently. U.S. Marshals took her into custody immediately after the ruling. Prosecutors said Gutfahr carried out more than 180 fraudulent wire transfers over roughly a decade, diverting nearly $40 million in county funds. The judge described the crime as unprecedented, noting that the theft strained Santa Cruz County’s budget and undercut funding for schools and fire districts. The court ordered Gutfahr to pay more than $38 million in restitution and imposed three years of supervised release after her prison term. The 10-year sentence exceeds the range outlined in her plea agreement; the judge ruled an enhancement was justified because of the magnitude of the losses and ongoing impact on public services.