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Elizabeth Gutfahr Ordered to Pay Over $51 Million in Restitution
TUCSON, Ariz. – Elizabeth Gutfahr, 63, of Rio Rico, Arizona, was sentenced on June 23, 2025, to 10 years in federal prison, followed by three years of supervised release, for embezzling over $38 million in public funds during her tenure as Santa Cruz County Treasurer. U.S. District Judge Rosemary C. Márquez also ordered Gutfahr to pay approximately $51.8 million in restitution to Santa Cruz County and the United States Treasury.
Gutfahr previously pleaded guilty to Embezzlement by a Public Official, Money Laundering, and Tax Evasion.
Abuse of Public Trust
From 2012 to 2024, Gutfahr exploited her elected position to carry out one of the largest public embezzlement schemes in Arizona’s history. According to court records, she orchestrated approximately 187 fraudulent wire transfers from county accounts to bank accounts held in the names of fake companies she created. These entities conducted no legitimate business.
Gutfahr bypassed the county’s two-step wire transfer approval process by misusing the security token of a subordinate, allowing her to both initiate and approve each transaction.
Lavish Personal Use of Public Funds
Investigators found that Gutfahr used the stolen funds to:
- Purchase real estate properties
- Renovate her family ranch
- Cover expenses for her cattle business
- Acquire at least 20 vehicles
She also falsified official accounting and investment records to conceal the theft and failed to report the embezzled funds on her tax returns.
Federal Response
“This sentence shows that abuse of public trust will be punished,” said U.S. Attorney Timothy Courchaine for the District of Arizona. “Ms. Gutfahr stole more than money—she betrayed the confidence of the voters who elected her.”
“Each act of greed and dishonor negatively affected fundamental aspects of the county’s operations,” said FBI Phoenix Special Agent in Charge Heith Janke. “We remain committed to identifying and pursuing those who violate the public’s trust.”
“Taxpayers deserve to know their elected leaders are working for the community, not themselves,” added Carissa Messick, Special Agent in Charge of IRS Criminal Investigation Phoenix Field Office. “Gutfahr violated her sworn duty.”
Investigation and Prosecution
The case was investigated by the Federal Bureau of Investigation (FBI) and the Internal Revenue Service – Criminal Investigation (IRS-CI). The prosecution was led by Assistant U.S. Attorney Jane L. Westby for the District of Arizona and Senior Litigation Counsel Nicholas W. Cannon from the Department of Justice’s Public Integrity Section.
Gutfahr’s prison sentence marks a significant accountability milestone in a case that has shaken public confidence in local government and underscores the federal commitment to prosecuting public corruption at every level.
