Federal Judge Rosemary Marquez sentenced the former Santa Cruz County Treasurer, Elizabeth Gutfahr, to ten years in federal prison, to be followed by three years of supervised probation on June 23. Gutfahr, who is 63, had previously pleaded guilty to embezzling more than $38 million, money laundering and tax evasion.
It had been reported that defense and prosecuting attorneys had agreed to a sentence of 5½ – 6½ years. Still, Marquez decided to impose a stiffer sentence than the one agreed upon by the attorneys.
“I sentence people every day, [who are] fighting for their lives, their food, their medication, feeding their kids, and I consider their needs. Nothing in your background that I read through would explain this,” Marquez said, addressing Gutfahr. “I have to consider the families that had to live without these funds.”
Joshua Hamilton, Gutfahr’s attorney, described his client as a woman with a low IQ, severe depression and severe anxiety. Gutfahr, who walked slowly and appeared to have lost considerable weight, looked dejected and frail. In her statement, she asked for forgiveness. “I just want to end this with a huge apology to all,” she said.
The government’s attorney responded to Hamilton’s remarks, saying, “The only thing she’s depressed about is losing her way of life.”
Santa Cruz County District 2 Supervisor Rudy Molera addressed the court, the only witness called by the prosecution at the sentencing hearing. “We ask for the maximum sentence to be given,” he said. “Anything less would only compound the devastation and hurt the people suffered.”
He went on to add, “She’s acting like an elderly lady, not knowing what she is doing. It’s an act. It’s all an act…I know she’s going to speak about her involvement in the Catholic church and other charities. It’s all an act.”
“We’re glad this day is here, regardless of the outcome,” said Santa Cruz County Manager Jesus Valdez. “Our goal is to continue to recover the stolen funds.”
Santa Cruz County District 3 Supervisor John Fanning, who is on vacation out-of-state, did not respond to a call from the PRT.
Of the $38 million stolen, the County has recovered $5.9 million to distribute to districts impacted by Gutfahr’s embezzlement.
Local districts that have felt the impact of Gufahr’s embezzlement include the Patagonia Union High School (PUHS), Patagonia Elementary and the Sonoita School District, as well as the Sonoita Elgin Fire Dept.
As of June 23, the districts were waiting to see their share of the recovered money be posted to their accounts. PUHS, which lost $698,000, was expecting to see $103,000. Patagonia Elementary lost $454,000 and hoped to see $67,000 hit their account, according to School Superintendent Kenny Hayes. He questioned the defense’s argument that Gutfahr shouldn’t have been in that position [County Treasurer]. “Ignorance doesn’t protect you from the law,” he said.
Sonoita Superintendent Dan Erickson reported that $454,000 was stolen from Elgin Elementary, and that they were told that $67,000. “I think she is getting off easy,” Erickson said. “She has caused all kinds of havoc, and it’s continuing. We’re still trying to recoup funds and make sure the kids have the money available for their education that they deserve.”
The Sonoita Elgin Fire District, which had $34,100 stolen, will see $2,538 in their account, according to Chief Marc Meredith.
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